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Community Development Block Grant Awards Announced  SubTitle  3/15/2005

Divisions: Local Government
Programs: Community Development Block Grants
Area:

Washington State Department of Community, Trade and Economic Development

FOR IMMEDIATE RELEASE

 
Date:                March 15, 2005
 
Contact:           Steven K. Washington, Managing Director, Community Development Programs, 306.725.3005
Dan Riebli, Community Development Block Grant Program Manager, 360.725.3017
Michelle Zahrly, Communications Director, 360.725.4019
                       
Community Development Block Grant Awards Announced
 
Olympia, WA - The Washington State Department of Community, Trade and Economic Development (CTED) today awarded more than $6.6 million in Community Development Block Grants (CDBG) to 12 cities, towns and counties in the state. (List follows)  The projects were selected from 40 applications collectively requesting over $26 million.  Since the state began operating the CDBG program in 1982, more than $299 million has been distributed to jurisdictions for 961 community development projects that benefit primarily low- and moderate-income people in the areas of Washington.  The state's program serves counties with less than 200,000 in population and cities under 50,000 in population; larger cities and counties receive their own entitlements.  The total CDBG award to the state and local governments in Fiscal Year 2005 is almost $68 million.  The state program award for 2005 is $17.3 million.
 
The Washington State CDBG Program supports local leadership and grassroots efforts to responsibly address the wide range of prioritized needs of lower income communities by providing gap funding to rural communities that have limited access to resources.  CDBG grants help finance the construction of water, sewer, streets and other local infrastructure; community facilities such as health centers and childcare centers; housing rehabilitation projects for low-income households; loans and technical assistance to local micro-enterprises; public service grants; and the development of plans and studies aimed at enhancing the success of future projects.  Funding for the selected projects comes from the U.S. Department of Housing and Urban Development and is administered by CTED.
 
The President's budget is proposing to consolidate 18 federal programs, and eliminate the Community Development Block Grant (CDBG) Program, effective with the 2006 federal budget.  The 18 programs, funded at a $5.8 billion dollar level in 2005, are proposed to be replaced by a new "Strengthening America's Communities" (SAC) initiative within the U.S. Department of Commerce funded at $3.71 billion.  This would effectively reduce federal funding for community development by over 33 percent.  Bipartisan members of congress are working to retain CDBG within the U.S. Department of Housing and Urban Development.
 
Karl Heinicke, Mayor of South Bend in Pacific County states: "Recent news reports regarding drastic cuts or total elimination of CDBG funding have created a frightening specter in cities large and small.  As Mayor of South Bend, I cannot begin to imagine a city of our size, some 1,700 citizens, surviving without CDBG funding.  Examples of recent aid we have received are:
§         $859,000 towards a new micro-filtration water facility;
§         $250,000 for relining and re-covering our potable water reservoir;
§         $  24,000 to complete a comprehensive water system plan; and 
§         Recently the city has applied for grants of $35,000 for a general sewer facilities plan and $382,000 for low to middle income side-sewer laterals replacement.
Unless the powers to be wish to see cities of our size plunge into bankruptcy, programs such as CDBG must be retained."
 
In 2004 the Washington State CDBG Program distinguished itself nationally by improving its ratio of unexpended funds by more than any other state.  One year ago Washington's program ranked number 13 out of the 50 states for getting its CDBG money into communities quickly.  In January 2005 the state improved its ranking to 7th in the nation.  This was accomplished in part by increasing the level of funding to cities, towns and counties throughout the State of Washington. 
 
CTED is the lead state agency charged with enhancing and promoting sustainable community and economic vitality in Washington State.  For more information, please visit www.cted.wa.gov.
 
LIST OF 2005 CDBG
GENERAL PURPOSE GRANT AWARDS
 

Jurisdiction
Project Type
Amount
 
 
 
City of Brewster
Sewer System Improvements
$610,600
Clallam County
Hospital Rehabilitation
$895,000
Town of Cusick
Community Park
$98,584
Grant County
Water System Improvements
$110,000
City of Kittitas
Sewer System Improvements
$1,000,000
Klickitat County
Sewer System Improvements
$1,000,000
City of Mabton
Water System Improvements
$480,000
City of Mesa
Water System Improvements
$1,000,000
City of South Bend
Sewer Service Line Replacement for LMI* Households
$382,000
City of Sumas
Electrical Meter Installation
$45,780
Thurston County
Construct Homeless Shelter & Transitional Housing
$890,000
City of Vader
Sewer System Improvements
$154,000

 
* low- and moderate-income
 
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