HUD ANNOUNCES FINAL FY 2011 BLOCK GRANT ALLOCATIONS IN TEXAS …$298,510,651 to support community development and affordable housing

WASHINGTON – The U.S. Department of Housing and Urban Development today announced the final Fiscal Year 2011 block grant allocations to approximately 1,200 state and local governments
under the Community Development Block Grants (CDBG), HOME Investment Partnerships (HOME),
Housing Opportunities for Persons with AIDS (HOPWA), and the Emergency Shelter Grant Program
(ESG). Read more about the block grant funding to be allocated within Texas.

The FY2011 Continuing Resolution significantly reduced funding for the CDBG and HOME
programs compared to last year. The CDBG overall funding was reduced by more than $600 million or
approximately 16.5 percent while the HOME program funding was reduced by more than $200 million or
approximately 11.7 percent.

“These programs are absolutely critical to communities all across this country,” said HUD
Secretary Shaun Donovan. “The 2011 budget agreement required tough choices, and we would not have
made many of them in better circumstances, but beginning to live within our means is the only way to
protect those investments that will help America win the future and compete for new jobs. As we work
under the challenges of our nation’s deficit, we must also understand that these programs are absolutely
essential in promoting community development, producing affordable housing, helping our homeless and
even supporting long-term disaster recovery.”

HUD’s FY 2011 formula-based block grant programs include:

$165,344,690 million in Community Development Block Grant (CDBG) funds;
$104,520,514 million in HOME Investment Partnerships (HOME) funding;
$ 11,184,067 million in Emergency Shelter Grant (ESG); and
$ 17,461,380 million for Housing Opportunities for Persons with AIDS (HOPWA).
$ 298,510,651 TOTAL

Since 1974, HUD’s Community Development Block Grant (CDBG) Program has provided
approximately $132 billion to state and local governments to target their own community development
priorities. The rehabilitation of affordable housing and the improvement of public facilities have
traditionally been the largest uses of CDBG although the program is also an important catalyst for job
growth and business opportunities. Annual CDBG funds are distributed to communities according to a
statutory formula based on a community’s population, poverty, and age of its housing stock, and extent of
overcrowded housing.

HOME (HOME Investment Partnerships Program is the largest federal block grant to state and
local governments designed exclusively to produce affordable housing for low-income families. Since
1992, HOME has produced 381,883 rental units, assisted 428,373 homebuyers, rehabilitated 197,780
owner-occupied units, and helped 242,768 tenants. In the past two decades, HOME produced more than
one million homes for low income families. HOME funding is cost-effective, leveraging nearly $4 in
other investments for each HOME dollar spent.

Emergency Shelter Grants (ESG) provides homeless persons with basic shelter and essential
supportive services. It can assist with the operational costs of the shelter facility, and for the
administration of the grant. ESG also provides short-term homeless prevention assistance to persons at
imminent risk of losing their own housing due to eviction, foreclosure, or utility shutoffs. HUD will
allocate ESG funds in a two-stage process: (1) $160 million will be immediately allocated under the
existing Emergency Shelter Grants regulations; and (2) at least $65 million will be allocated once HUD
publishes the new Emergency Solutions Grant regulations.

HUD’s Housing Opportunities for Persons with AIDS (HOPWA) grants are distributed to states
and cities based on the number of AIDS cases reported to the Centers for Disease Control and Prevention.
The grants provide resources for operating community residences and providing rental assistance and
support services to individuals with HIV/AIDS and their families. In addition, the HOPWA program
also helps many communities develop strategic AIDS housing plans and fill in gaps in local systems of
care. A stable home environment is a critical component for low-income persons managing complex drug
therapies and potential side effects from their treatments.

HUD is instituting several important program priorities in the upcoming year. First, the
Department’s consolidated planning process will be enhanced. Largely unchanged since the mid-1990s,
the ‘Con Plan’ will be simplified by integrating HUD’s technology systems and eliminating the need
to prepare a separate annual performance report. Second, HUD’s Office of Community Planning and
Development is moving rapidly to implement its unified OneCPD technical assistance process which is
particularly important as many local governments continue to struggle with budgetary pressures resulting
from the economic downturn. Finally, HUD is again urging grantees to consider the needs of returning
veterans and their families in the design and administration of these formula programs.

Read HUD’s new approach to its block grant programs.

HUD’s mission is to create strong, sustainable, inclusive communities and quality affordable homes for
all. HUD is working to strengthen the housing market to bolster the economy and protect consumers;
meet the need for quality affordable rental homes: utilize housing as a platform for improving quality
of life; build inclusive and sustainable communities free from discrimination; and transform the way
HUD does business. More information about HUD and its programs is available on the Internet at
www.hud.gov and espanol.hud.gov.

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