HUD recently released Community Development Block Grant Program (CDBG) and HOME Investment Partnership Program formula allocations for FY 2013. The FY 2013 Continuing Resolution (CR) provides $3.07 billion in CDBG formula funding and does not include a set-aside for disaster recovery grants as was included in the FY 2012 CR. After the mandatory reductions due to sequestration and an across-the board recession, the result is a 4.4% increase in CDBG formula national funding levels from FY 2012 to 2013. However, the agency notes that CDBG grantee may see fluctuations in allocations because beginning in FY 2012, HUD begun using American Community Survey (ACS) demographic data as the source for computing formula allocations which will cause allocations to fluctuate due to fluctuation in ACS data. HUD has posted a new, interactive map tool on its website to illustrate the effects of the new data on individual grantees’ FY 2013 CDBG allocations.
In addition, HUD also noted that FY 2013 HOME program allocations was reduced by 5.1 percent due to sequestration and then by another 0.2 percent as a result of an across the board rescission. This resulted in an allocation of $964 million, which also includes nearly $17 million added back into the formula by HUD from funds recaptured from participating jurisdictions that failed to meet HOME deadlines. HUD notes that most PJs (426, 66 percent) experienced a decrease in their HOME allocation for FY 2013 due to sequestration; however many PJs’ (209 or 33 percent) allocations actually increased due to the use of ACS data.