The U.S. Department of Housing and Urban Development (HUD) has released its Fiscal Year 2024 (FY24) formula allocation amounts for the Office of Community Planning and Development’s (CPD) formula programs. These programs, which include the Community Development Block Grant (CDBG), HOME Investment Partnerships (HOME), Emergency Solutions Grants (ESG), and Housing Opportunities for Persons With AIDS (HOPWA) programs, provide critical funding to state and local governments to address housing, community development, and homelessness needs.
Key Highlights:
Overall Funding Levels:
- CDBG Program: $3.3 billion
- HOME Program: $1.3 billion
- ESG Program: $290 million
- HOPWA Program: $454 million
Notable Changes from FY23:
- There were decreases in funding for CDBG ($6 million) and HOME ($200 million), an increase of $5 million for HOPWA, and ESG remained flat.
- The $200 million reduction in funding for the HOME program is likely to impact efforts to support affordable housing development, with the potential redirection of these funds remaining unspecified. This cut may primarily affect administrative capacities, underscoring the need for increased efficiency in the utilization of available resources.
Impact on Communities:
- The CDBG program funds will support affordable housing, anti-poverty programs, infrastructure development, and job creation initiatives in communities across the country.
- The HOME program allocations will help states and localities expand the supply of affordable housing through new construction, rehabilitation, and homebuyer assistance.
- The ESG program funding will provide essential services and emergency shelter to individuals and families experiencing homelessness.
- The HOPWA program allocations will assist in meeting the housing and supportive service needs of low-income persons living with HIV/AIDS and their families.
Distribution Methodology:
- The allocations are determined by formula, based on factors such as population, poverty rates, housing conditions, and other data sources specified by applicable program statutes.
Click here for more info on the CDBG Allocation Process.
Next Steps:
- HUD will issue individual grant agreements to eligible state and local grantees outlining their specific allocation amounts and program requirements.
- Communities will develop and submit their consolidated plans and annual action plans to HUD, outlining their proposed use of these funds.
“A coordinated whole-of-community approach is crucial to build strong and resilient communities, invest in decent housing, create healthy environments, expand economic opportunities accessible to low-income households, and support aspiring homebuyers and those experiencing homelessness,” said Acting HUD Secretary Adrianne Todman. “The funding made available today serves as building blocks to empower communities to take ownership of community development investments and put the needs of residents first.”
The FY24 CPD formula program allocations underscore the federal government’s commitment to addressing community development, affordable housing, and homelessness challenges. State and local governments can leverage these funds to implement tailored strategies that meet the unique needs of their communities.
