The Twin Cities-based Star Tribune reports the impact of the potential loss of community development block grant funds in Minnesota’s Dakota County—funds that have gone to finance neighborhood programs for more than a quarter century there.
The impact could be felt in towns and cities across the country as the president’s budget proposes $300 million in cuts to CDBG. And while the threat to zero out the program is not necessarily new, the Republican-controlled House has set out on a much more aggressive path, worrying localities that have relied on these grants, as reported in the Star Tribune piece:
“Over the years, we’ve come to rely on it quite heavily,” said Jim Hartshorn, community development director for West St. Paul. “It’s a good program, especially in a town like this where there is a lot redevelopment.”
In the 2010 fiscal year, the county received about $1.9 million through CDBG. Most of the funds are used for housing rehabilitation programs. Rehab programs such as the one in West St. Paul help low-income residents get loans to improve their homes. The program in West St. Paul helps give out about 16 loans per year, Hartshorn said.
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