Appropriations: Department of Housing and Urban Development (HUD)

Community Development Block Grant (CDBG)
CDBG provides funding for grants for a variety of economic development activities, including affordable housing development. HFH requests $4.13 billion in funding for 2008. The President’s 2008 budget proposes $2.968 billion for CDBG, a 25 percent cut in funding from the 2007 level of $4.13 billion. In previous years CDBG funding has experienced a steady decline with appropriation levels at $4.93 billion in 2004, $4.70 billion in 2005, and $4.18 billion in 2006.

Home Investment Partnerships (HOME) Program
The HOME program is a federal block grant to state and local governments that provides funding for predevelopment, land acquisition, construction, and rehabilitation costs of creating affordable housing. HFH requests $2 billion for HOME in 2008. The President’s 2008 budget requests $1.97 billion for HOME, a $50 million increase over his 2007 budget request. HOME appropriations have gradually increased closer to the 2004 level of $2 billion with funding set at $1.75 billion in 2006, $1.92 billion in 2007, and now a requested $2 billion in 2008.

Self-Help Homeownership Opportunity Program (SHOP)
The SHOP program provides grants to national and regional non-profit organizations that provide funding to purchase land and provide infrastructure for the construction of homes for low-income families. HFHI requests $39 million in SHOP appropriations. The President’s 2008 and 2007 budgets requested $39 million for the SHOP program, a 100 percent increase from the 2006 funding level. This increase reversed the pattern of decreased SHOP funding in previous years in which appropriations were set at $26.8 million in 2004, $24.8 million in 2005, and $19.8 million in 2006, and $19.8 million in 2007.

Capacity Building for Community Development and Affordable Housing
As part of the SHOP program, HUD provides funds to develop the capacity and ability of nonprofit organizations in community development and affordable housing projects. For FY 2006 and 2007, HUD capacity building received $30 million appropriations. For FY 2007, Capacity Building funds have yet to be allocated by HUD. In FY 2006, HFHI received $3.5 million and $5 million in 2005. The President’s FY 2008 budget sets aside $30 million in capacity building funds for Enterprise Community Partners and Local Initiatives Support Corporation (LISC), but does not allocate money for HFHI. For FY 2008, HFHI requests increased funding for all authorized capacity building recipients currently receiving allocations, with HFHI funding restored to its 2005 level of $5 million. HFHI uses capacity building funds to support technical assistance and training programs, to provide 3-year grants to affiliates to assist in the hiring of high-impact staff, and to set up ReStores and construction warehouses.