Since 1974, the Community Development Block Grant program has been one of the most critical federal resources for affordable housing, community development, infrastructure, and disaster recovery. LISC’s Mark Kudlowitz shares LISC’s long history of utilizing the program in partnership with our community-based partners and what’s needed from Congress to strengthen the program for the future.
Fifty years of Community Development Block Grant (CDBG) funding has enabled millions of families to achieve housing stability, supported economic development, delivered critical public services, and strengthened communities after disasters. As we celebrate this milestone anniversary, it is worth taking a moment to reflect on the program’s significant impact and look ahead to how it can continue to support communities.
Enacted by Congress under the Housing and Community Development Act of 1974 and administered by the U.S. Department of Housing and Urban Development (HUD), CDBG ushered in a new era in community development by providing states and localities with greater discretion to address their unique needs.
The CDBG program is the foundation of efforts to create more opportunities, build stronger communities, and promote wealth-building for low-to-moderate income (LMI) populations. Its flexibility allows funds to be used for various projects, including infrastructure, affordable housing, economic development, public services, and disaster recovery. These investments are crucial to fostering equity, and enhancing the quality of life in rural, urban, and suburban communities across the nation.
Impact on Local Communities
Federal investments through CDBG play a pivotal role in enhancing local community development projects. These investments expand low-income families’ access to opportunities, revitalize neighborhoods, attract businesses, create jobs, and broaden access to resources for all residents.
LISC has delivered CDBG funded activities in collaboration with our local partners on the full array of affordable housing and community development needs. For example, LISC’s work with the City of Indianapolis led to the creation of the Microenterprise Navigator Program, which to date has supported 600 microenterprises owned by low-income individuals, particularly entrepreneurs of color and immigrant-owned businesses, by providing technical assistance and training.
CDBG is also a critical affordable housing resource that supports homeownership and affordable rental housing. Since 2005, nearly 1.8 million households have directly benefited from the program through investments that support affordable housing development, housing counseling, home repair, and down payment assistance.
LISC has utilized CDBG resources primarily for home repair programs for underserved families, addressing a critical need given the scarcity of other federal funds for home rehabilitation. Since 2015, LISC Detroit has implemented the 0% Interest Home Repair Loan Program. The program provides 10-year, no interest loans to eligible Detroit homeowners ranging from $5,000 to $25,000. This initiative helps complete essential home repairs and resolve health and safety issues, such as lead contamination. By leveraging CDBG funds with private capital, this public-private partnership has supported over 768 homeowners.
Similarly, LISC Memphis has utilized CDBG resources to create the Homeowner Empowerment Loan Program (901 HELP). LISC anticipates expanding these successful CDBG-supported home repair programs to other local LISC program offices, ensuring broader support for families in need.
LISC also supports the delivery of the CDBG program through technical assistance partnerships. LISC Civic Solutions provides comprehensive technical assistance and capacity-building activities nationwide to enhance community development and drive civic innovation. For instance, LISC collaborated with HUD through the Community Compass Program to develop trainings for local governments and community organizations on how to utilize the CDBG Section 108 Loan Guarantee program. By leveraging the experience of LISC and our partners, we empower local governments to carry out impactful projects.
Disaster Recovery and Resilience
CDBG funds are also vital for long-term recovery efforts following disasters. The CDBG-Disaster Recovery (CDBG-DR) program provides essential resources for rebuilding and enhancing resilience to future disasters.
LISC has supported multiple communities with this work and launched the Harvey Jobs Initiative through our LISC Houston office. This program connected clients from LISC Financial Opportunity Centers to living wage jobs created by the disaster recovery work, demonstrating the program’s ability to support communities in times of crisis and as they rebuild.
Additionally, in Puerto Rico, LISC has worked closely with municipalities such as Coamo, Guánica and Yabucoa to provide comprehensive technical assistance and capacity-building to help them navigate the complexities of CDBG-DR funding. This support included developing tailored policies and procedures, offering tools and templates, and enhancing staff capacity to manage and implement disaster recovery projects effectively which aided in their recovery and resilience-building efforts.
Advocating for Robust Investment
CDBG is one of LISC’s top federal policy priorities. Despite its importance to the communities throughout the country, CDBG has faced critical underfunding in recent years, leaving program grantees with insufficient resources to meet local needs. LISC and our partners urgently call on Congress to significantly increase funding for this essential program.
LISC also supports the bipartisan Reforming Disaster Recovery Act, which if passed, would permanently authorize CDBG-DR, speeding up the deployment of funds and ensuring equitable allocation of disaster recovery resources. Moreover, HUD’s recent proposed rule to streamline the CDBG program promises to enhance its efficiency and equitable impact.
As we look to the future, it is critical for Congress to ensure that the CDBG program is adequately positioned to meet evolving community needs. Robust investment in CDBG will foster inclusive economic growth and build resilient, thriving communities.
About The Author
Mark Kudlowitz, Senior Policy Director
Mark advocates for federal policies which support multiple LISC national programs, including: Affordable Housing, Rural Development, and Transit Oriented Development. Before LISC, Mark worked as the Policy Director of the U.S. Department of Housing and Urban Development’s Office of Multifamily Housing Programs and also worked for over seven years at the Community Development Financial Institutions Fund at the U.S. Department of the Treasury. Mark managed affordable housing and community development programs at the District of Columbia’s Department of Housing and Community Development and held multiple positions at the Housing Assistance Council, a national rural affordable housing organization. Mark earned his B.A. from the University of Florida and M.S.W. from the University of Michigan.