Reduced appropriations—based on the appropriations bill passed last month by Congress—will mean significant decreases in funding for many communities who rely on Community Development Block Grant (CDBG) and HOME grants. Both programs have provided funds for a range of Vermont activities, including development and renovation of affordable housing.
Vermont's allocation of CDBG funds will fall by 8% during the FY 2012 and it's HOME funds will fall by 11%.
As the state's largest city, Burlington also receives an allocation of these funds. Burlington's allocation of CDBG funds will fall by 23% during FY 2012 and it's HOME funds will fall by 29%. In addition to the effects of the across-the-board funding cuts, new Census data reduced the allocation for which Burlington was eligible since awards are based on a formula that considers population growth.
Together, the decline in CDBG and HOME funds translates to a loss of $1.2 milllion in federal funds for Vermont projects. An application for special CDBG funds to help pay for Vermont's recovery from Tropical Storm Irene is pending.