Cleveland will get $27.9 million in federal money this year for housing and neighborhood development. City officials had worried that the annual community grants that pay for dozens of city and nonprofit jobs might be reduced or cut by President Donald Trump’s administration. Last year the city received $28.3 million.
Last month, the Bibb administration issued a warning to nonprofits that receive federal dollars through City Hall. The mayor urged nonprofit leaders not to assume that their contracts with the city would be renewed as usual, given the risk of federal cuts.
City Hall also uses its HUD money to pay around 80 city employees. If the money had been cut, their paychecks might have been on the line.
Wednesday’s official notice to Mayor Justin Bibb in a letter from the U.S. Department of Housing and Urban Development appears to have put those fears to rest – for now.
“After months of uncertainty and concern over potential cuts to this critical federal funding source, we are both relieved and appreciative that CDBG support will continue at nearly the same level,” city spokesperson Jorge Ramos Pantoja wrote in a text message. “These funds are essential to maintaining the programs and services that strengthen our neighborhoods and improve quality of life for residents. We remain committed to this important work, in close collaboration with our community partners.”
The federal government’s letter to Bibb said HUD Secretary Scott Turner was committed to lowering costs by expanding the supply of housing.
“The nationwide shortage of rental and owner-occupied properties and the current rate of construction has not kept pace with the demand,” the letter reads. “This lack of adequate housing supply leads to higher prices for renters and homebuyers alike, forcing some into homelessness and preventing countless Americans from becoming homeowners.”
The future of the federal government’s housing aid is uncertain. Trump’s budget proposal, unveiled this month, calls for eliminating programs that make up the bulk of the $28 million in HUD assistance that Cleveland is receiving this year.
Among the programs proposed for elimination is the $3.3 billion Community Development Block Grant program. Cleveland is receiving almost $19.5 million in CDBG funds this year.
Trump’s budget proposal calls the CDBG program “poorly targeted,” saying it has been used for projects — such as a brewery and skateboard parks — that the federal government should not fund. The budget also calls for ending the HOME Investment Partnerships program, which is sending almost $4.3 million to Cleveland this year.
For now, those cuts are merely proposals before Congress.
