LTC 023-2012 HUD FY 2012-2013 Allocations MIAMI BEACH - IV -
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OFFICE OF THE CITY MANAGER 2012 JA
NO. LTC # 023 -2012 LETTER TO COM RON9:51
To: Mayor Matti Herrera Bower and Me)bers of the C Commission
FROM: Jorge M. Gonzalez, City Manager
DATE: January 24, 2012
SUBJECT: HUD FY 2012/13 Allocations for Community Development Block Grant
(CDBG) and HOME Investment Partnership
This Letter to Commission is provided to inform you that the City's FY 2012/13 HUD entitlement
allocations for CDBG and HOME were reduced by 42% and 55 %, respectively, from last year's
allocations. On January 17, 2012, the City received a letter from US HUD informing us of the FY
2012 allocations for the CDBG and HOME programs.
On November 18, 2011, the President signed the "Consolidated and Further Continuing
Appropriations Act, 2012," which established HUD's budget for FY 2012. In addition, the
"Redistribution Effect of Introducing 2010 Census and 2005 -2009 American Community Survey
Data into the CDBG Formula" had a major impact on the entitlement funding formula. According
to a 127 -page report prepared for the U.S. Department of Housing and Urban Development
Office of Policy Development and Research, "Miami Beach and Miami -Dade County lose
significant amounts of CDBG funding, mainly due to their decreasing shares of poverty and
overcrowded units." According to the Report, poverty declined 41.6% and overcrowding declined
37.4% in our City.
The following table shows the recent history of CDBG and HOME allocations.
% Difference
2010 2011 2012 from 2011 to
2012
CDBG $1,877,485 $1,572,412 $909,737 -42%
HOME $1,254,418 $1,101,411 $490,403 -55%
The reduced allocations will mean significant decreases in expected formula funding levels for
many City of Miami Beach grantees, including programs administered directly by the City of
Miami Beach, and the City's ability to administer the overall progams. The reductions will make
FY2012 a difficult period of adjustment for the City and its traditionally funded public service and
affordable housing providers. The Administration will continue to maximize limited staff and
financial resources to provide decent housing, a suitable living environment, and expanded
economic opportunities to the residents of Miami Beach, as stated in the City's Five Year
Consolidated Plan in compliance with the HUD national objectives for entitlement communities.
If you qaye any questions or need additional information, please do not hesitate to contact me.
JMG /H AP /BG