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Fiscal Year 2013 CDBG and HOME Program Formula Allocations

Fiscal Year 2013 CDBG Program Formula Allocations
The Community Development Block Grant Program (CDBG) experienced a net increase in funding from FY 2012 to FY 2013. The FY 2012 HUD appropriations law directed that $300 million of the CDBG funding appropriation be allocated for disaster recovery; this reduced the funding available for formula distribution in FY 2012 to $2.94 billion. That set-aside for disaster recovery grants did not carry over to the FY 2013 Continuing Resolution, which provided $3.07 billion for CDBG formula funding. After the mandatory reductions due to sequestration and an across-the board recession, the result is a 4.4% increase in CDBG formula national funding levels from FY 2012 to 2013.  
However, not every CDBG grantee will see a 4.4% increase. Beginning in FY 2012, HUD uses Census Bureau American Community Survey (ACS) data as the source for most demographic data in computing formula allocations. ACS data is updated annually and is based on five year weighted average data, so every grantee's formula demographics will change every year as a new year’s data is introduced. The FY 2012 allocations were computed using 2005-2009. The FY 2013 allocations are computed using 2006-2010 ACS data, which relies on the Census 2010 counts as new weights for estimating the CDBG formula variables. The slight increase in funding ameliorates some of the effects caused by introducing new data. However, some CDBG grantees will see increases of more than 4.4% in their FY 2013 funding, while others will see a smaller increase or even a decrease.
HUD has posted a new, interactive map tool on its website to illustrate the effects of the new data on individual grantees’ FY 2013 CDBG allocations. Viewers can click on any CDBG Entitlement jurisdiction in the country to see how each jurisdiction’s grant changes from replacing the 2005-2009 ACS data with newer 2006-2010 ACS data into the CDBG formula. This page also provides answers to Frequently Asked Questions about the use of ACS data in the CDBG program formula. HUD’s 2011 report, “Redistribution Effect of Introducing 2010 Census and 2005–2009 ACS Data into The CDBG Formula,” provides further information on how the CDBG formula works and on the initial effects of introducing ACS data into the formula in FY 2012.

Fiscal Year 2013 HOME Investment Partnerships Program Formula Allocations
The FY 2013 HOME appropriation of $1 billion was reduced by 5.1 percent due to sequestration and then by another 0.2 percent as a result of an across the board rescission. The result was a HOME formula amount of $947 million. However, nearly $17 million was added back into the formula from funds recaptured from participating jurisdictions (PJs) that failed to meet HOME deadline requirements or that requested voluntary grant reductions in lieu of repayment for ineligible activities. Therefore, the HOME formula was run at $964 million. For FY 2013, there are 641 HOME PJs comprised of 52 states, 4 Insular Areas, and 585 local PJs including 142 consortia.
Most PJs (426, 66%) experienced a decrease in their HOME allocation for FY 2013 due to sequestration; however many PJs’ (209 or 33%) allocations actually increased due to the use of 2006-2010 ACS data, which is weighted on the 2010 Census population and household numbers. In FY 2012, HUD used 2005-2009 ACS data which was weighted on 2010 Census population and household numbers.
Because the HOME formula consists of six separate factors, the impact of the source data used may change the formula results for any or all of the formula factors, resulting in an increase or decrease in formula allocation when compared to allocations using previous data sources. For more information on HOME formula factors, see 24 CFR § 92.50(c).

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