The largest “Community Development” program by far is HUD’s Community Development Block Grant. In 2009 it cost $6.4 billion dollars – which is the least amount it cost in years. The program gives money directly to states and local governments with a stipulation of how the money is supposed to be spent.
The annual CDBG appropriation is allocated between States and local jurisdictions called “non-entitlement” and “entitlement” communities respectively. Entitlement communities are comprised of central cities of Metropolitan Statistical Areas (MSAs); metropolitan cities with populations of at least 50,000; and qualified urban counties with a population of 200,000 or more (excluding the populations of entitlement cities). States distribute CDBG funds to non-entitlement localities not qualified as entitlement communities.
HUD determines the amount of each grant by using a formula comprised of several measures of community need, including the extent of poverty, population, housing overcrowding, age of housing, and population growth lag in relationship to other metropolitan areas.
HUD does a good job of keeping track of exactly how much (right down to the penny) that it transfers to state and local governments. You can see an excel sheet of their 2009 activities here(xls). The problem with the sheet is that it only accounts for just over $4 billion in spending. However, according to the OMB Public Budget, and HUD’s own Congressional justification(pdf), the CDFG account spent $6.4 billion. Where did that other $2.4 billion go towards?
I don’t think there’s anything sinister going, I’m beginning to think however, that that information isn’t available online.
HUD’s Community Development Fund missing $2.4 billion is a post from: Our Dime
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