Community Development Block Grants

This past week I had the opportunity to attend a Community Development Block Grant (CDBG) workshop hosted by the city of Johns Creek.  My thanks to Ms. Patty Hansen, the Mayor’s Chief of Staff and city administrator of the CDBG program, for taking the time to teach me, and two Boy Scouts in attendance with their father, about this program.  It was also a pleasure to meet our new City Manager, Warren Hutmacher, at this workshop.

The Department of Housing and Urban Development (HUD) has provided Community Development Block Grants for over thirty years to help cities improve census tract areas within their boundaries where over 51% of residents are of very low to low income (less than $23,000 to $46,000 annual income for a family of four).  According to federal formulas, the available Johns Creek grant amount for this year is about $270,000.  Up to 20% of the grant amount, or about $54,000, can be used to pay for the costs incurred by the city to administer the program. 

In the city of Johns Creek, we do not have any census tract areas where over 51% of the residents are of low income, however, there are other allowed uses for this financial assistance.  Seniors are an assumed category eligible for assistance because studies have shown that nationwide over 20% lives in poverty due to low income and health expenses.  Unfortunately, individuals with special needs are not an assumed category.

At least $175,000 of the grant amount can therefore be used by the city to provide physical improvements that benefit seniors.  The city has used to money to good advantage in past years to build the Park Place facility at Newtown Park and improvements to parking and trails at Autrey Mill for easier access by seniors.  It is currently looking at improvements at Shakerag Park such as bathrooms, parking and trails that will make that facility more accessible for seniors.

Up to 15% of the total grant amount, or $40,000 can also be used for the city on other than physical infrastructure for the benefit of low-income residents of Johns Creek.  The city uses this money to help Senior Services provide Meals-on-Wheels for elderly residents, to help the North Fulton Community Charities provide rent and utility assistance to Johns Creek residents in need, and to help the Drake house help single mothers in Johns Creek avoid homelessness for themselves and their children.

Some question whether in this time when we are all concerned about huge federal deficits and debt, it is appropriate for the City of Johns Creek to request this grant money.  This question should apply to all the grant requests that the city makes to improve its infrastructure, of which this grant request is one of the smaller, and total close to $4 million per year.