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1 (October 19, 2005)

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                                                                Order Code RS22303
                                                                    October 19, 2005



 CRS Report for Congress

              Received through the CRS Web



 Community Development Block Grant Funds

            in  Disaster Relief and Recovery

                              Eugene  Boyd
                                 Analyst
                    Government   and Finance  Division

Summary


     In the aftermath of previous, presidentially-declared disasters, Congress has used
 the Community Development Block Grant (CDBG) program to help states and local
 governments finance recovery efforts, whether from natural or man-made disasters.
 Congress has appropriated supplemental CDBG funds to assist states and communities
 recover from such natural disasters as hurricanes, earthquakes, and tornadoes. In
 addition, CDBG funds have supported recovery efforts of New York City following
 the terrorist attacks of September 11, 2001, Oklahoma City following the bombing of
 the Alfred Murrah Building in 1995, and the city and county of Los Angeles following
 the riots of 1992. In response to these calamities, CDBG funds have been made
 available for short-term relief efforts, mitigation actions, and long-term recovery, and
 have been used to provide housing and business assistance, infrastructure reconstruction,
 and public services. This report will provide a general overview of the CDBG program
 and its use in disaster relief. This report will be updated as events warrant.


 Background

    The  CDBG  program, administered by the Department of Housing and Urban
Development (HUD), is the federal government's largest and most widely available
source of financial assistance to support state and local government-directed
neighborhood revitalization, housing rehabilitation, and economic development activities.
These formula-based grants are allocated to more than 1,100 entitlement communities
(metropolitan cities with populations of 50,000 or more, and urban counties), the 50
states, Puerto Rico, and the insular areas of American Samoa, Guam, the Virgin Islands,
and the Northern Mariana Islands. Grants are used to develop and implement community
development plans intended to address local housing, community development, and
public services and infrastructure needs, as determined by local officials with citizen
input.

    Because of the block grant nature of the program, local and state officials exercise
a great deal of discretion in determining which combination of eligible activities (in 25


       Congressional  Research  Service +  The Library of Congress

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