Bloomington awarded $1.5M federal grant for housing

Federal grant money is on its way to Bloomington, courtesy of the U.S. Department of Housing and Urban Development.

Bloomington will receive two grants, totaling more than $1.5 million, for use in providing low and moderate income housing and expanding economic opportunities for low-income people.

The grants were announced July 1 in a press release from Rep. Baron Hill’s office.  

“I am so pleased the City of Bloomington has successfully secured these grants,” Hill said in the release. “Particularly during this time of economic hardship, these funds are critical to this community.”  

The $1.5 million total is a combination of funds from a HOME grant and a Community Development Block Grant. Bloomington will receive $718,951 for the HOME grant and $847,075 for the block grant.  

Grant money received from Housing and Urban Development must be spent in accordance with a city’s consolidated plan, said Bill Shaw, spokesman of the Indianapolis Housing and Urban Development office. Bloomington’s consolidated plan is a three- to five-year strategic plan to distribute federal funding based on community needs and resources.

Shaw said a consolidated plan must be approved through Housing and Urban Development before any funding can be allocated. When approved, an annual action plan is written to outline all of the projects to be funded with the grant money. “As long as the action plan reflects the needs outlined in the consolidated plan, then it gets approved,” Shaw said.

Once received, grant money is distributed to projects outlined in the annual action plan. Projects are divided between those that will receive HOME funds and those that will receive CDBG funds. Lisa Abbott, director of Bloomington’s department of Housing and Neighborhood Development, said each grant has very specific uses.  

“HOME money is entirely used for affordable housing projects,” Abbott said. “CDBG can be used for affordable housing, and we do use some of it for affordable housing projects. But, it is also used for other housing projects, such as emergency home repair grants or home modification for accessible living.”

She also said that the block grant funds are used for community development projects such as building sidewalks and curbs.

Projects slated for funding in Bloomington’s 2009 action plan include exterior renovations to existing affordable housing, house modifications to improve accessibility for residents with disabilities, and construction of new affordable housing units. A full listing of projects to be funded is available at the the Housing and Neighborhood Development Web site.  

This is not the first time Bloomington has received grant money from Housing and Urban Development. Abbott said that grants are made every year.

“On an annual basis, based on formulas, we get an allocation of CDBG and HOME money, provided that we adhere to all of their rules and regulations, which we always have,” Abbott said.  

Funds from previous HOME grants were used to building EverGreen Village, an eco-friendly affordable housing subdivision in southwest Bloomington.    

In 2007, more than $1.7 billion was allocated for HOME grants nationwide. Community Development Block Grant disbursements totaled more than $4.3 billion that same
year.

Katie Moreau, press secretary for Hill, described his support for Bloomington’s grants.  
“He is certainly pleased with the city getting these grants, particularly during this time when folks have less money to give to programs that support affordable housing,” she said. “Affordable housing in general is very interconnected with helping people improve their lives.”