CDBG: Old-school Stimulus

Before the Recession, before Obama, before the Big Ol' Stimulus Package, there was CDBG.

CDBG stands for Community Development Block Grant -- the yearly inflow of Federal funding that comes from the Department of Housing and Urban Development (HUD). Like other urban areas across the country, Middletown gets these special funds to help ease the burden of providing services to low-income people in our town. Last year, the city received $409,000. This year, Middletown hopes to get $400,000 to $500,000, which it will in turn distribute to various non-profit groups in town, in addition to funding some of the city's expenses.

The process for distributing the annual CDBG funding goes like this: Each winter, non-profit groups submit applications for their projects. These requests are reviewed by the Citizen Advisory Committee (CAC), which then makes a recommendation to the Common Council for their vote by late Spring. The projects that receive funding can't begin until September 1st. There are fairly stringent regulations to be followed, including the payment of union wages for any construction projects, and documentation that the services benefit low and moderate income people.* The whole process is administered by Michiel Wackers and the city's Department of Planning, Conservation and Development.

Although the process is already underway, Middletown does not yet know how large this year's CDBG allocation from HUD will be. Also, we don't know whether the $110,000 tagged for Middletown for CDBG in the Stimulus Bill will be in addition to our usual amount, or will offset cuts.

This year, the CAC received 26 applications, six of which were from city departments (plus one from a private group to improve a city park). The applications fall into three categories: construction, public service and planning/administration . On March 18th, the CAC met to hear 5-minute presentations and Q&A from each applicant -- a marathon that ran from 5 pm to 9:30 pm. As usual, the dollars requested far outstrip the available funds, but most projects have other sources they can turn to in filling the gap. In fact, the CAC smiles on applications that leverage private donations as part of their project budget.

CONSTRUCTION APPLICATIONS

Under the category of construction, there were 10 requests. Last year, this category awarded $269,000 in funding; this year's applications total $811,476.

The City has three requests in this group:
•from the Police ($60,000), for security cameras to be installed in the North End. CDBG funds were used in the purchase of the first two security cameras in the North End in 2005.
•from the Schools ($127,500), to make improvements to the administration building at the corner of Hunting Hill Ave & Russell St (across from the old Woodrow Wilson), so that people with disabilities could access the building and the Youth Services Bureau could move in. Last year, the CAC allocated CDBG funding for improvements to this building, but the resources were used to upgrade the windows.
•from the Planning Dept ($80,000), to continue the purchase and demolition of houses on Miller & Bridge Streets, a project which has been covered by the Eye ad nauseum here and here.

Other construction requests are from area non-profits:
•Godfrey Library ($35,000) on Newfield Street, pictured, draws people from all over the country to its geneology resources. Researching the family tree tends to appeal to an older crowd, yet the Godfrey is not accessible to their volunteers or visitors with disabilities. The grant request would help the library construct a ramp to their door. If funded, this would be the first time that the Godfrey receives CDBG.
•McCarthy Park ($71,500), a city park in downtown Middletown has seen many improvements in recent years due to fundraising and coordination by neighborhood activists, with assistance from Wesleyan University, the Middlesex County Community Foundation and in-kind assistance with design, landscaping and installation. The request for funds would primarily cover the cost of a walking path around the soccer field, the addition of bike racks and the removal of an old fence along Hotchkiss Street. A portion of the earlier improvements were funded by CDBG in 2006. Here are some before and after photos of the last round of improvements:

•Eddy Shelter ($30,658) on Silver Street, operated by The Connection, is housed in a former CVH building. If funded, they plan to cover a concrete floor with tile and replace mattresses and beds to combat a pest problem. The shelter was funded for various improvements in 2007 and 2008.
•Gilead Community Services ($25,000) hopes to acquire a Liberty Street house where they have been housing 5 low-income residents who receive supportive case management services. The grant would provide a portion of the down payment on the property, which is on the market for $175,000; Gilead would raise and finance the balance.
•Shepherd Home ($36,515) on the corner of Bow Lane and Eastern Drive on the CVH campus provides a transition from homelessness for 70 men and women, operated by Mercy Housing & Shelter. Their grant request would allow them to upgrade their kitchen, which needs a new grease trap and other improvements to stay licensed.

According to city staff, a portion of Shepherd Home's request will be considered under the Public Service category, not in Construction, since it covers equipment and furniture.
•St. Vincent de Paul Place ($242,500) made an application for funding to move their Main Street soup kitchen -- this move would be contingent on the realization of the Community Health Center's plan to construct a new facility on the corner of Grand and Main. In that case, the current Soup Kitchen could become a retail space, and a rear building would be made available for the soup kitchen, providing a single-floor facility for their services, which include outreach services in addition to meals.
•Shiloh Manor ($102,803) is a HUD-funded housing facility for the elderly and disabled on the grounds of the Shiloh Baptist Church on Butternut Street. From the report at the CHC meeting, it seems that the complex is facing significant issues of deferred maintenance and problems with the original construction about 10 years ago. They are requesting funds to address issues such as windows, roofing, carpet and sidewalks, which were identified in the needs assessment that they did last year using CDBG funds.

PUBLIC SERVICE APPLICATIONS

The CAC received 14 applications for public service projects, which are usually requests for operating costs for local non-profits. Last year, this category awarded $60,000 in funding; this year, the applications total $236,606. The programs that applied were primarily related to jobs, kids or homes, with a few exceptions.

•jobs
Creating a resume, practicing your interview, brushing up on computer skills -- these are some of the hallmarks of the jobs programs that applied for CDBG. Russell Library ($15,000) applied for funding for their speaker and workshop series, noting that people are turning to the library for help in this economic crisis. The Chamber ($30,012) pointed to their success in helping new workers adjust to the demands of the workplace. They also focus on finding solutions to the barriers that employees face, such as transportation. Raegans Training/Solid Rock ($15,000) wants to supplement job preparation with lessons in entrepreneurship -- they also have a relationship with a forklift training company.

•kids
There were five applications related to after-school and summer programs for low-income children. Oddfellows Playhouse ($5,000) has a long history of using theater training as a mechanism for helping at-risk youth in their after-school troupes at Maplewood Terrace, Traverse Square and the North End. Green Street Arts Center ($15,000) offers an afterschool program that includes one hour of homework help and one hour of arts training every day, a service which benefits nearly 70 low-income children in the North End. Shiloh Christian Church ($15,000) on Saybrook Road offers a free summer camp and wants to upgrade the computers that the children use in their "Adventures in Learning" programs. Another applicant, the Shiloh Development Corp ($58,000) is affiliated with Shiloh Baptist Church on Butternut Street. They offer a summer camp with a mix of academic and enrichment programs which they target to children in the neighborhood of the church. Literacy Volunteers ($5,000) asked for support for a tutoring program at Macdonough School that would focus on the literacy of parents and their role in their child's learning.

•homes
Community Renewal Team ($15,000) asked for funding to help people at risk for foreclosure by providing direct payment of delinquent mortgages, a service which they already provide, but which needs a more realistic level of funding to be truly helpful. North End Action Team ($15,000) requested funding for education and support on home ownership issues for at-risk households. They cited their strong record of communicating with residents and their current programs offering financial literacy education and the need to expand eviction prevention efforts. An organization called HOPE ($23,094) is a faith-based housing group started by five African-American pastors in town. They are asking for CDBG funds to begin the process of developing 4 new units of low-income home ownership in town in a location yet to be determined, possibly acquiring one of the properties on the city's blight list. The grant would support the architectural and environmental studies, plus demolition if necessary. It is unclear how much of the HOPE request would be eligible under Public Service -- a portion may be eligible under the Planning category.

•other services
There were a few other applications in under the Public Service category, including one from Connecticut Legal Services ($25,000), which is looking to expand into a new area. They are proposing a sort of concierge service to help area social workers and service providers navigate the complex and sometimes contradictory assistance programs that are available to people in need. They see themselves as being uniquely positioned to offer a short-cut for people in the helping professions who need to know what programs are available. Amazing Grace ($7,500) applied for funding to add Saturday hours at the Saybrook Road food pantry, which is currently open just three half-days. Also, the city applied for $8,000 of the Public Service funds to offer compact fluorescent light bulbs to low and moderate income elderly in town.

PLANNING/ADMINISTRATION APPLICATIONS

The only application in this category came from the city itself, for $80,000 for administration of the CDBG program. Coincidentally, this category had $80,000 in funding last year.

An additional request from the city for $45,000 was made to repay Section 108 loans that were made in 2003 to pay for demolition activities in the Miller & Bridge neighborhood -- essentially, the city loaned itself its future CDBG funds. They projected that the repayment of various redevelopment projects in previous years will require about $40,000 in CDBG funds each year until 2012. This author despairs of identifying the category that these funds would be drawn from -- feel free to add your own interpretation in the comments.

And that's the summary of all 26 applications for this year's CDBG funding. The CAC will hold their deliberations at their April 15th meeting.


*Full disclosure: As the administrator for the non-profit Kidcity Children's Museum, I applied for and received CDBG grants in various years from 1995 to 2001, for the purpose of removing blight and restoring the historic Camp-Sterns House/St. Sebastian's Convent as the children's museum.