The Community Development Block Grant (CDBG) currently faces continued reductions in funding for FY 2007. This reduction in funding would have a devastating effect on the low to moderate-income citizens of this community and throughout the nation.

Since 1975, the City of Laredo, Texas has received Community Development Block Grant Funds, which have been directed towards activities which benefit low to moderate-income persons. In addition, these funds have been utilized to finance infrastructure improvements, water/sewer/drainage improvements, repair sidewalks, rehabilitate the city’s older housing stock, construct and enhance recreational parks/facilities, construct police substations, fund code enforcement activities and graffiti removal, demolish substandard units, and provide public services. Use of these funds has eliminated slum and blight areas of the city and improved the quality of life for over 100,000 local community residents. In spite of this, Laredo remains in dire need of funding in order to continue to assist its impoverished community residents. In 2005, the median family income was $33,800, compared to $55,500 for the state. The 2000 Census indicated that 26.7% of Laredo’s families live below the poverty level, compared to 12% in the state and 9.2% nationwide. The 2000 Census also indicated that approximately 58% of the city’s households earned less than $35,000 per year.

In addition, a local survey conducted in 2000 of Laredo’s housing stock indicated that of its approximately 46,000 housing units, 25% were in need of rehabilitation, most of which are located in low income areas of the city, and many of which lack complete plumbing or kitchen facilities. If funds were cut, the housing stock would continue to deteriorate. Moreover, Laredo needs to continue to support its youth by providing wholesome, healthful, activities as a deterrent against drug abuse and gang violence. Laredo’s elderly and homeless population would also suffer if the City was no longer able to construct and support needed centers/shelters.

The Department of Housing and Urban Development must continue at its present, or at an increased, level of funding, thereby allowing cities to continue to provide much needed help to their communities. Given the systemic underfunding over many years of housing and community development programs, compared to demonstrated need, it is imperative that funding levels for these programs be maintained at the highest level possible. The City of Laredo is requesting that legislators be against any proposed cuts in program funding.

• U.S. Department of Housing and Urban Development