The Hawaii County Office of Housing and Community Development has prepared its list of projects it plans to fund with allocations from a long-standing federal initiative, but it’s not clear how long that program will continue.
The Community Development Block Grant program, established in 1974, is part of the U.S. Department of Housing and Urban Development and supports projects in low- and moderate-income communities.
In Hawaii County, these projects fall into three main categories: housing and special needs housing, homelessness and community development. Other communities use the block grant funding for infrastructure work.
Early federal budget proposals, including a May 4 draft, from President Donald Trump eliminated the program entirely.
A final budget proposal from Trump is expected next week.
The federal budget must be approved by Congress because it takes the form of appropriations bills. Congress uses the presidential proposal as a starting point, so even if CDBG is not included in the first proposal, it could still be part of the final budget.
The appropriations bills are passed at the end of June.
In past years, Hawaii County has consistently received $2.5 million in CDBG funding. This is the amount OHCD uses as a base when deciding how to fund projects.
“That’s what we expect annually,” county housing specialist Alison Mukai said. “That’s been consistent.”
Each year, project proposals are received after a series of public hearings islandwide in the fall.
“We consider the need and the beneficiaries,” Mukai said. In addition to initiatives aimed at low- and moderate-income groups, projects benefiting elderly and disabled populations tend to rise to the top of the application pile.
For instance, during the past five years, block grant funding has supported Hawaii Island Adult Care’s ongoing effort to build a new facility.
The project, a joint effort between HIAC and the Hawaii Island Community Development Corp., broke ground in March at the Mohouli Heights Senior Neighborhood.
“It’s in progress,” HIAC executive director Paula Uusitalo said. “It’ll be about a year (to completion).”
Total cost for the new facility is $8.3 million, she said. The facility will replace the aging building on Rainbow Drive, which was built in 1923.
The partners decided to seek community development block grant support for the new center because projects can be funded in multiple years. Many large foundations that support similar efforts offer funding in lump sums that cannot be renewed (last year, HIAC received $2.3 million from the Harry and Jeannette Weinberg Foundation).
“With this (CDBG funding), you can go back every year,” Uusitalo said.
Between 2013 and 2016, the project received $2.4 million in block grant funding.
This year, they are seeking $800,000 for continued construction. If that is approved, it will put the project just $600,000 shy of its fundraising goal.
Other projects included in Hawaii County’s application this year are:
• $354,645 for the Residential Repair program.
• $670,355 for renovations at the Kulaimano Elderly Housing project in Pepeekeo.
• $200,000 for buying refrigerated trucks or cargo vans for the Food Basket.
• $125,000 for fencing and gym renovations at the Boys &Girls Club facility in Hilo.
• $450,000 for administration, planning and Fair Housing program costs.
Email Ivy Ashe at iashe@hawaiitribune-herald.com.
