The FY2011 Continuing Resolution significantly reduced overall funding for the CDBG and HOME programs compared to last year. The nation's CDBG funding was reduced by more than $600 million, or approximately 16.5 percent, while the HOME program funding was reduced by more than $200 million, or approximately 11.7 percent.

"This year's block grant funding requires tough choices that we would not have made in better circumstances," Donovan said. "As we work under the challenges of our nation's deficit, we must also understand that these programs are absolutely essential in promoting community development, producing affordable housing, helping our homeless and even supporting long-term disaster recovery."

"These critical programs provide the building blocks needed in Illinois to improve communities, produce affordable housing and help low-income persons find their place within those communities," said Antonio R. Riley, HUD's Midwest Regional Administrator.

The funding announced today includes:

· $112,116,134 in Community Development Block Grant (CDBG) funds;

· $51,847,376 in HOME Investment Partnerships (HOME) funding;

· $6,707,357 in Emergency Shelter Grant (ESG); and

· $7,386,881 for Housing Opportunities for Persons with AIDS (HOPWA).

$178,057,748 TOTAL

Since 1974, HUD's Community Development Block Grant (CDBG)Program has provided approximately $132 billion to state and local governments to target their own community development priorities. The rehabilitation of affordable housing and the improvement of public facilities have traditionally been the largest uses of CDBG although the program is also an important catalyst for job growth and business opportunities. Annual CDBG funds are distributed to communities according to a statutory formula based on a community's population, poverty, and age of its housing stock, and extent of overcrowded housing.

HOME (HOME Investment Partnerships Program is the largest federal block grant to state and local governments designed exclusively to produce affordable housing for low-income families. Since 1992, more than 600 communities have completed nearly 950,000 affordable housing units, including 403,000 for new homebuyers. In addition, 224,000 tenants have received direct rental assistance.

Emergency Shelter Grants (ESG) provides homeless persons with basic shelter and essential supportive services. It can assist with the operational costs of the shelter facility, and for the administration of the grant. ESG also provides short-term homeless prevention assistance to persons at imminent risk of losing their own housing due to eviction, foreclosure, or utility shutoffs.

HUD's Housing Opportunities for Persons with AIDS (HOPWA) grants are distributed to states and cities based on the number of AIDS cases reported to the Centers for Disease Control and Prevention. The grants provide resources for operating community residences and providing rental assistance and support services to individuals with HIV/AIDS and their families. In addition, the HOPWA program also helps many communities develop strategic AIDS housing plans and fill in gaps in local systems of care. A stable home environment is a critical component for low-income persons managing complex drug therapies and potential side effects from their treatments.

HUD is instituting several important program priorities in the upcoming year. First, the Department's consolidated planning process will be enhanced. Largely unchanged since the mid-1990s, the 'Con Plan' will be simplified by integrating HUD's technology systems and eliminating the need to prepare a separate annual performance report. Second, HUD's Office of Community Planning and Development is moving rapidly to implement its unified OneCPD technical assistance process which is particularly important as many local governments continue to struggle with budgetary pressures resulting from the economic downturn. Finally, HUD is again urging grantees to consider the needs of returning veterans and their families in the design and administration of these formula programs.

Grantees in Illinois include:

AURORA:

CDBG $1,110,592

HOME $522,462

TOTAL $1,633,054

CHICAGO:

CDBG $75,816,317

ESG $3,669,891

HOME $28,453,829

HOPWA $6,371,215

TOTAL $114,311,252

ILLINOIS STATE PROGRAM

CDBG $29,385,247

ESG $2,868,949

HOME $21,595,744

HOPWA $1,015,666

TOTAL $54,865,606

MCHENRY COUNTY

CDBG $1,189,947

HOME $478,909

TOTAL $1,668,856

MOLINE

CDBG $818,744

MOUNT PROSPECT

CDBG $325,446

OAK PARK

CDBG $1,725,877

ESG $83,537

TOTAL $1,809,414

PEORIA

CDBG $1,743,964

ESG $84,980

HOME $796,432

TOTAL $2,625,376

HUD's mission is to create strong, sustainable, inclusive communities and quality affordable homes for all. HUD is working to strengthen the housing market to bolster the economy and protect consumers; meet the need for quality affordable rental homes: utilize housing as a platform for improving quality of life; build inclusive and sustainable communities free from discrimination; and transform the way HUD does business. More information about HUD and its programs is available on the Internet at www.hud.gov and espanol.hud.gov .