New Bedford Development Fund Stays the Same: That’s the Problem
By Morgan Kelly
WASHINGTON- Although President Bush has proposed that the federal government spend the same amount of money on urban development projects next year as in 2004, New Bedford and other cities are being forced to pare back programs because of a rising tide of poverty, according to a city housing official.
The president proposed spending $4.3 billion for Community Development Block Grants, which help revitalize neighborhoods, expand affordable housing, create jobs and improve community services in cities with more than 50,000 people and high poverty rates. It is the same amount Congress appropriated for fiscal 2004, which began Oct. 1.
In the current fiscal year, New Bedford is slated to receive $3.5 million. Brian Sullivan, a spokesman for the U.S. Department of Housing and Urban Development, which issues the grants, said New Bedford should expect the same amount in 2005.
But $3.5 million isn’t what it used to be, said Patrick Sullivan, New Bedford’s director of housing and community development. The city needs more money than it did before, he said.
According to the 2000 census, there were 18,500 people living below the poverty level in New Bedford, almost 13 percent more than in 1990. Sixty percent of New Bedford’s homes were built before 1940, which is one qualification for receiving HUD grants. The homeless rate is rising, as are rents and home prices, making it harder to find affordable housing, New Bedford’s Patrick Sullivan said.
New Bedford’s grant dropped from nearly $3.6 million in 2003 to $3.5 million this year, Patrick Sullivan said. He said he expects it to drop further as more cities become eligible for the grants.
“The significant at-risk population is growing in this city and the money to help them is not growing,” he said.
New Bedford traditionally has used its grants for economic development and to improve housing, sidewalks and parks. It has subsidized more than 40 nonprofit organizations and city projects.
Patrick Sullivan said the city receives requests for $5 million a year, but has only $3.5 million to disburse. Requests have increased significantly this year, largely because of escalating housing costs, he said.
The money doesn’t go as far as it used to because of inflation, said Margy Waller, an economic expert at the Brookings Institution in Washington . The recent economic downturn forced state and local governments to rely more on federal grants, she said, making it crucial that those grants increase.
“Unless you adjust for inflation from year to year, it means a cut,” Ms. Waller said.
The answer to New Bedford ‘s problems lies with Congress, which can add money to the president’s proposed budget.
“Many of us will be pushing for it, but I’m not sure we’ll be successful,” said Rep. Barney Frank (D-Mass.). There are four cities that receive grants in Frank’s district, including New Bedford and Fall River .
Congress will be under increased pressure to hold down spending during an election year in which the federal deficit is projected to reach $521 billion. HUD’s Brian Sullivan said that keeping the block grant money at its current level is a priority.
“Keeping funding stable is preferable to funding reductions,” Brian Sullivan said. “Tell [New Bedford] to relax. We got them covered.”
Patrick Sullivan hopes so.
“If this money ever gets cut further there’s going to be some deep impacts in the community,” he said without elaboration. The city, he said, requires “significant upkeep.”
