Madam Speaker, I thank the chairman of the Financial Services Committee not only for yielding time to me, but for handling this bill in a very quick fashion and getting it to the floor today. I think…
Madam Speaker, I thank the chairman of the Financial Services Committee not only for yielding time to me, but for handling this bill in a very quick fashion and getting it to the floor today.
I think everything that needs to be said about this legislation has been said by the chairman and my colleague from Collinsville, Illinois.
I urge passage of this legislation.
H.R. 1515 would allow the cities of Alton and Granite City in Illinois to maintain principal city designation for entitlement purposes under the Community Development Block Grant program.
Alton and Granite City have been a part of the Madison County CDBG program since its inception in 1975 for purposes of receiving grants as entitlement communities under the CDBG program.
In 1999, Alton and Granite City deferred their entitlement status so Madison County would not lose entitlement status as a county.
This agreement proved to be satisfactory until the OMB changed definitions. OMB no longer recognizes the ``central city'' status. The new ``principal city'' designation requires a minimum population of 50,000, which neither community meets.
As a result, both communities lost entitlement status for purposes of the CDBG program, while all other ``central city'' communities were grandfathered into the program.
HUD has determined that Alton & Grantie City are the only communities to have lost CDBG entitlement status in the Nation as a result of the recent OMB changes in how counties are defined.
As a result, Granite City and Alton are no longer part of an entitlement community.
At no time did the cities or the county believe that, by deferring their status in previous years, they would be jeopardizing future funding.
Madam Speaker, I again thank Chairman Barney Frank, Ranking Member Bachus, and Congressman Shimkus, for working together in a bipartisan manner to address this unique situation.
Other information:
Both communities are older industrial cities that have suffered from job losses and have higher than local, State and national unemployment levels. Both have had large employers, including steel mills in both cities, close. Both have an older housing stock and lower income residents. Additionally, both have a disproportionate share of public housing, in comparison to the balance of the region.
Alton population: 30,500; Granite City population: 31, 301.