Print

Email story

Comment

Email editor

Federal changes may make grants more difficult to land

Grant money for community development is supporting projects all over the county. Proposed changes for eligibility could make it more scarce.

By SHARON L. BOND
Published June 22, 2005

In Lealman, it is the new Family Center on 58th Avenue N that is nearing completion and represents a long-needed amenity for this mid Pinellas community.

In Midtown in St. Petersburg, it is improvements to the intersection where a new shopping center is being built.

In Gulfport, it is streetscapes and sidewalks.

In Pinellas Park, it is drainage work and financial aid for first-time home buyers.

All these are examples of what Community Development Block Grant money has done in south Pinellas County. Many at the local level who disburse those federal funds believe the money is in danger because of a plan being pushed by President Bush. He wants to combine CDBG grant money with other federal programs, cut the amount appropriated and change how areas qualify for the funds. The change in qualifying could make it harder for cities such as St. Petersburg to get CDBG money because the city has a lower number of residents in poverty than some larger cities. Under Bush's proposal funding would be cut from $5.31-billion to $3.71-billion.

"It is not just a consolidation and reduction. CDBG money will go away," said Carol Seaman, assistant director of Community Development for Pinellas County.

CDBG money is used to promote economic development in needy areas, help first-time home buyers and to create jobs. The examples listed above already are in the pipeline and should be safe, but officials are uncertain about future projects.

It is unclear exactly when action on the grant money might be taken. Some believe the president's proposal is on the back burner because of the popularity in Congress of Community Development Block Grants. An advisory committee including local officials is expected to make recommendations on the proposal this month.

In the case of the Lealman Family Center, CDBG money paid for half of the $723,566 project. Penny for Pinellas paid the other half, said Seaman.

Under the grant program, Pinellas County is divided into four areas, three of which are cities: St. Petersburg, Clearwater and Largo. Other cities and towns and the unincorporated areas are handled by Pinellas County government.

"In central Lealman, one of the highest priorities is recreational space," Seaman said. "They are trying to preserve the little bit of green space they have left around the Joe's Creek area."

In Midtown in St. Petersburg, $650,000 is being spent on the intersection of 18th Avenue S and 22nd Street, where Tangerine Plaza is under construction. The shopping center will bring to Midtown only its second chain grocery store, something long needed and wanted by residents.

"Households will be able to go to the grocery store, they may be able to walk there. They will benefit. It also will be a benefit to the area because some will be employed by the various businesses that relocate there," said Joshua Johnson, director of housing and community development for the city.

At Tangerine Plaza, the CDBG money will pay for mast arms for traffic lights, sidewalks and curb cuts, among other things.

"Lots of redevelopment goes on in Midtown as a result of CDBG money," Johnson said.

He said he is concerned about the possible changes. The city receives CDBG funds because it is considered an entitlement community, meaning that the U.S. Department of Housing and Urban Development, which hands out the money, targeted areas considered low-income.

"About one-fifth in the city are considered extremely low-income," Johnson said. But if new guidelines require the money to go to cities with greater need, St. Petersburg could lose.

St. Petersburg has just over $3-million in CDBG money this year, Johnson said.

Mayor Rick Baker and officers from the Florida League of Cities and the National League of Cities were in Washington recently to tell officials how important the money is.

"We had a pretty good discussion (on) the president's proposal," Baker said. He expects more dialogue and said he doubts St. Petersburg will lose out completely.

"CDBG provides flexible money for the gaps in funding on projects we are trying to do," said Baker. "It is a flexible source of funding often needed. It is appropriate to let the local governments make the decision on what is necessary to redevelop in their communities."

Times staff writer Shannon Tan contributed to this report.

[Last modified June 22, 2005, 01:08:17]