Redistribution Effect of Introducing 2010 Census and 2005-2009 ACS Data into the CDBG Formula

The Community Development Block Grant (CDBG) program is one of the longest running programs of the U.S. Department of Housing and Urban Development’s (HUD) Office of Community Planning and Development (CPD). CDBG is a grant to states and local governments that is distributed by a need-based formula. Fiscal year (FY) 2012 marks the first year that the CDBG allocation formula will rely on the Census Bureau’s new annual data source — the American Community Survey (ACS) — and the 2010 Census population counts. This report introduces the ACS to CDBG stakeholders and provides detailed information on how using the 2010 Census and ACS data shifts funding amounts. This analysis compares actual FY 2011 allocations with alternate allocations using FY 2011 appropriations, the FY 2011 grantee universe, and the new data that will be used in FY 2012. Allocations presented should not be interpreted as actual FY 2012 grant amounts. The supplemental data table provides detailed information on the specific data used for each community to determine its CDBG formula allocation. The table also shows the change in its relative share of that variable among all communities and the resulting impact of the change in relative share on each grantee’s allocation. In order to demonstrate the impact of the data change, this table does not reflect the change in appropriation between FY 2011 and FY 2012. The actual change in a grantee’s funding from FY 2011 to FY 2012 will be due to both a change in the data and a change in appropriation amount. This table only shows the impact of the data change