Most of city’s funds will go toward housing, social services

Bloomington will receive more than $900,000 from the federal stimulus package in two separate grants from the U.S. Department of Housing and Urban Development.

The money will mainly provide funding for low-income and sustainable housing development, infrastructure and social service programs.

The first grant of $224,578 aims to enhance community development, said Lisa Abbott, director of Housing and Neighborhood Development for Bloomington.

These grants differ from others given by the U.S. Department of Housing and Urban Development, she said. The grants can fund social programs and physical improvements in the city.

“This is a community investment,” Abbott said. “It allows for social service programming.”

Bloomington in recent years has received about $800,000 annually in grants, but Abbott said the funding has progressively decreased. Last year the city received $744,000.

Abbott does not yet know how the federal stimulus money, which comes in addition to  the usual grant, can be spent.

While the department has guidelines for the grant program, city officials must wait to see if there are any additional guidelines.

Abbott said she hopes the additional grant will follow normal rules. Doing that, she said, “will serve the greatest need.”

While the majority of the money is allocated for housing and neighborhood development, the maximum 15 percent of the grant allowed for social programs will be given to social service agencies to pay for operating costs.

The city will have 120 days upon receiving the grant to commit the money to projects.
Ron Walker, president of the Bloomington Economic Development Corporation, said government grants benefit the area.

“Grants tend to have a positive effect on the community,” Walker said. “It infuses tax dollars back in the local economy.”

Walker said the money will create jobs and help lower living expenses, especially for low-income families.

Julio Alonso, executive director of Hoosier Hills Food Bank, said the organization is partially funded by the Community Development Block Grant program.

Alonso said the grant would be a welcome relief for the organization. The Food Bank has seen a 30 percent decrease in donations in the past year while requests for food have grown.

While the Food Bank is not in danger of closing, Alonso said it might not be able to continue providing food at the same level.

“The demand for food has increased astronomically,” Alonso said.

The grant will also fund physical improvements such as alternative transportation, roads and improving public facilities.

An additional $709,887 will be available from the 2009 Recovery Act Capital Fund Formula Program for the Bloomington Housing Authority. The grant will be used to modernize and maintain affordable housing.

Katie Moreau, a spokesperson for Rep. Baron Hill, said most cities in Indiana will receive Housing and Urban Development grants depending on population and need.

“This is important in an economic downturn,” Moreau said. “This is a great program that does a lot of good for communities.”

Moreau said the money will go to making homes more efficient and also to building infrastructure and roads.

The funding also provides an important safety net for low-income families in Bloomington, Abbott said.

“We need more money than is really available,” Abbott said. “There is an increasing need, and it would be difficult without it.”