CDBG Formula Targeting to Community Development Need

by HUD USER

CDBG Formula Targeting to Community Development Need
U.S. Department of Housing and Urban Development
Ofﬁ ce of Policy Development and Research

CDBG Formula Targeting to
Community Development Need

Prepared by:

Todd Richardson
Office of Policy Development and Research
U.S. Department of Housing and Urban Development
Washington, DC

February 2005

Foreword

Last year marked the 30
th
Anniversary of the Community Development Block Grant
(CDBG) program. The primary objective of the CDBG program is the development of viable
urban communities, by providing decent housing, suitable living environments, and expanded
economic opportunities, principally for low- and moderate-income persons. To divide the annual
appropriation of CDBG funds among jurisdictions, the Congress designed a formula that is
intended to provide larger grants to communities with relatively high community development
need and smaller grants to communities with relatively low community development need.

The CDBG statute identifies poverty, neighborhood blight, deteriorated housing, physical
and economic distress, decline, suitability of one’s living environment, and isolation of income
groups, among others, as important components of community development need. The CDBG
formula uses variables identified in the 1970s that proxy these dimensions of community
development need. The core variables in the formula that allocates the CDBG funds to local
jurisdictions have not been changed since 1978.

This report provides the latest assessment of how well the variables being used in the
CDBG formula continue to target funds toward community development need. It shows that the
formula does generally continue to target to need. Among the entitlement communities, on a per
capita basis, the 10 percent of communities with the greatest community development need
receive four times as much as the 10 percent of jurisdictions with the lowest level of community
development need. However, targeting toward community development need has declined
substantially over the past 26 years. Over time, an increasing number of jurisdictions with
similar need have come to receive substantially different grants. Furthermore, the amount of
funds going to the most needy grantees on a per capita basis has decreased, while the amount of
funds going to the least needy grantees on a per capita basis has increased.

This report offers four alternative formulas that would substantially improve targeting to
community development need. Each alternative provides trade-offs in terms of the following:

• formula simplicity;
• amount of funds reallocated; and
• the type of community development need provided highest priority.

It is important to recognize that any change to the existing formula that improves
targeting to need will result in a significant redistribution of funds. Nonetheless, the Department
hopes that serious attention be given to the alternatives presented in this report. We look forward
to working with Congress, CDBG grantees, and other stakeholders to discuss alternatives to the
current formula.

Denis C. Shea
Assistant Secretary for
Policy Development and Research

Acknowledgements

The author thanks Nelson Bregón, Richard Kennedy, Robert Duncan, Sue Miller, and Steve
Johnson of the U.S. Department of Housing and Urban Development’s Office of Community
Planning and Development (CPD) and Darlene Williams, Jennifer Stoloff, and Mark Shroder of
the Office of Policy Development and Research (PD&R) for their comments and suggestions on
earlier draft versions of this report. I am most indebted to both Robert Meehan of CPD, who
provided invaluable institutional memory, data sets, and the core elements of Chapter 7 of this
report, and Kevin Neary of PD&R, who taught me all that I know about formula allocations and
provided the core elements of Chapter 8. F. Stevens Redburn and Dustin Brown of the U.S.
Office of Management and Budget also provided helpful comments that greatly improved this
report. I am extremely grateful to Giles Roblyer, Patricia Dumrose, and Linda Wolfe Keister of
HR Communications, Ltd. for their careful editing.

Despite the generous contributions from these individuals, any errors and omissions that remain
in the report are, of course, my own.

v
Table of Contents

Executive Summary.................................................................................................... vii

Chapter 1. Introduction. .................................................................................................1

Chapter 2. Current Formula Mechanics. .......................................................................5

Chapter 3. Developing a Community Development Needs Index. .............................11

Chapter 4. CDBG Targeting to Need: Entitlement Communities. .............................37

Chapter 5. CDBG Targeting to Need: States (Nonentitlements). ...............................53

Chapter 6. CDBG Alternative Formulas. ....................................................................61

Chapter 7. Impact of New Metropolitan Area Definitions. ........................................85

Chapter 8. The 70/30 Split. .........................................................................................91

Chapter 9. Conclusion. ................................................................................................95

Appendix A. Targeting to Individual Measures of Need

Appendix B. Impact of Alternatives on Individual Grantees

References

vi

CDBG Formula Targeting to Community Development Need
vii
Executive Summary

Purpose of the Report

This report assesses how well the Community Development Block Grant (CDBG) formula, after
introduction of 2000 Census data into the formula, allocates funds toward the community
development needs identified in the Housing and Community Development Act of 1974. The
U.S. Department of Housing and Urban Development (HUD) indicated in its Fiscal Year (FY)
2004 budget that it would undertake this study.

The National Research Council’s Panel on Statistical Issues in Allocating Funds by Formula
(Louis, Jabine, and Gerstein 2003) recommends that policymakers periodically review formula
allocation programs to assess whether they perform as intended. The CDBG formula has
undergone the following five major assessments since 1974:

1. The first of the reports, prepared at the request of Congress in 1976, pioneered the
thinking on how to target funds to community development need (Bunce 1976). The
major conclusions of that report led to the current CDBG allocation formula, which
first allocated funds in 1978.
2. A follow-up report in 1979 discussed the targeting of the newly created formula (Bunce
and Goldberg 1979).
3. & 4. With the introduction of new census data into the formula in 1980 and 1990, HUD
performed follow-up studies to determine whether the CDBG formula continued to
target well to community development need (Bunce, Neal, and Gardner 1983; Neary
and Richardson 1995). Those studies showed that targeting to need has declined as new
census data have been introduced into the formula, and significant funding anomalies
still exist, but in general, the formula still provides considerably more dollars per capita
to needier communities than it does to less needy communities.
5. This report continues in the tradition of those reports, assessing how well the formula
allocates toward community development need following the full introduction of 2000
census data into the formula. This report also provides several alternative formulas for
improving targeting to community development need.

How the CDBG Formula Works

After setting aside funds for special purposes such as technical assistance, projects specified by
Congress, and the Indian CDBG program, the annual appropriation for CDBG formula funding
is split so that 70 percent is allocated among eligible metropolitan cities and counties (referred to
as entitlement communities), and 30 percent among the states to serve nonentitled communities.

HUD uses two basic formulas, known as Formula A and Formula B, to allocate CDBG funds to
entitlement communities. A similar “dual formula” system allocates funds to states. For
entitlements, Formula A allocates funds to a community based on its metropolitan shares of: (1)
population, weighted at 25 percent; (2) poverty, weighted at 50 percent; and (3) overcrowding,
weighted at 25 percent, times appropriations. Formula B allocates funds to a community based

CDBG Formula Targeting to Community Development Need
viii
on: (1) its share of growth lag
1
, weighted at 20 percent; and its metropolitan shares of (2)
poverty, weighted at 30 percent and (3) pre-1940 housing weighted at 50 percent times
appropriation.

HUD calculates the amounts for each entitlement jurisdiction under each formula. Jurisdictions
are then assigned the larger of the two grants. That is, if a jurisdiction gets more funds under
Formula A than Formula B, its grant is based on Formula A. With this dual formula system, the
total amount assigned to CDBG grantees has always exceeded the total amount available through
appropriation. To bring the total grant amount allocated to entitlement communities within the
appropriated amount, HUD uses a pro rata reduction. In FY 2002, for example, the pro rata
reduction was 11.43 percent.

Current Formula, 2004
Entitlement Communities States (Nonentitlements)
Formula A Formula B Formula A Formula B
25% * population 20% * growth lag 25% * population 20% * population
50% * poverty 30% * poverty 50% * poverty 30% * poverty
25% * overcrowding 50% * pre-1940 housing 25% * overcrowding 50% * pre-1940 housing
Metropolitan denominators except for growth lag. Grant
is larger of two formulas less a pro rata reduction.
State nonentitlement total denominators. Grant is larger
of two formulas less a pro rata reduction.

The formula for the nonentitled areas of states generally operates like the entitlement formula.
Two key differences exist, however: (1) Formula B uses population instead of growth lag and (2)
jurisdiction share is based on the state nonentitlement total rather than the metropolitan or
nonmetropolitan total. As with entitlement communities, HUD calculates the amounts for each
state under each formula, then assigns the larger of the two grants. To bring the total grant
amount to states within the appropriated amount, HUD uses a pro rata reduction. In FY 2002, the
pro rata reduction for states was 16.85 percent.

Creating a Needs Index

To assess how well the current formula targets to the community development need of 2000,
HUD staff created two needs indexes: one capturing a range of community development needs
among entitlement grantees and another capturing the community development needs of
nonentitled areas served by states.

In previous CDBG studies, HUD used a methodology to develop standard measures of needs
across entitlement cities. This study uses the same basic methods, except it includes urban
counties in addition to cities. The report also creates a separate needs index for state
nonentitlement areas.

1
Growth lag is the shortfall in population that a city or county has experienced when comparing its current
population to the population it would have had if it grew like all metropolitan cities since 1960. For the FY 2002
formula allocation, the growth rate for all entitlement communities between 1960 and 2000 was 37.4 percent. If a
city or county grew at a rate greater than 37.4 percent between 1960 and 2000, it receives a growth lag value of zero.
Cities receive growth lag funding based on their share of total growth lag for all cities while urban counties receive
growth lag funding based on their share of total growth lag for all entitlements (urban counties and cities).

CDBG Formula Targeting to Community Development Need
ix
Community development need encompasses many different elements—housing quality,
infrastructure, economic development, poverty, tax base, and others. To account for these
dimensions of need, the needs index serves as our best estimate of the actual level of community
development need. For entitlements, the needs index comprises 17 variables identified as
indicators of one or more dimensions of community development need. The state needs index
comprises 10 variables. Factor analysis condenses these multiple variables into only a few
variables. Factor analysis groups variables that appear to relate to one another and creates a
factor score for the patterns of variance common among variables. In past studies of the CDBG
formula, three distinct patterns of variance have emerged, resulting in three factors: one relating
to problems associated with poverty, another relating to problems associated with aging
communities, and a third relating to communities in decline (Bunce 1976; Bunce, Neal, and
Gardner 1983; Neary and Richardson 1995). These different patterns of need between
communities with high poverty and communities with age and decline drove the creation of the
dual formula.

The factor analysis for this study likewise creates three factors, but they represent different
patterns of variance than the factor analysis in the previous studies. For entitlement communities,
a single factor now captures most of the variance associated with the variables of poverty, age of
housing, and decline, suggesting that a single formula could now capture those three elements,
reducing the justification for the current dual formula. Two new patterns of variance arise in
2000, however, that were not evident in 1970, 1980, or 1990: (1) a factor representing fiscal
stress associated with immigrant growth, and (2) a factor reflecting low-density places with high
poverty concentrations but declining poverty rates.

To create a single needs score for every jurisdiction, the three factors are weighted and summed.
The factor that represents poverty, age of housing, and decline was weighted at 80 percent
because it explains most of the variance among the 17 needs variables and represents the
dimensions of need most emphasized in the CDBG statute. A 15-percent weight was applied for
the factor measuring the fiscal stress associated with immigrant growth, recognizing this new
dimension of community development need. Finally, a 5-percent weight was provided for the
poverty concentration/declining poverty factor. This factor represents one dimension of need, but
it also represents improving communities.

The factor analysis for states also creates three factors: one related to poverty and economic
distress, a second related to age of housing, and a third related to a weak proxy for infrastructure.
These factors are also weighted and summed to create a single needs score. To create a single
needs score for each state, the poverty and economic distress factor is weighted at 70 percent,
age of housing is weighted at 25 percent, and infrastructure is weighted at 5 percent. Chapter 3
provides a more thorough justification for the weighting to create the entitlement and
nonentitlement composite needs scores.

Current Formula Targeting to Need

When this report discusses targeting to need, it uses per capita grants to compare the relative
funding of communities. This approach assumes that population is not a measure of need. This
assumption enables us to compare the relative level of grant of New York City (population

CDBG Formula Targeting to Community Development Need
x
8,084,316) to East Orange, New Jersey (population 69,750). Though their total grants are
dramatically different ($219 million versus $2 million in FY 2004, respectively), their per capita
grants are comparable ($27.07 versus $28.66). Targeting operates on the premise that a
community with high need should get a larger per capita grant than a community with low need.

Performance of the Entitlement Formula

Prior CDBG studies have shown that the current CDBG formula has, relative to a community
development needs index, worsened in its ability to appropriately target funds to entitlement
communities (Bunce, Neal, and Gardner 1983; Neary and Richardson 1995). The changing
demographic makeup of jurisdictions throughout the 1990s has led the CDBG formula to
generally target worse in 2000 than it did in 1990. That said, the current entitlement formula does
continue to target to need. On average, the 10 percent of communities with the most need get
four times larger per capita grants than the 10 percent of communities with the least need.

$0
$10
$20
$30
$40
$50
$60
$70
Entitlement Grantees
Per Capita Grant
Current Per Capita Grant
Needs Index Per Capita Grant
(slope 12.0)
Low Need High Need

Chart ES-1. Current Entitlement Formula. Targeting to the Needs Index

An increasing number of troubling inequities exist, however. Chart ES-1 provides a graphical
presentation of this problem, ordering entitlement grantees left to right from least needy to most
needy based on the needs index. The solid line represents how many dollars a jurisdiction would
get on a per capita basis if the grant funds were allocated using the needs index. The “bouncing”
line represents how many dollars jurisdictions get on a per capita basis with the current formula.
A number of very low need grantees on the left side of the chart get high per capita grants
relative to their need under the current formula. Some very needy grantees on the right side of
the chart receive relatively low per capita grants.

CDBG Formula Targeting to Community Development Need
xi

On the left side of the chart, relatively low need communities receiving very high per capita
grants include Newton, Massachusetts, Royal Oak, Michigan, and Wauwatosa, Wisconsin. These
older suburbs benefit from the pre-1940 and growth lag variables of Formula B. These
communities are relatively low need, however, enjoying poverty rates of 2 to 3 percent and per
capita incomes substantially above the national average. They receive per capita grants of $28 to
$33 while communities with similar need scores receive grants in the range of $4 to $7 per
capita.

On the right side of the chart, some high need communities get low per capita grants relative to
their need score. These communities include Miami, Florida, Paterson, New Jersey, Pharr,
Texas, and Compton, California, which suffer poverty rates ranging from 20 to 35 percent and
per capita incomes well below the national average. Under the current formula, they receive
grants of $23 to $26 per capita while communities with similar need scores receive $40 to $50
per capita.

Problems in the current entitlement formula can be traced to the following three elements:

1. The relative flatness of Formula A. The most needy grantees funded under Formula A do
not get substantially more on a per capita basis than the least needy grantees. This
flatness is due primarily to the 25 percent weight on population in Formula A.

2. Formula B grantees of similar need often get very different per capita grant allocations.
This relative inequity primarily results from the pre-1940 housing variable allocating
substantial amounts of funds to some communities that have old housing but otherwise
do not have any community development need. The growth lag variable also contributes
to the inequity because many slow growing communities, and even some that have lost
population, do not suffer economically.

3. On average, Formula A grantees get substantially less than similarly needy Formula B
grantees. This inequity results from the share of the need represented by the variables in
Formula A being spread across both Formula A and Formula B grantees while the share
of the need represented by growth lag and pre-1940 housing in Formula B is largely
concentrated among Formula B grantees.

In addition, the poverty variable results in overfunding of “college towns” relative to their per
capita need. In some communities a large number of full-time college students live in off-campus
housing. When the Census Bureau collects income information from those students, it does not
count income support from family, thus counting a large number of students as in poverty. For
example, in State College, Pennsylvania, home to Penn State University, 74 percent of college
students live in poverty while 12 percent of the remaining population is in poverty. The college
student poverty rate inflates State College’s total poverty rate to 47 percent, greater than the very
distressed communities of Benton Harbor, Michigan (43 percent poverty rate) and Hidalgo
County, Texas (42 percent poverty rate).

CDBG Formula Targeting to Community Development Need
xii
The growth lag variable also creates some inequities among high-need communities. Chart ES-1
shows a number of relatively high-need communities on the right side of the chart with per capita
grants nearly double what their community development needs index score suggests is fair
relative to the need of other jurisdictions. The relative overfunding largely results from the
growth lag variable, which moves more than 18 percent of the total appropriation for CDBG
entitlements to the relatively few communities with growth lag, particularly to the even fewer
communities with very high levels of population loss. For example, Saint Louis, Missouri has a
per capita grant of $73, $41 from growth lag alone. Detroit, Michigan, a more needy Formula B
city as measured by the community development needs index, receives $49 per capita, $29 from
growth lag. Both cities are distressed and have community development needs related to decline,
but the analysis of community development need suggests that Detroit’s grant at $49 per capita is
consistent with its level of community development need and Saint Louis’s grant of $73 per
capita is significantly higher than is appropriate for its relative level of need.

Performance of the State Formula

The state formula also tends to target poorly to need. Chart ES-2 shows that with the exception
of one grantee (Puerto Rico), the appropriate per capita grants (the solid line) are approximately
$5 for the least needy grantees and approximately $15 to $20 for the most needy. The current per
capita grants for all of the grantees except Puerto Rico show almost no relationship to the
community development needs index line. While little relationship exists between the needs
index and the current per capita grants, the magnitude of the anomalous targeting is not as large
as it is in the entitlement formula.

$0
$5
$10
$15
$20
$25
$30
$35
$40
Nonentitlement Grantees
Per Capita Grant
Current Per Capita Grant
Need (Slope 8.0)
Low Need High Need

Chart ES-2. Current Nonentitlement Formula. Targeting to the Needs Index

CDBG Formula Targeting to Community Development Need
xiii
Two primary reasons drive the poor targeting of the nonentitlement formula:

1. The relative flatness of both Formula A and Formula B. The most needy grantees do not
get substantially more on a per capita basis than the least needy grantees. This flatness
results primarily from the 25 percent weight on population in Formula A and the 20-
percent weight on population in Formula B.

2. The unfairness of Formula A, due to overcrowding, and Formula B, due to pre-1940
housing. Our analysis shows overcrowding and poverty to be closely correlated in
nonentitlement areas. Overcrowding, however, is concentrated in a few states, thus the
formula essentially gives those states added dollars for their poverty population. The pre-
1940 housing variable simply rewards states with old housing without determining if they
are needy.

Unlike the entitlement formula, a large inequity in funding between Formula A and Formula B
does not appear to exist. With the exception of Puerto Rico, to which Formula A does target
well, both formulas are relatively weak in their targeting to need.

Four Alternative Formulas

A number of items must be considered when creating an alternative to the current formula.
Clearly any change to the current formula will be motivated by a desire to improve targeting to
need. Specifically, we seek to (1) improve equity, so similarly needy grantees get similar grant
amounts, and (2) improve the relative targeting of the formula so the most needy grantees get
substantially higher per capita grants than the least needy grantees.

We also seek a simple formula that causes the least disruption to the current CDBG funding
levels. A simple formula can be easily explained so grantees and policymakers understand the
mechanics that determine the grant amounts. Regarding the disruption of funds, any change to
the current formula will cause some grantees to gain funding while others lose.

We offer four alternative formulas with different degrees of improving targeting to need,
different levels of simplicity, and different patterns of redistributing funds.

Alternative 1

Entitlement Alternative 1 tweaks the existing formula by fixing the problems in Formula A and
B that lead to large inequities in funding among grantees within each individual formula by
taking the following actions:

• Formula A
o Reduce the weight on population from 25 percent to 10 percent and increase the
weight on poverty to 60 percent and the weight on overcrowding to 30 percent. This
action increases the grants for the more needy Formula A grantees that are currently
significantly underfunded relative to the needs index.

CDBG Formula Targeting to Community Development Need
xiv
o Change the definition of poverty to “persons living in family households or elderly
headed households living in poverty” to correct for the relative overfunding of college
towns relative to their community development need.

• Formula B
o Replace the pre-1940 variable with “housing 50 years or older occupied by a poverty
household” to better target to needy communities with older infrastructure and
dilapidated housing.
o Change the definition of poverty to “persons living in family households or elderly
headed households living in poverty” to correct for the relative overfunding of college
towns relative to their community development need.
o Lower the weight on growth lag to 10% and increase the weight on poverty to 40%.
Also adjust growth lag to reduce funding for communities with relatively high per
capita incomes and low poverty rates. These changes reduce some of the overfunding
relative to community development need caused by growth lag.

Generally, these changes improve the targeting within each formula but do not correct for the
funding inequities between Formula A and Formula B. Alternative 1 causes the least
redistribution of funds but makes the formula even more complicated. This option is similar to
the alternative presented in 1995 by Neary and Richardson.

Alternative 1
Entitlement Communities States (Nonentitlements)
Formula A Formula B Formula A Formula B
10% * population 10% * adjusted growth lag 10% * population 10% * population 
60% * family & elderly
poverty
40% * family & elderly
poverty
65% * family & elderly
poverty
40% * family & elderly
poverty
30% * overcrowding 50% * housing 50 years or
older occupied by a
poverty household
25% * overcrowding 50% * housing 50 years or
older occupied by a
poverty household
Metropolitan denominators except for growth lag. Grant
is larger of two formulas less a pro rata reduction.
State nonentitlement total denominators. Grant is larger
of two formulas less a pro rata reduction.

Chart ES-3 shows that entitlement alternative 1 does improve targeting relative to the current
formula (Chart ES-1), most notably decreasing grants for low need grantees that are currently
relatively overfunded. For example, it reduces the grants for Newton, Royal Oak, and
Wauwatosa from around $30 per capita to approximately $5 per capita, an allocation more
consistent with the grants of communities with similar need. It also reduces the high growth lag
grants somewhat, but not enough to bring them in line with the needs index. The Saint Louis per
capita grant, for example, is reduced from $73 to $63 per capita. It also provides small increases
to some high-need underfunded communities. For example, Miami, Paterson, Pharr, and
Compton, with current grants of $23 to $26 per capita, have their grants increase to $30 to $34
per capita, a bit closer to the $40 to $50 per capita of similarly needy grantees.

CDBG Formula Targeting to Community Development Need
xv
$0
$10
$20
$30
$40
$50
$60
$70
Entitlement Grantees
Per Capita Grant
Alternative 1 Per Capita Grant
Needs Index Per Capita Grant
(slope 12.0)
Low Need High Need

Chart ES-3. Alternative 1. Targeting to Need

Nonentitlement Alternative 1 likewise tweaks the existing formula by fixing the problems in
Formulas A and B that lead to large inequities in funding among grantees within each individual
formula. This alternative undertakes the following changes:

• Formula A
o Reduce the weight on population from 25 percent to 10 percent and increase the
weight on poverty to 65 percent. This change increases the funding for the more
needy Formula A grantees while decreasing funding for the less needy as measured
by the needs index.
o Change the definition of poverty to “persons living in family households or elderly
headed households living in poverty” to correct for the relative overfunding of states
with significant college student populations in the nonentitlement areas.

• Formula B
o Replace the pre-1940 variable with “housing 50 years or older occupied by a poverty
household” to better target to states with older infrastructure and dilapidated housing.
o Change the definition of poverty to “persons living in family households or elderly
headed households living in poverty” to correct for the relative overfunding of states
with large college student populations in the nonentitlement areas.
o Reduce the weight on population from 20 percent to 10 percent and increase the
weight on poverty to 40 percent. As with Formula A, this change increases the
funding for the more needy Formula B grantees while decreasing funding for the less
needy as measured by the needs index.

CDBG Formula Targeting to Community Development Need
xvi
Chart ES-4 shows that these changes move the per capita allocations much closer to the needs
line than the current formula.

$0
$5
$10
$15
$20
$25
$30
$35
$40
Nonentitlement Grantees
Per Capita Grant
Alternative 1 Per Capita Grant
Need (Slope 8.0)
Low Need High Need

Chart ES-4. Nonentitlement Alternative 1. Targeting to Need

Alternative 2

Entitlement Alternative 2 was designed to be a very simple single formula that closely matches
the allocation suggested by the needs index. The formula uses four easy-to-understand variables
to allocate the funds: poverty, female-headed households with children under 18, housing older
than 50 years occupied by a household in poverty, and overcrowding. These variables bear a
high correlation to the individual needs factors and relatively low correlation with one another. A
regression model seeking to best target to the needs index forms the basis for the weighting of
the variables. Unlike the other alternatives proposed, this formula has no adjustments or pro rata
reductions. This option dramatically improves the fairness of the formula (Chart ES-5), in part by
eliminating funding inequities between Formula A and B.

Alternative 2
Entitlement Communities—70% States (Nonentitlements)—30%
50% * family & elderly poverty 60% * family & elderly poverty
10% * female-headed household with children under 18 10% * female-headed household with children under 18
20% * overcrowding 30% * housing 50 years or older occupied by a poverty
household
20% * housing 50 years or older occupied by a poverty
household

Entitlement total denominators. State nonentitlement total denominators.

CDBG Formula Targeting to Community Development Need
xvii
The formula, however, only modestly increases funding to the more needy jurisdictions. By
improving fairness in the funding allocation without increasing the average funding level to the
relatively more needy grantees, some very needy Formula B communities experience significant
funding decreases. For example, Detroit’s grant is reduced from $49 per capita to $38 per capita
to put it in line with similarly needy Miami, whose grant increases from $28 per capita to $41 per
capita. High-need grantees that are relatively overfunded by the formula as compared to the
needs index suffer even larger decreases. Saint Louis experiences a funding decrease of 50
percent under this alternative, bringing its grant to $37 per capita. Buffalo, New York, has a
funding decrease of 39 percent, bringing its grant to $41 per capita, and Cleveland, Ohio has a
decrease of 36 percent, bringing its grant to $39 per capita.

By correcting for the inequities of the current formula, funding levels increase for high-need
communities currently receiving small per capita grants relative to their need. Paterson has its
grant increase from $23 to $32 per capita, Pharr increases from $26 to $36 per capita, and
Compton increases from $26 to $38 per capita.

$0
$10
$20
$30
$40
$50
$60
$70
Entitlement Grantees
Per Capita Grant
Alternative 2 Per Capita Grant
Needs Index Per Capita Grant
(slope 12.0)
Low Need High Need

Chart ES-5. Entitlement Alternative 2. Targeting to Need

Nonentitlement Alternative 2 was designed to be simple and closely match the recommended
funding pattern of the nonentitlement needs index. The formula uses three widely available and
easily understandable variables to allocate the funds: poverty, female-headed households with
children, and housing older than 50 years occupied by a person in poverty. This formula does not
use overcrowding as a factor due to its high correlation with poverty in the nonentitled areas.
Unlike in the entitlement formula, overcrowding does not capture a dimension of community
development need not already captured by poverty. This alternative dramatically improves the
targeting to need as shown by Chart ES-6.

CDBG Formula Targeting to Community Development Need
xviii

$0
$5
$10
$15
$20
$25
$30
$35
$40
Nonentitlement Grantees
Per Capita Grant
Alternative 2 Per Capita Grant
Need (Slope 8.0)
Low Need High Need

Chart ES-6. Nonentitlement Alternative 2. Targeting to Need

Alternative 3

Entitlement Alternative 3 builds from entitlement alternative 2 but moderates the sharp drop in
funding for the very needy Formula B communities and generally shifts funding from low-need
communities to high-need communities. The formula uses the same variables as entitlement
alternative 2 but places more weight on older housing occupied by a poverty household and less
on overcrowding than alternative 2. Compared to the original needs index justifying the current
formula, the needs index in this study does not contain as many variables capturing community
decline. To account for this deficiency, the shift in weight for alternative 3 is intended to put
more emphasis on places with the problems of age and decline versus places with growing
immigrant populations. The nonentitlement formula is the same as in alternative 2.

Alternative 3
Entitlement Communities—70% States (Nonentitlements)—30%
50% * family & elderly poverty 60% * family & elderly poverty
10% * female-headed household with children under 18 10% * female-headed household with children under 18
10% * overcrowding 30% * housing 50 years or older occupied by a poverty
household
30% * housing 50 years or older occupied by a poverty
household

Entitlement total denominators. Adjusted by the ratio of
metropolitan area per capita income divided by local per
capita income with an adjustment cap of +/- 25 percent.
Pro rata reduction of adjusted grant to match grant
allocation to appropriations.
State nonentitlement total denominators.

CDBG Formula Targeting to Community Development Need
xix

In addition, to account for fiscal disparities within metropolitan areas, this alternative adjusts
grants up for jurisdictions with a low per capita income relative to their metropolitan per capita
income and adjusts grants down for jurisdictions that have a high per capita income relative to
their metropolitan per capita income. This adjustment results in an average increase in grants
greater than the number of decreases. The application of a pro rata reduction ensures the total
grant amount does not exceed appropriations.

$0
$10
$20
$30
$40
$50
$60
$70
Entitlement Grantees
Per Capita Grant
Alternative 3 Per Capita Grant
Needs Index Per Capita Grant
(slope 12.0)
Low Need High Need

Chart ES-7. Entitlement Alternative 3. Targeting to Need

Chart ES-7 shows that alternative 3 targets well to need, but differently than alternative 2.
Alternative 3 has a higher slope than alternative 2, allocating more funds per capita to the higher
need grantees and less funds per capita to the lower need grantees. Alternative 3, however, has
more variation in grant amounts among grantees with similar need than alternative 2.

Associated with its higher slope, alternative 3 increases the funding for the more needy grantees
at the expense of the less needy grantees and also benefits some of the older declining cities.
Instead of declining, as it does under alternative 2, Detroit’s grant increases under alternative 3 to
$51 per capita. Miami’s grant increases a lesser amount to $44 per capita. This separation in per
capita grant amounts between the similarly needy Miami and Detroit represents the greater
differentiation in grant amounts for similarly needy jurisdictions under alternative 3 versus
alternative 2. These fluctuations largely result from the higher weight given to decline in
alternative 3. Nonetheless, relatively overfunded high-need jurisdictions with substantial decline,
like Saint Louis, Buffalo, and Cleveland, still suffer decreases in funding relative to their current
grants (32 percent, 14 percent, and 12 percent, respectively), but not as significant as under
alternative 2.

CDBG Formula Targeting to Community Development Need
xx

Low-need jurisdictions largely have significant reductions under alternative 3. For example, the
relatively low-need jurisdiction of Newport Beach, California, has its per capita grant fall to $3
per capita (its current grant is $6 per capita and its alternative 2 grant is $4 per capita).

Alternative 4

Alternative 4 is a single formula allocating all funds to both entitlements and states without a
70/30 split. Currently, entitlement grantees are allocated 70 percent of the funds and states are
allocated 30 percent of the funds. Since FY 1982 when the 70/30 split was first put into effect,
the number of entitlement grantees has grown from 732 to 1,105 in FY 2004. While the split
between entitlements and nonentitlements has remained static, the relative share of the U.S.
population served by the 70 percent share of entitlement funds has grown while the relative share
of the population served by the nonentitlement side of the formula has decreased. The
nonentitlement share of the population, however, is still greater than 30 percent, having fallen
from 45 percent in FY 1982 to 36 percent in FY 2002.

Alternative 4
Entitlement Communities and State (Nonentitlements)—100%
50% * family & elderly poverty
10% * female-headed household with children under 18
10% * overcrowding
30% * housing 50 years or older occupied by a poverty household
Adjusted by the ratio of metropolitan area per capita income divided by local per capita income (states not adjusted)
with an adjustment cap of +/- 25 percent. Pro rata reduction of adjusted grant to match grant allocation to
appropriations.

This 70/30 split could be maintained in its current state, the split could be changed using some
different approaches, or the split could be eliminated altogether with a single formula. If a single
formula were used, and that formula used the factors and weighting of entitlement alternative 3,
2

the de facto split would be 69 percent to entitlements and 31 percent to nonentitlements in FY
2004. As shown on Chart ES-8, that targeting would be almost exactly the same as shown in
Chart ES-7 for alternative 3.

2
By including states in the formula, unlike nonentitlement alternative 3, states do get some funding due to
overcrowding (10 percent). Consequently, a moderate shift of funds occurs from high poverty states with no
overcrowding to high poverty states with overcrowding.

CDBG Formula Targeting to Community Development Need
xxi

$0
$10
$20
$30
$40
$50
$60
$70
Entitlement and Nonentitlement Grantees
Per Capita Grant
Alternative 4 Per Capita Grant
Combined Needs Index Per
Capita Grant
Low Need High Need

Chart ES-8. Alternative 4. Targeting to Need

Impact

All of the alternatives we discuss in this report result in a significant redistribution of funds.
Table ES-1 shows the impact on entitlements and Table ES-2 shows the impact on
nonentitlements. Alternative 1, which simply tweaks the formula, results in fewer very large
losses and gains than alternatives 2 and 3. For entitlements, alternative 4 causes the largest
redistribution of funds. Alternatives 1, 3, and 4 for entitlements largely redistribute funds from
the least needy to the most needy. Alternative 2, by fixing the anomaly in funding between
Formula A and Formula B grantees, also leads to funding reductions for some very needy
grantees, a problem that alternative 3 seeks to fix. Alternative 4 has the same impact as
alternative 3, except slightly more losers than winners for entitlements occur because the pot of
funds for entitlements is effectively reduced to 69 percent from its current 70 percent. For states,
however, slightly more winners occur under alternative 4 than alternatives 2 and 3 because the
pot of funds effectively has increased to 31 percent from 30 percent.

CDBG Formula Targeting to Community Development Need
xxii

Table ES-1
Percent of Entitlement Grantees Gaining/Losing Funds by Formula Alternative

Alternative 1 Alternative 2 Alternative 3 Alternative 4
Loss greater than 40% 5% 12% 15% 15%
Loss 20 to 40% 16% 15% 18% 19%
Loss 10 to 20% 15% 9% 11% 10%
Loss 0 to 10% 20% 12% 11% 12%
Gain 0 to 10% 18% 12% 12% 11%
Gain 10 to 20% 13% 11% 10% 11%
Gain 20 to 40% 11% 17% 14% 13%
Gain greater than 40% 1% 12% 11% 9%
Total 100% 100% 100% 100%
N=1,105 (As compared to FY 2004 allocation)

Table ES-2
Percent of Nonentitlement Grantees Gaining/Losing Funds by Nonentitlement Formula
Alternatives

Alternative 1 Alternative 2 Alternative 3 Alternative 4
Loss greater than 40% 0% 4% 4% 0%
Loss 20 to 40% 14% 18% 18% 18%
Loss 10 to 20% 20% 22% 22% 20%
Loss 0 to 10% 16% 16% 16% 18%
Gain 0 to 10% 26% 6% 6% 6%
Gain 10 to 20% 20% 12% 12% 16%
Gain 20 to 40% 6% 20% 20% 20%
Gain greater than 40% 0% 4% 4% 4%
Total 100% 100% 100% 100%
N=51 (using FY 2004 geography)

Table ES-3 shows the total redistribution of funds by region caused by the different alternatives.
As expected, alternative 1 has the smallest redistribution of funds. Even so, the New England
region suffers a very large loss of funding of 22 percent, primarily resulting from the
replacement of the variable of pre-1940 housing with pre-1950 housing occupied by a household
in poverty in Formula B. Alternative 2 causes the largest regional redistribution of funding
because of its correction for the A and B formula anomalies without substantially raising the
slope of the allocation. Alternatives 3 and 4 have regional redistributions similar to alternative 1,
but less than alternative 2 because of the increase in slope and an increased weight on
communities in decline.

CDBG Formula Targeting to Community Development Need
xxiii

Table ES-3
Total Regional Shifts for Both Entitlements and States for Each Alternative

Region Alternative 1 Alternative 2 Alternative 3 Alternative 4
New England -22% -31% -21% -21%
New York/New Jersey -2% -5% 3% 2%
Mid-Atlantic -7% -18% -11% -12%
Southeast 8% 20% 16% 16%
Midwest -11% -19% -11% -11%
Southwest 13% 21% 15% 16%
Great Plains -9% -12% -8% -8%
Rocky Mountain -5% -2% -4% -3%
Pacific/Hawaii 9% 14% 0% 1%
Northwest/Alaska -6% -3% -7% -5%
Puerto Rico 33% 35% 23% 24%
N=1,156

Recommendation

Serious consideration should be given to changing the CDBG allocation formula so that it better
targets to community development need. Any of the alternatives proposed in this report would
accomplish this goal. HUD looks forward to working with Congress, CDBG grantees, and other
stakeholders to discuss these alternatives.

CDBG Formula Targeting to Community Development Need
xxiv

CDBG Formula Targeting to Community Development Need
1
Chapter 1. Introduction

Purpose of the Report

The purpose of this report is to assess how well the Community Development Block Grant
(CDBG) formula, after introduction of Census 2000 data into the formula, allocates funds toward
the community development needs identified in the Housing and Community Development Act
of 1974. HUD indicated in its Fiscal Year (FY) 2004 budget that it would be undertaking this
study.

The National Research Council’s Panel on Statistical Issues in Allocating Funds by Formula
(Louis, Jabine, and Gerstein 2003) recommends that policymakers periodically review formula
allocation programs to assess whether they are performing as intended. For the CDBG formula,
the following four major assessments of the formula have preceded this one:

1. The first report, prepared at the request of Congress in 1976, pioneered the thinking on
how to target funds to “community development need” (Bunce 1976). The current
CDBG allocation formula, which first allocated funds in 1978, is built around the major
conclusions of that report.

2. A follow-up report in 1979 addressed the targeting of the newly created formula (Bunce
and Goldberg 1979).

3 & 4. As new census data were introduced into the formula in 1980 and 1990, HUD did
follow-up studies to determine whether the CDBG formula continued to target well to
community development need (Bunce, Neal, and Gardner 1983; Neary and Richardson
1995). Those studies show that while targeting to need has declined as new census data
have been introduced into the formula, and that there are significant funding anomalies,
in general, the formula still provides considerably more dollars per capita to needier
communities than it does to less needy communities.

In FY 2003, 2000 Census data were fully introduced into the CDBG allocation formula.
Continuing HUD’s tradition of reexamining the formula when new decennial census data are
available, this report evaluates how the introduction of 2000 Census data affects the formula’s
targeting to community development need. An already published report, “Redistribution Effect
of Introducing Census 2000 Data Into the CDBG Formula” (Richardson, Meehan, and Kelly
2003), provides basic information about which formula variables are responsible for shifts in
funding. This report does not repeat that analysis; rather, it focuses on targeting to community
development need. In addition to the needs analysis, this report does the following:

• Describes the impact of introducing the Office of Management and Budget’s (OMB’s)
new definitions for metropolitan areas.

• Explains the 70/30 funding split between entitlement and nonentitlement CDBG grantees.

CDBG Formula Targeting to Community Development Need
2
• Provides four alternative formulas
3
that would improve targeting to need.

Report Overview

This report is structured into nine chapters.

Chapter 1. Introduction. This chapter explains the purpose of the report.

Chapter 2. Current Formula Mechanics. This chapter explains how the current dual formula
works and provides direct examples.

Chapter 3. Developing a Community Development Needs Index. This chapter describes the
selection of variables for inclusion in a community development needs index, the statistical
techniques used to isolate different patterns of community development need, and the process
used to create a single score for each community to proxy its level of community development
need relative to the national average.

Chapter 4. CDBG Targeting to Need—Entitlement Communities. This chapter shows how,
after the introduction of 2000 Census data, the CDBG entitlement formula targets to the
community development needs index. It also describes which components of the existing
formula are responsible for its increasingly poor targeting to need.

Chapter 5. CDBG Targeting to Need—States (Nonentitlements). This chapter shows how the
CDBG nonentitlement formula targets to the community development needs index. It also
describes the components of the formula that contribute to its generally poor targeting.

Chapter 6. CDBG Alternative Formulas. This chapter shows three possible alternatives for
improving the targeting to need of the CDBG entitlement formula and two possible alternatives
for improving the targeting to need of the nonentitlement formula.

Chapter 7. Impact of New Metropolitan Area Definitions. OMB’s new metropolitan area
definitions could potentially result in the addition of 78 entitlement cities and 12 urban counties.
The new definitions also change the metropolitan denominator for the entitlement program for
each of the formula variables. This chapter describes the potential implication of adding all of the
eligible communities as well as the reality of how many jurisdictions actually decided to
participate in FY 2004.

Chapter 8. The 70/30 Split. Since 1981, nonentitled portions of states have received 30 percent
of the CDBG formula allocation while entitlement areas have received 70 percent. Since that
time, numerous new communities and urban counties have been added to the entitlement share of
the formula from the nonentitlement share. This chapter offers some options ranging from

3
The report provides three alternatives for the entitlement formula, two alternatives for the nonentitlement formula,
and one single formula alternative. For simplicity in the Executive Summary and concluding chapter, the
entitlement and nonentitlement formulas are linked to create individual alternatives resulting in a total of four
complete alternatives.

CDBG Formula Targeting to Community Development Need
3
continuing the current split, to annually adjusting the split, to creating a single formula that funds
both entitlements and nonentitlements.

Chapter 9. Conclusion. This chapter summarizes the report findings and recommends that
serious consideration be given to changing the formula.

CDBG Formula Targeting to Community Development Need
4

CDBG Formula Targeting to Community Development Need
5
Chapter 2. Current Formula Mechanics

The Community Development Block Grant (CDBG) program provides annual “entitlement”
allocations to eligible cities and counties and nonentitlement allocations to states for areas that do
not qualify or choose not to participate as entitlements. As specified in sections 102 and 106 of
the Housing and Community Development Act of 1974, the program allocates funds based on
demographic data provided by the U.S. Census Bureau.

After setting aside funds for special purposes, such as technical assistance, congressionally
specified projects, and 1 percent for the Indian CDBG program, the annual appropriation for
CDBG formula funding is split so that 70 percent is allocated among entitlement cities and
counties and 30 percent among the states. The communities and states must submit annual plans
that show how they expect to use these funds and other Community Planning and Development
formula funds and report on their prior year accomplishments. Program regulations govern the
eligible use of the funds (24 CFR Part 570).

For the most part, CDBG funding levels allocated by formula have remained constant in recent
years at some amount between $4.2 and $4.4 billion. In Fiscal Year (FY) 2002, the total
appropriation level for the CDBG formula was $4.341 billion, $3.039 billion allocated to
entitlement communities and $1.302 billion for nonentitlement communities.
4

Entitlement Communities and States

To qualify as an entitlement community, cities and counties must meet criteria established in
section 102 of the Housing and Community Development Act. The statute makes the following
areas eligible for the entitlement program.

Metropolitan Cities

• Central cities of metropolitan areas (MAs).
5

• Other cities with a current population of 50,000 or more that are also in MAs.
• Cities that retain metropolitan city status as a result of previously meeting the criteria
for metropolitan cities.

4
For comparison to the previously published “Redistribution Effect of Introducing Census 2000 Data Into the
CDBG Formula,” the discussion in chapters 2 through 6 uses the FY 2002 appropriation level and universe of
grantees. Chapters 7 and 8, Executive Summary tables, and Appendix B reflect the FY 2004 universe of CDBG
grantees.
5
The Office of Management and Budget defines metropolitan areas and designates central cities. This office
establishes the criteria and updates the MA list when decennial census data are issued and as the Census Bureau
updates population estimates throughout the decade. Beginning in FY 2004, due to revisions to the OMB definitions
of MAs, “principal city” is used instead of “central city” as a means of determining eligibility for the entitlement
program.

CDBG Formula Targeting to Community Development Need
6

Urban Counties

• Counties that are in MAs and have a population of 200,000 or more after excluding
metropolitan cities and eligible Indian tribes.
• Counties that retain qualification status as a result of previously meeting criteria for
urban counties.

The nonentitled portion of a state receives funding based on the balance of need characteristics
that remain after subtracting data for metropolitan cities and urban counties that choose to
participate in the entitlement program. Data for Native Americans living in federally recognized
Indian tribal areas are also subtracted because they are eligible for funding under separate grant
programs.

Qualification process. The Department of Housing and Urban Development (HUD) designates
metropolitan cities based on population estimates available from the Census Bureau and central
cities designated by the Office of Management and Budget (OMB). HUD uses the data that are
available for all units of government 90 days before the start of the federal fiscal year.

HUD also identifies urban counties annually when the data show that a county could potentially
have a population of more than 200,000 or meet other legislative tests. The county includes
unincorporated areas along with local units of government where the county has authority or a
legal agreement with local governments to undertake community development activities. Urban
counties go through a process of establishing legal agreements for participation with local
governments when they are first qualified and every 3 years thereafter.

States are automatically funded under the CDBG program
6
. They are funded based on the
nonentitled portion in the state; that is, the balance of the state after excluding metropolitan
cities, urban counties with their included units of government and all Native Americans living in
eligible tribal areas. Only units of general local government (small cities, small towns, and rural
counties) in the nonentitled area may apply to the state for funding. The Housing and
Community Development Act defines the District of Columbia as a metropolitan city. It includes
Puerto Rico as a state. Other territories, outlying areas, and Native Americans living in tribal
areas are excluded from the formula and funded under set-asides from the annual appropriation.

The number of metropolitan cities and urban counties participating as entitlement communities
in CDBG has increased steadily since the creation of the program in 1974. Since 1981, when
Congress established that entitlements would receive 70 percent of the funds and nonentitlements
30 percent (the 70/30 split), the number of entitlement grantees has ballooned from 666 to 1,105
in FY 2004, a 66 percent increase. Generally, when new metropolitan cities are added to the
formula, individually they have a small impact because they have small populations, usually
around 50,000. Because the population threshold for urban county participation—200,000—is

6
Since 1981, when Congress gave states the ability to assume responsibility for administering the CDBG program,
there has been a gradual transition from HUD administration of the nonentitled funds for individual states to state
administration of the CDBG nonentitlement program. Only Hawaii’s nonentitled grant continues to be administered
by HUD.

CDBG Formula Targeting to Community Development Need
7
higher than that of cities, however, their entry into the program has a larger impact on the
entitlement allocation. Since 1981, roughly a quarter of all new entitlement communities have
been urban counties. Chapter 8 explains the implications of the increasing number of entitlement
communities and the fixed split of 70 percent to entitlements and 30 percent to states.

CDBG Formulas

The CDBG “formula” consists of two basic formulas, known as Formulas A and B, to allocate
CDBG funds. In practice, five formulas are used in this annual process, all variations on
Formulas A and B. Three formulas allocate 70 percent of funds to entitlement communities, and
two formulas allocate funds to the states (for nonentitlement communities). This system of five
formulas has been in place since FY 1981 (Neary and Richardson 1995).

Formula A for entitlement communities is as follows:

(0.25 Pop (a) + 0.5 Pov (a) + 0.25 Ocrowd (a)) x $3.039 billion
Pop (MA) Pov (MA) Ocrowd (MA)

Formula B for cities is as follows:

(0.2 GLag (a) + 0.3 Pov (a) + 0.5 Age (a) ) x $3.039 billion
GLag (MC) Pov (MA) Age (MA)

Formula B for urban counties is as follows:

(0.2 GLag (a) + 0.3 Pov (a) + 0.5 Age (a) ) x $3.039 billion
GLag (ENT) Pov (MA) Age (MA)

where:
• (a) is the value for the jurisdiction.
• (MA) is the value for all MAs.
• (MC) is the value for all entitlement cities.
• (ENT) is the value for all entitlement jurisdictions (cities and urban counties).

• $3.039 billion is the amount available for allocation to entitlement jurisdictions in FY
2002.

• Pop is the total resident population.
• Pov is the number of persons below the poverty level.
• Ocrowd is the number of overcrowded housing units. A housing unit is overcrowded
when more than 1.01 persons per room are living in the unit.
• Age is the number of housing units built before 1940.
• Glag is population growth lag. Growth lag is the shortfall in population that a city or
county has experienced when comparing its current population to the population it would
have had if it grew like all metropolitan cities since 1960. For the FY 2002 formula
allocation, the growth rate for all entitlement communities between 1960 and 2000 was

CDBG Formula Targeting to Community Development Need
8
37.4 percent. If a city or county grew at a rate greater than or equal to 37.4 percent
between 1960 and 2000, it receives a growth lag value of zero.
7

HUD calculates the amounts for each entitlement jurisdiction under both Formulas A and B.
Jurisdictions are then assigned the larger of the two grant amounts. That is, if a jurisdiction gets
more funds under Formula A than Formula B, its grant is based on Formula A. With this dual
formula system, it is not surprising that the total amount assigned to CDBG grantees has always
exceeded the total amount available through appropriation. To bring the total grant amount
allocated to entitlement communities within the appropriated amount, HUD uses a pro rata
reduction. In FY 2002, for example, the pro rata reduction was 11.43 percent. That is, the amount
assigned to a community under the dual formula is multiplied by 0.8857 (1 – 0.1143) to generate
the actual grant amount.
8

The formula for the nonentitled areas of states generally operates like the entitlement formula.
Two key differences, however, are present: (1) Formula B uses population instead of growth lag,
and (2) the denominator for all of the variables is the sum of the nonentitled total (NEnt) instead
of the sum of non-MAs. The formulas for the nonentitlement allocation are as follows:

Formula A is as follows:

(0.25 Pop (a) + 0.5 Pov (a) + 0.25 Ocrowd (a) ) x $1.302 billion
Pop (NEnt) Pov (NEnt) Ocrowd (NEnt)

Formula B is as follows:

(0.2 Pop (a) + 0.3 Pov (a) + 0.5 Age (a) ) x $1.302 billion
Pop (NEnt) Pov (NEnt) Age (NEnt)

As with entitlement communities, HUD calculates the amounts for each state under each
formula. States are then assigned the grant that is the larger of the two. To bring the total grant
amount to states within the appropriated amount, HUD uses a pro rata reduction. In FY 2002, for
example, the pro rata reduction for states was 16.85 percent.

Sources of Data for the Formulas

To ensure objectivity and consistency, the decennial census is the primary source of the data in
the CDBG formula. In years following the release of the decennial data, the Census Bureau
provides updated population estimates, identifies new incorporations, and reports major

7
HUD does not have a 1960 population figure for some communities. Those communities are not included when
calculating the 1960 to 2000 growth rate. In addition, while the latest population used to compute growth lag reflects
recent boundary changes, HUD cannot make changes to the 1960 population for individual communities based on
boundary changes that result from annexations because the 1960 data are not available. HUD does make changes to
the 1960 population data for communities that result from mergers, since the data are available.
8
There could conceivably be a pro rata increase, since the sum of the values in each numerator (entitlement
jurisdictions) is less than the denominator (all MAs, portions of which are not entitled). In the more than 20 years of
the CDBG dual formula, there has never been a need for a pro rata increase.

CDBG Formula Targeting to Community Development Need
9
boundary changes (usually due to annexation). As required by statute, HUD uses the latest data
consistently available for all areas as of 90 days before the start of the fiscal year. Since HUD
allocates funds to Indian tribes separately, HUD excludes data for Native Americans living in
tribal areas from the formula data for all states and entitlement communities.

Formula Allocation Example

Below is an example of how the formulas work. The estimated CDBG grant for this city
9
would
be based on 350,000 persons; 50,000 persons in poverty; 7,500 overcrowded housing units;
65,000 housing units that were built before 1940; and a growth lag of 40,000 persons between
1960 and 2000. It would receive the larger of the amounts generated by the two formulas.

Formula A:

Population Poverty Overcrowding
(0.25 350,000 + 0.5 50,000 + 0.25 7,500 ) x $3.039 billion
229,192,836 27,561,898 5,551,631

= $4,942,675

Formula B:

Growth Lag Poverty Age of Housing
(0.2 40,000 + 0.3 50,000 + 0.5 65,000 ) x $3.039 billion
25,564,131 27,561,898 12,974,750

= $10,216,211

This grantee gets substantially more money using Formula B than with Formula A. As a result,
its grant would be the total of the larger, Formula B, multiplied by a pro rata reduction of 12.37
percent, making the total grant after pro rata reduction $8,952,466.

It is useful to know that FY 2002 used Census 2000 data for population and growth lag, but still
used Census 1990 data for the poverty, overcrowding, and pre-1940 housing. The FY 2003
allocation used Census 2000 data for all the variables, and the FY 2004 allocation uses the
Census 2002 population estimates for the population and growth lag variables and the new OMB
metropolitan area definitions for determining the denominator on most of the variables.
Appropriation amounts allocated by formula have remained fairly similar over the 3 years:
$4.341 billion in FY 2002, $4.340 billion in FY 2003, and $4.331 billion in FY 2004.
Richardson, Meehan, and Kelly (2003) showed the impact on redistributing funds as a result of
Census 2000 data being fully introduced into the formula in FY 2003.

9
This calculation is based on the FY 2002 universe of grantees and appropriation amount. All the data used are from
Census 2000.

CDBG Formula Targeting to Community Development Need
10

CDBG Formula Targeting to Community Development Need
11
Chapter 3. Developing a Community Development Needs Index

The report “Redistribution Effect of Introducing Census 2000 Data into the CDBG Formula”
(Richardson, Meehan, and Kelly 2003) showed how funds are redistributed among communities
when the Census 2000 data are introduced. This chapter describes the establishment of the
measurement tool—a needs index—used to assess whether the redistribution of funds resulting
from the new Census 2000 data improves or aggravates the formula’s ability to target toward
community development need.

In previous Community Development Block Grant (CDBG) studies, the Department of Housing
and Urban Development (HUD) used a methodology that created standard measures of
“community development need” across entitlement cities (Bunce 1976; Bunce and Goldberg
1979; Bunce, Neal, and Gardner 1983; Neary and Richardson 1995). This study used the same
basic methods. Advancing the work of previous studies, however, this study develops a needs
index that includes urban counties in addition to cities. It develops a separate needs index for the
nonentitlement balance of states.

Community development need encompasses many different things—housing quality,
infrastructure, economic development, poverty, tax base, and others. To account for these many
dimensions of need, this study assembled data on 17 community-need-related variables for each
entitlement jurisdiction.
10
Factor analysis is used to group variables that correlate highly with one
another. For variables that correlate highly with each other, factor analysis creates a factor score
to represent the common variance among these variables. To the extent there are different
patterns of variance, factor analysis creates multiple factor scores. The factor score for each
jurisdiction represents the number of standard deviations it is from the mean. For example, if
poverty and overcrowding have a high level of correlation, a place with a poverty rate near the
national mean and an overcrowding rate near the national mean would have a factor score of
zero. A place with a rate of poverty and overcrowding one standard deviation less than the
national average would receive a factor score of –1.0; a place with a rate one standard deviation
greater than the national average would receive a factor score of 1.0.

CDBG Formula History

The formula originally established for allocating CDBG funds in the 1974 authorizing legislation
(Housing and Community Development Act of 1974) was relatively simple and easy to
understand. It had only three variables—population weighted at 25 percent, poverty weighted at
50 percent, and overcrowding weighted at 25 percent. The formula gave the largest weight to
poverty, which reflects the emphasis on communities with low-income persons that CDBG was
intended to serve. HUD conducted an analysis after enactment of the law that used the same
approach used in this report. A community development needs index was created, and the new
formula’s allocation was compared against the needs index. The report from this analysis,
published in 1976, showed that the formula in the original 1974 legislation targeted very well to
communities with large poverty populations but did not target well to older and declining

10
Data are available on all 17 variables for only 899 of the 1,024 Fiscal Year 2002 entitlement jurisdictions.
Analyses that use the needs index refer to these 899 jurisdictions only.

CDBG Formula Targeting to Community Development Need
12
communities (Bunce 1976). It also showed that poverty and decline were not closely related,
suggesting the need for a dual formula system.

As a result of HUD’s 1976 analysis, and the realization that many of the older and declining
communities had been large recipients of the categorical grants CDBG was intended to replace,
Congress enacted legislation in 1977 (Housing and Community Development Act of 1977) that
created a dual formula that would target funds to both places with large poverty populations and
older and declining communities. The dual formula has been in use since the Fiscal Year (FY)
1978 appropriation.

Identifying the Variables

Four studies have preceded this one in developing a community development needs indicator:
Bunce 1976; Bunce and Goldberg 1979; Bunce, et al. 1983; and Neary and Richardson 1995. As
with these four studies, this study started the process of identifying the variables for the
community development needs index by looking at the Congressional intent of the CDBG
program.

The Housing and Community Development Act of 1974, as amended, established as the primary
objective of the CDBG program “the development of viable urban communities, by providing
decent housing and suitable living environment and expanding economic opportunities,
principally for persons of low and moderate income.” The statute goes on to specify that at least
70 percent of the funds should be used to benefit persons of low and moderate income. The
statute directs that the funds be directed at the following specific objectives:

1. The elimination of slums and blight and the prevention of blighting influences and the
deterioration of property and neighborhood and community facilities of importance to the
welfare of the community, principally persons of low and moderate income.

2. The elimination of conditions which are detrimental to health, safety, and public welfare
through code enforcement, demolition, interim rehabilitation assistance, and related
activities.

3. The conservation and expansion of the Nation’s housing stock in order to provide a
decent home and a suitable living environment for all persons, but principally for those of
low and moderate income.

4. The expansion and improvement of the quantity and quality of community services,
principally for persons of low and moderate income, which are essential for sound
community development and for the development of viable urban communities.

5. A more rational utilization of land and other natural resources and the better arrangement
of residential, commercial, industrial, recreational, and other needed activity centers.

6. The reduction of the isolation of income groups within communities and geographical
areas and the promotion of an increase in the diversity and vitality of neighborhoods

CDBG Formula Targeting to Community Development Need
13
through the spatial deconcentration of housing opportunities for persons of lower income
and the revitalization of deteriorating or deteriorated neighborhoods.

7. The restoration and preservation of properties of special value for historic, architectural,
or esthetic reasons.

8. The alleviation of physical and economic distress through the stimulation of private
investment and community revitalization in areas with population out-migration or a
stagnating or declining tax base.

9. The conservation of the Nation’s scarce energy resources, improvement of energy
efficiency, and the provision of alternative and renewable energy sources of supply.
(Housing and Community Development Act of 1974)

Community Development need clearly encompasses many different elements, and the CDBG
statute is specifically designed to give jurisdictions a great deal of flexibility to address the
community development needs specific to their community. Any community development needs
indicator must encompass a wide variety of measures reflecting different types of community
development need.

Variables Used To Construct the Community Development Needs Indicator

This study identified the variables to be used in the needs index for the entitlement communities
based on the CDBG objectives noted above. Table 3-1 shows the variables used in previous
studies, as well as those used for this study. Many of the variables selected for this study have
been used in one form or another in all of the studies. Data availability and continuing research
on the changing dynamics of community need have led to variable modifications and the
addition or subtraction of variables over time.

Table 3-1. Community Development Needs Variables, 1976–2003

Variable Description
Bunce
(1976)
Bunce
and
Goldberg
(1979)
Bunce, Neal,
and
Gardner(1983)
Neary and
Richardson
(1995)
Richardson
(This
Report)
Income variables
Percent of poor persons (census) X X X
Percent of persons under the age of 18 in
poverty (census) X X
Percent of persons living in poor families
or poor households headed by a elderly
person (census) X X
Percent of households that are female-
headed with children in poverty X
Change in percentage of poor persons over
10 years (census) X X X
Real per capita income (census) X X

CDBG Formula Targeting to Community Development Need
14
Variable Description
Bunce
(1976)
Bunce
and
Goldberg
(1979)
Bunce, Neal,
and
Gardner(1983)
Neary and
Richardson
(1995)
Richardson
(This
Report)
Ratio of per capita income to metropolitan
per capita income (census) X
Net change in real per capita income over
20 years (census)
X
(10 years) X
X
(10 years)
Percent of poverty persons in 40 percent or
higher poverty census tracts (census) X
Social and demographic variables
Percent of families with a female head and
children under 18 (census) X X X X
Percent of population older than 65
(census) X X
Percent of households minority (census) X X X X
Percent of population black (census) X
Change in percent of population black over
10 years (census) X X
Percent of population of Spanish origin
(census) X
Percent of population age 25–65 without a
high school education (census) X X X X
Minority dissimilarity index
(segregation)multiplied by percent
minority X
Economic Variables
Percent of population age 16–64 that is
employed (census) X X X
Percent of persons age 16 or older in the
labor force that are unemployed (census)
X
(Bureau
of Labor
Statistics
[BLS]) X
X
(BLS) X X
Percent change in the volume of retail sales
over 5 years (economic census)
X
(9 years)
X
(10 years) X
Percent change in retail sales
establishments over 9 years (economic
census) X
Percent change in retail, wholesale, and
service employment over 10 years
(economic census)
X
(5 years) X

Percent change in manufacturing
employment over 10 years (economic
census) X
Net change in unemployment rate over 10
years (census) X
New housing permits in past 2 years X
Housing variables
Percent of occupied housing units that are
pre-1940 and occupied by poverty
household (census) X
X
(pre-1950)
Percent of occupied housing units that are
pre-1960 occupied by a poverty renter
(census) X
X
(pre-1970)

CDBG Formula Targeting to Community Development Need
15
Variable Description
Bunce
(1976)
Bunce
and
Goldberg
(1979)
Bunce, Neal,
and
Gardner(1983)
Neary and
Richardson
(1995)
Richardson
(This
Report)
Percent of housing units pre-1940 (census) X X X
Percent of rental units pre-1940 (census) X
Percent of housing units owner-occupied
(census) X
X
(renter)
Percent of owner units pre-1940 (census) X
Percent of occupied housing that is rental
with one of four housing problems
(census)
11
X X
Percent of housing units lacking complete
plumbing (census) X X
Percent of housing units overcrowded X X X X
Population trends
Percent change in population since 1960
(census) X X X
X (loss
only)
Percent change in population over 10 years
(census)
X
(5 years) X X
X (loss
only)
Percent change in households over 10
years X
Other indicators
Number of murders, assaults with
weapons, incidents of nonnegligent
manslaughter, and robberies per 1,000
persons (UCR) X X X X X
Change in violent crime over 4 years X
Number of persons per square mile
(census) X X X X

The variables selected for creating a community development needs index are best explained in
the context of the CDBG objectives. For simplicity, in this report, the CDBG objectives are
summarized in four categories; each variable is explained in the specific CDBG category. Each
variable’s description is supported by an historic rationale and any relevant recent research
supporting the variable’s use. Not all the variables identified are available for all 1,024 CDBG
entitlement jurisdictions; needs scores are created for 899 jurisdictions only.
12

1. Low and Moderate Income Persons. The overall objective of CDBG is to serve
“persons of low and moderate income.” Thus, indicators that target low- and moderate-income
persons are essential. The specific objectives provide a special emphasis on targeting
communities with high neighborhood concentrations of low- and moderate-income persons. The

11
Overcrowding, without complete kitchen, without complete plumbing, and/or with housing cost burden greater
than 30 percent.
12
There is some bias in the jurisdictions that are excluded due to missing data. Specifically, 38 grantees in Illinois
are excluded because the crime data for most Illinois communities, except Chicago, are missing; all 21 Puerto Rico
jurisdictions are excluded for lack of crime data; and a disproportionate number of urban counties, 32 of the 159
urban counties, are excluded due to incomplete crime data. Crime rate is an excellent measure of community distress
not captured by any of the other factors used in this analysis, which justifies its inclusion even though its use reduces
the number of grantees used in this analysis from 1,024 to 899.

CDBG Formula Targeting to Community Development Need
16
objectives also indicate that CDBG funds should be used to fund community services for low-
and moderate-income persons; this report identifies subgroups of persons that are particularly
high consumers of community services.

Income Variables

a. Persons in poverty living in families or elderly households. The first CDBG formula
study identified the importance of poverty as a measure of community development need
because poor persons have a high reliance on city government for basic necessities. In
addition, poverty is associated with “substandard housing, urban blight, neighborhood
instability, and housing abandonment” (Bunce 1976). This study uses persons in poverty
living in families or elderly households instead of simply persons in poverty because the
persons in poverty variable from the census includes off-campus college students, who
often receive support from their families that is not recorded by the census. The persons
in poverty variable, therefore, tends to distort the level of need in areas where large
colleges or universities are located. By focusing on just persons in poverty that live in
families (two or more related persons) or elderly households, this anomaly is largely
resolved (Neary and Richardson 1995).
13

b. Percentage point change in poverty rate between 1990 and 2000. Jurisdictions with
growing numbers of persons in poverty have special community development needs
associated with their capacity to address a growing impoverished population. Research
has demonstrated, for example, that every 1 percent increase in a city’s poverty rate
reflects a 5.5 percent increase in per capita expenditure on police services. Similar effects
exist for fire protection costs (Ladd and Yinger 1989). The change in poverty rate among
CDBG entitlements between 1990 and 2000 ranges from a drop of 18 percentage points
(Toa Alta Municipio, PR) to an increase of 8 percentage points (North Miami, FL).

c. Jurisdiction per capita income relative to metropolitan per capita income. This is a
new variable for this study. Rather than use per capita income alone, this measure takes
into account the metropolitan context of that per capita income. It extends research
conducted by David Rusk (1993) showing that “the city-suburb per capita income ratio is
the single most important indicator of an urban area’s social health.” Conceptually, it
takes into account the relationship between the cost of providing services, which is driven
by metropolitan area incomes (the employment/services market), and the tax base to pay

13
Because this variable excludes single, nonelderly persons in poverty (the proxy for college students in this
analysis), there is a sense that it may misrepresent the needs of communities with particularly high portions of their
population made up of noncollege students who are single, nonelderly, and in poverty. To test this, HUD requested a
special tabulation of census data that specifically excluded full-time college students from the poverty count.
Comparing the noncollege student poverty rate to the poverty rate for persons living in families and elderly
households in poverty across the CDBG universe finds a correlation of 0.989. A few noncollege town communities
have a 10 percent reduction in the share of the national poverty total when the elderly and families in poverty are
used instead of special Census tabulation data on noncollege students in poverty. Those communities include
Bangor, Maine; Clearfield, Utah; Myrtle Beach, South Carolina; Portland, Maine; Asheville, North Carolina;
Lewiston, Maine; Portland, Oregon; Miami Beach, Florida; Glens Falls, New York; Charleston, West Virginia;
Wheeling, West Virginia; Superior, Wisconsin; Sarasota, Florida; Clearwater, Florida; Palm Springs, California; and
Atlantic City, New Jersey.

CDBG Formula Targeting to Community Development Need
17
for those services, which is driven by local incomes. The lower this ratio, the more
difficult it is for a community to provide a level of service that can compete with the level
of service provided in other communities in the Metropolitan Statistical Area (MSA).
This measure is at the heart of Rusk’s concept of inelastic and elastic cities, where elastic
cities can annex their growing suburbs and inelastic cities are landlocked. Inelastic cities
experience declining tax bases and increased need for services.

d. Net change in per capita income from 1989 to 1999. This variable measures the
economic growth of a community. Rising per capita income reflects a growing economy
and a stronger tax base. Declining per capita income growth suggests a struggling
economy and a waning tax base relative to rising costs for a jurisdiction.

e. Concentrated poverty. This is a new variable for this study. The exact variable is the
percent of persons in poverty living in neighborhoods with more than 40 percent
poverty.
14
This measure uses Jargowsky’s (1996) definition of a ghetto neighborhood as
40 percent poverty or more.

The sixth objective of the CDBG statute calls for the “reduction of the isolation of
income groups within communities.” A number of recent studies have documented the
extent of poverty concentrations in the United States (Jargowsky 1996; Rusk 1999) and
the consequences of ghetto poverty (Wilson 1987; Blank 1997; Brooks-Gunn, Duncan,
and Aber 1997). Recent research on the impact of moving poor families from high-
poverty to lower poverty neighborhoods demonstrates significant effects for women and
girls in terms of increased safety, reduced incidence of psychological disorders, and less
obesity. However, there appears to be a negative impact on boy’s behavior. (Orr, et al
2003). Generally, the social cost of poor people living in high-poverty neighborhoods
appears to be higher than the cost of just having poor people, in terms of public safety
and health care costs.

High Consumers of Community Services
15

a. Female-headed households with children. This is a group seen to have day care needs.
In addition, communities with large segments of single parent households are often
correlated with neighborhood instability and substandard housing (Bunce 1976). This is
also a good supplement to the poverty measure because it captures a high number of
households that are just above the poverty threshold. According to Census 2000 data, 49
percent of female-headed households with children in the US have incomes less than
$20,000 compared to just 8 percent of married families with children. Very few female-

14
To address the issue of college towns, this variable uses persons in poverty living in families and elderly
households rather than all persons in poverty.
15
In all previous studies, the percentage of persons over age 65 was used as a factor. This study initially included
elderly persons based on the premise that they often have special needs for transportation, housing, recreation, and
health care (Bunce 1976). This study determined, however, that elderly persons did not correlate well with any other
factors. Further exploration suggests that a large elderly population can mean higher service costs but it also is very
indicative of communities with a significant population of well-off retirees. Because the meaning of this variable has
changed, it is not included in this analysis.

CDBG Formula Targeting to Community Development Need
18
headed households with children have higher incomes, only 4 percent nationwide have
incomes greater than $60,000.

b. Persons with lower education levels. Lack of high school education is correlated with
high crime rates, unemployment, and social problems. Individuals without a high school
education also often live in declining neighborhoods. Not having a high school education
increases the likelihood a person is dependent on public support (Bunce 1976).

2. Decent Housing. This study interprets the statute’s focus on “decent housing principally
for persons of low and moderate income” to encourage targeting of CDBG funds to areas with
large amounts of substandard housing, as well as places with a lack of decent affordable housing.
Variable selection also takes into account the historic preservation and energy conservation
objectives.

a. Occupied housing units that are pre-1950 and occupied by a poverty household and
occupied housing units that are pre-1970 and occupied by a poverty renter. Earlier
studies found that housing built before 1940 was an indicator of substandard housing and
a good proxy for “government repair and maintenance costs of older sanitation facilities
and sewage lines.” Older housing was also associated with housing abandonment. (Bunce
1976). As needier jurisdictions have demolished their pre-1940 housing stock over time
and less needy jurisdictions have renovated their pre-1940 housing stock, pre-1940
housing has steadily lost this targeting ability (Bunce, Neal, and Gardner 1983; Neary
and Richardson 1995). Age of housing remains a good proxy for an older infrastructure,
the costs of maintaining that infrastructure, and a need for historic preservation. Ladd and
Yinger (1991) found that cities with older housing had higher operating costs than cities
with newer housing. It is highly desirable to capture the concept of age without overly
rewarding communities that have aged gracefully.

Census 2000 does not have a perfect proxy for inadequate housing. Historically, pre-1940
housing has been used; its targeting ability has declined over time, however, as
dilapidated older units were demolished in declining communities and renovated in
improving communities. Neary and Richardson (1995) modified the older housing
variable to include occupancy by a poor person to improve the targeting of the age of
housing variable toward inadequate housing. Table 3-2 shows results from analysis of
2001 American Housing Survey data on the relationship between inadequate housing and
older housing. Nationally, 6.3 percent of the nation’s housing stock is inadequate.
16
Older
housing is indeed more likely to be substandard, with housing built before 1940 nearly
twice as likely (11.1 percent) to be substandard than on average nationally. Poor people
are also more likely to live in inadequate housing (12.1 percent). Combining poverty with
old housing substantially improves targeting toward inadequate housing. Approximately
18 percent of pre-1950 housing units occupied by a person in poverty have housing
quality problems. Tenure is also a good measure of housing inadequacy. Renters are
more likely to live in inadequate housing, particularly renters in older housing (16.5
percent for renters of pre-1950 housing).

16
Using the definition of “Physical problems - moderate and severe” in the American Housing Survey for the United
States: 2001 (U.S. Census Bureau 2002).

CDBG Formula Targeting to Community Development Need
19
Table 3-2. Age of Housing, Income, and Tenure as Indicators of Housing and
Neighborhood Distress

National
Total Poverty
Pre-1940
Housing
Pre-1950
Poverty
Pre-1950
Renter
Pre-1970
Poverty
Renter
Housing need indicators
Percent of units inadequate 6.3 12.1 11.1 17.9 16.5 18.7
Percent of units severely inadequate 2.0 4.0 3.7 5.9 5.4 6.4
Percent rating house quality 6 or less on
10 point scale (1 is low, 10 is high) 14.2 21.3 21.0 26.7 30.4 30.6
Neighborhood need indicators
Percent living near abandoned buildings 4.8 8.2 10.2 12.9 12.0 13.8
Percent living near roads in need of repair 35.2 40.4 41.5 44.6 46.5 45.6
Percent rating neighborhood quality 6 or
less on 10 point scale (1 is low, 10 is high) 17.2 23.8 23.9 29.9 30.7 33.2
Percent deeming crime to be so
bothersome that resident
wishes to move 3.7 6.4 5.2 8.9 9.3 11.8
Source: Analysis of 2001 American Housing Survey Data

To capture communities with somewhat newer housing stock (pre-1970) but with
housing inadequacy problems, the pre-1970 poverty renter variable has targeting
advantages similar to pre-1950 poverty.

b. Percent of housing units with more than 1.01 persons per room. Bunce’s 1976 report
identified overcrowding as an important indicator of (1) disposal and sanitation problems,
(2) a high demand for recreational facilities, (3) density of the population, and (4) excess
demand for housing. In 1995, the CDBG needs indicator included renter units with one of
four housing problems as an indicator of need. This factor included overcrowding, renter
cost burden of 30 percent or more, and units without complete kitchen and/or plumbing.
This study returned to using overcrowding alone.
17
Overcrowding has increased between
1990 and 2000 and is closely associated with growing immigrant population, which puts
a unique strain on local government resources. Studies commissioned by the National
Academy of Sciences of the states of California and New Jersey found that immigrants,
particularly the low-skilled immigrants with larger families that reflect overcrowding,
contribute less to local and state revenues than they consume (Smith and Edmonston
1997).

3. Suitable Living Environment. The variables in this category address the CDBG
objectives of eliminating slums and blight, neighborhood revitalization, and land use planning.

17
Analysis of the cost burden variable shows that it is generally a good indicator of high housing costs. For CDBG
targeting purposes, however, it has the side effect of especially targeting college towns. College towns often have
high housing costs because they are desirable places to live, with few community development need, and apparently
large numbers of persons with low incomes resulting in cost burden. The low incomes are deceptive, however,
because many college students have low earned incomes but are supported by their parents.

CDBG Formula Targeting to Community Development Need
20
a. Number of murders, assaults with weapons, incidents of nonnegligent
manslaughter, and robberies per 1,000 persons in 2001.
18
Communities with higher
crime rates are confronted not only by the need for greater police enforcement but also
the social cost associated with higher crime, including substantial health costs (Orr, et al.
2003). Crime also is a “push” factor that provides a strong incentive for people with a
choice, generally the people contributing most to a jurisdiction’s tax base, to leave the
community (Skogan 1990).

b. Number of persons per square mile in 2000. Research by Ladd and Yinger (1989)
demonstrated that higher general service costs are associated with both high- and low-
density communities. According to Ladd and Yinger, “Cities with low densities face high
transportation and coordination costs, whereas cities with high densities face severe
congestion.”

c. Level of minority segregation in metropolitan area multiplied by the percent of the
minority population. For this variable, this study uses a metropolitan level dissimilarity
index. This index measures the proportion of the population in the metropolitan area that
would need to move for the minority population to be evenly represented in all census
tracts.
19
Zero represents complete integration and 1 is complete segregation. The index is
then multiplied by the percent minority in a particular jurisdiction. In previous studies,
percent minority has been used as a separate indicator because urban blight and
abandonment were found to be concentrated in minority neighborhoods. Areas with high
minority concentrations were associated with overcrowded housing, a higher infant
mortality rate, greater welfare dependency, substandard housing, and high rates of
unemployment (Bunce 1976). Minorities are also more likely to have extended stays in
poverty (Blank 1997). More recent research indicates that these problems are much more
concentrated in metropolitan areas with high degrees of segregation (Rusk 1999).

Furthermore, racial segregation has been found to have a high correlation with fiscal
inequality and urban sprawl, defined as decreases in population density in the urbanized
area (Orfield 2002).
20
This could be driven partly by the substantial wealth gap between
minorities and whites (Oliver and Shapiro 1995). From this evidence, this study
concludes that jurisdictions with the highest percent minority population in a racially
segregated metropolitan area are likely to have relatively high levels of distress in terms
of fiscal revenue capacity and loss of population density in favor of urban sprawl.

18
All data are from Department of Justice Uniform Crime Reports (UCR). If city data are available from 2001 UCR,
that is used; otherwise, 1999 UCR data are used. For urban counties, 2000 UCR data is used less the entitlement city
UCR counts above. If no data are available for one or more entitlement city in a county but are available for that
county, data are not used for either. If the UCR population count for a county is greater than 1.20 or less than 0.5 of
the actual population count for an urban county, UCR data are not used for that county. For the 123 urban counties
for which data was available, 103 have ratios between 0.90 and 1.10.
19
Minority is defined as all persons except non-Hispanic whites.
20
Orfield found the correlation between tax base inequality in the 25 largest metropolitan areas correlates with the
dissimilarity index for racial segregation at 0.57. He also determined the correlation between decline in urbanized
land area density and the dissimilarity index for racial segregation to be –0.52.

CDBG Formula Targeting to Community Development Need
21
4. Economic Opportunities. The statute clearly states that CDBG should be targeted at
communities with population out-migration or a stagnating or declining tax base.

Population Trends

a. Population loss between 1960 and 2000. The Census of 1960 marked the population
height for many older, industrial central cities. The growth of interstate highway systems
and housing finance systems that favored suburban development over central city
housing, along with the decline in the number of manufacturing jobs located in central
cities, contributed a great deal to this population loss (Oliver and Shapiro 1995). Cities
with significant population loss are often confronted by the costs associated with
managing abandoned housing, an aging infrastructure that is larger than needed or that it
can support, and usually an older and larger poverty population than cities that are
growing. As a result, these cities have higher than average numbers of municipal
employees per 10,000 residents and tend to levy a higher combined state and local tax
burden (Moore and Stansel 1993). Even those jurisdictions that stabilized their population
between 1990 and 2000 still retain the higher costs noted above
21
.

b. Population loss between 1990 and 2000. Some jurisdictions that continued to grow in
population between 1960 and 1990 have begun to experience population loss. These
“newer” declining cities and urban counties, many of them inner-ring suburbs, are
beginning to experience population decline and some of the stresses noted in the previous
section for the older cities with population loss.

Economic Variables

a. Percent of population age 16 to 64 that was employed in 2000. The smaller the
segment of working age population that is employed, the greater social distress for a
community. This is a measure of the extent that the primary generators of income for a
community are idle, unemployed, or dependent on services. High rates of idleness are
often related to higher crime and dependence on community services without
contributing to the tax base.

b. Percent of persons age 16 years or older in the labor force that was unemployed in
2000. This is a direct measure of economic distress for a community. High numbers of
unemployed persons who are looking for work is reflective of a troubled regional
economy or a mismatch between the skills of the persons and the jobs available in the
region.

In prior years, changes in retail sales over 5 years, in manufacturing employment over 10
years, and service employment over 10 years have been included in the needs index. These
data have come from the U.S. Census Bureau’s Economic Census, which is conducted every
5 years. The most recent data available are from 1997. Unfortunately for this study, which

21
One caveat on the population loss estimates relates to falling household size. Some communities with population
loss, generally well-off suburbs that were almost fully built out in 1960, lost population in the form of falling
household size but actually are relatively well off.

CDBG Formula Targeting to Community Development Need
22
depends on changes between two time periods, the Census Bureau began using North
American Industry Classification System (NAICS) codes in 1997 for defining types of
industry in place of the Standard Industrial Classification (SIC) codes that were used for
previous economic census. For many types of jobs, there is no direct one-to-one link between
SIC code jobs and NAICS codes. For time series analysis, it is very important to have data
defined the same for both time periods. Because the economic census data are not defined the
same for both time periods, they could not be used in this study. The consequence for this
analysis is to have relatively few measures of economic growth and decline as part of the
needs index.

Factor Analysis

After identifying the variables that indicate community development need, for this study, those
data were translated into a single “needs indicator” using a statistical technique called “factor
analysis.” Factor analysis identifies underlying factors that capture the variance among multiple
variables. In this way, a single variable can be created that represents the common variance of
multiple variables. Generally, with a large number of variables, factor analysis will create more
than one factor to represent the different patterns of variance among the variables (Kim and
Mueller 1978).

Over the past three decades, there has been remarkable consistency in terms of the number and
type of factors created using this technique. Those factors have generally been (1) problems
associated with poverty, (2) density, and (3) age/decline (Bunce and Goldberg 1979; Bunce,
Neal, and Gardner 1983; Neary and Richardson 1995). The first CDBG study that used this
technique to create a measure of community development need (Bunce 1976) identified these
three factors as well as factors for (4) crime and unemployment and (5) lack of economic
opportunity.

This study determined that over the past decade, the factors that previously had different patterns
of variance—problems associated with poverty, unemployment, older infrastructure, and
decline—have largely converged into a single factor that accounts for 46 percent of the variance
among the 17 variables identified above. Two new needs variables, however, have emerged: one
that appears to be closely associated with high rates of immigration growth, and another that is
closely associated with a trend, documented by Jargowsky (2003), where many places with
concentrated poverty had substantial poverty rate declines during the 1990s.

For purposes of the formula alternatives described in Chapter 6, it is useful to note that the factor
analysis from the previous studies indicated that a dual formula system—one that targets toward
poverty and another toward age and decline—was appropriate. In the 1970s, 1980s, and 1990s,
poverty was clearly a dimension of need that did not relate well to age and decline. The analysis
from this study, however, indicates that this finding is no longer true. For the entitlement
communities, places with high rates of older housing and population loss are now accounted for
in the same factor that picks up poverty (factor 1). If policy makers choose, those dimensions of
community development need can now be captured through a single formula.

CDBG Formula Targeting to Community Development Need
23
Factor 1. Poverty/Age/Economic Distress/Decline

Factor 1 is an excellent factor for showing community development need. It reflects 46 percent
of the variance among the variables used in the factor analysis. Furthermore, 11 of the 17 needs
variables used in this analysis correlate with factor 1 at 60 percent or higher (shown in bold in
Table 3-3) while 5 of the remaining 6 variables have correlations of greater than 40 percent
(shown in italics in Table 3-3). Only the change in the poverty rate between 1990 and 2000 has a
weak correlation with this factor. That is, communities that score high on this factor, score high
regardless of their poverty rate change between 1990 and 2000. Table 3-3 shows the correlation
between factor 1 and each of the community need variables used in this study.

Table 3-3. Correlation of Individual Need Variables to Underlying Factor 1

Correlation
22

Percent of persons in poor families or poor elderly households, 2000 0.913
Point change in poverty rate, 1990–2000 0.018
Per capita income/per capita income of MSA, 2000 (negative equates with
good targeting to need)
–0.668
Net per capita income change, 1989–1999 (negative equates with good
targeting to need)
–0.676
Percent of poor persons in census tracts with greater than 40 percent
poverty, 2000
0.489
Percent of families with female head with children under age 18, 2000 0.740
Percent of population age 25–64 without high school education, 2000 0.781
Percent of occupied housing units built pre-1950, occupied by a poverty
household, 2000
0.734
Percent of occupied housing units built pre-1970, occupied by a poverty
renter household, 2000
0.855
Percent of housing units overcrowded, 2000 0.479
Number of homicides, assaults, and robberies per 1000 persons,
1999/2000/2001
0.711
Persons per square mile, 2000 0.430
MSA dissimilarity index multiplied by percent minority 0.715
Percent population loss, 1960– 2000 0.516
Percent population loss, 1990–2000 0.429
Percent of population age 16–64 employed, 2000 (negative equates with
good targeting to need)
–0.835
Percent of persons age 16 or older in labor force and unemployed, 2000 0.864
N=899

Table 3-4 shows a select group of communities that have high need and low need on factor 1.
23

This table shows that factor 1, which is strongly correlated with poverty, the old housing
variables, and unemployment, targets strongly to older cities such as Detroit and Baltimore while
it targets away from large urban counties such as Fairfax County, Virginia, and Oakland County,
Michigan.

22
Correlations at or above 0.600 are in bold while correlations from 0.400 to 0.600 are italicized.
23
The select communities are cities with population greater than 250,000 and urban counties with population greater
than 500,000. Tables 3-4, 3-6, 3-8, and 3-9 show the 10 most needy and 10 least needy of these communities on
each factor.

CDBG Formula Targeting to Community Development Need
24
Communities that have a high value on factor 1 are generally recognized to have considerable
community development need.

Table 3-4. Examples of High- and Low-Need Communities on Factor 1

Higher Need Score Lower Need Score
Newark, NJ 3.22 Orange County, CA –0.97
Detroit, MI 2.98 Contra Costa County, CA –1.00
Buffalo, NY 2.59 Montgomery County, MD –1.02
St. Louis, MO 2.54 Cobb County, GA –1.03
Cleveland, OH 2.53 King County, WA –1.05
Baltimore, MD 2.37 Montgomery County, PA –1.22
Miami, FL 2.29 Fairfax County, VA –1.25
Philadelphia, PA 2.09 Oakland County, MI –1.31
New Orleans, LA 2.00 Hennepin County, MN –1.41
Factor 1:
Poverty/age of
infrastructure/
economic distress/
inadequate tax
base/crime
New York, NY 1.81 Westchester County, NY –1.42

Factor 2. Low-Skilled Immigrants/Overcrowding

As noted earlier, factor 2 is a new dimension of community distress that has surfaced as a result
of the rapid growth in the immigrant population in the 1980s and 1990s, particularly low-skilled
immigrants with larger families. The communities reflected in factor 2 are growing, often in very
high cost areas of the country. The immigrant population it targets generally is not in

Table 3-5. Correlation of Individual Need Variables to Underlying Factor 2

Correlation
Percent of persons in poor families or headed by elderly poor person,
2000 0.049
Point change in poverty rate, 1990–2000
0.315
Per capita income/per capita income of MSA, 2000
–0.142
Net per capita income change, 1989–1999
–0.238
Percent of poor persons in census tracts with greater than 40 percent
poverty, 2000 –0.058
Percent of families with female head with children under age 18, 2000
–0.454
Percent of population age 25–64 without high school education, 2000
0.464
Percent of occupied housing units built pre-1950, occupied by a poverty
household, 2000 –0.491
Percent of occupied housing units built pre-1970, occupied by a poverty
renter household, 2000 –0.305
Percent of housing units overcrowded, 2000
0.780
Number of homicides, assaults, and robberies per 1000 persons,
1999/2000/2001 –0.110
Persons per square mile, 2000
0.326
MSA dissimilarity index multiplied by percent minority
0.401
Percent population loss, 1960–2000
–0.643
Percent population loss, 1990–2000
–0.616
Percent of population age 16–64 employed, 2000
–0.206
Percent of persons 16 or older in labor force and unemployed, 2000
0.022

CDBG Formula Targeting to Community Development Need
25

poverty, but does tend to contain low-wage workers with limited education. As Table 3-5 shows,
this factor is most strongly correlated with overcrowding. This factor accounts for 16 percent of
the variance among the variables used in this analysis.

Not surprisingly, communities with the least need on this factor are communities that have
limited economic opportunity and are losing population, another dimension of community
development need that is largely captured in factor 1. Table 3-6 shows, for example, that the very
distressed cities on factor 1, such as Buffalo, New York, and St. Louis, Missouri have very low
need on factor 2. This leads to an important policy tradeoff question for the CDBG formula: to
what extent should CDBG funds be targeted to communities experiencing fiscal stress due to
immigration growth? Doing so comes at the expense of communities experiencing fiscal stress
due to poverty, age, and decline, as measured by factor 1.

Table 3-6. Examples of High- and Low-Need Communities on Factor 2

Higher Need Score Lower Need Score
Santa Ana, CA 4.07 Toledo, OH –1.17
Anaheim, CA 2.25 New Orleans, LA –1.35
Los Angeles, CA 1.70 Baltimore, MD –1.78
Long Beach, CA 1.55 Louisville, KY –1.93
Miami, FL 1.46 Detroit, MI –1.94
Los Angeles County, CA 1.37 Cleveland, OH –2.26
New York, NY 1.25 Cincinnati, OH –2.58
San Jose, CA 1.20 Pittsburgh, PA –2.70
Riverside, CA 1.17 St Louis, MO –2.88
Factor 2:
Overcrowding/
population growth
Houston, TX 1.10 Buffalo, NY –2.98

Factor 3. Concentrated Poverty, Low Density With Declining Poverty Rates

Factor 3 is difficult to interpret as a measure of community development need. As Table 3-7
shows, it correlates most strongly with places that have concentrated poverty and low-density
population, and declining poverty rates. It captures an interesting trend of the 1990s: the overall
decline of concentrated poverty (Jargowsky 2003). Clearly, locations with concentrated poverty
are distressed, but to what extent should CDBG funds be targeted to these places if they are
experiencing a general decline in poverty?

CDBG Formula Targeting to Community Development Need
26

Table 3-7. Correlation of Individual Need Variables to Underlying Factor 3

Correlation
Percent of persons in poor families or headed by elderly poor person, 2000
0.284
Point change in poverty rate, 1990–2000
–0.644
Per capita income/per capita income of MSA, 2000
0.223
Net per capita income change, 1989–1999
0.108
Percent of poor persons in census tracts with greater than 40 percent
poverty, 2000 0.602
Percent of families with female heads with children under age 18, 2000
0.032
Percent of population age 25–64 without high school education, 2000
0.077
Percent of occupied housing units built pre-1950, occupied by a poverty
household, 2000 –0.250
Percent of occupied housing units built pre-1970, occupied by a poverty
renter household, 2000 –0.173
Percent of housing units overcrowded, 2000
–0.026
Number of homicides, assaults, and robberies per 1000 persons,
1999/2000/2001 0.170
Persons per square mile, 2000
–0.557
MSA dissimilarity index multiplied by percent minority
0.004
Percent population loss, 1960–2000
–0.242
Percent population loss, 1990–2000
–0.178
Percent of population age 16–64 employed, 2000
–0.172
Percent of persons age 16 and older in labor force and unemployed, 2000
0.130

Table 3-8 shows the conflict associated with this measure of need. Needy communities that have
shown some improvement in the 1990s, such as Atlanta, Fresno, and El Paso, rank very high on
this measure, but distressed places with increasing poverty rate and high density, like Buffalo
and New York, New York, rank very low on this factor.

Table 3-8. Examples of High- and Low-Need Communities on Factor 3

Higher Need Score Lower Need Score
Atlanta, GA 2.33 Baltimore, MD –0.78
Fresno, CA 2.16 Newark, NJ –0.81
El Paso, TX 2.05 St. Louis, MO –0.84
New Orleans, LA 1.59 Philadelphia, PA –0.91
Memphis, TN 1.55 Anaheim, CA –0.95
Tampa, FL 1.51 Santa Ana, CA –1.06
San Antonio, TX 1.43 San Francisco, CA –1.19
Baton Rouge, LA 1.40 Boston, MA –1.40
Corpus Christi, TX 1.34 Buffalo, NY –1.73
Factor 3:
Declining poverty/
poverty
concentration/ low
density
Miami, FL 1.14 New York, NY –1.94

CDBG Formula Targeting to Community Development Need
27
Creating a Composite Needs Index

Creating a single measure of community development need requires evaluating the CDBG
objectives to determine the relative importance of each needs factor identified above. From that
assessment, the weight of the individual dimensions of need can be determined.

By definition, factors 1, 2, and 3 are independent of each other as dimensions of the variance
explained by the variables used in this analysis. Factor 1 clearly targets to communities with
problems identified in the CDBG statute, specifically places with large segments of their
population including persons with low and moderate income, communities with substantial
neighborhood blight, places with deteriorated housing and physical and economic distress, and
decline (41 USC 5301[c]). Factor 1 accounts for 45 percent of the total variance and correlates
well with nearly all the variables identified in this analysis as measures of community need.

Factor 2 represents a new dimension of community need, growing immigrant communities. The
CDBG statute states as one of its purposes the development of new centers of population growth
and economic activity (41 USC 5301[b][1]). For the communities targeted by factor 2,
population growth and economic activity come at the cost of increased fiscal stress associated
with providing community services for the growing population of low-wage workers. In
addition, the CDBG statute calls for the expansion of the nation’s housing stock to provide a
decent home and a suitable living environment for all persons (41 USC 5301[c][3]). Because
much of the growing immigrant population is moving into expensive housing markets for work,
the consequence is a shortage of housing that leads to overcrowding. Factor 2 accounts for 16
percent of the variance between the variables used in this analysis. Factor 2, however, targets
away from many of the high-need communities identified in factor 1.

Finally, factor 3 captures a dimension of need—poverty concentration—but also some
dimensions of positive economic growth in the form of declining poverty rates. One objective of
the CDBG program is to reduce the isolation of income groups (41 USC 5301[c][6]). Factor 3
targets toward the subset of communities with poverty concentration that are also experiencing
declining poverty rates. Like factor 2, it targets away from other communities with high need
that have increasing poverty rates. Factor 3 represents about 9 percent of the variance of the 17
variables used in this analysis.

Using the CDBG program’s statutory objectives as a guide, the weight assigned to each factor to
create a composite needs index score is as follows:

null Factor 1 is assessed a weight of 80 percent. Factor 1 receives the largest share of the
weight because (1) it targets toward multiple components of the CDBG objectives, (2)
reflects a very high proportion of the variance in need between communities, and (3)
communities that rank as less needy on this factor do not rank as particularly needy on
either factor 2 or 3, thus decreasing the risk of anomalous targeting.

null Factor 2 is assessed a weight of 15 percent. Factor 2 is modestly weighted to reflect that,
although it targets well toward the fiscal stress associated with growing low-wage


CDBG Formula Targeting to Community Development Need
28
immigrant populations, it also targets away from many of the high-need communities of
factor 1.

null Factor 3 is assessed a weight of 5 percent. Factor 3 gets a very low weight. While it does
account for a select group of communities with high rates of concentrated poverty, factor
3 also targets away from needy communities with increasing poverty rates. The author
also suspects that factor 3 may reflect a pattern of variance unique to the 1990s.

Table 3-9 shows the individual scores for some of the larger CDBG jurisdictions with relatively
high composite scores, meaning that they have high community development need, and others
that have relatively low scores. Not surprisingly, the high-need communities of factor 1 are most
frequently represented in the higher need category. Especially needy communities on factor 2,
such as Santa Ana, CA, however, move up on this list as well.

Table 3-9. Examples of High- and Low-Need Communities on Composite Needs Index

Higher Need Score Lower Need Score
Newark, NJ 2.55 Virginia Beach, VA –0.72
Detroit, MI 2.12 Contra Costa County, CA –0.76
Miami, FL 2.11 Montgomery County, MD –0.78
Santa Ana, CA 1.88 Cobb County, GA –0.80
Cleveland, OH 1.68 King County, WA –0.85
Baltimore, MD 1.60 Fairfax County, VA –0.97
St. Louis, MO 1.56 Montgomery County, PA –1.00
Buffalo, NY 1.54 Oakland County, MI –1.07
New York, NY 1.54 Westchester County, NY –1.15
Composite
needs index:

0.80*Factor 1 +
0.15*Factor 2 +
0.05*Factor 3
Philadelphia, PA 1.50 Hennepin County, MN –1.17

The composite needs index for entitlement communities will be used as the “measuring stick” in
Chapter 4 to assess how well the current entitlement formula targets toward community
development need. This needs index is used in that chapter to answer the following two basic
questions:

1. Do communities with similar needs index scores receive similar per capita grant
amounts?

2. Do communities with very high needs index scores get much larger grants on a per capita
basis than communities with very low needs index scores?

CDBG Formula Targeting to Community Development Need
29
Nonentitlement Targeting to Need

Nonentitlements are statewide aggregates of all the communities not covered by the entitlement
side of the formula. They reflect urban and rural areas, small towns, new growing suburbs, and
declining agricultural communities. This diversity of communities, often in a single state, makes
creating a needs index for nonentitlement areas difficult.

A review of the data available that are comparable across grantees for the geographic areas that
make up nonentitlements indicates that decennial census data are the only reliable and
comparable source of data. This is due to the odd geography of nonentitlement areas, which are
balances of states remaining after subtracting entitlement areas. It cannot be assumed, for
example, that rural areas are a good proxy for nonentitlement areas because in some states a high
percentage of the nonentitlement areas are urban.

The variables used to create the nonentitlement needs index include nine variables previously
used in the analysis of need for entitled areas that make practical sense for nonentitlement areas.
We don’t use, for example, the measure of local per capita income relative to metropolitan per
capita income in the nonentitlement needs index because the balance of a state consists of
multiple MA and non-MA areas.

The nine variables used for the nonentitlement needs index that are the same as for the
entitlement needs index are selected for the same reasons as for the entitlement jurisdictions. One
additional variable is added: a proxy for infrastructure need due to the high percentage of
nonentitlement funds that are spent on infrastructure. The variables as they related to the
summary objectives of the CDBG statute are described below.
24

1. Low- and Moderate-Income Persons.

Income Variables

a. Persons in poverty living in families or elderly households.
b. Concentrated poverty.

High Consumers of Community Services

a. Female-headed households with children.
b. Persons with lower education levels.

24
The CDBG statute calls for subtracting Native Americans who live in Native American areas, such as
reservations, trust land, and Oklahoma Tribal Statistical Areas, from the data used in the CDBG formula. This
impacts a few urban counties and states with large Native American populations living in Native American areas.
For this analysis, Native Americans are subtracted from the overcrowding variable only. This impacts the scores for
a few states with large Native American populations, such as Oklahoma, Alaska, and New Mexico. The allocation
amounts provided in Appendix B do reflect subtracting Native Americans for all of the selected variables.

CDBG Formula Targeting to Community Development Need
30
2. Decent Housing.

a. Occupied housing units built pre-1970 and occupied by a poverty renter.
b. Occupied housing units built pre-1950 and occupied by poverty household.
c. Overcrowding.

3. Suitable Living Environment.

null Housing units with wood or bottled gas as the main source of heating fuel. This
variable is not used in the entitlement needs index. It was added for the nonentitlement
needs analysis to obtain a proxy for infrastructure need. Analysis of 2001 American
Housing Survey data show that this is a reasonable proxy for water and sewer
infrastructure. Housing units using wood or bottled gas as the main source of heating fuel
are also likely not to have public water or sewer connections.
25

4. Economic Opportunities.

a. Population age 16 to 64 that was employed in 2000.
b. Persons age 16 years or older in the labor force that were unemployed in 2000.

These 10 variables show similar patterns of variance that create three factors: (1) poverty,
economic distress, and overcrowding; (2) older housing; and (3) some elements of water and
sewer need.

Factor 1—Poverty/Economic Distress/Overcrowding

Nonentitlement factor 1 captures 55 percent of the variance explained by the 10 variables. As
Table 3-10 shows, it most closely represents poverty need, but also very closely captures the
need associated with unemployment, low education, and concentrated poverty. It also has a very
high correlation with overcrowded housing.

25
According to data analyzed from the 2001 American Housing Survey (AHS), 77 percent of households that use
wood or bottled gas as their main source of heat also do not have public sewers; 22 percent of households without
sewers also use wood or bottled gas as their main source of heat. The correlation between no sewer and no piped gas
is 0.35. The AHS data show that 26 million households have no sewers. Similarly, this survey indicates that 54
percent of households that use wood or bottled gas as their main source of heat also do not have public or private
piped water. Of households without piped water, 26 percent also use bottled gas or wood as their main source of
heat. The correlation between no piped water and no piped gas is 0.31. This same survey shows that 17 million
households have no piped water. In total, 8.8 million households use bottled gas or wood as their main source of
heating. The lack of coverage on this variable may make this proxy regionally biased toward rural places where
bottled gas is used and away from rural places where other heating fuels, such as oil or electricity, are used.

CDBG Formula Targeting to Community Development Need
31

Table 3-10. Correlation of Individual Need Variables to Nonentitlement Underlying Factor 1
Correlation
Percent of persons in poor families or headed by elderly poor person, 2000 0.980
Percent of poor persons in census tracts with greater than 40 percent poverty,
2000 0.864
Percent of families with female head with children under 18, 2000 0.564
Percent of population age 25– 64 without high school education, 2000 0.846
Percent of occupied housing units built pre-1950 occupied by poverty
household, 2000 0.098
Percent of occupied housing units built pre-1970 occupied by poverty renter
household, 2000 0.595
Percent of housing units overcrowded, 2000 0.804
Percent of population age 16–64 employed, 2000 (negative equates with good
targeting to need) –0.959
Percent of persons age 16 or older in labor force and unemployed, 2000 0.933
Percent households heat with wood or bottled gas, 2000 0.067

Table 3-11 shows the states that rank the highest and lowest on factor 1. Table 3-11 shows one
nonentitlement grantee, Puerto Rico, whose score on factor 1 is substantially greater than 1.
Puerto Rico is unique among nonentitlements because of its very high poverty rate and thus very
high score on factor 1.
26

Table 3-11. Examples of High- and Low-Need States on Factor 1

Highest Need Score Lowest Need Score
Puerto Rico 5.62 Colorado –0.71
New Mexico 1.24 Indiana –0.71
Mississippi 1.20 New Jersey –0.72
Arizona 1.10 Nebraska –0.73
Louisiana 1.09 Iowa –0.80
California 0.91 Minnesota –0.84
West Virginia 0.60 New Hampshire –0.92
Kentucky 0.45 Wisconsin –0.97
Alabama 0.44 Massachusetts –0.99
Factor 1: Poverty,
economic distress,
overcrowding
South Carolina 0.42 Connecticut –1.20

Factor 2—Old Housing Occupied By Needy Families

Unlike the needs index for entitlement grantees, old housing occupied by needy families remains
a distinctly separate element of need from the poverty measure of need in factor 1. Factor 2 is

26
Chapter 5 suggests that the poverty rate for Puerto Rico is not directly comparable to other states because the cost
of living is less. This would suggest that the factor score for Puerto Rico should be somewhat less.

CDBG Formula Targeting to Community Development Need
32
most closely targeted toward nonentitlements with old housing stock occupied by households in
poverty.

Table 3-12. Correlation of Individual Need Variables to Nonentitlement Underlying Factor 2
Correlation
Percent of persons in poor families or headed by elderly poor person, 2000 0.045
Percent of poor persons in census tracts greater than 40 percent poverty, 2000 0.042
Percent of families with female head with children under age 18, 2000 –0.040
Percent of population age 25–64 without high school education, 2000 –0.091
Percent of occupied housing units built pre-1950, occupied by a poverty
household, 2000 0.969
Percent of occupied housing units built pre-1970, occupied by a poverty renter
household, 2000 0.731
Percent of housing units overcrowded, 2000 –0.375
Percent of population age 16–64 employed, 2000 (negative equates with good
targeting to need) 0.119
Percent of persons age 16 or older in labor force and unemployed, 2000 –0.118
Percent households heat with wood or bottled gas, 2000 0.236

Table 3-13 shows states with high and low need on factor 2. The high-need states are states
known for having small mining, industrial, and farming towns that have lost economic strength
over the past several decades. The less-needy states on this factor are states with more recent
population growth.

Table 3-13. Examples of High- and Low-Need States on Factor 2

Highest Need Score Lowest Need Score
West Virginia 1.98 Maryland –0.68
South Dakota 1.67 Colorado –0.73
New York 1.59 Delaware –1.04
Vermont 1.54 Utah –1.25
Montana 1.33 Connecticut –1.30
Pennsylvania 1.32 Arizona &ndash;1.50
Kansas 1.24 Hawaii –1.55
North Dakota 1.22 Nevada –1.85
Oklahoma 1.16 Florida –1.90
Factor 2: Old
housing with poor
occupant
Maine 1.05 Alaska –2.54

Factor 3—Infrastructure Need

Factor 3 shows the relative level of infrastructure need as proxied in the U.S. Census data by the
portion of households heating with wood and bottled gas. Interestingly, this factor also has a high
correlation with female-headed households with children.

CDBG Formula Targeting to Community Development Need
33
Table 3-14. Correlation of Individual Need Variables to Nonentitlement Underlying Factor 3
Correlation
Percent of persons in poor families or headed by elderly poor person, 2000 –0.047
Percent of poor persons in census tracts with greater than 40 percent poverty,
2000 –0.184
Percent of families with female head with children under age 18, 2000 0.594
Percent of population age 25–64 without high school education, 2000 0.280
Percent of occupied housing units built pre-1950, occupied by a poverty
household, 2000 –0.153
Percent of occupied housing units built pre-1970, occupied by a poverty renter
household, 2000 –0.085
Percent of housing units overcrowded, 2000 –0.166
Percent of population age 16–64 employed, 2000 (negative equates with good
targeting to need) 0.021
Percent of person age 16 and older in labor force and unemployed, 2000 –0.213
Percent households heat with wood or bottled gas, 2000 0.761

The states listed in Table 3-15 that rank high on factor 3 are communities with clear
infrastructure need: Mississippi, Delaware, and New Mexico. The grantees that rank the lowest
on this factor are largely states with relatively less infrastructure need, such as Massachusetts,
Connecticut, and Pennsylvania. Analysis of American Housing Survey data, however, shows
many communities with infrastructure need are not represented by the number of households
heating with wood or bottled gas. In regions of the country, for example, where electric heat is
common, this variable misses much of the infrastructure need.

Table 3-15. Examples of High- and Low-Need States on Factor 3

Highest Need Score Lowest Need Score
Mississippi 2.35 New York –0.65
Delaware 1.96 West Virginia –0.79
New Mexico 1.63 Hawaii –1.12
Alabama 1.41 Rhode Island –1.22
Missouri 1.26 New Jersey –1.49
Georgia 1.24 Pennsylvania –1.54
South Carolina 1.20 Connecticut –1.59
Arkansas 1.06 Massachusetts –1.67
North Carolina 1.01 Utah –1.97
Factor 3:
Infrastructure
Vermont 0.83 Puerto Rico –2.58

CDBG Formula Targeting to Community Development Need
34
Creating a Composite Needs Index for Nonentitlements

As with the entitlement communities, creating a single composite score out of the three factors
requires weighting each factor. How important is each factor relative to the objectives of the
CDBG program?

For the composite needs index used in Chapter 5 to measure how well the nonentitlement
formula targets to community development need, the weight assigned to each factor to create a
composite needs index score is as follows:

null Factor 1 is assessed a weight of 70 percent. Factor 1 explains 55 percent of the variance
and correlates very well with 8 of the 10 variables. It targets very well toward the poverty
and economic distress objectives of the CDBG statute.

null Factor 2 is assessed a weight of 25 percent. Factor 2 explains 17 percent of the variance
and correlates well with 2 of the 10 variables. The two variables it correlates well with,
pre-1970 housing occupied by poverty renters and pre-1950 housing occupied by a
poverty household, are the variables that proxy the important community development
needs associated with inadequate housing and aging infrastructure.

null Factor 3 is assessed a weight of 5 percent. Factor 3 explains 12 percent of the variance
and correlates well with 2 of the 10 variables. As noted above, considerably more
infrastructure need is present than is represented by households heating with wood or
bottled gas. To lower the risk of creating substantial anomalies in targeting, the weight is
relatively low on this factor.

Table 3-16 shows that the nonentitlement areas of Puerto Rico, Mississippi, and New Mexico are
the most needy communities while Connecticut, Utah, and Massachusetts are the least needy.

Table 3-16. Examples of High- and Low-Need States on the Composite Needs Index

Highest Need Score Lowest Need Score
Puerto Rico 3.77 Indiana –0.62
Mississippi 1.00 Maryland –0.66
New Mexico 0.99 Colorado –0.68
West Virginia 0.87 Nevada –0.70
Louisiana 0.83 New Hampshire –0.74
California 0.64 New Jersey –0.75
South Dakota 0.50 Wisconsin –0.76
Kentucky 0.48 Massachusetts –0.86
Oklahoma 0.47 Utah –0.89
Composite:
.70 * Factor 1
.25 * Factor 2
.05 * Factor 3

Arizona 0.44 Connecticut –1.25

The composite needs index for states will be used as the “measuring stick” in Chapter 5 to assess
how well the current nonentitlement formula targets toward community development need. This
needs index is used in that chapter to answer the following two basic questions:

CDBG Formula Targeting to Community Development Need
35

1. Do states with similar needs index scores receive similar per capita grant amounts?

2. Do states with very high needs index scores get much larger grants on a per capita basis
than states with very low needs index scores?

CDBG Formula Targeting to Community Development Need
36

CDBG Formula Targeting to Community Development Need
37
Chapter 4. CDBG Targeting to Need: Entitlement Communities

This chapter demonstrates how well the current Community Block Development Grant (CDBG)
entitlement formula targets to the community development needs index developed in Chapter
3.
27
When this report describes “targeting” to need, it uses “per capita grants” to compare the
relative funding of communities. This approach assumes that population is not a measure of
need. For example, this assumption allows for comparing New York City’s (population
8,084,316) grant to that for East Orange, New Jersey’s (population 69,750). Their total grants are
dramatically different, $219 million versus $2 million in Fiscal Year (FY) 2004, respectively.
Their per capita grants, however, are comparable, $27.07 to $28.66. The premise of targeting is
that a community with high need should get a larger per capita grant than a community with low
need.

Over time, the current CDBG formula has degenerated in its ability to appropriately target funds
to jurisdictions with community development need (Bunce, Neal, and Gardner 1983, Neary and
Richardson 1995). The current formula does continue to target more funds per capita to
communities with high-needs index scores relative to communities with low-needs index scores,
but the targeting continues to weaken; this creates some troubling inequities. Specifically, an
increasing number of relatively well-off communities are receiving more funding on a per capita
basis than some very distressed communities. This chapter also describes which elements of the
formula are most responsible for creating the funding inequities.

Most/Least

Richardson, Meehan, and Kelly (2003) include an extensive description of how the formula
allocation changed when Census 2000 data were introduced. That report explores two key time
periods: the 1-year change from FY 2002 to FY 2003 and the 10-year change from FY 1993 to
FY 2003. This report examines how that redistribution of funds affected targeting to community
development need for those same two time periods:

1. One-year change, from FY 2002 to “All 2000 Data.&rdquo;
28
Three of the formula variables—
poverty, pre-1940 housing, and overcrowding—are updated only once every 10 years. The
transition from Census 1990 data to Census 2000 data for those variables occurred in the
transition from the FY 2002 allocation to the FY 2003 allocation. The other two variables in
the formula, population and growth lag, are updated every 1 to 2 years and did not change
from FY 2002 to FY 2003. The first question is, therefore, how much of an effect does the
once a decade change have on the formula’s targeting to need?

Table 4-1 shows that both before and after introducing Census 2000 data on poverty,
overcrowding, and pre-1940 housing, the current formula does target to need. That is, on

27
For a similar analysis using individual indicators of need, such as poverty, crime, and population loss as well as
need factor 1, see Appendix A.
28
In this report, “All 2000 Data” is used instead of FY 2003 because for this analysis, the appropriation level and
number of entitlement grantees remain constant at the FY 2002 amount. The actual FY 2003 allocation, which used
all Census 2000 data, and the numbers in this analysis are very similar because the appropriation and number of
grantees did not change significantly between FY 2002 and FY 2003.

CDBG Formula Targeting to Community Development Need
38
average, the less needy communities receive relatively smaller grants on a per capita basis
than the more needy communities. The table shows that for the FY 2002 allocation, the 89
least needy communities received $7.45 per capita while the 90 neediest communities
received $33.51 per capita. Using a simple, most over least measure (Most/Least), the most
needy communities on average receive 4.5 times greater funding on a per capita basis than
the least needy communities in FY 2002.

Continuing a trend that began with introducing 1980 Census data into the formula (Bunce,
Neal, and Gardner 1983), however, the introduction of new census data exacerbated targeting
to need. When Census 2000 data for poverty, overcrowding, and pre-1940 housing are used
in place of Census 1990 data, the difference in average per capita grant funding between the
least needy and most needy grantees falls from 4.5 to 4.1.

Table 4-1. Impact of Introducing Census 2000 Data on Targeting to Community Development
Need—Per Capita Grants by Needs Decile

Deciles of
CD Need N FY 2002
All 2000
Data
Percent
Change
Low 89 $7.45 $7.83 5.1
2 90 $8.78 $9.29 5.8
3 90 $10.92 $11.40 4.4
4 90 $11.81 $12.28 4.0
5 90 $13.36 $14.09 5.5
6 90 $15.47 $15.52 0.3
7 90 $17.64 $17.77 0.7
8 90 $18.72 $18.70 –0.1
9 90 $25.96 $25.71 –1.0
High 90 $33.51 $32.27 –3.7
Total 899 $17.88 $17.87 –0.1*
Most/Least 4.5 4.1
Note: Per capita grants weighted on population.
*This does not equal zero because the needs index includes only
899 of the 1,024 entitlement jurisdictions.

2. Change in targeting over a decade. Unlike poverty, pre-1940 housing, and overcrowding
data that are updated only once every 10 years, population data are updated more frequently
during the decade, usually every 1 to 2 years. Population impacts the remaining two variables
of the formula, population (in Formula A) and growth lag (in Formula B). In addition,
population is used to determine eligibility for CDBG entitlement status (see Chapter 2). As
new communities that are currently funded under the nonentitlement program become
eligible as entitlement communities, a reduction in share of funds available for the current
entitlement communities is the result.

CDBG Formula Targeting to Community Development Need
39
Neary and Richardson (1995) documented the impact of introducing 1990 Census data into
the formula.
29
To know the full impact of transitioning from all 1990 Census data to all 2000
Census data requires comparing the most versus least distribution for the 787 jurisdictions
with needs data that were CDBG grantees in FYs 1993 and 2003. Table 4-2 illustrates this
impact. It accounts for a reduction in funding share to these 787 communities due to the
introduction of new entitlement communities and the impact of the change in data from
Census 1990 to Census 2000 for all five variables used in the dual formula—population,
poverty, overcrowding, growth lag, and pre-1940 housing.

Table 4-2. Impact of Introducing Census 2000 Data, Population Updates, and New Entitlements
on Targeting to Community Development Need FY 1993 to FY 2003—
Per Capita Grants by Needs Decile

Deciles of
CD Need N
All 1990
Data
All 2000
Data
Percent
Change
Low 70 $7.94 $8.10 2.0
2 75 $9.38 $9.43 0.5
3 80 $11.52 $11.51 –0.1
4 73 $12.15 $12.59 3.6
5 74 $14.35 $14.27 –0.6
6 86 $16.11 $15.53 –3.6
7 80 $18.58 $17.95 –3.4
8 78 $19.89 $18.96 –4.7
9 86 $26.84 $25.89 –3.5
High 85 $35.12 $32.33 –7.9
Total 787 $19.11 $18.33 –4.1*
Most/Least 4.4 4.0
Note: Per capita grants weighted on population.
*Most of this decrease is due to the introduction of new entitlement
communities between 1993 and 2002.

Table 4-2 shows that the introduction of all the census data, which has also led to more
entitlement grantees, has been particularly difficult for the neediest grantees, who
experienced a decline in funding of nearly 8 percent, compared to small increases for the
least needy grantees. The result for these 787 jurisdictions is a most/least ratio change from
4.4 to 4.0.

29
Neary and Richardson showed the impact introducing all Census 1990 data into the formula in FY 1993. In
reality, all the Census 1990 data were not introduced until FY 1995.

CDBG Formula Targeting to Community Development Need
40
Regression Analysis

The most/least analysis is a simple approach to indicate how well the current formula targets to
need. It does not, however, capture all the dimensions associated with targeting. Chapter 3 poses
two key questions that will be answered in Chapter 4:

1. Do communities with similar needs index scores receive similar per capita grant
amounts?

2. Do communities with very high needs index scores get much larger grants on a per capita
basis than communities with very low needs index scores?

To some extent, the most/least analysis answers question 2, but with a lack of precision. To
answer question 1, and answer question 2 more precisely, this study employs regression analysis.

Regression analysis provides two helpful measures, R-square and slope. The R-square enables
this report to answer the first question: do communities with similar needs index scores receive
similar per capita grant amounts? In a simple linear regression between two variables, the R-
square estimates how similar the variance is between the variables. For example, are most
jurisdictions with high needs scores also receiving relatively high per capita grants? If the answer
is yes, the R-square is high. If, instead, little relationship exists between the needs scores and per
capita grant amounts, the R-square is small. An R-square of 1.00 represents perfect targeting to
need while an R-square of 0.00 indicates that no relationship at all exists between the needs
index and the targeting of the current formula. The R-square tends to measure the fairness of the
formula allocation. Locations with similar needs should get similar per capita grant amounts.

The slope enables answering the second question: do communities with very high needs index
scores get much larger grants on a per capita basis than communities with very low needs index
scores? The slope indicator in a regression is similar to the most/least concept presented in
Tables 4.1 and 4.2. The greater the slope, the greater the difference in funding between the most
and least needy grantees. That is, a slope of 0 would mean that, on a per capita basis, the least
needy community received the same as the neediest. A slope of 10 would mean a community one
standard deviation from the mean would receive $10 more per capita than the mean per capita
grant.

Table 4-3. Regression Statistics of Targeting to Need Over Time

Targeting to: All 1990 Data* FY 2002** All 2000 Data**
R-square 0.308 0.349 0.352
Slope 9.9 9.5 8.8
Places
(unweighted)
Constant 17.2 18.2 18.1
R-square 0.494 0.506 0.525
Slope 10.8 10.1 9.5
People
(weighted on
population)
Constant 16.7 16.7 16.8
* Reflects only 787 jurisdictions with needs data that were grantees in FY 1993.
** Reflects 899 jurisdictions with needs data that were grantees in FY 2002.

CDBG Formula Targeting to Community Development Need
41
In the Places rows in Table 4-3, the R-square between per capita CDBG funding and need was
0.349 in FY 2002. This suggests that community need did not explain much of the variation in
per capita funding between cities (although the R-square was somewhat improved from that for
the same cities using all 1990 data). As will be illustrated later, this low R-square means that
communities with similar needs receive quite different per capita grants. The low R-square
suggests equity problems in the formula.

The Places rows in Table 4-3 treats all entitlement communities equally. Because a great deal of
variation exists among the communities in terms of their size, however, it may be more
appropriate to consider how well the formula targets to people living in communities with
different needs. In the People rows in Table 4-3, each community is weighted by its population.
This demonstrates that the formula performs somewhat better in targeting among the larger
places than among individual jurisdictions.

While the measure of fairness, R-square, has improved slightly, the slope has declined from 9.9
to 8.8 for the unweighted regression (Places) and 10.8 to 9.4 for the regression weighted on
population (People). Over the course of the decade, the slope has declined. The more needy
communities are getting less on a per capita basis relative to the mean than they did a decade
ago. The relatively less needy communities are receiving more on a per capita basis than they did
a decade ago.

Table 4-3 also provides a constant. The constant represents the per capita grant for a jurisdiction
with a needs score near the national average. Chapter 3 noted that grantees with less than
average need levels receive negative scores, and grantees with above average needs scores
receive positive needs scores. The constant becomes an important indicator when comparing
relative funding levels between Formula A and B grantees below.

Charts

Charts 4-1 and 4-2 provide graphical presentations of these concepts. A fictional per capita grant
amount with the same slope as the current allocation (8.8) that targets perfectly to the needs
index—that is, an R-square of 1—is plotted as the solid line in Chart 4-1. The “bouncing” line
represents how much the current per capita grants vary from the needs index. Communities of
similar need, which should be receiving approximately the same amount per capita, are getting
substantially different grant amounts than appropriate for their need.

CDBG Formula Targeting to Community Development Need
42
$0
$10
$20
$30
$40
$50
$60
$70
Entitlement Grantees
Per Capita Grant
Current Per Capita Grant
Needs Index Per Capita
Grant (slope 8.8)
Low Need High Need

Chart 4-1. Current Formula Targeting to the Needs Index (Slope 8.8)

$0
$10
$20
$30
$40
$50
$60
$70
Entitlement Grantees
Per Capita Grant
Current Per Capita Grant
Needs Index Per Capita Grant
(slope 12.0)
Low Need High Need

Chart 4-2. Current Formula Targeting to the Needs Index (Slope 12.0)

CDBG Formula Targeting to Community Development Need
43
Chart 4-2 shows this same comparison but with the assumption that not only is there a desire that
the formula be fair—similarly needy communities receive similar grant amounts—but that the
neediest communities get substantially more on a per capita basis than the least needy. Chart 4-2
reflects a per capita allocation using the needs index; the slope increases from 8.8 in Chart 1 to
12.0 for Chart 2.
30
This higher slope is this study’s goal for developing a formula in Chapter 6
that is not only fairer but also allocates a greater share of the funds to the neediest grantees
relative to the least needy.

To provide another way to assess how the current formula targets to community development
need, Appendix A shows how the formula currently targets to individual components of the
needs index, such as poverty and population loss.

Formulas A and B

With respect to targeting, a clear difference exists between Formula A and Formula B grantees.
The lack of fairness, evidenced by the low R-square, is due largely to Formula B, and the low
slope is primarily due to Formula A. Chart 4-3 shows the per capita grants for the Formula B
communities relative to the needs index for Formula B communities and how that compares to
the needs index for Formula A grantees and the per capita grants for Formula A grantees. The
key lessons of Chart 4-3 are as follows:

null On average, Formula B grantees are more needy than Formula A grantees (the Formula B
needs line is higher than the Formula A needs line).

null Formula B creates many anomalies where communities of the same need receive very
different grant amounts. Most striking are the number of less needy communities getting
much more on a per capita basis than communities of higher relative need (demonstrated by
the “bouncing” of the Formula B current grants line).

null Formula B grantees tend to be funded at a higher level than their needs score (as shown by
most of the bounces being above the needs line).

null Formula A does not have major anomalies, but the most needy grantees do not receive much
more than the least needy grantees, as the relatively flat slope of the Formula A current
grants line indicates).

null Formula A grantees with relatively high need are particularly underfunded relative to their
needs score, as evidenced by the widening gap between the Formula A needs line and the
Formula A grants line.

30
The R
2
relationship with need remains 1.000. The selection 12 as the slope is subjective, 10 or 15 could just as
easily been chosen. This study selected 12 because when the original dual formula was implemented it had a slope
of 12.72 relative to a needs index created for 483 entitlement cities (Bunce and Goldberg 1979, Table 17). A slope
of 12 places the jurisdictions in the lowest needs decile near $4 per capita and jurisdictions in the highest needs
decile near $36 per capita, a most/least ratio of 9.

CDBG Formula Targeting to Community Development Need
44
$0
$10
$20
$30
$40
$50
$60
$70
Entitlement Grantees Split by A and B
Per Capita Grant
B Current
B Need
A Current
A Need
Low Need High Need

Chart 4-3. Comparing Formula A and B Targeting to Need (Slope 12.0)

Table 4-4 provides the statistical evidence for Chart 4-3 using the unweighted (Places) regression
results.

Formula A
null High R-square (0.884, which indicates a low rate of anomalies and a high rate of
fairness).
null Low slope (6.2, indicating the most needy don’t get much more than the least needy).
null A constant that is much lower than Formula B (12.8 compared to 25.5, showing that a
Formula A grantee with average need receives $12.70 less per capita than an similar
needy Formula B grantee).

Formula B
null Low R-square (0.378, indicating a high rate of anomalies).
null Reasonably high slope (10.3, indicating that the most needy generally get more than the
less needy).

CDBG Formula Targeting to Community Development Need
45
Table 4-4. Regression Statistics for Targeting to Need by Formula for the Current Formula With
All Census 2000 Data

Targeting to: Formula A Formula B
R-square 0.884 0.378
Slope 6.2 10.3
Places
(unweighted)
Constant 12.8 25.5
R-square 0.924 0.490
Slope 6.7 9.6
People
(weighted on
population)
Constant 12.9 22.9
Formula A: N=534; Formula B: N=365.

The funding inequity between Formula A and B grantees increases as the neediness of the
Formula A jurisdiction grows. This is a product of the large difference between the Formula A
and Formula B constant in Table 4-4 and the higher slope for Formula B relative to Formula A.
Table 4-5 demonstrates this widening gap another way; this table shows the average per capita
grants by needs decile for Formula A and Formula B grantees. In the lowest needs decile, the
average Formula A grantee receives $6.36 per capita and the average Formula B grantee receives
$9.89 per capita, a gap of $3.53. That gap widens to approximately $12 to $13 for grantees with
average need and higher, except for needs decile 9 where the gap nears $20.

Table 4-5. Comparing Formula A and Formula B Average Per Capita Grant by Community
Development Need Decile

Deciles of CD
Need Formula A Formula B
Gap (Formula
B minus
Formula A)
Low $6.36 $9.89 $3.53
2 $7.54 $13.56 $6.02
3 $8.24 $17.51 $9.27
4 $10.36 $17.60 $7.24
5 $10.96 $23.06 $12.10
6 $12.47 $24.49 $12.02
7 $13.64 $27.28 $13.64
8 $15.65 $28.26 $12.61
9 $17.97 $37.86 $19.89
High $24.20 $35.92 $11.72
N=899; Per capita grants weighted on population.

CDBG Formula Targeting to Community Development Need
46
Identifying the Underlying Causes for Inequities in the Current Formula

Population

As described above, Formula A causes inequities because its allocation has a low slope. The
single largest contributor to the low slope is the 25 percent weight on the population variable.
The slope of the population variable is zero because population does not target community
development need. While this report previously noted that Formula B sometimes targets large
grants to low-need communities, the majority of low-need communities are funded under
Formula A because of the population variable. This is because most low-need jurisdictions have
fast-growing populations and newer housing stock, resulting in their receiving larger allocations
with Formula A from the 25 percent weight on population than from any of the variables in
Formula B.

Poverty

Poverty receives a 50 percent weight in Formula A and a 30 percent weight in Formula B. As
demonstrated by the needs index, poverty is an extremely good indicator of a number of
dimensions of community development need. Two problems, however, exist with the poverty
measure. First, because poverty is a fixed national standard that does not take into account
regional differences in the cost of living, it has a regional bias that favors places with low cost of
living. Second, relatively low-need college towns receive relatively large per capita grants
because off-campus college students are recorded as being in poverty, when in fact many of them
receive unrecorded support from families.

Poverty is a constant dollar threshold nationwide. It does not take into account that it may cost
more to live in some parts of the country than in other regions. That is, a person just above the
poverty line in New York City who has to pay $1,000 in rent per month may be worse off, in
terms of disposable income, than a person in poverty in Saginaw, Michigan, who pays $550 in
rent each month. Cost of living is strongly related to the incomes in an area. Generally, if the
median income for a metropolitan area is high, the cost of housing and other goods and services
in the metropolitan area are also high.

Congress recognized this disparity in cost of living when it established guidelines for CDBG
program eligibility, setting income limits based on the metropolitan area median income.
Households with incomes less than 80 percent of median income are considered “low and
moderate income” and eligible for assistance with funds from the CDBG program.

While the program uses these income thresholds to determine whether persons or households are
eligible for the program, the formula uses the constant dollar standard of poverty. Among CDBG
entitlement grantees, the national poverty rate is 13 percent. Similarly, among CDBG grantees,
13 percent of households have extremely low incomes, defined by having incomes less than 30
percent of their metropolitan area median income.
31

31
Data on the number of households with less than 30 percent of local median income are from a special tabulation
of Census 2000 Data prepared for HUD by the U.S. Census Bureau using the Section 8 income limits.

CDBG Formula Targeting to Community Development Need
47
Table 4-6. Comparing Poverty Rate to Extremely Low-Income Rate by Region

Region
Number of
Entitlement
Communities
Percent
Poverty
Rate
Percent
Extremely
Low
Income
Rate
New England 73 14 19
New York/New Jersey 96 13 16
Mid-Atlantic 87 11 12
Southeast 164 13 12
Midwest 187 11 13
Southwest 106 16 13
Great Plains 30 11 12
Rocky Mountain 37 10 11
Pacific/Hawaii 183 14 12
Northwest/Alaska 40 10 11
Puerto Rico 21 43 22
Total 1024 13 13
Source: Census 2000 Special Tabulation Data for HUD

While the rates are similar nationally, some regions have a much lower rate of extremely low-
income households than their poverty rate, which indicates relatively low local costs. High cost
places have a much higher rate of very low-income households than poverty rate. Table 4-6
shows that in 6 of the 11 regions, the poverty rate is similar to the rate of households who are
extremely low-income. In the New England and New York/New Jersey regions, however, the
percent of extremely low-income household significantly exceeds the poverty rate. In these
regions, poverty understates the level of need. The starkest example of the poverty rate
overstating community development need is in Puerto Rico, where the rate of extremely low-
income households in entitlement areas is nearly half the poverty rate.

The use of poverty also creates several anomalies in its allocation to some relatively small
communities that receive most of their funding due to the “poverty” of college students living in
off-campus housing.
32
Table 4-7 shows 28 cities where more than half of the population counted
in poverty are college students.
33
The way census data are collected, these students indicate their
income on their census form but do not report that they receive financial support from family.
While the census counts the students in poverty, their level of true need, because of support from
their families, is considerably less. A better measure of need for these communities is to look at
the poverty rate for the noncollege student population.

For example, in State College, Pennsylvania, home to Pennsylvania State University, 74 percent
of college students are in poverty as compared to12 percent of the remaining population. The
college student poverty rate inflates State College’s total poverty rate to 47 percent, a poverty

32
In the official count of persons in poverty, the Census Bureau does not include institutionalized persons, persons
living in military group quarters, persons living in college dormitories, or unrelated individuals under 15 years old.
33
Individuals who are enrolled in college, are in poverty, and are not living in families or dormitories.

CDBG Formula Targeting to Community Development Need
48
rate greater than the very distressed communities of Benton Harbor, Michigan (43 percent
poverty rate), and Hidalgo County, Texas (42 percent poverty rate).

Table 4-7. Full-Time Enrolled College Students in Poverty

Percent
College
Students in
Poverty
Percent
NonCollege
Students in
Poverty
Percent All
Persons in
Poverty
Percent. of
Poverty
Population
College
Students
Ann Arbor, MI 58 7 17 65
Athens-Clarke County, GA 71 17 28 51
Auburn, AL 80 15 38 74
Berkeley, CA 61 11 20 55
Bloomington, IN 70 13 30 68
Boulder, CO 58 9 17 57
Bowling Green, OH 68 9 25 73
Cedar Falls, IA 63 8 17 61
Champaign, IL 67 10 22 63
Chapel Hill, NC 70 8 22 69
Charlottesville, VA 71 14 26 56
Chico, CA 68 16 27 52
College Station, TX 75 15 37 74
Corvallis, OR 60 12 21 52
Davis, CA 71 7 24 78
De Kalb, IL 63 10 21 63
East Lansing, MI 68 12 35 80
Fort Collins, CO 58 8 14 52
Iowa City, IA 65 9 22 68
Lawrence, KS 62 10 19 57
Madison, WI 59 8 15 52
Normal, IL 69 7 19 71
Provo, UT 72 15 27 55
San Marcos, TX 63 17 29 56
State College, PA 74 12 47 88
Tallahassee, FL 65 15 25 53
Urbana, IL 62 16 27 57
West Lafayette, IN 72 9 38 87
Source: Census 2000 Special Tabulation Data for HUD.

Pre-1940 Housing

Pre-1940 housing receives a 50 percent weight in Formula B. When the current dual formula was
put in place, old housing was considered a good proxy of inadequate housing and old
infrastructure. Over time, however, the more needy communities with old housing have been
demolishing it, while wealthy communities have been renovating and even increasing (by

CDBG Formula Targeting to Community Development Need
49
converting warehouses into lofts, for example) the stock of old housing. Since this variable
allocates 27 percent of all the CDBG funds, its declining targeting has led to some very well off
communities getting substantially more funds on a per capita basis than some very distressed
communities.

Table 4-8 provides some examples of low-need communities that have not experienced
significant declines in their pre-1940 housing relative to high need communities that have. The
resulting redistribution of funds on this variable from the high need communities to the low need
communities was most severe when the 1990 Census data were introduced, but continues with
the introduction of 2000 Census data. The very distressed Detroit, Michigan, for example, has
had a 48 percent decline over the past 20 years in the number of housing units built before 1940.
The relatively less needy Boston suburb of Newton, MA, on the other hand, has had only a 2
percent decline in pre-1940 housing units since 1980. As the total number of pre-1940 housing
units decline, Newton’s relative share of the funding for those units has increased, while
Detroit’s has decreased. It is pre-1940 housing that is responsible for a large number of funding
anomalies.

Table 4-8. Comparing Change in Pre-1940 Housing Stock for Relatively High Need vs. Low
Need Jurisdictions

1980 Census 1990 Census 2000 Census Percent
Change
1980 to
2000
Low Need
Newton, MA 17,364 17,190 16,946 –2
Oak Park, IL 16,351 16,403 15,654 –4
Royal Oak, MI 5,492 5,455 5,194 –5
Evanston, IL 15,389 15,249 14,298 –7

High Need
Detroit, MI 214,968 146,748 112,022 –48
Benton Harbor, MI 2,434 1,487 1,300 –47
East St. Louis, IL 6,387 2,911 3,191 –50
Gary, IN 13,422 8,737 8,127 –39
Newark, NJ 57,577 36,014 28,376 –51

Growth Lag

Growth lag, which measures slow population growth and loss of population since 1960, is
generally a good indicator of community distress. It, too, however, creates some anomalies.

CDBG Formula Targeting to Community Development Need
50

Table 4-9. Jurisdictions with Growth Lag Funding Targeting to Community Development Need
by Percentile

Percentiles
of CD Need
Entitlement
Jurisdictions
With Growth
Lag
Per
Capita
From
Growth
Lag
Minimum
Per
Capita
From
Growth
Lag
Maximum
Per
Capita
From
Growth
Lag
Low 18 $4.33 $0.17 $17.58
2 18 $5.50 $0.14 $17.63
3 26 $5.76 $0.38 $18.68
4 28 $5.49 $0.18 $19.23
5 33 $7.09 $0.20 $17.75
6 24 $6.41 $2.45 $25.13
7 37 $9.44 $1.05 $21.46
8 40 $9.63 $0.05 $25.51
9 43 $15.68 $3.03 $43.75
High 46 $14.05 $1.43 $40.82
Total 313 $10.72
Most/Least 3.2

Table 4-9 shows by community development needs decile the average per capita dollar amount
allocated to the 313 CDBG entitlement grantees that receive funding from growth lag. The
majority of the grantees receiving funds under this variable are quite needy. On average, the
needier a jurisdiction, the more funds it receives on a per capita basis from growth lag.

Over time, however, an increasing number of relatively well-off communities received funding
from growth lag that is not consistent with their actual level of community development need.
Many of these locations are fully developed suburbs not seeking to grow. Others are
communities that have lost population through the decline of household sizes but in fact may still
be experiencing growth in housing. Royal Oak, Michigan, for example, receives $17.58 per
capita due to the growth lag variable alone. This is because it has lost 25 percent of its population
since 1960. With a per capita income of nearly $31,000 and a poverty rate of 2 percent, however,
the loss of this population does not reflect economic decline.
34
In the case of Royal Oak,
population loss is actually a sign of affluence rather than decline; although the population
declined 25 percent, the total number of occupied housing units increased by 27 percent between
1960 and 2000. This was made possible by a sharp decrease in average household size from 3.5
persons in 1960 to 2.1 in 2000. As a result, Royal Oak receives more on a per capita basis from

34
The per capita income for the Detroit-Ann Arbor-Flint, Michigan Consolidated Metropolitan Statistical Area
(CMSA) was $24,275 in 1999, making Royal Oaks’ per capita income significantly higher than its surrounding
communities.

CDBG Formula Targeting to Community Development Need
51
growth lag than Philadelphia, Pennsylvania ($16.93), which has a poverty rate of 18 percent and
a per capita income of $16,509.

Table 4-10. Examples of Relatively Low-Need Communities with High Per Capita Growth Lag
Grants

Need Indicators
Name
Per Capita
Grant Amount
Due to Growth
Lag
Percent
Population
Change 1960
to 2000
Per Capita
Income
Percent
Population in
Poverty
Redford, MI $18.68 –28 $22,263 4
Tonawanda Town, NY $17.63 –26 $20,947 5
Royal Oak, MI $17.58 –25 $30,990 2
Portsmouth, NH $16.21 –23 $27,540 6
St Clair Shores, MI $13.94 –18 $25,009 3
Wauwatosa, WI $13.63 –17 $28,834 3
Lakewood, OH $12.59 –14 $23,945 6
Medford, MA $12.51 –14 $24,707 4
Westland, MI $11.28 –11 $22,615 5
Haverford, PA $11.05 –10 $29,749 2
West Allis, WI $11.01 –10 $20,914 5
Newton, MA $10.71 –9 $45,708 3
Penn Hills, PA $10.66 –9 $20,161 6

Another growth lag issue is that for some very needy jurisdictions, it may in fact target too much
funding relative to their need. That is, some very needy places receive very large CDBG grants
as a result of growth lag. Other equally needy places without as much population loss, however,
receive considerably less. For example, St, Louis, Missouri, receives $41 per capita from growth
lag for an overall per capita grant amount of $73. Detroit, a needier Formula B city as measured
by the community development needs index, receives $29 on growth lag and an overall per
capita grant amount of $49. More striking, Miami, Florida, has a similar level of need to Detroit
and higher than St. Louis, but is a Formula A community that does not receive funds due to
growth lag. Miami has an overall grant of only $28. That is, Miami’s total per capita grant is
only 40 percent as much as St. Louis, although Miami ranks as having relatively higher need on
the needs index. Any correction to the formula to improve fairness will almost certainly result in
a decrease in funding for St. Louis and an increase in funding for Miami.

Summary

The CDBG formula continues to target more funds to the most needy grantees relative to the
least needy grantees. As measured against the community development needs index developed in
Chapter 3, however, the average amount of funds being allocated to the most needy communities
decreased with the introduction of Census 2000 data while the average per capita grant to the
least needy grantees increased. In addition, the formula continues to manifest a significant degree

CDBG Formula Targeting to Community Development Need
52
of unfairness, with similarly needy grantees receiving substantially different per capita grant
amounts. The unfairness in the formula is largely due to (1) Formula B grantees receiving
substantially more than similarly needy Formula A grantees and (2) the pre-1940 and growth lag
variables in Formula B. The declining relative share of funds for the neediest communities
relative to the least needy is due to the high weight on the population variable in Formula A.

CDBG Formula Targeting to Community Development Need
53
Chapter 5. CDBG Targeting to Need: States (Nonentitlements)

This chapter shows that, with the exception of Puerto Rico, the current Community Development
Block Grant (CDBG) nonentitlement formula does not target well to community development
need.

Most/Least

Richardson, Meehan, and Kelly (2003) discuss changes in the formula allocation following the
introduction of 2000 Census data. The report explores two key periods: the change over 1 year,
from Fiscal Year (FY) 2002 to FY 2003, and the change over 10 years, from FY 1993 to FY
2003. This report examines how redistributing funds affected targeting to community
development need for those same two periods:

1. Change in targeting over 1 year from FY 2002 to “All 2000 Data.”
35
Three of the formula
variables—poverty, pre-1940 housing, and overcrowding—are updated only once every 10
years. The transition from 1990 Census data to 2000 Census data for those variables occurred
in the transition from the FY 2002 allocation to the FY 2003 allocation. The other variable in
the formula—population—is updated every 1 to 2 years; it did not change from FY 2002 to
FY 2003. The first question is, how much of an effect does the once-a-decade change have
on the formula’s targeting to need?

Table 5-1 shows the change in per capita allocations due to the replacing of 1990 Census data
on poverty, pre-1940 housing, and overcrowding with 2000 Census data. When arranged by
community development needs quintile, introducing the new data results in a small shift of
funds from the more needy states to the less needy states.

Table 5-1
Impact of Introducing 2000 Census Data on Targeting to Community Development Need
Per Capita Grants* by Needs Quintile

Quintile N FY 2002 All 2000 Data Change
Low 10 $9.85 $10.07 2.2%
2 10 $11.10 $11.12 0.2%
3 11 $11.28 $11.40 1.1%
4 10 $12.59 $12.41 -1.4%
High 10 $15.85 $15.68 -1.0%
Total 51 $12.09 $12.09
Most/Least 1.6 1.6
*The denominators for per capita grants are based on 2000 population counts for all columns.

35
The term “All 2000 Data” is used instead of saying FY 2003 because for this analysis the appropriation level and
number of entitlement grantees are held constant at the FY 2002 amount. The actual FY 2003 allocation using all
2000 census data and the numbers used in this analysis are very similar because the appropriation and number of
grantees did not change significantly between FY 2002 and FY 2003.

CDBG Formula Targeting to Community Development Need
54
2. Change in targeting over 10 years from FY 1993 to FY 2003. Unlike the other variables in
the formula, updates occur to population data more frequently during the decade, usually
every 1 to 2 years. Population affects both formulas. In addition, population determines
eligibility for CDBG entitlement status (see Chapter 2). As new communities currently
receiving funds under the nonentitlement program become eligible as entitlement
communities, relatively more funds become available to share among the remaining balance
of nonentitlement areas nationwide.

Table 5-2 shows the 10-year period, combining the changes in Table 5-1 with the population
changes and the loss of population to be served caused by new entitlements on the
nonentitlement side of the formula. Not surprisingly, comparing Table 5-1 to Table 5-2
shows that population updates and the introduction of new entitlements have only a
minimum impact on reduced targeting. The introduction of 2000 Census data for poverty,
overcrowding, and pre-1940 housing causes most of the small shift in funds from the most
needy to least needy states.

Table 5-2
Impact of Introducing 2000 Census Data, Population Updates, and New Entitlements on
Targeting to Community Development Need FY 1993 to FY 2003
Per Capita Grants* by Needs Quintile

Quintile N All 1990 Data All 2000 Data Change
Low 10 $9.85 $10.07 2.1%
2 10 $11.06 $11.12 0.5%
3 11 $11.13 $11.40 2.3%
4 10 $12.71 $12.41 -2.4%
High 10 $15.92 $15.68 -1.5%
Total 51 $12.09 $12.09
Most/Least 1.6 1.6
*The denominators for per capita grants are based on 2000 population counts for all columns

Most striking about Tables 5-1 and 5-2 is the very small difference in funding between the least
needy ($10.07) and the most needy ($15.68), a ratio of only 1.6. In the nonentitlement formula,
the most needy states do not get much more on a per capita basis than the least needy states.

Regression Analysis

The most/least analysis is a simple approach to showing how well the current formula targets to
need. That approach, however, does not capture all dimensions associated with targeting. In
Chapter 3, we noted that Chapter 5 would need to answer the following two key questions:

1. Do states with similar needs index scores receive similar per capita grant amounts?

2. Do states with very high needs index scores get much larger grants on a per capita basis
than states with very low needs index scores?

CDBG Formula Targeting to Community Development Need
55
To some extent, the most/least analysis answers the second question, but with some lack of
precision. To answer the first question, and more precisely answer the second question, we use
regression analysis.

Regression analysis provides us with two helpful measures: R-square and slope. The R-square
enables us to determine if states with similar needs index scores receive similar per capita grant
amounts. In a simple linear regression between two variables, the R-square estimates how similar
the variance is between the variables. For example, are states with high needs score also
receiving relatively high per capita grants? If yes, then the R-square is high. On the other hand, if
no relationship exists between needs scores and current per capita grants, the R-square is small.
An R-square of 1.00 represents perfect targeting to need while an R-square of 0.00 indicates no
relationship at all between the needs index and the current formula. The R-square tends to
measure the fairness of the formula allocation. States with similar need should get similar per
capita grant amounts.

The slope allows us to determine if states with very high needs index scores get much larger
grants on a per capita basis than states with very low needs index scores. The slope indicator in a
regression is similar to the most/least concept presented in Tables 5-1 and 5-2: the greater the
slope, the greater the difference in funding between the most and least needy grantees. A slope of
“0” would mean the least needy community received the same as the most needy community on
a per capita basis. A slope of 4 would mean a state that is one standard deviation from the mean
would get $4 more per capita than the mean per capita grant.

The portion of Table 5-3 referring to “Places” shows the R-square for per capita CDBG funding
and need was 0.699 in FY 2002. This suggests that state need was moderately good at explaining
the per capita funding variation between states. This measure suggests the current formula is
relatively fair; it does not create large funding differences between similarly needy states. As we
will show below, however, this finding is somewhat misleading.

The “Places” portion of Table 5-3 treats all states equally. Since a great deal of variation exists
among the states in terms of their size, however, it might be more appropriate to consider how
well the formula targets to people living in states with different needs. The “People” portion of
Table 5-3 weights each state by its population, demonstrating that the formula does a somewhat
worse job in targeting among the nonentitled states with large populations. Both measures show
that the R-square—the measure of fairness—declines with the introduction of 2000 Census data.

Table 5-3
Regression Estimate of Targeting to Need Over Time

Targeting to: All 1990 Data FY 2002 All 2000 Data
R-square 0.690 0.699 0.661
Slope 5.3 4.8 4.9
Places
(unweighted)
Constant 12.2 12.2 12.3
R-square 0.638 0.659 0.621
Slope 5.0 4.5 4.7
People
(weighted on
population)
Constant 12.1 12.1 12.1

CDBG Formula Targeting to Community Development Need
56

The slope measure changed very little between the FY 2002 allocation and the introduction of
2000 Census data: 4.8 to 4.9, somewhat counter to the earlier most/least analysis.

As alluded to above, however, Table 5-3 is somewhat deceptive. The R-square and slope shown
in Table 5-3 are principally driven by the very needy Puerto Rico, which receives a very large
per capita grant. If Puerto Rico is removed from the analysis, very little targeting of the current
formula to need occurs, with an R-square of 0.294 and a slope of 2.4. Thus, beyond Puerto Rico,
the nonentitlement formula does a relatively poor job of targeting to the more needy of the 50
states.

Table 5-4
Regression Estimate of Targeting to Need With and Without Puerto Rico With 2000 Census
2000

Targeting to: With Puerto Rico Without Puerto
Rico
R-square 0.661 0.294
Slope 4.9 2.4
Places
(unweighted)
Constant 12.3 12.0
R-square 0.621 0.281
Slope 4.7 2.2
People
(weighted on
population)
Constant 12.1 11.8

Charts

Presenting a chart showing the current targeting of the formula to need can help understand the
R-square and slope concepts above. The two graphs in Chart 5-1 explain the targeting of the
current formula to the community development needs index line. The graph at the left shows the
needs index with a slope of 4.7, matching the current slope for the formula. By looking at this
first graph, we can see that the uniqueness of Puerto Rico (the spike at the far right of the chart)
among the states in terms of both its level of need and the amount of funds it receives on a per
capita basis. The graph also shows that, for the remaining 50 states, very little relationship exists
between grant amounts and the needs index.

The chart on the right shows this same comparison but with the assumption that the formula
should be fair—similarly needy communities get similar grant amounts—but that the neediest
get substantially more on a per capita basis than the least needy. Thus, the graph on the right
reflects the needs index with a slope of 8.0.
36
This chart more clearly shows how the
nonentitlement allocation appears to have very little relationship to the community development
needs index, except in respect to Puerto Rico.

36
This slope is subjective. Selecting 8 is based on the assumption that we want the formula to target relatively more
funds to the most needy states.

CDBG Formula Targeting to Community Development Need
57
Chart 5-1. Current Nonentitlement Formula Targeting to the Needs Index

Formula A and Formula B

Table 5-4 compares the targeting of Formula A and Formula B. In the entitlement analysis of
Chapter 4, we showed that Formula A had a high degree of fairness (a high R-square) but a low
slope relative to Formula B. Formula B had a low degree of fairness but a reasonably high slope.
Nonentitlements follow a very different pattern. Excluding Puerto Rico, Formula A and Formula
B are equally bad at targeting to need. Both have a low R-square of less than 0.4 and low slopes
of less than 3.0.

Table 5-4
Regression Estimate of Targeting to Need by Formula for the Current Nonentitlement Formula
with all 2000 Census Data

Targeting to: Formula A Formula A
without Puerto
Rico
Formula B
R-square 0.778 0.322 0.341
Slope 6.0 2.5 2.8
Places
(unweighted)
Constant 11.4 11.5 12.5
R-square 0.817 0.441 0.304
Slope 6.3 3.0 2.8
People
(weighted on
population)
Constant 10.7 11.1 12.5

Chart 5-2 graphically presents the findings from Table 5-4. With the exception of Puerto Rico
(the spike at the right-hand side of the Formula A chart), which appropriately gets a very high
per capita grant, in both cases a low-need state is nearly as likely to get a relatively higher per
capita grant as a high-need state.
Needs Index with Current Slope of 4.7
$0
$5
$10
$15
$20
$25
$30
$35
$40
Nonentitlement Grantees
Pe
r Ca
pita
Gra
n
t
Current Per Capita Grant
Need (Slope 4.7)
Low Need High Need

Needs Index with Higher Slope of 8.0
$0
$5
$10
$15
$20
$25
$30
$35
$40
Nonentitlement Grantees
Pe
r Ca
pita
Gra
n
t
Current Per Capita Grant
Need (Slope 8.0)
Low Need High Need

CDBG Formula Targeting to Community Development Need
58

Chart 5-2. Comparing Nonentitlement Formula A and B Targeting to Need

Table 5-5 shows the per capita grants by needs quintile. When Puerto Rico is excluded from the
analysis, very little difference exists in per capita grant amounts between the least needy and
most needy for either Formula A or Formula B. In addition, unlike entitlements, very little
difference exists between Formula B and Formula A per capita grants within each of the need
quintiles.

Table 5-5
Nonentitlement Per Capita Grants by Need Quintile by Formula (All 2000 Census Data)

Quintiles of
Need Formula A
Formula A
Without
Puerto Rico Formula B
Low $8.94 $8.94 $10.27
2 $11.45 $11.45 $11.04
3 $9.94 $9.94 $12.56
4 $11.79 $11.79 $14.68
High $16.03 $13.45 $13.07
Total Average $12.53 $11.69 $11.66

Formula A
$0
$5
$10
$15
$20
$25
$30
$35
$40
Nonentitlement Formula A Grantees
Per Capita Grant
Current Per Capita Grant
Need (Slope 8.0)
Low Need High Need
Formula B
$0
$5
$10
$15
$20
$25
$30
$35
$40
Nonentitlement Formula B Grantees
Pe
r Ca
pita
Gra
n
t
Current Per Capita Grant
Need (Slope 8.0)
Low Need High Need

CDBG Formula Targeting to Community Development Need
59
Problems in the Nonentitlement Formula

Population

As shown above, both Formula A and Formula B have low slopes. The largest contributors to the
low slope are the 25 percent weight on the population variable in Formula A and the 20 percent
weight on population in Formula B. Population simply represents the size of a place, not a
measure of its need. The characteristics of the population must be analyzed to know whether the
jurisdiction is needy. Because per capita grant amounts are used to compare the fairness of
allocations to similarly needy jurisdictions with different populations, by definition the slope of
the population variable is zero.

Poverty

Poverty receives a 50 percent weight in Formula A and a 30 percent weight in Formula B. As
demonstrated by the needs index, poverty is an extremely good indicator of a number of
dimensions of community development need. The poverty measure suffers from the following
two problems:

1. Poverty remains a constant dollar threshold nationwide, and does not take into account
that it may cost more to live in some parts of the country than in others. A person living
in Connecticut and paying $800 per month in rent may be worse off in terms of
disposable income than a person living in poverty in Puerto Rico paying $300 per month
in rent. Cost of living relates strongly to the incomes in an area. Generally, if a
metropolitan area or nonmetropolitan county enjoys a high median income, its cost of
housing and other goods and services are also high.

Congress recognized this disparity in cost of living when it established guidelines for
CDBG program eligibility, establishing income limits based on the local area median
income. Households with incomes less than 80 percent of median income are considered
low and moderate income and eligible for assistance with funds from the CDBG
program.

While the program uses these income thresholds to determine whether persons or
households are eligible for the program, the formula uses the constant dollar standard of
poverty to allocate funds. CDBG nonentitlement grantees share an average poverty rate
of 12 percent. Similarly, 11 percent of CDBG nonentitlement grantee households have
extremely low incomes, as defined by having incomes less than 30 percent of their area
median income.
37

Table 5-6 shows that some regions are probably undercounted in terms of need associated
with low-income households while others probably are overcounted. Specifically, states
in the New England region on average have more extremely low-income persons than is
represented by poverty. On the other hand, Puerto Rico, the states in the Southwest

37
Data on number of households less than 30 percent of local median income are from a special tabulation of 2000
census data prepared for HUD by the U.S. Census Bureau using the Section 8 income limits.

CDBG Formula Targeting to Community Development Need
60
region, and the states in the Pacific region have poverty rates that exceed their rate of
extremely low-income households. This suggests that using poverty as a single measure
to allocate CDBG funds likely understates the need in the New England region while
overstating the need in Puerto Rico, the Southwest, and the Pacific.

Table 5-6
Comparing Poverty Rate to Extremely Low Income Rate by Region for Nonentitlement Areas

Region N
Poverty
Rate
Extremely
Low
Income
Rate
New England
6
6% 10%
New York/New Jersey
2
9% 10%
Mid-Atlantic
5
11% 10%
Southeast
8
14% 12%
Midwest
6
8% 9%
Southwest
5
16% 12%
Great Plains
4
10% 10%
Rocky Mountain
6
11% 10%
Pacific/Hawaii
4
15% 12%
Northwest/Alaska
4
12% 10%
Puerto Rico
1
55% 24%
TOTAL
51
12% 11%

2. Off-campus college students in poverty do not pose as significant a problem for
nonentitlements but their inclusion does cause some small difference in funding between
states.

Pre-1940 Housing

In declining areas of states, old housing likely will be demolished or abandoned over time, while
more affluent areas renovate the old housing. As a result, pre-1940 housing in nonentitlement
areas has weakened over time as a measure of community development need.

Summary

The nonentitlement formula targets very well to the community development need of Puerto
Rico. For the remaining 50 states, however, very little relationship exists between a state’s level
of community development need and its current per capita grant formula allocation.

CDBG Formula Targeting to Community Development Need
61
Chapter 6. CDBG Alternative Formulas

This chapter provides three options for modifying the Community Development Block Grant
(CDBG) entitlement formula allocation and two options for modifying the CDBG
nonentitlement formula. The funding implications associated with each option are also
explained. All of these alternatives assume that the funding split between entitlements and
nonentitlements would be held constant at 70/30. Chapter 8 describes making changes to the
70/30 split, including using a single formula for both entitlements and nonentitlements. Chapter
9 explains how the entitlement and nonentitlement options from this chapter and the single
formula option in Chapter 8 are combined into four overall alternative formulas.

Goals for Formula Alternatives

Developing a funding formula requires an understanding of the program’s goals. The alternatives
in this chapter are based on three goals:

1. Improve Targeting to community development need. Chapters 4 and 5 demonstrate
how the formula has substantial inequities in how it targets to community development
need. All the alternatives suggested are based on the presumption of wanting to decrease
or eliminate the number of funding inequities in the current formula.

2. Simplify the formula. The current formula is quite complicated, difficult to explain, and
somewhat difficult to administer. A simplified formula would allow the allocations to be
more transparent and possibly create a greater sense of fairness.

3. Minimize redistribution of funds. The goal of most block grant programs is to enable
jurisdictions to have a steady and predictable flow of resources to address program
objectives. Any change to the CDBG formula will cause a redistribution of funds and
thus increase or decrease that predictable flow of resources. Jurisdictions that lose funds
are likely to experience a painful adjustment period.

Summarizing Entitlement Formula Alternatives

All three formula alternatives explained below improve targeting to need. The alternatives
presented offer policymakers various degrees of tradeoffs among the three goals stated above.
Basically, the alternatives presented do the following:

Entitlement Alternative 1. This alternative “tweaks” or makes minor adjustments to the
existing formula by correcting the problems in Formulas A and B that lead to large inequities in
funding among grantees in each formula. For example, pre-1940 housing is replaced by “housing
older than 50 years occupied by a person in poverty.” It does not, however, correct the funding
inequities between Formulas A and B. This option causes the least redistribution of funds but
makes the formula even more complicated than it is currently. It is similar to the alternative
presented in 1995 by Neary and Richardson.

CDBG Formula Targeting to Community Development Need
62
Entitlement Alternative 2. This alternative creates a very simple single formula. The formula
uses four widely available and easily understandable variables to allocate the funds. The
variables are poverty, female-headed households with children, housing older than 50 years
occupied by a household in poverty, and overcrowding. This option dramatically improves
targeting to need, including correcting funding inequities between Formulas A and B. It only
modestly increases the slope of the allocation, however. By improving fairness in the funding
allocation without raising the slope, some very needy Formula B communities experience
significant funding decreases. For example, Detroit’s grant is reduced from $49 per capita to $38
per capita to align it with similarly needy Miami, whose grant increases from $28 per capita to
$41 per capita.

Entitlement Alternative 3. This alternative adds an adjustment factor to entitlement alternative
2. It uses the same four variables as entitlement alternative 2 but shifts the weights on some
variables and adds an adjustment factor that assigns extra weight to fiscal stress. This alternative
raises the weight on older housing occupied by a poverty household and reduces the weight on
overcrowding, as compared to alternative 2, to put additional emphasis on places facing age and
decline problems versus locations with growing immigrant populations. It also adjusts grants
upwards for jurisdictions with a low per capita income relative to their metropolitan per capita
income and adjusts grants downwards for jurisdictions with a high per capita income relative to
their metropolitan per capita income. Overall, this increases the amount of funds the more needy
grantees receive at the expense of the least needy grantees and benefits several of the older
declining cities. For example, Detroit’s grant increases to $51 per capita while Miami’s increases
to $44 per capita, Newport Beach’s per capita grant, however, falls to $3 per capita; its current
grant is $6 per capita, and its alternative 2 grant is $4 per capita.

All three alternatives improve targeting to need but also significantly redistribute funds.
Alternative 3 provides the largest redistribution of funds, while alternative 1 offers the smallest.

Entitlement Alternative 1—Tweaking the Current Formula

Alternative 1 is based on the analysis in Chapter 4 that identifies the significant problems of each
of the dual formulas. Alternative 1 does not correct the historic inequities in funding between
Formulas A and B; it simply corrects the anomalies in each formula.

Formula A

The problems with Formula A, as detailed in Chapter 4, and the solutions recommended for
alternative 1 are as follows:

1. Problem: Low slope. The more needy a Formula A grantee, the more underfunded it is
relative to its need.

Solution: Reduce the weight on population from 0.25 to 0.10, and increase the weight on
poverty to 0.60 and on overcrowding to 0.30.

CDBG Formula Targeting to Community Development Need
63
Analysis: Population does not target to need; it simply targets to population regardless of
need. Poverty and overcrowding are both good indicators of need among Formula A
grantees.

2. Problem: College students in poverty. Although full-time college students are generally
supported by their family, the Census Bureau reports them as being in poverty.
38

Solution: Change the definition of poverty to “persons living in family households or
elderly-headed households living in poverty.”

Analysis: This corrects the formula so that college towns no longer receive
disproportionately large allocations relative to their actual level of community
development need.

Formula B

The problems with Formula B, as detailed in Chapter 5, and the solutions recommended for
alternative 1 are as follows:

1. Problem: Pre-1940 housing occupied by higher income households. As time has passed,
needy communities have demolished pre-1940 housing while less needy places have
renovated their older housing.

Solution: Replace the variable with “housing 50 years or older occupied by a poverty
household.”

Analysis: This new variable targets to needy cities with older infrastructure and
dilapidated housing.

2. Problem: College students in poverty. As in the description in Formula A, full-time
college students are often counted as being in poverty when they actually do have a
source of support not captured by the census—their families.

Solution: Change the definition of poverty to “persons living in family households or
elderly-headed households living in poverty.”

Analysis: This corrects the formula so that college towns no longer receive
disproportionately large allocations relative to their actual level of community
development need.

3. Problem: Less needy places with population loss or slow growth. Growth lag funds
communities whose populations since 1960 are growing at a slower pace than the
national growth rate for entitlement cities. Some of these communities were built out in

38
Students living in dormitories are not counted in the current census population counts on poverty; students living
in housing units, however, are counted.

CDBG Formula Targeting to Community Development Need
64
1960, however, and intentionally implement policies to discourage growth, simply have
no more land for growth, or have had a large decrease in household size even though they
are economically very strong.

Solution: Reduce growth lag funding for communities with high per capita incomes and
low poverty rates. Specifically, reduce a community’s growth lag score if its per capita
income is greater than 125 percent of the national per capita income, and its poverty rate
(using the new definition of poverty) is less than 75 percent of the average for entitlement
communities. If a community’s per capita income is more than 125 percent of the
national per capita income, its growth lag is reduced according to its poverty rate. A
poverty rate of 75 percent of the average for entitlement communities receives full
funding while a poverty rate of 50 percent of the average gets no funding. For
communities with poverty rates between 50 and 75 percent, the reduction is proportional.

Analysis: This reduces high funding to most low-need communities created by growth
lag, which otherwise targets well to need.

4. Problem: Extremely high per capita grants due to growth lag. Because of growth lag, a
number of very needy grantees receive very large per capita grants that are well above
their needs-index-based funding level.

Solution: Reduce the weight on growth lag from 20 percent to 10 percent, and increase
the weight on poverty from 30 percent to 40 percent.

Analysis: This tends to make funding levels for Formula B communities with similarly
high needs more similar.

These adjustments significantly improve the targeting of the formula to need. Chart 6-1, as
compared to Chart 4-2, shows that alternative 1 has fewer anomalies, especially regarding
overfunding the least needy grantees. The left side of the chart demonstrates this by the per
capita grants for alternative 1 clustered fairly close to the needs index line. Big differences in per
capita allocations continue to exist between higher need, similar needy grantees; the increasingly
larger spikes on the right side of the chart illustrate this.

CDBG Formula Targeting to Community Development Need
65

$0
$10
$20
$30
$40
$50
$60
$70
Entitlement Grantees
Per Capita Grant
Alternative 1 Per Capita Grant
Needs Index Per Capita Grant
(slope 12.0)
Low Need High Need

Chart 6-1. Alternative 1 Targeting to Need

Chart 6-2 and Table 6-1 show that alternative 1’s slope for Formula A grantees is closer to the
desired slope, moving the more needy Formula A grantees much closer to the needs line than
currently. At the same time, the r-square increases for Formula B by “trimming” some of the
anomalies.

Table 6-1. Regression Estimate of Targeting to Need by Overall and by Formula for
Alternative 1

Targeting to: Overall Formula A Formula B
R-square 0.645 0.929 0.599
Slope 11.5 8.9 12.8
Places
(unweighted)
Constant 17.2 13.8 20.8
R-square 0.777 0.948 0.711
Slope 11.9 9.3 12.6
People
(weighted on
population)
Constant 16.4 14.1 19.5

CDBG Formula Targeting to Community Development Need
66

$0
$10

$20
$30
$40
$50
$60
$70
Entitlement Grantees Split by A and B
Pe
r C
a
p
i
t
a
Gra
n
t
B Alternative 1
B Need
A Alternative 1
A Need
Low Need High Need

Chart 6-2. Alternative 1 Targeting to Need by Formulas A and B

Entitlement Alternative 2—Arriving at the Best Simple Formula for
Targeting To Need

Alternative 2 is a new formula. The goal was to target well to the needs index using a simple
formula. To achieve this goal, this analysis took these steps:

null Identify the variables available for each jurisdiction that explain the most variance in the
needs index.

null Weight those variables by regressing them against an “allocation” that uses the needs
index

Identifying the Variables

As explained in Chapter 3, the needs index for entitlement communities comprises 17 variables.
This study used factor analysis to identify which variables had similar patterns of variance and
extract that variance to create individual factors. That analysis produced three factors.

To identify variables for the alternative 2 formula, the variables that correlated the highest with
each of the three factors from the needs index were identified. If several variables correlated
highly with a factor, those variables with relatively low correlation with one another were
identified.

CDBG Formula Targeting to Community Development Need
67

Table 6-2 shows the 17 variables used to create the needs index and how each one correlates
with factor 1, from highest to lowest correlation. The right side of the table shows the variables
identified as having high correlation with factor 1 but relatively low correlation with one another.
That is, factor 1 correlates best with poverty (A), but it also correlates well with female-headed
households with children (B) and pre-1950 poverty households (C), both of which have
relatively low correlations with poverty given that they all correlate well with factor 1. Poverty is
a particularly good measure of unemployment, concentrated poverty, and lower education levels.

Although poverty and female-headed households with children correlate with one another at only
0.54, they both have relatively good correlations with the crime measure, 0.64 and 0.66
respectively. This report contends that when combined, these factors offer a valid proxy for
distress measured by crime. Pre-1950 housing occupied by a poverty household, although
correlated with poverty at only 0.48, is a very good indicator of population loss since 1960 and,
to a lesser extent, population loss since 1990. Although pre-1950 poverty housing and female-
headed households with children have a relatively high correlation with one another, 0.72, the
strength of female-headed households with children under 18 at targeting toward crime and the
pre-1950 poverty variable’s strength at targeting toward population loss leads to including both
as formula variables.

Table 6-2. Variables Correlating Well With Factor 1

Community Development Need Measures Factor 1
(A)
Poverty
Rate for
Persons in
Family and
Elderly
Households
(B)
Female-
Headed
Households
With
Children
Under 18
(C)
Pre-1950
Housing
Occupied
by Poverty
Household
Factor 1 1.00 0.91 0.74 0.73
Poverty rate for persons in family and elderly households, 2000 0.91 1.00 0.54 0.48
Unemployment rate, 2000 0.86 0.87 0.52 0.50
Pre-1970 housing occupied by poverty renter, 2000 0.86 0.61 0.78 0.91
Employed population age 16––64, 2000 –0.84 –0.89 –0.38 –0.40
Population age 25–64 without high school education, 2000 0.78 0.75 0.33 0.36
Female-headed households with children under age 18, 2000 0.74 0.54 1.00 0.72
Pre-1950 housing occupied by poverty household, 2000 0.73 0.48 0.72 1.00
Metropolitan Statistical Area (MSA) dissimilarity index multiplied by percent
minority, 2000 0.72 0.61 0.37 0.29
Homicides, assaults, robberies per 1000 persons, 2001, Department of
Justice Uniform Crime Reports (UCR) 0.71 0.64 0.66 0.46
Net per capita income change 1989 to 1999 –0.68 –0.57 –0.44 –0.38
Local per capita income/per capita income of MSA, 2000 –0.67 –0.41 –0.47 –0.44
Population loss since 1960 0.52 0.25 0.51 0.70
Concentrated poverty,* 2000 0.49 0.78 0.25 0.17
Overcrowded housing units, 2000 0.48 0.49 –0.07 –0.02
Persons per square mile, 2000 0.43 0.14 0.12 0.33
Population loss since 1990 0.43 0.22 0.48 0.53
Point change in poverty rate, 1990–2000 0.02 –0.40 –0.07 –0.03
*Percent of poor persons in jurisdictions concentrated in census tracts with more than 40 percent poverty.

CDBG Formula Targeting to Community Development Need
68

Factor 2 correlates best with overcrowding as a needs indicator (0.78). It also correlates well
with places that are not losing population: –0.64 for population loss since 1960 and –0.62 for
population loss since 1990. Population gain is a good measure of need only to the extent that
population gain is creating fiscal stress, such as with the growth in number of low-wage
immigrants; overcrowding captures this extremely well. Population gain without capturing the
low-wage or poverty component of that growth is most likely an indicator of fiscal health than
fiscal stress.

Table 6-3. Variables Correlating Well With Factor 2

Factor 2 Overcrowding
Factor 2 1.00 0.78
Overcrowded housing units, 2000 0.78 1.00
Population loss since 1960 –0.64 –0.15
Population loss since 1990 –0.62 –0.15
Pre-1950 housing occupied by a poverty household, 2000 –0.49 –0.02
Population age 25–64 without a high school education, 2000 0.46 0.77
Female-headed households with children under age 18, 2000 –0.45 –0.07
MSA dissimilarity index multiplied by percent minority, 2000 0.40 0.68
Persons per square mile, 2000 0.33 0.45
Point change in poverty rate 1990 to 2000 0.32 0.02
Pre-1970 housing occupied by a poverty renter household, 2000 –0.31 0.18
Netper capita income change 1989 to 1999 –0.24 –0.43
Population age 16–64 employed, 2000 –0.21 –0.57
Local per capita income /per capita income of MSA, 2000 –0.14 –0.36
Poverty rate for persons in family and elderly households, 2000 0.05 0.49
Unemployment rate, 2000 0.02 0.44
Concentrated poverty*, 2000 –0.06 0.28
Homicides, assaults, robberies per 1000 persons, 2001, UCR –0.11 0.21
*Percent of poor persons in jurisdictions concentrated in census tracts with more than 40 percent poverty

Finally, factor 3 is an indicator of need for communities with high poverty concentrations but
declining poverty rates. Poverty concentration could be potentially a good variable for the
formula. It would have a similar problem to the growth lag variable of the current formula,
however, specifically targeting large amounts of money to a few places. It would also have some
regional bias in favor of very low cost-of-living jurisdictions, such as entitlement jurisdictions in
Puerto Rico, where poverty rates are much higher than the rates of extreme low-income
households. For these reasons, no variables based on factor 3 are included among the proposed
formula variables.
39

39
See Table 3-7 for the correlations of the variables with factor 3.

CDBG Formula Targeting to Community Development Need
69
That leaves four variables for a simple entitlement formula:

null Family and elderly persons in poverty.
null Female-headed households with children.
null Housing built before 1950 occupied by a poverty household.
null Overcrowding.

Weighting the Variables

The next step in the process is to weight these variables so that they best target to the needs
index, a relatively simple exercise. As previous charts demonstrated, the needs index scores are
already converted to per capita grant amounts. These per capita grant amounts are then
multiplied by population to convert them to actual grant amounts.
40
Then, the grant amounts that
individual jurisdictions would receive if funds were allocated only by the variable persons in
family or elderly poverty households is calculated. Similar allocations are derived using female-
headed households with children, housing built before 1950 occupied by poverty households,
and overcrowding. A regression is run with the needs score grant calculation as the dependent
variable and the four variables identified above as the independent variables. The result is as
follows:

R
2
= 0.997

Family and elderly person in poverty = 0.529
Female-headed households with children = 0.128
Housing built before 1950 occupied by a poverty household = 0.185
Overcrowding =0 .196

Rounding these factors creates the following formula:

[0.5 Povfam (a) + 0.1 FHH (a) + 0.2 AgePov (a) +0 .2 Ocrowd (a) ] * Appropriations
Povfam (ENT) FHH (ENT) AgePov (ENT) Ocrowd (ENT)

where:
null (a) is the value for the jurisdiction.
null (ENT) is the value for all entitlement jurisdictions (cities and urban counties).
null Povfam is the number of persons in poverty living in family or elderly households.
null FHH is the number of female-headed households with children.
null AgePov is the number of housing units older than 50 years occupied by a poverty
household.
null Ocrowd is overcrowding.

In addition to departing from a dual formula, alternative 2 also changes the denominator from the
sum of all metropolitan areas to the sum of all entitlement jurisdictions. The sum of all
metropolitan areas made sense with a dual formula system because it meant that neither of the

40
To capture the universe of CDBG grantees, this study estimated needs scores for the 123 jurisdictions that do not
have need scores under the standard need calculation. This is done with factor analysis that excludes (1) crime rates
and (2) the dissimilarity index multiplied by the percent minority factors.

CDBG Formula Targeting to Community Development Need
70
dual formulas were allocating the full appropriation amount since the sum of the numerator—all
entitlements—was less than the sum of the denominator—all metropolitan areas. With neither of
the two formulas allocating all the appropriation, this reduced the amount of pro rata reduction
needed to bring the “greater of” component of the dual formula in line with the actual
appropriation. With a single formula, if a metropolitan total denominator is used, it is necessary
to implement a pro rata increase to match the appropriation level. The need for a pro rata
increase is avoided by simply allocating the funds based on a denominator that is the sum of the
data for only the jurisdictions receiving funding.

As Chart 6-3 shows, this very simple formula allocates very well to need. In addition to
dramatically reducing the number of anomalies in the formula, it also modestly increases the
slope of the overall allocation, and it corrects for the historic inequities in funding between
Formulas A and B grantees. This correction, however, comes at a significant cost to most
Formula B communities, many with high community development need.

$0
$10
$20
$30
$40
$50
$60
$70
Entitlement Grantees
Per Capita Grant
Alternative 2 Per Capita Grant
Needs Index Per Capita Grant
(slope 12.0)
Low Need High Need

Chart 6-3. Alternative 2 Targeting to Need

Table 6-4 shows several very needy Formula A grantees and Formula B communities and
demonstrates how the alternative 2 formula increases funding for the very needy Formula A
communities but at some cost to the very needy Formula B communities. All but two of the
needy Formula B communities listed in Table 6-4 have a funding decrease as a result of
alternative 2. Table 6-8, later in this chapter, compares the overall funding redistribution caused
by this alternative when compared to alternatives 1 and 3.

CDBG Formula Targeting to Community Development Need
71

Table 6-4. Comparing Impact of Alternative 2 on Needy Formula A and Formula B Grantees

Per Capita Grant
High Need Formula A
Grantees
Needs
Score
Current
Formula
Alternative
2
Percent
Change
Hidalgo County, TX 2.58 $31.98 $45.84 43
Miami, FL 2.11 $27.94 $40.78 46
Santa Ana, CA 1.88 $25.25 $30.75 22
Long Beach, CA 1.44 $23.29 $33.33 43
Los Angeles, CA 1.43 $23.96 $33.06 38
Fresno, CA 1.42 $21.93 $31.22 42
Kern County, CA 1.05 $18.73 $26.00 39
El Paso, TX 0.93 $18.59 $27.08 46
Memphis, TN 0.91 $15.43 $24.94 62
Houston, TX 0.80 $18.93 $24.82 31
Per Capita Grant
High Need Formula B
Grantees
Needs
Score
Current
Formula
Alternative
2 Change
Newark, NJ 2.55 $40.08 $38.40 –4
Detroit, MI 2.12 $48.91 $38.44 –21
Cleveland, OH 1.68 $61.81 $39.18 –37
Baltimore, MD 1.60 $44.28 $31.46 –29
St Louis, MO 1.56 $72.97 $36.38 –50
New York, NY 1.54 $27.77 $34.05 23
Buffalo, NY 1.54 $68.15 $41.18 –40
Philadelphia, PA 1.50 $42.03 $34.41 –18
New Orleans, LA 1.48 $37.55 $38.05 1
Chicago, IL 1.32 $35.35 $29.34 –17

Alternative 3—Arriving at a Formula More Sharply Targeted to Need

As noted above, some very needy Formula B communities experience significant funding
decreases using alternative 2. This is because correcting the Formula A and Formula B funding
inequities means increasing grants for a large number of Formula A communities. This is true for
both very needy and not-so-needy communities. Across the need spectrum, alternative 2
increases funding for Formula A at the expense of Formula B. Alternative 3 adjusts the
alternative 2 approach so that very needy grantees receive larger per capita grants, and less needy
grantees get smaller grants. Alternative 3 also make some adjustments to prevent very needy
Formula B grantees from being as adversely impacted by the formula change in alternative 2.

Adjustment 1. Chapter 3 noted that the needs index is underrepresented in variables that measure
decline relative to previous needs indexes. In addition, the CDBG statute clearly emphasizes the
distress associated with decline more than it does the fiscal stress associated with immigrant

CDBG Formula Targeting to Community Development Need
72
growth. These arguments justify a shift in the weighting to provide 30 percent of the funds on old
housing with a poverty household variable (a 10-point weight increase) and 10 percent of the
funds on overcrowding (reducing the weight 10 points). This also results in a shift, relative to
alternative 2, of more funds to the very needy Formula B communities.

Adjustment 2. To more sharply target funds to the neediest communities in each metropolitan
area, applying an adjustment factor that increases grants for jurisdictions with low per capita
incomes relative to their metropolitan area per capita income substantially increases the slope of
the allocation. To ensure that this adjustment does not create anomalies, it is capped to prevent
any jurisdiction’s grant from being increased or decreased by more than 25 percent. Employing
this adjustment results in an overall increase in allocations such that a pro rata reduction must be
used to keep the formula allocation within appropriation.

Applying these adjustments substantially increases the slope of the formula allocation relative to
both the current formula and alternative 2, but with a modest sacrifice in targeting to need. The
loss in targeting to the needs index is due almost entirely to shifting the weight from
overcrowding to the old housing with poverty household variable. As noted above, however, the
needs index probably understates the need of communities in decline. Chart 6-4 shows more
variance from the needs index line relative to alternative 2, but this is primarily to benefit the
most needy grantees.

$0
$10
$20
$30
$40
$50
$60
$70
Entitlement Grantees
Per Capita Grant
Alternative 3 Per Capita Grant
Needs Index Per Capita Grant
(slope 12.0)
Low Need High Need

Chart 6-4. Alternative 3 Targeting to Need

CDBG Formula Targeting to Community Development Need
73

Table 6-5 indicates that, as with alternative 2, all the very needy Formula A communities gain
funding under alternative 3. Unlike alternative 2, however, most of the very needy Formula B
grantees also gain funding. Four do lose funding, but not as much as they would with alternative
2.

Table 6-5. Comparing Impact of Alternative 3 on Needy Formula A and Formula B Grantees

Per Capita Grant
High Need Formula A
Grantees
Needs
Score
Current
Formula
Alternative
3
Percent
Change
Hidalgo County, TX 2.58 $31.98 $48.82 53
Miami, FL 2.11 $27.94 $43.80 57
Santa Ana, CA 1.88 $25.25 $28.78 14
Long Beach, CA 1.44 $23.29 $31.49 35
Los Angeles, CA 1.43 $23.96 $28.27 18
Fresno, CA 1.42 $21.93 $28.13 28
Kern County, CA 1.05 $18.73 $24.07 29
El Paso, TX 0.93 $18.59 $22.54 21
Memphis, TN 0.91 $15.43 $27.35 77
Houston, TX 0.80 $18.93 $22.75 20
Per Capita Grant
High Need Formula B
Grantees
Needs
Score
Current
Formula
Alternative
3
Percent
Change
Newark, NJ 2.55 $40.08 $47.77 19
Detroit, MI 2.12 $48.91 $50.67 4
Cleveland, OH 1.68 $61.81 $54.38 –12
Baltimore, MD 1.60 $44.28 $42.12 –5
St. Louis, MO 1.56 $72.97 $49.56 –32
New York, NY 1.54 $27.77 $35.88 29
Buffalo, NY 1.54 $68.15 $58.47 –14
Philadelphia, PA 1.50 $42.03 $46.95 12
New Orleans, LA 1.48 $37.55 $43.31 15
Chicago, IL 1.32 $35.35 $36.59 4

Table 6-6 shows the overall redistribution of funds caused by the three alternative formulas by
needs decile. Both alternatives 1 and 3 move significant funds from the least needy to the most
needy grantees, while alternative 2 generally reduces funding for the least needy. Because
alternative 2 corrects the funding anomalies between Formula A and Formula B, however, the
more needy grantees receive relatively smaller funding increases.

CDBG Formula Targeting to Community Development Need
74
Table 6-6. Fund Redistribution by Needs Decile

Per Capita Grant Amount Percent Change from Current
Percentiles
of CD Need N Current
Alternative
1
Alternative
2
Alternative
3
Alternative
1
Alternative
2
Alternative
3
Low 89 $7.83 $5.26 $5.75 $4.33 –33 –27 –45
2 90 $9.28 $7.54 $7.86 $6.51 –19 –15 –30
3 90 $11.39 $8.75 $9.17 $8.27 –23 –19 –27
4 90 $12.27 $11.27 $11.64 $10.71 –8 –5 –13
5 90 $14.09 $13.37 $13.67 $13.19 –5 –3 –6
6 90 $15.52 $14.80 $15.95 $15.27 –5 3 –2
7 90 $17.77 $17.16 $17.77 $17.51 –3 0 –1
8 90 $18.70 $20.40 $21.06 $20.61 9 13 10
9 90 $25.72 $26.67 $25.42 $27.20 4 –1 6
High 90 $32.27 $35.99 $33.68 $37.38 12 4 16
Total 899 $17.87 $17.85 $17.69 $17.94
Most/Least 4.1 6.8 5.9 8.6
Note: Per capita grants weighted on population.

Table 6-7 shows the regression coefficients for the formula alternatives in targeting to the needs
index. All the alternatives dramatically improve targeting to the needs index, with alternative 2
offering the optimal fairness and alternative 3 providing the largest allocations— that is, the
highest slope—to the most needy grantees.

Table 6-7. People and Place Targeting—Regression Statistics

Targeting to: Current Alternative 1 Alternative 2 Alternative 3
R-square 0.352 0.645 0.891 0.794
Slope 8.8 11.5 10.4 12.8
Places
(unweighted)
Constant 18.1 17.2 16.6 17.3
R-square 0.525 0.777 0.947 0.857
Slope 9.5 11.9 10.8 12.8
People
(weighted on
population)
Constant 16.8 16.4 16.4 16.4
N=899 for all regressions

Table 6-8 shows the overall redistribution of funds by percent of jurisdictions losing funds and
gaining funds. As expected, if jurisdictions in the least needy category are losing an average of
30 to 45 percent of their funds, all these alternatives result in a large number of grantees that lose
funding and a large number that gain funding. Alternative 1 results in fewer very large losers and
fewer very large winners than the other alternatives because it is not correcting the gap in
funding between similar needy Formula A and Formula B grantees.

CDBG Formula Targeting to Community Development Need
75

Table 6-8. Percent of Entitlement Grantees Gaining/Losing Funds by Formula Alternative

Alternative 1 Alternative 2 Alternative 3
Loss greater than 40 5.5 12.0 13.4
Loss 20 to 40 15.1 14.4 17.6
Loss 10 to 20 15.7 8.9 12.0
Loss 0 to 10 19.6 12.6 11.6
Gain 0 to 10 18.8 12.3 11.2
Gain 10 to 20 13.8 10.8 9.2
Gain 20 to 40 10.4 17.3 13.8
Gain greater than 40 1.1 11.7 11.2
Total 100.0 100.0 100.0
N=1024

Table 6-9 shows the fund redistribution by region. Generally speaking, the New England region
loses the most and Puerto Rico gains the most under all these alternatives. Interestingly,
alternatives 1 and 3 have similar patterns of regional redistribution.

Table 6-9. Fund Redistribution by Region

Per Capita Grant Amount Percent Change from Current
Region N
Current
Alternative
1
Alternative
2
Alternative
3
Alternative
1
Alternative
2
Alternative
3
New England 73 $28.02 $23.01 $19.52 $24.37 –18 –30 –13
New York/New
Jersey 96 $20.88 $20.75 $20.44 $21.82 –1 –2 5
Mid-Atlantic 87 $19.59 $17.51 $14.38 $16.28 –11 –27 –17
Southeast 164 $12.62 $13.34 $14.93 $14.04 6 18 11
Midwest 187 $18.93 $17.38 $15.10 $17.43 –8 –20 –8
Southwest 106 $15.17 $17.15 $19.20 $17.66 13 27 16
Great Plains 30 $17.77 $15.59 $14.02 $15.42 –12 –21 –13
Rocky Mountain 37 $11.49 $10.54 $11.40 $11.05 –8 –1 –4
Pacific/Hawaii 183 $15.94 $17.52 $18.90 $16.41 10 19 3
Northwest/Alaska 40 $12.60 $11.08 $11.89 $11.25 –12 –6 –11
Puerto Rico 21 $30.51 $40.29 $46.15 $39.92 32 51 31
Note: Per capita grants weighted on population.

Alternative 3’s second adjustment combined with pro rata reduction associated with alternative 3
tends to benefit poor jurisdictions in high cost-of-living locations, such as New England, at the
expense of all the jurisdictions in places with lower costs of living, like the entitlement
communities in the Puerto Rico region. This tends to correct for the bias in alternative 2 that
favors places with very low costs of living over places with higher costs of living.

CDBG Formula Targeting to Community Development Need
76
Summarizing Nonentitlement Formula Alternatives

For nonentitlement communities, this report offers only two alternatives: one that tweaks the
current formula and a simple alternative with three variables.

Nonentitlement Alternative 1. As with the entitlement alternative 1, this alternative makes
minor adjustments to the existing formula by resolving the problems in Formulas A and B that
lead to large inequities in funding among grantees under each formula. For example, pre-1940
housing is replaced by “housing older than 50 years occupied by a person in poverty.”

Nonentitlement Alternative 2. This alternative creates a very simple, single formula. The
formula uses three widely available and easy-to-understand variables to allocate the funds. The
variables are poverty, female-headed households with children, and housing older than 50 years
occupied by a person in poverty.

Nonentitlement Alternative 1—Tweaking the Formula

Alternative 1 uses the analysis in Chapter 5 to identify the key problems of each of the dual
formulas.

Formula A

The problems with Formula A, as detailed in Chapter 5, and the solutions recommended are as
follows:

1. Problem: Low slope due to population variable.

Solution: Reduce the weight on population from 25 percent to 10 percent, and increase
the weight on poverty to 65 percent.

Analysis: Population does not target to need; it simply targets to population regardless of
need. Poverty is a good indicator of need among Formula A grantees.

2. Problem: College students in poverty. Although full-time college students living in
nonfamily situations (off-campus housing, fraternities and sororities) are generally
supported by their family, the census reports them as being in poverty.

Solution: Change the definition of poverty to “persons living in family households or
elderly-headed households living in poverty.” This solution is also applies for the
definition of poverty used in Formula B.

Analysis: This corrects the formula so that nonentitlements with significant college
student populations no longer receive disproportionately large allocations relative to their
actual level of community development need.

CDBG Formula Targeting to Community Development Need
77
Formula B

1. Problem: Pre-1940 housing occupied by higher income households. As time has passed,
needy places have demolished pre-1940 housing while less needy locations have
renovated their old housing.

Solution: Replace the variable with “housing 50 years or older occupied by a poverty
household.”

Analysis: This new variable targets better to nonentitlement areas with older
infrastructure and dilapidated housing that generally do not have the resources to address
that need.

2. Problem: College students in poverty. See explanation under Formula A.

3. Problem: Low slope due to population variable.

Solution: Reduce the weight on population from 20 percent to 10 percent, and increase
the weight on poverty to 40 percent.

Analysis: Population does not target to need; it simply targets to population regardless of
need. Poverty is a good indicator of need.

Chart 6-5 shows the targeting to need as a result of these changes. A tremendous improvement in
targeting is evident, with the alternative 1 per capita grants of nonentitlements tracking much
more closely to the needs index than the current formula.

CDBG Formula Targeting to Community Development Need
78

$0
$5
$10
$15
$20
$25
$30
$35
$40
Nonentitlement Grantees
Per Capita Grant
Alternative 1 Per Capita Grant
Need (Slope 8.0)
Low Need High Need

Chart 6-5. Nonentitlement Alternative 1 Targeting to Need

The regression analysis confirms this finding. Table 6-10 shows very clearly that the fairness (r-
square) is greatly improved overall and for both Formulas A and B. The slope is also
significantly improved, matching the target slope of 8.0 established with the needs index line.

Table 6-10. Regression Estimate of Targeting to Need Overall and by Formula for
Nonentitlement Alternative 1

Targeting to: Overall Formula A Formula B
R-square 0.838 0.838 0.905
Slope 8.1 8.6 5.7
Places
(unweighted)
Constant 12.5 13.0 11.7
R-square 0.851 0.861 0.886
Slope 7.9 9.0 5.4
People
(weighted on
population)
Constant 12.1 11.8 11.5

Nonentitlement Alternative 2—Simple Formula for Targeting to Need

While alternative 1 does a very good job of improving targeting to need, nonentitlement
alternative 2 is designed to improve targeting to need with a simple formula mechanism. It uses
the same approach for developing a simple, single formula like that used for the entitlement
alternative 2. First, a set of variables that correlate well with the needs index factors were
identified, and then regression analysis was employed to weight those variables.

CDBG Formula Targeting to Community Development Need
79
Identifying the Variables

Table 6-11 shows the 10 variables used to create the nonentitlement needs index and how each
one correlates with factor 1, from highest correlation to lowest correlation. Factor 1 correlates
best with poverty, and poverty correlates well with unemployment, low education, concentrated
poverty, and overcrowding.

Table 6-11. Variables That Correlate Well With Nonentitlement Factor 1

Community Development Need Measures Factor 1
Poverty
Rate for
Persons in
Family and
Elderly
Households
Factor 1 1.000 0.980
Poverty rate for persons in family and elderly households, 2000 0.980 1.000
Population age 16–64 employed, 2000 –0.959 –0.926
Unemployment Rate, 2000 0.933 0.908
Concentrated poverty, 2000* 0.864 0.908
Population age 25–64 without a high school education, 2000 0.846 0.819
Overcrowded housing units, 2000 0.804 0.759
Pre-1970 housing occupied by a poverty renter household, 2000 0.595 0.579
Female-headed households with children under age 18, 2000 0.564 0.478
Pre-1950 housing occupied by a poverty household, 2000 0.098 0.153
Percent households that heat with wood or bottled gas, 2000 0.067 0.077
*Percent of poor persons in jurisdictions concentrated in census tracts with more than 40 percent poverty.

Table 6-12. Variables Correlating Well With Nonentitlement Factor 2

Community Development Need Measures Factor 2
Pre-1950
Housing
Occupied
by Poverty
Household
Factor 2 1.000 0.969
Pre-1950 housing occupied by a poverty household, 2000 0.969 1.000
Pre-1970 housing occupied by a poverty renter household, 2000 0.731 0.741
Percent households that heat with wood or bottled gas, 2000 0.236 0.117
Population age 16–64 employed, 2000 0.119 0.013
Poverty rate for persons in family and elderly households, 2000 0.045 0.153
Concentrated poverty, 2000* 0.042 0.160
Female-headed households with children under age 18, 2000 –0.040 –0.066
Population age 25–64 without a high school education, 2000 –0.091 –0.052
Unemployment rate, 2000 –0.118 0.012
Overcrowded housing units, 2000 –0.375 –0.261
*Percent of poor persons in jurisdictions concentrated in census tracts with more than 40 percent poverty.

CDBG Formula Targeting to Community Development Need
80
As Table 6-12 shows, factor 2 has its high correlation with pre-1950 housing occupied by a
poverty household; that correlates well with pre-1970 housing occupied by a poverty renter
household.

Finally, factor 3 approximates infrastructure need and, as Table 6-13 shows, correlates best with
units that heat with wood or bottled gas. Its next best correlation, 0.594, is with female-headed
households with children. Because of the concern that using the proxy variable of heating with
wood or bottled gas will create anomalies in funding due to likely regional bias, this report does
not recommend its use. On both factors 1 and 3, however, female-headed households with
children have moderately high correlations with the factors but not high correlation with either
poverty or pre-1950 housing occupied by a poverty household. This suggests that some elements
of community development need in nonentitlement areas that are not captured by poverty or pre-
1950 housing occupied by a person in poverty is captured by the variable female-headed
households with children.

Table 6-13. Variables Correlating Well With Nonentitlement Factor 3

Community Development Need Measures Factor 3
Percent
Households
that Heat
With Wood
or Bottled
Gas
Female-
headed
Households
with
Children
Under 18
Factor 3 1.000 0.761 0.594
Percent households that heat with wood or bottled gas, 2000 0.761 1.000 0.184
Female-headed households with children under age 18, 2000 0.594 0.184 1.000
Population age 25–64 without a high school education, 2000 0.280 0.111 0.652
Unemployment rate, 2000 –0.213 –0.054 0.371
Concentrated poverty, 2000* –0.184 0.073 0.281
Overcrowded housing units, 2000 –0.166 –0.017 0.306
Pre-1950 housing occupied by a poverty household, 2000 –0.153 0.117 –0.066
Pre-1970 housing occupied by a poverty renter household, 2000 –0.085 0.068 0.328
Poverty rate for persons in family and elderly households, 2000 –0.047 0.077 0.478
Population age 16–64 employed, 2000 0.021 0.021 –0.530
*Percent of poor persons in jurisdictions concentrated in census tracts with more than 40 percent poverty

That leaves with three variables for a simple nonentitlement formula:

null Family and elderly person in poverty.
null Housing built before 1950 occupied by a poverty household.
null Female-headed households with children.

CDBG Formula Targeting to Community Development Need
81
Weighting the Variables

Next, these variables are weighted to best target to the nonentitlement needs index using
regression analysis. The results are as follows:

R
2
= 0.972

Family and elderly person in poverty = 0.624
Housing built before 1950 and occupied by a poverty household = 0.292
Female-headed households with children = 0.129

Rounding the coefficients results in the following formula:

[0.6 Povfam (a) + 0.1 FHH (a) + 0.3 AgePov (a) ] * Appropriations
Povfam (NENT) FHH (NENT) AgePov (NENT)

where:
• (a) is the value for the jurisdiction.
• (NENT) is the value for all nonentitlement jurisdictions.
• Povfam is the number of persons below the poverty line living in family or elderly
households.
• FHH is the number of female-headed households with children.
• AgePov is the number of housing units older than 50 years and occupied by a poverty
household.

$0
$5
$10
$15
$20
$25
$30
$35
$40
Nonentitlement Grantees
Per Capita Grant
Alternative 2 Per Capita Grant
Need (Slope 8.0)
Low Need High Need

Chart 6-6. Nonentitlement Alternative 2 Targeting to Need

CDBG Formula Targeting to Community Development Need
82
This very simple formula targets very well to need. In addition to dramatically reducing the
number of anomalies in the formula, it also increases the slope of the overall allocation. Chart 6-
6 shows this alternative formula to allocate extremely closely to the needs index. Similarly,
Table 6-14 demonstrates that it targets better than alternative 1, with an r-square of 0.947. It has
a lower slope than alternative 1 (7.3 compared to 8.1), however, largely because it does not
allocate as much to Puerto Rico as alternative 1.

Table 6-14. People and Place Targeting With Puerto Rico

Targeting to: Current Alternative 1 Alternative 2
R-square 0.661 0.838 0.947
Slope 4.9 8.1 7.3
Places
(unweighted)
Constant 12.3 12.5 12.3
R-square 0.621 0.851 0.931
Slope 4.7 7.9 7.1
People
(weighted on
population)
Constant 12.1 12.1 12.1
N=51 for all regressions

Because Puerto Rico’s need is so much greater than the other states’, when it is included, the
results tend to distort how well the formula targets to the other 50 state nonentitlements. When
Puerto Rico is excluded from the regression analysis, as in Table 6-15, the value of the two
alternatives is clear. The current formula has almost no targeting to need (r-square = 0.294 and
slope= 2.4), alternative 1 improves the targeting and slope substantially (r-square = 0.697 and
slope = 5.4), and alternative 2 has the best targeting (r-square=0.909 and slope=6.2).

Table 6-15. People and Place Targeting Without Puerto Rico

Targeting to: Current Alternative 1 Alternative 2
R-square 0.294 0.697 0.909
Slope 2.4 5.4 6.2
Places
(unweighted)
Constant 12.0 12.1 12.1
R-square 0.281 0.790 0.900
Slope 2.2 5.4 5.8
People
(weighted on
population)
Constant 11.8 11.8 11.9
N=50 for all regressions

Table 6-16 shows that the funding reallocation from the less needy to the most needy grantees is
similar for the two alternatives. The least needy grantees would suffer decreases of 26 and 27
percent, on average, while the neediest grantees would experience gains of 23 and 19 percent.
Table 6–17 shows that alternative 2 causes larger shifts in funding than alternative 1; in both
cases, however, the funding gains and losses are largely in the +/–20 percent range.

CDBG Formula Targeting to Community Development Need
83
Table 6-16. Nonentitlement Fund Redistribution by Needs Quintile

Per Capita Grant
Percent Change From
Current
Percentiles
of CD Need States Current
Alternative
1
Alternative
2
Alternative
1
Alternative
2
Low 10 $10.07 $7.46 $7.31 –26 –27
2 10 $11.12 $9.93 $9.77 –11 –12
3 11 $11.40 $11.12 $11.71 –2 3
4 10 $12.41 $12.90 $13.02 4 5
High 10 $15.68 $19.29 $18.68 23 19
Total 51 $12.09 $12.09 $12.09
Most/Least 1.6 2.6 2.6
Note: Per capita grants weighted on population.

Table 6-17. Percent of Nonentitlement Grantees Gaining/Losing Funds by Nonentitlement
Formula Alternatives

Percent Grant Change Alternative 1 Alternative 2
Loss greater than 40% 0.0 3.9
Loss 20 to 40% 17.6 15.7
Loss 10 to 20% 17.6 27.5
Loss 0 to 10% 3.9 3.9
Gain 0 to 10% 31.4 11.8
Gain 10 to 20% 17.6 7.8
Gain 20 to 40% 11.8 23.5
Gain greater than 40% 0.0 5.9
Total 100.0 100.0
N=51

Finally, Table 6-18 shows that, just as with the entitlement formula alternatives, the New
England region loses the most, followed by the Midwest and New York/New Jersey region. Most
of the nonentitlement areas in these regions receive substantial funding from the pre-1940
housing variable, and shifting this variable to pre-1950 housing occupied by poverty households
has a significant negative impact on those grants. The Pacific/Hawaii region gains with
alternative 1 but loses under alternative 2 because of overcrowding, which is a variable under
alternative 1 but is not included in alternative 2.

CDBG Formula Targeting to Community Development Need
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Table 6-18. Regional Shifts in Funding Due to Nonentitlement Alternatives 1 and 2

Average Per Capita Grant
Percent Change from
Current
Region States
Current
Alternative
1
Alternative
2
Alternative
1
Alternative
2
New England 6 $11.40 $7.93 $7.69 –30 –33
New York/New Jersey 2 $14.12 $11.26 $11.11 –20 –21
Mid-Atlantic 5 $11.45 $11.72 $12.04 2 5
Southeast 8 $10.81 $11.91 $12.97 10 20
Midwest 6 $11.09 $8.96 $9.16 –19 –17
Southwest 5 $12.81 $14.99 $15.01 17 17
Great Plains 4 $11.97 $11.04 $11.31 –8 –6
Rocky Mountain 6 $10.43 $10.77 $10.86 3 4
Pacific/Hawaii 4 $15.09 $16.97 $12.84 12 –15
Northwest/Alaska 4 $11.52 $12.12 $11.66 5 1
Puerto Rico 1 $39.89 $52.31 $43.78 31 10
Total 51 $12.09 $12.09 $12.09

CDBG Formula Targeting to Community Development Need
85
Chapter 7. Impact of New Metropolitan Area Definitions

The Office of Management and Budget’s (OMB’s) new metropolitan area (MA) definitions
could potentially add 78 cities and 12 urban counties to the Community Development Block
Grant (CDBG) entitlement universe. In addition, the new definitions change the denominator
totals for all the entitlement variables except growth lag. Although the new definitions are in
effect for the Fiscal Year (FY) 2004 allocation, not all the potential jurisdictions have elected to
become entitlements. This chapter describes the potential impact of the new OMB MA
definitions along with the actual impact in FY 2004 of the new definitions on the current
formula.

Background

Nearly every year, additional communities become eligible for CDBG entitlement status. Table
7-1 shows the annual growth of the number of entitlement grantees since the program began in
FY 1975. Over the course of 30 years, the number of entitlement communities has almost
doubled from 606 in FY 1975 to 1,105 grantees in FY 2004. Chapter 2 explains the criteria for a
community to become eligible as an entitlement. Basically, all center cities/principal cities,
41

other cities in MAs with populations that exceed 50,000, and counties with populations greater
than 200,000 (excluding entitlement cities in the county) are eligible.

Table 7-1. Number of CDBG Entitlement Grantees FYs, 1975–2004

FY Cities
Urban
Counties Total
Increase
From
Previous
Year FY Cities
Urban
Counties Total
Increase
From
Previous
Year
1975 533 73 606 -- 1990 741 125 866 8
1976 533 75 608 2 1991 757 125 882 16
1977 546 78 624 16 1992 758 131 889 7
1978 559 81 640 16 1993 756 133 889 None
1979 562 84 646 6 1994 802 135 937 48
1980 579 85 664 18 1995 808 138 946 9
1981 583 86 669 5 1996 815 139 954 8
1982 636 96 732 63 1997 834 141 975 21
1983 637 98 735 3 1998 841 145 986 11
1984 691 104 795 60 1999 842 147 989 3
1985 707 107 814 19 2000 859 149 1008 19
1986 711 116 827 13 2001 860 153 1013 5
1987 712 115 827 None 2002 865 159 1024 10
1988 736 121 857 30 2003 875 159 1034 11
1989 737 121 858 1 2004 941 164 1105 71
.

When new entitlement communities are added to the CDBG entitlement universe, their data
move from being funded from the 30 percent nonentitlement pool of funds to the 70 percent

41
The OMB metropolitan area definitions eliminate the center city concept and replace it with principal city.

CDBG Formula Targeting to Community Development Need
86
entitlement pool of funds
42
. With no change in appropriation amounts, this means that
entitlements have to share the same amount of funds among more grantees, while
nonentitlements keep their 30 percent share of funds but serve fewer people.

Generally, there are substantial increases in the number of grantees when either new population
estimates are provided or OMB changes the definitions of MAs. Sometimes, as in FY 2004, both
events occur. Population counts are updated every 1 to 3 years, depending on when the Census
Bureau makes them available. Once a decade, since the 1950 decennial census, the OMB
reviews and revises the MA classification standards before applying them to new decennial
census data.

OMB’s new standards for MAs based on Census 2000 data went into effect in May 2003. The
latest OMB revision to the MA criteria is more comprehensive than the Census 1990 revisions.
The most important changes concern the substitution of counties for towns as the building block
for MAs in New England and the use of principal cities instead of central cities in naming MAs.
Table 7-1 shows that the combination of these new definitions and the Census Bureau’s 2002
population estimates increased the number of entitlement grantees by 71—66 cities and 5 urban
counties.

New England

Since the beginning of the MA program in 1950, OMB has used towns as the building block for
MAs in New England while using counties elsewhere. OMB explained its decision to change to
county areas in New England as a way to improve usability to producers and users of data; this
would make data for MAs in all parts of the country directly comparable. The new rule means
that, for the first time in the CDBG program, county areas in New England will meet the urban
county statistical eligibility test. All the land area of an urban county must be included in an MA,
and its population must be at least 200,000, excluding any CDBG-designated metropolitan cities.
The potential impact of this change is the addition of 12 counties in New England, qualifying
collectively for up to $45 million in CDBG funding.
43

The grant allocations for these urban counties will be higher than the typical new urban county
elsewhere in the country. Typically, CDBG recognition occurs when a county’s population
exceeds 200,000. Most New England counties have populations much higher than the minimum,
ranging from 400,000 to 1 million. Because these New England county areas do not have
organized county governments to administer the Urban County program, however, they need to
explore the options for creating a consortium of cities and towns to manage an Urban County
CDBG grant. This means that it may be some years before all the eligible urban counties join the
program. Applying the new MA criteria to Census 2000 data does not statistically qualify any
new urban counties in any other regions, but because the New England counties are so large, a
potential exists for their inclusion in the formula to have a major effect.

42
Except if they come out of an existing urban county. These communities only effect the allocation of the urban
county they are separating from.
43
Assumes the FY 2002 appropriation level with new MA denominators. Does not include Census 2002 population
estimates.

CDBG Formula Targeting to Community Development Need
87

None of the 12 New England counties that are now eligible due to the change in OMB MA
definition, however, were able to organize to become grantees in FY 2004. The five new urban
counties created between FY 2003 and FY 2004 were not in New England and all are a result of
the new 2002 population estimates, not the change in OMB MA definition. In terms of new
urban counties, the new OMB MA definitions have yet to have an impact.

Principal Cities

OMB’s new procedures emphasize urbanized areas and urban clusters as the organizing entities
for MAs. OMB concluded that the identification of central cities as required by the 1990
standards for qualifying and defining areas is no longer necessary. OMB also concluded that
central cities have become less dominant in the local context over time. Nevertheless, the Office
recognized that specific cities are important for analytical purposes as centers of employment,
trade, entertainment, and other social and economic activities. Therefore, OMB developed
statistical criteria for identifying principal cities and uses these cities to name MAs.

Table 7-2. New Principal Cities by Region

Region
Number
Eligible
Number
Included in
FY 2004
Allocation
Amount of
Impact in FY
2004 ($000)
New England 3 1 $542
New York/New Jersey 4 4 $2,562
Mid-Atlantic 8 8 $3,630
Southeast 20 13 $5,624
Midwest 11 9 $6,796
Southwest 3 3 $1,223
Great Plains 3 3 $1,239
Rocky Mountain 3 3 $1,633
Pacific/Hawaii 8 5 $2,498
Northwest/Alaska 9 7 $2,566
Puerto Rico 6 6 $9,260
Total 78 62 $37,578

The CDBG statute defines the scope of the “Metropolitan City” entitlement community category
as being the MA central cities plus any other city of 50,000 or more population in an MA. OMB
determined that, because the CDBG program is focused on economic growth centers,
substituting principal cities for central cities was an appropriate technical change and issued
regulations to substitute MA principal cities for central cities in the CDBG entitlement program.

Table 7-2 shows the regional distribution of the 78 new MA principal cities that are not already
CDBG metropolitan cities or part of an existing urban county, and the 62 that elected to be

CDBG Formula Targeting to Community Development Need
88
included for the FY 2004 CDBG funding allocation.
44
The 62 that elected to be included in the
FY 2004 CDBG allocation receive about $37.6 million.

Because none of these locations has populations of more than 50,000, they each have a relatively
small impact on the formula. Collectively, however, their impact is relatively high for a single
year. For comparison, over a 10-year period between FY 1993 and FY 2002, 81 entitlements
were added that had not previously been part of an urban county. Of these, 15 were urban
counties and 66 were new cities. These 81 entitlements received $79.8 million in FY 2002
(Richardson, Meehan, and Kelly. 2003).

The remaining four cities that became eligible for funding in FY 2004 did so because the Census
2002 population estimates indicated that their population exceeded 50,000.

“Grandfathering”

The new MAs also move the CDBG program in a new direction on “grandfathering,” or the
continued designation as a Metropolitan City entitlement grantee, even though the jurisdiction
does not meet the current standards. A grandfathering requirement in CDBG retains locations as
grantees when their population falls below the threshold of 200,000 for urban counties and
50,000 for cities that are not central cities. Four former central cities that retain their place in an
OMB-defined MA will be added to the group of grandfathered metropolitan cities. This aspect of
grandfathering is not unprecedented because the four retain their classification as being parts of
an MA. Nine other CDBG metropolitan city grantees will be removed from the MA roster all
together. The nine will be OMB principal cities; however, they will be in “micropolitan,” rather
than metropolitan, areas. Finally, two more CDBG metropolitan cities with populations less than
50,000 will be part metropolitan and part micropolitan. Each city is in two counties, with one
county retaining MA status and the other being demoted by OMB to micropolitan status. The
“grandfathering” of these 11 places means that the CDBG formula will have areas represented in
the numerator that are not included in the denominator of the Formula A and Formula B
calculations.

Formula Denominator

Chapter 2 describes the mechanics of the CDBG formula. One component of the CDBG formula
is that the allocation of funds on four of the five CDBG variables (population, poverty, pre-1940
housing, and overcrowding) is based on a jurisdiction’s share of the metropolitan total on each of
those variables. When the MA definition changes, so does the denominator.

The new MA definitions add 294 counties and remove 75 counties from the universe of counties
included as metropolitan. Table 7-3 summarizes the national old and new metropolitan totals for
each of the four applicable variables for the previous and current MA definitions. For all four
variables, the metropolitan totals increase. An increasing denominator and a fixed numerator

44
In addition to the 78 cities noted, 16 other principal cities are enrolled participants in CDBG urban counties and
will be eligible for metropolitan city designation when the urban county agreement is up for renewal. Cities coming
out of urban counties have less effect on other entitlement grantees because their data are already accounted for in
the entitlement side of the formula.

CDBG Formula Targeting to Community Development Need
89
result in every jurisdiction experiencing a decline in share. If the CDBG universe remains
constant, a decline in share means that the pro rata reduction also decreases. That is, jurisdictions
that are funded heavily under the variables with the smallest denominator, such as overcrowded
housing, would experience increases in funding. Jurisdictions funded heavily by the poverty
factor would experience decreases in funding.

Table 7-3. Changing MA National Totals for CDBG Variables, Census 2000 Data

Variable
Denominator
Total for Old
MA Definition
Denominator
Total for New
MA Definition Change
Percent
Change
Population 229,192,836 236,197,894 7,005,058 3.1
Poverty 27,561,898 28,648,340 1,086,442 3.9
Overcrowding 5,551,631 5,666,143 114,512 2.1
Pre-1940 Housing 12,974,750 13,348,818 374,068 2.9

Of course, as noted above, the universe is not a constant. The new MA definitions also increase
the number of entitlement grantees drawing from the 70 percent entitlement pot of funds. This
takes away from all the existing entitlement grantees. Thus, jurisdictions largely funded by
poverty take an even larger reduction in funding while jurisdictions primarily funded by
overcrowding receive smaller funding increases, and sometimes even decreases. Chapter 8
describes the history of the 70/30 split and options for changing the split or eliminating it
altogether.

CDBG Formula Targeting to Community Development Need
90

CDBG Formula Targeting to Community Development Need
91
Chapter 8. The 70/30 Split

Since 1981, nonentitled portions of states have received 30 percent of the Community
Development Block Grant (CDBG) formula allocation while entitlement areas have received 70
percent. Chapter 7 revealed that many new cities and urban counties were added to the
entitlement share of the formula from the nonentitlement share. This chapter offers several
alternatives to the 70/30 split between entitlement and nonentitlement communities.

Background

Since 1981, the CDBG statute has required that 70 percent of CDBG funds allocated by formula
go to entitlement jurisdictions, and the other 30 percent go to nonentitled communities. Since
1981, however, more and more communities have achieved entitlement status. The result is that
an ever-increasing share of the population is served by 70 percent of the funds, while the 30
percent share serves a diminishing share of the population.

The original CDBG formula (Section 106 of the Housing and Community Development Act of
1974) allocated 80 percent of grant amounts to metropolitan areas (MAs) and 20 percent to non-
MAs. “Hold harmless” communities—that is, nonentitlement communities funded under the
prior programs’ classifications—were funded from the 80 percent share, and the remaining funds
were allocated by formula to entitlement grantees. The entire metropolitan share was not
allocated; the remainder of the 80 percent share was then distributed by formula to HUD field
offices to be allocated to the MAs’ nonentitlement areas of the jurisdiction they served. Thus, the
split between entitlements and nonentitlements could fluctuate, depending on the portion of the
formula variables in MAs and entitlement communities (as well as the need to phase out the hold
harmless grantees from the prior programs). In the early days of the CDBG program, this
resulted in nonentitlement areas receiving between 20 and 25 percent of the funds.

In 1981, the Omnibus Budget Reconciliation Act offered states the option of administering the
CDBG program for their nonentitled jurisdictions. This statute also established that nonentitled
areas would receive 30 percent of the CDBG allocation available for formula distribution. The
last major modification to the formula, it was first used for distributing funds in 1982.

Table 8-1. Population When the 70/30 Split Was Established

1982 Percent of: Entitled Areas Nonentitled Areas
Population 55 45
Formula funds 70 30

It is instructive to note that when Congress established the entitlement and nonentitlement shares,
this represented an increase in funding for nonentitlements and a decrease for entitlements.
Previously, entitlements received approximately 75 percent of the funds; the 1981 enactment of
the 70/30 split reduced this to 70 percent. Congress did this adjustment knowingly, stating in the
legislative history of the Omnibus Reconciliation Act of 1981 “ the increased amount for
nonentitled areas is more in keeping with their relative needs”. As Table 8-1 shows, even after

CDBG Formula Targeting to Community Development Need
92
this adjustment, only 55 percent of the population at the time was in entitlement jurisdictions.
The CDBG per capita grant for nonentitlements was substantially less than that for entitlements.

Changes Since 1982

In the two decades since the 70/30 split was enacted, changes in entitlement geography and
demographics have caused funding to shift more toward nonentitlement areas. In 1982, there
were 732 entitlement jurisdictions. By 1993, this number grew to 889, a 21 percent increase. In
2004, the number is 1,105.

While the number of entitlement communities steadily increased, the 70 percent share has
remained constant. As cities and counties grow to reach the threshold for entitlement status, they
qualify for a share of the 70 percent entitlement share. Although communities sometimes lose
population and drop below the threshold for entitlement status, Congress has always
grandfathered them and enabled them to retain their entitlement status.

New entitlements do not necessarily indicate a transfer of population from nonentitlement areas
to entitlement areas. Some new entitlements result from smaller, nonentitled locations meeting or
exceeding the population thresholds, and thereby qualifying for entitlement status. Other new
entitlements occur when cities that are part of urban counties (and therefore already entitled)
becoming entitled separately. In these situations, the total population competing for the 70
percent entitlement share does not increase. The portion of the country drawing from the 70
percent entitlement share, however, will continue to grow.

Table 8-2. Change in Share of Population Since 1982

Percent of: Entitled Areas Nonentitled Areas
1982
Population 55 45
Poverty population 54 46
2003
Population 62 38
Poverty population 64 36
2004
Population 64 36
Poverty population 65 35

Table 8-2 illustrates the change in entitled areas relative to nonentitled areas since 1982. In 1982,
the 70 percent share of the formula served 55 percent of the total population and 54 percent of
the poverty population. By 2003, because a sufficient number of the previously nonentitlement
areas become entitled, the 70 percent share served 62 percent of the total population and 64
percent of the population in poverty.

CDBG Formula Targeting to Community Development Need
93
The lower portion of Table 8-2 indicates that the flow of funding away from entitlement
jurisdictions will continue when the new MA definitions are applied in 2004.
45
Whereas in 2003,
the 70 percent entitlement share served 62 percent of the population, when the new MA
definitions are applied, this same share will serve approximately 64 percent of the population.

Options for Determining Entitlement and Nonentitlement Shares

This report offers no criteria for determining whether the 70/30 split is appropriate. It also
presents no arguments as to the relative share of CDBG that should go to entitlement areas
versus nonentitlement areas. If when Congress enacted the 70/30 split, this share was
appropriate, the present allocation has come to overfund the nonentitlement areas. In 2003, if
entitlement grantees were funded on a per capita basis similar to in 1982, approximately 79
percent of the formula amounts should go to entitlements, compared with the actual 70 percent
that is required by law. If the appropriate share is a per capita grant in nonentitlement areas that
is equivalent to that in entitlement areas, however, the formula, while evolving in that direction,
has not yet reached that distribution.

Retain the 70/30 Split

Despite the continued loss of funding share for entitlement areas, on a per capita or per person in
poverty basis, entitlement areas still receive more than nonentitlement areas. Thus, it may be
argued that no change is needed in the immediate future. When, as appears inevitable, the
nonentitlement share of population or poverty population drops below 30 percent, it would seem
appropriate to adjust the nonentitlement share of formula funds downward from 30 percent to
reflect this decline in population. For example, if the population or poverty population of
nonentitlement areas fell to 25 percent of the national total, it would make sense to adjust the
70/30 split to 75/25 to allow approximate per capita parity for entitlements and nonentitlements.

Adjust the 70/30 Split to Reflect the Changes in Population Since 1982

When Congress enacted the 70/30 split, it decided, in effect, that 70 percent of funds should go
to the 55 percent of the population that lived in entitlement communities. In other words, every 1
percent of the population in entitlement areas ought to receive about 1.27 percent of the funds
allocated by formula. The 70/30 split could be adjusted continually to reflect this ratio.
Alternatively, a similar ratio based on any time since 1982 could be adopted. If the formula were
to freeze the actual 2003 ratio, for example, it could be continually adjusted so that every 1
percent of the entitled portion of the population received 1.13 percent of the funds allocated by
formula.

Adopt a Fair Share Formula

A fair share formula would automatically apportion formula funds between entitlement and
nonentitlement areas. Rather than specify a static 70/30 split, a single formula could be used to

45
The Census 2002 population estimates are being applied in 2002; they are not accounted for in this table. As in
past years, their affect is to further increase the portion of the population in entitlement jurisdictions.

CDBG Formula Targeting to Community Development Need
94
allocate all of the funds. Then, all jurisdictions would receive funds proportionate to their share
of need as measured by the formula variables, and the entitlement/nonentitlement split would
fluctuate annually. To implement this type of formula, it would probably be a good idea to make
the entitlement and nonentitlement formulas more similar than they are now.

Entitlement alternatives 2 or 3 and nonentitlement alternative 2 in Chapter 6 provide one concept
of a fair share formula that could be used to either determine the entitlement/nonentitlement split
or eliminate the split completely and allocate the funds to entitlements and nonentitlements with
a single formula. Entitlement alternatives 2 and 3 and nonentitlement alternative 2 share three
common variables: poverty, pre-1950 housing occupied by a poverty household, and female-
headed households with children. The entitlement formula alternatives include the additional
variable of overcrowding.

If formula alternative 3 from Chapter 6 is used as a single formula for both entitlements and
nonentitlements, with no funding split, the formula would look as follows:

(0.5 Povfam (a) + 0.1 FHH (a) + 0.3 AgePov (a) + 0.1 Ocrowd (a) ) * Appropriations
Povfam(TOT) FHH (TOT) AgePov (TOT) Ocrowd (TOT)

where:
null (a) is the value for the jusrisdiction.
null (TOT) is the value for all grantees, entitlement and nonentitlement.
null Povfam is the number of family and elderly person in poverty.
null FHH is the number of female-headed households with children.
null AgePov is the number of housing units older than 50 years and occupied by a poverty
household.
null Ocrowd is the number of overcrowded housing units.

The adjustment of entitlement alternative 3 is then applied where the per capita income
Metropolitan Statistical Area/local per capita income (with caps) ratio remains constant at 1.0 for
states. A pro rata adjustment is applied. The funding split is 69 percent for entitlements and 31
percent for nonentitlements.
46

46
Unlike the alternatives discussed in Chapter 6 that used the FY 2002 universe of grantees, this alternative uses the
FY 2004 universe of grantees.

CDBG Formula Targeting to Community Development Need
95
Chapter 9. Conclusion

The National Research Council’s Panel on Statistical Issues in Allocating Funds by Formula
(Louis, Jabine, and Gerstein 2003) recommends that policymakers periodically review formula
allocation programs to assess whether they are performing as intended. For the Community
Development Block Grant (CDBG) formula, there have been five major assessments of the
formula since 1974.

The first assessment was used to develop the formula that has been in place since 1978.
Subsequent assessments determined that over 30 years, the extent to which the variables used in
the CDBG formula target toward community development need has declined. Over time, (1) an
increasing number of jurisdictions with the same need receive substantially different grants, and
(2) the amount of funds going to the neediest on a per capita basis has decreased, while the
amount of funds going to the least needy on a per capita basis has increased. The formula,
however, generally continues to target to need. Among the entitlement communities, on a per
capita basis, the most needy 10 percent of communities receive four times as much as the least
needy 10 percent of jurisdictions.

The entitlement formula’s declining targeting can be attributed to several items: (1) the formula
factors in Formula B create significant anomalies where similarly needy communities get
substantially different per capita grant amounts; (2) the formula factors in Formula A result in an
allocation in which there are few anomalies but the most needy grantees do not receive much
more on a per capita basis than the least needy grantees; and (3) across the board, a Formula A
jurisdiction with the same need as a Formula B jurisdiction receives a smaller per capita grant
amount.

The lack of targeting to need in the nonentitlement formula can largely be attributed to the
difficulty of defining need for nonentitled areas. Because of this difficulty, the original
nonentitlement formula was created as a simplified version of the entitlement allocation. The
result is a nonentitlement formula that is very flat in its allocation to need because of a very high
weight on population. In addition, the pre-1940 housing variable in Formula B and the
overcrowding variable in Formula A appear to create several anomalies in targeting to the states.
The one exception is Puerto Rico; Puerto Rico’s need is extremely high in nonentitled areas, and
that need is appropriately targeted in the current formula.

One advantage of a formula allocation versus other funding methods, as identified by the
National Research Council (Louis, Jabine, and Gerstein 2003), is that a formula creates “the
appearance, if not always the reality, of a sound analytic process.” For the CDBG program,
Chapters 6 and 8 of this report provide such a sound analytic process for creating, effectively,
four different formula alternatives. The first three alternatives maintain separate formulas for the
entitlement and nonentitlement program, retaining the current 70/30 split. The fourth alternative
funds entitlements and nonentitlements under the same single formula. Appendix B provides the
equations for each alternative.

CDBG Formula Targeting to Community Development Need
96
null Alternative 1. The current formula, with several technical adjustments to reduce the
number of funding anomalies. This alternative combines the entitlement and
nonentitlement alternative 1 options described in Chapter 6.

null Alternative 2. A simple formula designed to most effectively target to the needs index.
This alternative combines the entitlement and nonentitlement alternative 2 options
provided in Chapter 6.

null Alternative 3. A simple formula that allocates substantially more funds than alternative 2
to the most needy jurisdictions, particularly jurisdictions suffering from age and decline,
and significantly fewer funds to the least needy jurisdictions. This alternative combines
the entitlement alternative 3 and nonentitlement alternative 2 explained in Chapter 6.

null Alternative 4. A single formula based on alternative 3 that allocates all the formula funds
using a single formula to both the entitlement and nonentitlement grantees. Chapter 8
contains a discussion of this alternative.

This report concludes that serious consideration should be given to changing the formula to
improve its targeting to need. Any of the alternatives proposed in this report would accomplish
this goal. The Department looks forward to working with the Congress, CDBG grantees, and
other stakeholders to discuss these alternatives.

Finally, the National Research Council’s first recommendation regarding formula allocation
programs states “…legislators should consider giving some flexibility to program agencies,
especially in determining what data sources and procedures should be used to produce estimates
of the components of allocation formulas” (Louis, Jabine, and Gerstein 2003). Allowing a degree
of flexibility to HUD to make regulatory adjustments to the CDBG formula, as currently allowed
under the HOME program, may, in the future, help to avoid the significant swings in funds
necessary at this time to improve formula targeting.

CDBG Formula Targeting to Community Development Need
A- 1
Appendix A. Targeting to Individual Measures of Need

Appendix A shows how well the current formula, the three alternatives for entitlements, and the
two nonentitlement alternatives target to individual measures of community development need.

Entitlement Grantees

Factors

Table A-1. Place Targeting—Regression Statistics

Targeting to: Current Alternative 1 Alternative 2 Alternative 3
R-square 0.497 0.771 0.922 0.893
Slope 8.5 10.2 8.7 11.0
Factor 1
Constant 18.1 17.2 16.6 17.3
R-square 0.197 0.076 0.000 0.031
Slope –5.4 –3.2 –0.1 –2.1
Factor 2
Constant 18.1 17.2 16.6 17.3
R-square 0.074 0.016 0.002 0.004
Slope –3.3 –1.5 0.4 –0.8
Factor 3
Constant 18.1 17.2 16.6 17.3
N=899 for all regressions

Income Measures

Table A-2. Place Targeting—Regression Statistics

Targeting to: Current Alternative 1 Alternative 2 Alternative 3
R-square 0.303 0.617 0.892 0.733
Slope 89.8 127.1 125.2 139.8
Persons in family
or elderly
households in
poverty
Constant 8.5 3.8 3.4 2.5
R-square 0.469 0.582 0.620 0.715
Slope 137.0 151.4 128.1 169.4
Extremely Low-
Income
Households*
Constant –0.1 –2.7 –0.2 –5.1
R-square 0.183 0.285 0.310 0.428
Slope 20.2 25.1 21.4 31.0
MSA per capita
income/local per
capita income
Constant –3.8 –9.7 –6.4 –16.1
R-square 0.087 0.228 0.406 0.279
Slope 28.2 45.3 49.5 50.5
Concentrated
poverty
Constant 16.9 15.3 14.5 15.2
N=1,024 for all regressions
*Family and elderly households with incomes less than 30% of HUD area median family income

CDBG Formula Targeting to Community Development Need
A- 2
High Consumers of Support Services

Table A-3. Place Targeting—Regression Statistics

Targeting to: Current Alternative 1 Alternative 2 Alternative 3
R-square 0.158 0.391 0.615 0.503
Slope 51.1 79.8 81.9 91.2
Persons over 25
without a high
school education
Constant 9.9 4.6 3.6 2.8
R-square 0.364 0.446 0.410 0.540
Slope 462.3 507.6 399.0 563.3
Female-headed
households with
children under the
age of 18
Constant 0.8 –1.6 1.9 –3.6
N=1,024 for all regressions

Decent Housing

Table A-4. Place Targeting—Regression Statistics

Targeting to: Current Alternative 1 Alternative 2 Alternative 3
R-square 0.745 0.715 0.473 0.672
Slope 324.1 315.0 209.9 308.2
Pre-1950 housing
with poverty
household
Constant 7.3 6.9 9.8 7.2
R-square 0.614 0.690 0.609 0.733
Slope 240.9 253.3 195.0 263.3
Pre-1970 housing
with a poverty
renter household
Constant 6.0 4.7 7.0 4.2
R-square 0.013 0.103 0.270 0.134
Slope 19.1 53.9 71.5 62.0
Overcrowded
housing
Constant 16.9 13.8 12.1 13.4
N=1,024 for all regressions

Crime

Table A-5. Place Targeting—Regression Statistics

Targeting to: Current Alternative 1 Alternative 2 Alternative 3
R-square 0.160 0.295 0.413 0.397
Slope 1.1 1.4 1.3 1.6
Crime*
Constant 12.3 9.8 9.7 8.6
N=899 for all regressions
null
Number of murders, assaults with weapons, incidents of nonnegligent manslaughter, and robberies per 1,000 persons in 2001.

CDBG Formula Targeting to Community Development Need
A- 3
Population Trends

Table A-6. Place Targeting—Regression Statistics

Targeting to: Current Alternative 1 Alternative 2 Alternative 3
R-square 0.648 0.475 0.164 0.288
Slope 99.1 84.2 40.1 66.1
Population loss,
1960–2000
Constant 14.2 14.1 15.2 14.9
R-square 0.368 0.283 0.106 0.182
Slope 249.6 217.3 109.0 175.7
Population loss,
1990–2000
Constant 15.3 14.9 15.6 15.5
N=1,024 for all regressions

Unemployment

Table A-7. Place Targeting—Regression Statistics

Targeting to: Current Alternative 1 Alternative 2 Alternative 3
R-square 0.309 0.539 0.721 0.635
Slope 206.9 270.9 256.7 296.6
Unemployment
Constant 4.7 –0.2 0.2 –1.8
N=1,024 for all regressions

State Grantees, Excluding Puerto Rico
47

Factors

Table A-8. Place Targeting—Regression Statistics

Targeting to: Current Alternative 1 Alternative 2
R-square 0.181 0.743 0.705
Slope 1.6 4.8 4.7
Factor 1
Constant 12.0 12.3 12.2
R-square 0.161 0.050 0.226
Slope 0.9 0.7 1.6
Factor 2
Constant 11.8 11.7 11.6
R-square 0.001 0.097 0.215
Slope .065 1.1 1.7
Factor 3
Constant 11.8 11.7 11.6
N=50 for all regressions

47
As noted in Chapters 5 and 6, Puerto Rico’s very high need in nonentitlement areas relative to the other states
distorts the regression estimates on the overall targeting of the nonentitlement formula.

CDBG Formula Targeting to Community Development Need
A- 4
Income Measures

Table A-9. Place Targeting—Regression Statistics

Targeting to: Current Alternative 1 Alternative 2
R-square 0.140 0.720 0.832
Slope 23.1 77.9 84.0
Persons in family
or elderly
households in
poverty
Constant 9.6 4.4 3.7
R-square 0.166 0.551 0.570
Slope 52.5 142.0 144.9
Extremely low-
income
households*
Constant 6.1 –3.6 –4.0
R-square 0.142 0.332 0.370
Slope 13.1 29.7 31.5
Concentrated
poverty
Constant 11.3 10.5 10.4
N=50 for all regressions
null
Family and elderly households with incomes less than 30 percent of HUD area median family income.

High Consumers of Support Services

Table A-10. Place Targeting—Regression Statistics

Targeting to: Current Alternative 1 Alternative 2
R-square 0.001 0.254 0.378
Slope 1.4 32.5 39.8
Persons age 25
to 64 without a
high school
education
Constant 11.6 7.0 5.9
R-square 0.059 0.256 0.337
Slope 118.6 367.4 423.2
Female-headed
households with
children under the
age of 18
Constant 8.7 2.1 0.5
N=50 for all regressions

Decent Housing

Table A-11. Place Targeting—Regression Statistics

Targeting to: Current Alternative 1 Alternative 2
R-square 0.200 0.061 0.216
Slope 104.7 86.0 162.2
Pre-1950 housing
with poverty
household
Constant 9.0 9.4 7.3
R-square 0.303 0.321 0.489
Slope 168.2 257.3 318.6
Pre-1970 housing
with a poverty
renter household
Constant 7.2 4.8 3.0
R-square 0.164 0.408 0.061
Slope 32.5 76.1 29.5
Overcrowded
housing
Constant 10.6 9.0 10.6
N=50 for all regressions

CDBG Formula Targeting to Community Development Need
A- 5
Unemployment

Table A-12. Place Targeting—Regression Statistics

Targeting to: Current Alternative 1 Alternative 2
R-square 0.123 0.494 0.284
Slope 52.5 156.4 119.0
Unemployment
Constant 8.9 3.3 5.2
N=50 for all regressions

Infrastructure

Table A-13. Place Targeting—Regression Statistics

Targeting to: Current Alternative 1 Alternative 2
R-square 0.026 0.097 0.168
Slope 5.0 14.5 19.1
Households using
bottled gas or
wood as primary
heating fuel
Constant 10.9 9.1 8.2
N=50 for all regressions

CDBG Formula Targeting to Community Development Need
B-1
Appendix B. Impact of Alternatives on Individual Grantees

Individual Grants—Formula Targeting

Appendix B shows the individual grants for the alternative formulas presented in this report. For
each grantee, this appendix specifies the actual Fiscal Year (FY) 2004 allocation, the allocation
using the FY 2004 appropriation and grantee universe for each of the suggested four alternative
grants,
48
and the percent change for each alternative when compared to the FY 2004 allocation.

For simplicity, alternative 1 combines entitlement alternative 1 and nonentitlement alternative 1.
Similarly, alternative 2 is entitlement alternative 2 and nonentitlement alternative 2. Alternative 3
is entitlement alternative 3 and nonentitlement alternative 2. Alternative 4 is the single formula
with no 70/30 funding split between entitlements and nonentitlements described in Chapter 8.

Chart B-1. FY 2004 Formula and the Four Alternatives

48
The base report is based on the FY 2002 appropriation amount and universe of grantees. These FY 2002
comparison runs did not subtract Native Americans living in Indian areas from the calculations; the formula runs in
Appendix B, however, do.
Entitlement Communities

Formula A:

[0.25 Pop (a) + 0.5 Pov (a) + 0.25 Ocrowd (a)] x $3.032 billion
Pop (MA) Pov (MA) Ocrowd (MA)

Formula B for cities:

[0.2 GLag (a) + 0.3 Pov (a) + 0.5 Age (a)] x $3.032 billion
GLag (MC) Pov (MA) Age (MA)

Formula B for urban counties:

[0.2 GLag (a) + 0.3 Pov (a) + 0.5 Age (a)] x $3.032 billion
GLag (ENT) Pov (MA) Age (MA)

States (Nonentitlements)

Formula A:

[0.25 Pop (a) + 0.5 Pov (a) + 0.25 Ocrowd (a)] x $1.299 billion
Pop (NEnt) Pov (NEnt) Ocrowd (NEnt)

Formula B:

(0.2 Pop (a) + 0.3 Pov (a) + 0.5 Age (a) ) x $1.299 billion
Pop (NEnt) Pov (NEnt) Age (NEnt)

where:

null (a) is the value for the
jurisdiction.
null (MA) is the value for all
Metropolitan Areas
(MAs).
null (MC) is the value for all
entitlement cities.
null (ENT) is the value for all
entitlement jurisdictions
(cities and urban
counties).
null (NEnt) is the value for all
nonentitled areas
nationwide.

null Pop is the total resident
population.
null Pov is the number of
persons below the
poverty level
null Ocrowd is the number of
overcrowded housing
units.
null Age is the number of
housing units built before
1940.
null Glag is the population
growth lag.

CDBG Formula Targeting to Community Development Need
B-2

Chart B-2. Alternative 1

Chart B-3. Alternative 2

Entitlement Communities

Formula A:

[0.1 Pop (a) + 0.6 Povfam (a) + 0.3 Ocrowd (a)] x $3.032 billion
Pop (MA) Povfam (MA) Ocrowd (MA)

Formula B for cities:

[0.1 GLagadj (a) + 0.4 Povfam (a) + 0.5 Agepov (a) ] x $3.032 billion
GLagadj (MC) Povfam (MA) Agepov (MA)

Formula B for urban counties:

[(0.1 GLagadj (a) + 0.4 Povfam (a) + 0.5 Agepov (a) ] x $3.032 billion
GLagadj (ENT) Povfam (MA) Agepov (MA)

States (Nonentitlements)

Formula A:

[(0.1 Pop (a) + 0.65 Povfam (a) + 0.25 Ocrowd (a)] x $1.299 billion
Pop (NEnt) Povfam (NEnt) Ocrowd (NEnt)

Formula B is:

[0.1 Pop (a) + 0.4 Povfam (a) + 0.5 Agepov (a) ] x $1.299 billion
Pop (NEnt) Povfam (NEnt) Agepov (NEnt)

where:
null (a) is the value for the
jurisdiction.
null (MA) is the value for all
MAs.
null (MC) is the value for all
entitlement cities.
null (ENT) is the value for all
entitlement jurisdictions
(cities and urban counties).
null (NEnt) is the value for all
nonentitled areas
nationwide.
null Pop is the total resident
population.
null Povfam is the number of
persons in poverty living in
a family or elderly
household.
null Ocrowd is the number of
overcrowded housing units.
null Agepov is the number of
housing units built before
1950 with a poverty
household.
null Glagadj is the population
growth lag adjusted down
for communities with high
per capita income and low
poverty.
Entitlement Communities

[0.5 Povfam (a) + 0.1 FHHKIDS (a) + 0.2 Ocrowd (a) + 0.2 Agepov (a)] x $3.032 billion
Povfam (ENT) FHHKIDS (ENT) Ocrowd (ENT) Agepov (ENT)

States (Nonentitlements)

[0.6 Povfam (a) + 0.1 FHHKIDS (a) + 0.3 Agepov (a) ] x $1.299 billion
Povfam (NEnt) FHHKIDS (NEnt) Agepov (NEnt)

where:
null (a) is the value for the jurisdiction.
null (ENT) is the value for all entitlement jurisdictions (cities and urban counties)
null (NEnt) is the value for all nonentitled areas nationwide.
null Povfam is the number of persons in poverty living in a family or elderly household.
null Ocrowd is the number of overcrowded housing units.
null Agepov is the number of housing units built before 1950 and occupied by a poverty household.
null FHHKIDS is the number of female-headed households with children under the age of 18.

CDBG Formula Targeting to Community Development Need
B-3

Chart B-3. Alternative 3

Chart B-4. Alternative 4

Entitlement Communities

[0.5 Povfam (a) + 0.1 FHHKIDS (a) + 0.1 Ocrowd (a) + 0.3 Agepov (a)] x $3.032 billion
Povfam (ENT) FHHKIDS (ENT) Ocrowd (ENT) Agepov (ENT)

The entitlement calculation is then adjusted by the ratio of per capita income of the MSA over the per capita income
for the jurisdiction, with caps such that no grant is adjusted upward greater than 25 percent and no grant is adjusted
downward by more than 25 percent. Pro-rata reduction is used to bring the total grant into line with appropriation.

States (Nonentitlements)

[0.6 Povfam (a) + 0.1 FHHKIDS (a) + 0.3 Agepov (a) ] x $1.299 billion
Povfam (NEnt) FHHKIDS (NEnt) Agepov (NEnt)

where:
null (a) is the value for the jurisdiction.
null (ENT) is the value for all entitlement jurisdictions (cities and urban counties).
null (NEnt) is the value for all nonentitled areas nationwide.
null Povfam is the number of persons in poverty living in a family or elderly household.
null Ocrowd is the number of overcrowded housing units.
null Agepov is the number of housing units built before 1950 and occupied by a poverty household.
null FHHKIDS is the number of female-headed households with children under the age of 18.

Entitlement Communities and States (Nonentitlements) Under a Single Formula

[0.5 Povfam (a) + 0.1 FHHKIDS (a) + 0.1 Ocrowd (a) + 0.3 Agepov (a)] x $4.331 billion
Povfam (ALL) FHHKIDS (ALL) Ocrowd (ALL) Agepov (ALL)

The calculation is then adjusted by the ratio of per capita income (PCI) of the Metropolitan Statistical Area (MSA)
divided by the PCI for the jurisdiction (PCIMSA/PCILocal), with caps such that no grant is adjusted either upward or
downward by more than 25 percent. All state grants are assigned a PCIMSA/PCILocal ratio of 1. Pro-rata reduction
is used to bring the total grant into line with appropriation.

where:
null (a) is the value for the jurisdiction.
null (ALL) is the value for all 50 states, the District of Columbia, and Puerto Rico.
null Povfam is the number of persons in poverty living in a family or elderly household.
null Ocrowd is the number of overcrowded housing units.
null Agepov is the number of housing units built before 1950 and occupied by a poverty household.
null FHHKIDS is the number of female-headed households with children under the age of 18.

CDBG Formula Targeting to Community Development Need
B-4

Total Grant Amount/
Per Capita Grant Amount
Alternative Change in Funding
Relative to FY 2004
Jurisdiction
Name FY 2004 Grant Alternative 1 Alternative 2 Alternative 3 Alternative 4 Alt. 1 Alt. 2 Alt. 3 Alt. 4
Alabama
Anniston, AL $807,000 $1,004,000 $726,000 $723,000 $702,000 24% -10% -10% -13%
$33.92 $42.20 $30.53 $30.38 $29.52
Auburn, AL $860,000 $381,000 $465,000 $487,000 $473,000 -56% -46% -43% -45%
$18.95 $8.40 $10.25 $10.73 $10.42
Bessemer, AL $850,000 $1,127,000 $1,015,000 $1,313,000 $1,272,000 33% 19% 54% 50%
$28.95 $38.40 $34.56 $44.71 $43.33
Birmingham, AL $8,017,000 $8,525,000 $7,008,000 $8,920,000 $8,669,000 6% -13% 11% 8%
$33.49 $35.61 $29.27 $37.26 $36.21
Decatur, AL $619,000 $668,000 $893,000 $923,000 $898,000 8% 44% 49% 45%
$11.48 $12.39 $16.55 $17.12 $16.65
Dothan, AL $640,000 $718,000 $993,000 $836,000 $810,000 12% 55% 31% 27%
$10.85 $12.17 $16.84 $14.17 $13.73
Florence, AL $514,000 $689,000 $694,000 $670,000 $648,000 34% 35% 30% 26%
$14.35 $19.24 $19.39 $18.69 $18.10
Gadsden, AL $1,415,000 $1,530,000 $1,074,000 $1,233,000 $1,197,000 8% -24% -13% -15%
$37.27 $40.29 $28.29 $32.49 $31.53
Hoover, AL $339,000 $252,000 $240,000 $150,000 $150,000 -26% -29% -56% -56%
$5.28 $3.92 $3.74 $2.34 $2.33
Huntsville, AL $1,559,000 $1,518,000 $1,953,000 $1,689,000 $1,641,000 -3% 25% 8% 5%
$9.59 $9.34 $12.02 $10.39 $10.10
Jefferson County, AL $2,556,000 $2,435,000 $3,279,000 $2,748,000 $2,673,000 -5% 28% 8% 5%
$7.13 $6.79 $9.15 $7.67 $7.46
Mobile, AL $3,433,000 $4,448,000 $4,706,000 $4,416,000 $4,289,000 30% 37% 29% 25%
$17.62 $22.83 $24.15 $22.66 $22.01
Mobile County, AL $2,427,000 $2,786,000 $3,502,000 $3,478,000 $3,371,000 15% 44% 43% 39%
$11.82 $13.57 $17.06 $16.94 $16.42
Montgomery, AL $2,548,000 $2,831,000 $3,976,000 $3,710,000 $3,608,000 11% 56% 46% 42%
$12.65 $14.05 $19.74 $18.42 $17.91
Opelika, AL $308,000 $350,000 $480,000 $434,000 $422,000 14% 56% 41% 37%
$13.05 $14.85 $20.35 $18.38 $17.88

CDBG Formula Targeting to Community Development Need
B-5

Total Grant Amount/
Per Capita Grant Amount
Alternative Change in Funding
Relative to FY 2004
Jurisdiction
Name FY 2004 Grant Alternative 1 Alternative 2 Alternative 3 Alternative 4 Alt. 1 Alt. 2 Alt. 3 Alt. 4
Tuscaloosa, AL $1,114,000 $1,176,000 $1,340,000 $1,271,000 $1,237,000 6% 20% 14% 11%
$14.07 $14.86 $16.93 $16.05 $15.62
Alabama State Program $30,041,000 $34,151,000 $39,787,000 $39,787,000 $40,330,000 14% 32% 32% 34%
$11.24 $12.78 $14.89 $14.89 $15.09
TOTAL $58,047,000 $64,588,000 $72,132,000 $72,788,000 $72,389,000 11% 24% 25% 25%
$12.94 $14.40 $16.08 $16.22 $16.14

Alaska
Anchorage, AK $2,285,000 $2,157,000 $2,302,000 $1,802,000 $1,795,000 -6% 1% -21% -21%
$8.49 $8.02 $8.56 $6.70 $6.67
Fairbanks, AK $305,000 $289,000 $361,000 $353,000 $349,000 -5% 18% 16% 14%
$9.91 $9.39 $11.74 $11.46 $11.33
Alaska State Program $2,954,000 $2,867,000 $1,773,000 $1,773,000 $2,113,000 -3% -40% -40% -28%
$10.59 $10.28 $6.36 $6.36 $7.58
TOTAL $5,544,000 $5,314,000 $4,437,000 $3,928,000 $4,257,000 -4% -20% -29% -23%
$9.58 $9.18 $7.67 $6.79 $7.36

Arizona
Chandler, AZ $1,610,000 $1,577,000 $1,577,000 $1,144,000 $1,142,000 -2% -2% -29% -29%
$7.97 $7.81 $7.81 $5.66 $5.65
Flagstaff, AZ $742,000 $639,000 $718,000 $562,000 $555,000 -14% -3% -24% -25%
$13.45 $11.59 $13.02 $10.18 $10.05
Gilbert, AZ $673,000 $547,000 $513,000 $373,000 $371,000 -19% -24% -45% -45%
$4.99 $4.05 $3.80 $2.76 $2.75
Glendale, AZ $2,668,000 $2,883,000 $3,040,000 $2,850,000 $2,816,000 8% 14% 7% 6%
$11.57 $12.50 $13.18 $12.36 $12.21
Maricopa County, AZ $3,306,000 $3,446,000 $3,404,000 $2,905,000 $2,847,000 4% 3% -12% -14%
$8.52 $8.89 $8.78 $7.49 $7.34
Mesa, AZ $4,119,000 $4,215,000 $4,313,000 $3,874,000 $3,848,000 2% 5% -6% -7%
$9.65 $9.88 $10.10 $9.08 $9.02
Peoria City, AZ $765,000 $689,000 $691,000 $499,000 $493,000 -10% -10% -35% -36%
$6.21 $5.59 $5.61 $4.05 $4.00

CDBG Formula Targeting to Community Development Need
B-6

Total Grant Amount/
Per Capita Grant Amount
Alternative Change in Funding
Relative to FY 2004
Jurisdiction
Name FY 2004 Grant Alternative 1 Alternative 2 Alternative 3 Alternative 4 Alt. 1 Alt. 2 Alt. 3 Alt. 4
Phoenix, AZ $20,323,000 $23,050,000 $24,971,000 $22,934,000 $22,662,000 13% 23% 13% 12%
$14.81 $16.80 $18.20 $16.72 $16.52
Pima County, AZ $3,033,000 $3,024,000 $3,128,000 $2,105,000 $2,063,000 0% 3% -31% -32%
$8.28 $8.25 $8.54 $5.75 $5.63
Scottsdale, AZ $1,389,000 $1,132,000 $1,124,000 $705,000 $695,000 -18% -19% -49% -50%
$6.44 $5.25 $5.21 $3.27 $3.22
Tempe, AZ $1,933,000 $1,549,000 $1,614,000 $1,290,000 $1,279,000 -20% -17% -33% -34%
$12.12 $9.71 $10.12 $8.09 $8.02
Tucson, AZ $7,456,000 $7,736,000 $9,135,000 $9,744,000 $9,580,000 4% 23% 31% 28%
$14.82 $15.38 $18.16 $19.36 $19.04
Yuma, AZ $1,117,000 $1,290,000 $1,406,000 $1,038,000 $1,025,000 15% 26% -7% -8%
$13.90 $16.05 $17.50 $12.91 $12.76
Arizona State Program $14,406,000 $15,520,000 $12,159,000 $12,159,000 $13,328,000 8% -16% -16% -7%
$13.92 $15.00 $11.75 $11.75 $12.88
TOTAL $63,540,000 $67,298,000 $67,794,000 $62,182,000 $62,703,000 6% 7% -2% -1%
$12.01 $12.72 $12.81 $11.75 $11.85

Arkansas
Bentonville, AR $204,000 $208,000 $253,000 $197,000 $193,000 2% 24% -4% -5%
$8.47 $8.63 $10.51 $8.17 $8.01
Conway, AR $490,000 $388,000 $471,000 $473,000 $460,000 -21% -4% -4% -6%
$10.67 $8.45 $10.26 $10.30 $10.02
Fayetteville, AR $761,000 $578,000 $737,000 $681,000 $665,000 -24% -3% -10% -13%
$12.53 $9.53 $12.14 $11.22 $10.95
Fort Smith, AR $1,007,000 $1,128,000 $1,483,000 $1,208,000 $1,180,000 12% 47% 20% 17%
$12.35 $13.84 $18.19 $14.82 $14.48
Hot Springs, AR $499,000 $771,000 $784,000 $846,000 $823,000 54% 57% 70% 65%
$13.73 $21.20 $21.56 $23.28 $22.63
Jacksonville, AR $332,000 $361,000 $430,000 $473,000 $460,000 9% 29% 43% 39%
$10.93 $11.88 $14.15 $15.58 $15.14
Jonesboro, AR $662,000 $640,000 $800,000 $684,000 $662,000 -3% 21% 3% 0%
$11.64 $11.25 $14.07 $12.03 $11.63

CDBG Formula Targeting to Community Development Need
B-7

Total Grant Amount/
Per Capita Grant Amount
Alternative Change in Funding
Relative to FY 2004
Jurisdiction
Name FY 2004 Grant Alternative 1 Alternative 2 Alternative 3 Alternative 4 Alt. 1 Alt. 2 Alt. 3 Alt. 4
Little Rock, AR $2,023,000 $2,062,000 $2,927,000 $2,458,000 $2,397,000 2% 45% 22% 18%
$10.99 $11.20 $15.90 $13.36 $13.02
North Little Rock, AR $890,000 $1,045,000 $1,150,000 $1,138,000 $1,108,000 17% 29% 28% 24%
$14.83 $17.41 $19.16 $18.97 $18.46
Pine Bluff, AR $894,000 $1,124,000 $1,458,000 $1,429,000 $1,385,000 26% 63% 60% 55%
$16.50 $20.74 $26.91 $26.38 $25.57
Rogers, AR $480,000 $535,000 $579,000 $445,000 $437,000 11% 21% -7% -9%
$11.55 $12.88 $13.94 $10.72 $10.53
Springdale, AR $595,000 $666,000 $712,000 $633,000 $624,000 12% 20% 6% 5%
$11.68 $13.07 $13.97 $12.42 $12.25
Texarkana, AR $383,000 $484,000 $636,000 $631,000 $610,000 26% 66% 65% 59%
$13.55 $17.11 $22.50 $22.31 $21.57
West Memphis, AR $512,000 $639,000 $829,000 $980,000 $947,000 25% 62% 91% 85%
$18.27 $22.79 $29.58 $34.95 $33.77
Arkansas State Program $22,524,000 $25,545,000 $28,268,000 $28,268,000 $28,959,000 13% 26% 26% 29%
$11.69 $13.26 $14.67 $14.67 $15.03
TOTAL $32,256,000 $36,173,000 $41,517,000 $40,545,000 $40,910,000 12% 29% 26% 27%
$11.90 $13.35 $15.32 $14.96 $15.10

California
Alameda, CA $1,561,000 $824,000 $1,026,000 $828,000 $830,000 -47% -34% -47% -47%
$21.40 $11.30 $14.07 $11.35 $11.38
Alameda County, CA $2,380,000 $2,372,000 $2,576,000 $2,079,000 $2,099,000 0% 8% -13% -12%
$9.52 $9.48 $10.30 $8.31 $8.39
Alhambra, CA $1,677,000 $1,941,000 $2,162,000 $2,094,000 $2,115,000 16% 29% 25% 26%
$19.13 $22.15 $24.66 $23.89 $24.12
Anaheim, CA $6,035,000 $7,165,000 $7,032,000 $6,551,000 $6,611,000 19% 17% 9% 10%
$18.14 $21.54 $21.14 $19.70 $19.87
Antioch, CA $887,000 $927,000 $1,033,000 $1,105,000 $1,091,000 5% 16% 25% 23%
$8.88 $9.29 $10.34 $11.06 $10.92
Apple Valley, CA $747,000 $862,000 $957,000 $831,000 $806,000 15% 28% 11% 8%
$12.90 $14.89 $16.52 $14.34 $13.92

CDBG Formula Targeting to Community Development Need
B-8

Total Grant Amount/
Per Capita Grant Amount
Alternative Change in Funding
Relative to FY 2004
Jurisdiction
Name FY 2004 Grant Alternative 1 Alternative 2 Alternative 3 Alternative 4 Alt. 1 Alt. 2 Alt. 3 Alt. 4
Bakersfield, CA $3,933,000 $4,575,000 $5,278,000 $4,101,000 $4,026,000 16% 34% 4% 2%
$15.07 $17.53 $20.23 $15.72 $15.43
Baldwin Park, CA $1,784,000 $2,214,000 $2,218,000 $2,098,000 $2,115,000 24% 24% 18% 19%
$22.92 $28.45 $28.50 $26.96 $27.18
Bellflower, CA $1,441,000 $1,716,000 $1,823,000 $1,781,000 $1,791,000 19% 27% 24% 24%
$19.34 $23.03 $24.47 $23.89 $24.03
Berkeley, CA $3,881,000 $2,421,000 $1,936,000 $1,957,000 $1,939,000 -38% -50% -50% -50%
$37.45 $23.36 $18.68 $18.88 $18.71
Buena Park, CA $1,229,000 $1,404,000 $1,384,000 $1,280,000 $1,297,000 14% 13% 4% 6%
$15.55 $17.77 $17.51 $16.20 $16.41
Burbank, CA $1,416,000 $1,539,000 $1,750,000 $1,170,000 $1,177,000 9% 24% -17% -17%
$13.76 $14.95 $17.01 $11.37 $11.44
Camarillo, CA $430,000 $401,000 $381,000 $258,000 $257,000 -7% -11% -40% -40%
$7.23 $6.74 $6.41 $4.34 $4.33
Carlsbad, CA $601,000 $528,000 $554,000 $349,000 $347,000 -12% -8% -42% -42%
$6.94 $6.10 $6.40 $4.03 $4.00
Carson, CA $1,333,000 $1,495,000 $1,460,000 $1,293,000 $1,319,000 12% 9% -3% -1%
$14.34 $16.09 $15.71 $13.91 $14.19
Cerritos, CA $471,000 $479,000 $424,000 $245,000 $250,000 2% -10% -48% -47%
$8.95 $9.10 $8.06 $4.65 $4.75
Chico, CA $1,039,000 $758,000 $952,000 $960,000 $942,000 -27% -8% -8% -9%
$15.77 $11.50 $14.44 $14.56 $14.29
Chino, CA $733,000 $798,000 $778,000 $599,000 $603,000 9% 6% -18% -18%
$10.48 $11.40 $11.13 $8.56 $8.62
Chino Hills, CA $516,000 $496,000 $462,000 $271,000 $271,000 -4% -10% -47% -48%
$7.14 $6.86 $6.39 $3.75 $3.74
Chula Vista, CA $2,379,000 $2,659,000 $2,753,000 $2,669,000 $2,674,000 12% 16% 12% 12%
$12.27 $13.71 $14.20 $13.76 $13.79
Citrus Heights, CA $798,000 $789,000 $837,000 $736,000 $729,000 -1% 5% -8% -9%
$9.01 $8.91 $9.45 $8.31 $8.24
Compton, CA $2,502,000 $3,208,000 $3,618,000 $3,825,000 $3,782,000 28% 45% 53% 51%
$26.18 $33.57 $37.86 $40.02 $39.58

CDBG Formula Targeting to Community Development Need
B-9

Total Grant Amount/
Per Capita Grant Amount
Alternative Change in Funding
Relative to FY 2004
Jurisdiction
Name FY 2004 Grant Alternative 1 Alternative 2 Alternative 3 Alternative 4 Alt. 1 Alt. 2 Alt. 3 Alt. 4
Concord, CA $1,260,000 $1,293,000 $1,348,000 $1,215,000 $1,221,000 3% 7% -4% -3%
$10.06 $10.32 $10.77 $9.70 $9.75
Contra Costa County, CA $4,144,000 $3,962,000 $4,270,000 $2,845,000 $2,834,000 -4% 3% -31% -32%
$7.69 $7.35 $7.92 $5.28 $5.26
Corona, CA $1,437,000 $1,557,000 $1,574,000 $1,042,000 $1,045,000 8% 10% -27% -27%
$10.39 $11.26 $11.38 $7.53 $7.55
Costa Mesa, CA $1,655,000 $1,776,000 $1,729,000 $1,428,000 $1,441,000 7% 4% -14% -13%
$15.03 $16.12 $15.70 $12.97 $13.09
Cupertino City, CA $459,000 $465,000 $421,000 $224,000 $230,000 1% -8% -51% -50%
$9.18 $9.29 $8.42 $4.48 $4.59
Daly City, CA $1,511,000 $1,635,000 $1,549,000 $1,332,000 $1,387,000 8% 3% -12% -8%
$14.83 $16.05 $15.20 $13.08 $13.62
Davis, CA $988,000 $423,000 $476,000 $399,000 $400,000 -57% -52% -60% -60%
$15.38 $6.59 $7.42 $6.22 $6.23
Downey, CA $1,810,000 $2,126,000 $2,199,000 $1,898,000 $1,926,000 17% 21% 5% 6%
$16.48 $19.36 $20.02 $17.28 $17.54
El Cajon, CA $1,526,000 $1,752,000 $1,925,000 $1,976,000 $1,955,000 15% 26% 29% 28%
$15.97 $18.33 $20.14 $20.68 $20.46
El Centro, CA $808,000 $1,021,000 $1,119,000 $887,000 $876,000 26% 38% 10% 8%
$21.44 $27.10 $29.69 $23.54 $23.24
El Monte, CA $3,266,000 $4,140,000 $4,360,000 $4,356,000 $4,342,000 27% 34% 33% 33%
$27.24 $34.52 $36.36 $36.32 $36.21
Elk Grove, CA $442,000 $391,000 $395,000 $292,000 $291,000 -11% -11% -34% -34%
$5.88 $5.21 $5.25 $3.89 $3.87
Encinitas, CA $491,000 $437,000 $447,000 $276,000 $274,000 -11% -9% -44% -44%
$8.21 $7.31 $7.48 $4.62 $4.59
Escondido, CA $2,105,000 $2,421,000 $2,459,000 $2,385,000 $2,387,000 15% 17% 13% 13%
$15.49 $17.82 $18.09 $17.55 $17.56
Fairfield, CA $1,000,000 $1,056,000 $1,140,000 $993,000 $985,000 6% 14% -1% -2%
$9.81 $10.36 $11.18 $9.74 $9.66
Fontana, CA $2,246,000 $2,674,000 $2,688,000 $2,593,000 $2,591,000 19% 20% 15% 15%
$15.64 $18.62 $18.72 $18.06 $18.05

CDBG Formula Targeting to Community Development Need
B-10

Total Grant Amount/
Per Capita Grant Amount
Alternative Change in Funding
Relative to FY 2004
Jurisdiction
Name FY 2004 Grant Alternative 1 Alternative 2 Alternative 3 Alternative 4 Alt. 1 Alt. 2 Alt. 3 Alt. 4
Fountain Valley, CA $432,000 $427,000 $388,000 $278,000 $282,000 -1% -10% -36% -35%
$7.78 $7.69 $6.98 $5.00 $5.07
Fremont, CA $2,041,000 $2,098,000 $1,914,000 $1,213,000 $1,245,000 3% -6% -41% -39%
$9.87 $10.14 $9.25 $5.86 $6.02
Fresno, CA $9,186,000 $11,218,000 $13,124,000 $11,919,000 $11,680,000 22% 43% 30% 27%
$20.63 $25.20 $29.48 $26.77 $26.23
Fresno County, CA $5,818,000 $6,929,000 $7,592,000 $6,012,000 $5,923,000 19% 30% 3% 2%
$16.17 $19.26 $21.10 $16.71 $16.46
Fullerton, CA $1,831,000 $1,966,000 $1,953,000 $1,636,000 $1,652,000 7% 7% -11% -10%
$14.21 $15.26 $15.16 $12.70 $12.82
Garden Grove, CA $3,160,000 $3,757,000 $3,631,000 $3,337,000 $3,380,000 19% 15% 6% 7%
$18.87 $22.44 $21.69 $19.93 $20.19
Gardena, CA $1,118,000 $1,306,000 $1,386,000 $1,303,000 $1,311,000 17% 24% 17% 17%
$18.74 $21.90 $23.24 $21.84 $21.97
Gilroy City, CA $583,000 $674,000 $689,000 $663,000 $667,000 16% 18% 14% 14%
$13.51 $15.62 $15.97 $15.36 $15.45
Glendale, CA $3,978,000 $4,726,000 $5,119,000 $3,839,000 $3,866,000 19% 29% -3% -3%
$19.95 $23.70 $25.67 $19.25 $19.39
Glendora City, CA $414,000 $408,000 $428,000 $277,000 $277,000 -2% 3% -33% -33%
$8.19 $8.06 $8.47 $5.48 $5.48
Goleta, CA $326,000 $298,000 $284,000 $185,000 $190,000 -9% -13% -43% -42%
$11.39 $10.42 $9.92 $6.47 $6.62
Hanford, CA $644,000 $761,000 $879,000 $693,000 $680,000 18% 37% 8% 6%
$14.52 $17.17 $19.82 $15.63 $15.34
Hawthorne, CA $2,076,000 $2,495,000 $2,685,000 $2,603,000 $2,622,000 20% 29% 25% 26%
$24.16 $29.03 $31.25 $30.29 $30.52
Hayward, CA $2,087,000 $2,304,000 $2,322,000 $2,168,000 $2,206,000 10% 11% 4% 6%
$14.62 $16.14 $16.27 $15.19 $15.46
Hemet, CA $837,000 $948,000 $1,045,000 $980,000 $959,000 13% 25% 17% 15%
$13.21 $14.96 $16.48 $15.46 $15.14
Hesperia, CA $851,000 $973,000 $1,004,000 $942,000 $925,000 14% 18% 11% 9%
$12.70 $14.52 $14.98 $14.05 $13.81

CDBG Formula Targeting to Community Development Need
B-11

Total Grant Amount/
Per Capita Grant Amount
Alternative Change in Funding
Relative to FY 2004
Jurisdiction
Name FY 2004 Grant Alternative 1 Alternative 2 Alternative 3 Alternative 4 Alt. 1 Alt. 2 Alt. 3 Alt. 4
Huntington Beach, CA $1,684,000 $1,633,000 $1,616,000 $1,021,000 $1,023,000 -3% -4% -39% -39%
$8.69 $8.42 $8.34 $5.27 $5.28
Huntington Park, CA $1,935,000 $2,471,000 $2,654,000 $2,636,000 $2,650,000 28% 37% 36% 37%
$30.73 $39.23 $42.14 $41.86 $42.08
Inglewood, CA $2,709,000 $3,311,000 $3,859,000 $4,038,000 $4,025,000 22% 42% 49% 49%
$23.56 $28.80 $33.57 $35.13 $35.01
Irvine, CA $1,521,000 $1,270,000 $1,203,000 $719,000 $728,000 -16% -21% -53% -52%
$9.38 $7.83 $7.42 $4.43 $4.49
Kern County, CA $6,351,000 $7,693,000 $8,863,000 $8,209,000 $8,049,000 21% 40% 29% 27%
$17.66 $21.39 $24.65 $22.83 $22.38
La Habra, CA $984,000 $1,149,000 $1,185,000 $1,151,000 $1,158,000 17% 20% 17% 18%
$16.40 $19.15 $19.76 $19.19 $19.30
La Mesa, CA $539,000 $487,000 $569,000 $501,000 $498,000 -10% 6% -7% -8%
$9.81 $8.86 $10.36 $9.12 $9.06
Laguna Niguel, CA $412,000 $360,000 $345,000 $200,000 $201,000 -13% -16% -51% -51%
$6.53 $5.71 $5.48 $3.17 $3.19
Lake Forest, CA $594,000 $572,000 $530,000 $334,000 $339,000 -4% -11% -44% -43%
$7.72 $7.43 $6.89 $4.33 $4.40
Lakewood, CA $886,000 $964,000 $1,006,000 $744,000 $750,000 9% 14% -16% -15%
$10.93 $11.89 $12.41 $9.18 $9.25
Lancaster, CA $1,629,000 $1,875,000 $2,136,000 $2,244,000 $2,197,000 15% 31% 38% 35%
$13.07 $15.05 $17.14 $18.01 $17.63
Livermore, CA $556,000 $538,000 $573,000 $434,000 $432,000 -3% 3% -22% -22%
$7.26 $7.03 $7.48 $5.67 $5.64
Lompoc, CA $618,000 $715,000 $781,000 $805,000 $798,000 16% 26% 30% 29%
$14.93 $17.27 $18.86 $19.45 $19.29
Long Beach, CA $10,522,000 $12,540,000 $15,137,000 $14,312,000 $14,213,000 19% 44% 36% 35%
$22.27 $26.54 $32.04 $30.29 $30.09
Los Angeles, CA $86,758,000 $102,678,000 $120,194,000 $102,860,000 $102,553,000 18% 39% 19% 18%
$22.84 $27.03 $31.64 $27.08 $26.99
Los Angeles County, CA $36,270,000 $42,505,000 $46,030,000 $33,764,000 $33,711,000 17% 27% -7% -7%
$15.89 $18.63 $20.17 $14.79 $14.77

CDBG Formula Targeting to Community Development Need
B-12

Total Grant Amount/
Per Capita Grant Amount
Alternative Change in Funding
Relative to FY 2004
Jurisdiction
Name FY 2004 Grant Alternative 1 Alternative 2 Alternative 3 Alternative 4 Alt. 1 Alt. 2 Alt. 3 Alt. 4
Lynwood, CA $1,908,000 $2,406,000 $2,509,000 $2,460,000 $2,467,000 26% 32% 29% 29%
$26.73 $33.70 $35.15 $34.46 $34.56
Madera, CA $1,150,000 $1,472,000 $1,629,000 $1,750,000 $1,712,000 28% 42% 52% 49%
$24.88 $31.85 $35.26 $37.86 $37.04
Marin County, CA $1,960,000 $1,724,000 $2,053,000 $1,488,000 $1,482,000 -12% 5% -24% -24%
$7.92 $6.96 $8.29 $6.01 $5.98
Marysville, CA $184,000 $203,000 $273,000 $270,000 $264,000 10% 49% 47% 44%
$14.70 $16.22 $21.83 $21.53 $21.09
Merced, CA $1,499,000 $1,852,000 $2,156,000 $2,043,000 $2,006,000 24% 44% 36% 34%
$21.97 $27.15 $31.60 $29.95 $29.40
Milpitas City, CA $711,000 $759,000 $669,000 $507,000 $530,000 7% -6% -29% -25%
$11.16 $11.92 $10.50 $7.96 $8.32
Mission Viejo, CA $611,000 $539,000 $504,000 $301,000 $303,000 -12% -18% -51% -50%
$6.34 $5.60 $5.23 $3.12 $3.14
Modesto, CA $2,854,000 $3,267,000 $3,695,000 $3,013,000 $2,969,000 14% 29% 6% 4%
$14.02 $16.05 $18.15 $14.80 $14.58
Montebello, CA $1,276,000 $1,551,000 $1,702,000 $1,721,000 $1,724,000 22% 33% 35% 35%
$20.06 $24.39 $26.76 $27.06 $27.11
Monterey, CA $277,000 $225,000 $261,000 $171,000 $171,000 -19% -6% -38% -38%
$9.34 $7.58 $8.81 $5.75 $5.76
Monterey Park, CA $1,178,000 $1,400,000 $1,488,000 $1,393,000 $1,399,000 19% 26% 18% 19%
$19.05 $22.64 $24.07 $22.54 $22.63
Moreno Valley, CA $2,082,000 $2,454,000 $2,569,000 $2,462,000 $2,431,000 18% 23% 18% 17%
$13.81 $16.28 $17.04 $16.33 $16.13
Mountain View, CA $834,000 $827,000 $757,000 $425,000 $440,000 -1% -9% -49% -47%
$11.91 $11.81 $10.80 $6.07 $6.29
Napa City, CA $834,000 $884,000 $946,000 $861,000 $862,000 6% 13% 3% 3%
$11.12 $11.78 $12.61 $11.48 $11.49
National City, CA $1,324,000 $1,644,000 $1,806,000 $1,831,000 $1,833,000 24% 36% 38% 38%
$23.84 $29.61 $32.51 $32.97 $33.00
Newport Beach, CA $437,000 $289,000 $293,000 $195,000 $194,000 -34% -33% -55% -56%
$5.60 $3.69 $3.75 $2.49 $2.48

CDBG Formula Targeting to Community Development Need
B-13

Total Grant Amount/
Per Capita Grant Amount
Alternative Change in Funding
Relative to FY 2004
Jurisdiction
Name FY 2004 Grant Alternative 1 Alternative 2 Alternative 3 Alternative 4 Alt. 1 Alt. 2 Alt. 3 Alt. 4
Norwalk, CA $1,875,000 $2,228,000 $2,216,000 $2,061,000 $2,095,000 19% 18% 10% 12%
$17.67 $21.00 $20.89 $19.42 $19.75
Oakland, CA $9,961,000 $10,153,000 $11,838,000 $13,779,000 $13,653,000 2% 19% 38% 37%
$24.73 $25.21 $29.39 $34.21 $33.90
Oceanside, CA $2,199,000 $2,454,000 $2,520,000 $2,246,000 $2,243,000 12% 15% 2% 2%
$13.26 $14.80 $15.19 $13.54 $13.52
Ontario, CA $2,927,000 $3,496,000 $3,610,000 $3,521,000 $3,526,000 19% 23% 20% 20%
$17.73 $21.18 $21.87 $21.33 $21.36
Orange, CA $1,607,000 $1,794,000 $1,795,000 $1,483,000 $1,485,000 12% 12% -8% -8%
$12.21 $13.63 $13.64 $11.27 $11.29
Orange County, CA $5,106,000 $5,182,000 $5,100,000 $3,237,000 $3,245,000 1% 0% -37% -36%
$9.04 $9.17 $9.03 $5.73 $5.74
Oxnard, CA $3,306,000 $3,942,000 $3,869,000 $3,631,000 $3,659,000 19% 17% 10% 11%
$18.57 $22.15 $21.74 $20.40 $20.56
Palm Desert, CA $415,000 $402,000 $411,000 $251,000 $249,000 -3% -1% -39% -40%
$9.36 $9.07 $9.26 $5.67 $5.62
Palm Springs, CA $606,000 $632,000 $695,000 $444,000 $439,000 4% 15% -27% -28%
$13.61 $14.19 $15.60 $9.98 $9.85
Palmdale, CA $1,783,000 $2,106,000 $2,223,000 $2,264,000 $2,229,000 18% 25% 27% 25%
$14.34 $16.94 $17.87 $18.20 $17.93
Palo Alto, CA $816,000 $368,000 $412,000 $271,000 $271,000 -55% -49% -67% -67%
$14.18 $6.39 $7.16 $4.70 $4.70
Paradise, CA $272,000 $272,000 $337,000 $284,000 $277,000 0% 24% 4% 2%
$10.17 $10.17 $12.58 $10.62 $10.35
Paramount City, CA $1,464,000 $1,850,000 $1,913,000 $1,846,000 $1,853,000 26% 31% 26% 27%
$25.92 $32.75 $33.86 $32.67 $32.80
Pasadena, CA $2,694,000 $2,529,000 $3,180,000 $2,151,000 $2,142,000 -6% 18% -20% -20%
$19.28 $18.10 $22.76 $15.40 $15.33
Petaluma, CA $426,000 $403,000 $450,000 $369,000 $367,000 -5% 6% -13% -14%
$7.71 $7.30 $8.15 $6.69 $6.64
Pico Rivera, CA $1,105,000 $1,329,000 $1,371,000 $1,332,000 $1,343,000 20% 24% 21% 22%
$17.04 $20.49 $21.14 $20.54 $20.71

CDBG Formula Targeting to Community Development Need
B-14

Total Grant Amount/
Per Capita Grant Amount
Alternative Change in Funding
Relative to FY 2004
Jurisdiction
Name FY 2004 Grant Alternative 1 Alternative 2 Alternative 3 Alternative 4 Alt. 1 Alt. 2 Alt. 3 Alt. 4
Pittsburg, CA $783,000 $873,000 $938,000 $950,000 $949,000 12% 20% 21% 21%
$12.94 $14.43 $15.49 $15.70 $15.67
Pleasanton City, CA $341,000 $273,000 $255,000 $152,000 $153,000 -20% -25% -55% -55%
$5.15 $4.13 $3.85 $2.30 $2.31
Pomona, CA $3,436,000 $4,201,000 $4,465,000 $4,495,000 $4,483,000 22% 30% 31% 30%
$22.38 $27.36 $29.08 $29.27 $29.19
Porterville, CA $851,000 $1,044,000 $1,227,000 $1,183,000 $1,161,000 23% 44% 39% 36%
$20.60 $25.27 $29.70 $28.64 $28.11
Rancho Cucamonga, CA $1,180,000 $1,144,000 $1,169,000 $698,000 $696,000 -3% -1% -41% -41%
$8.21 $7.96 $8.13 $4.86 $4.85
Redding, CA $1,006,000 $1,042,000 $1,289,000 $1,150,000 $1,122,000 4% 28% 14% 12%
$11.74 $12.16 $15.04 $13.43 $13.10
Redlands, CA $687,000 $705,000 $840,000 $553,000 $547,000 3% 22% -19% -20%
$10.29 $10.56 $12.59 $8.29 $8.20
Redondo Beach, CA $499,000 $420,000 $497,000 $331,000 $331,000 -16% 0% -34% -34%
$7.58 $6.38 $7.55 $5.03 $5.03
Redwood City, CA $885,000 $933,000 $928,000 $726,000 $748,000 5% 5% -18% -15%
$11.89 $12.53 $12.46 $9.75 $10.05
Rialto, CA $1,608,000 $1,950,000 $2,051,000 $2,064,000 $2,041,000 21% 28% 28% 27%
$16.64 $20.19 $21.23 $21.36 $21.13
Richmond, CA $1,657,000 $1,919,000 $2,377,000 $2,634,000 $2,612,000 16% 43% 59% 58%
$16.16 $18.72 $23.18 $25.69 $25.47
Riverside, CA $4,040,000 $4,382,000 $4,868,000 $4,035,000 $4,007,000 8% 20% 0% -1%
$14.73 $15.98 $17.75 $14.71 $14.61
Riverside County, CA $12,028,000 $13,705,000 $14,257,000 $11,748,000 $11,598,000 14% 19% -2% -4%
$12.96 $14.77 $15.37 $12.66 $12.50
Rosemead, CA $1,384,000 $1,732,000 $1,866,000 $1,897,000 $1,895,000 25% 35% 37% 37%
$25.18 $31.52 $33.96 $34.52 $34.49
Roseville, CA $587,000 $513,000 $555,000 $389,000 $388,000 -13% -6% -34% -34%
$6.40 $5.59 $6.04 $4.24 $4.23
Sacramento, CA $6,974,000 $7,862,000 $9,731,000 $10,484,000 $10,302,000 13% 40% 50% 48%
$16.02 $18.06 $22.36 $24.09 $23.67

CDBG Formula Targeting to Community Development Need
B-15

Total Grant Amount/
Per Capita Grant Amount
Alternative Change in Funding
Relative to FY 2004
Jurisdiction
Name FY 2004 Grant Alternative 1 Alternative 2 Alternative 3 Alternative 4 Alt. 1 Alt. 2 Alt. 3 Alt. 4
Sacramento County, CA $7,971,000 $8,404,000 $9,245,000 $7,765,000 $7,654,000 5% 16% -3% -4%
$11.29 $11.90 $13.09 $11.00 $10.84
Salinas, CA $3,004,000 $3,600,000 $3,600,000 $3,407,000 $3,431,000 20% 20% 13% 14%
$20.20 $24.20 $24.20 $22.90 $23.07
San Bernardino, CA $4,274,000 $5,264,000 $6,150,000 $6,694,000 $6,575,000 23% 44% 57% 54%
$22.30 $27.47 $32.10 $34.93 $34.31
San Bernardino County, CA $8,897,000 $10,312,000 $11,367,000 $10,682,000 $10,518,000 16% 28% 20% 18%
$14.85 $17.21 $18.97 $17.83 $17.55
San Buenaventura, CA $1,062,000 $1,082,000 $1,241,000 $1,039,000 $1,034,000 2% 17% -2% -3%
$10.25 $10.44 $11.97 $10.02 $9.98
San Diego, CA $18,260,000 $19,394,000 $21,544,000 $17,519,000 $17,435,000 6% 18% -4% -5%
$14.50 $15.40 $17.10 $13.91 $13.84
San Diego County, CA $5,712,000 $5,903,000 $6,187,000 $4,596,000 $4,565,000 3% 8% -20% -20%
$9.70 $10.03 $10.51 $7.81 $7.75
San Francisco, CA $25,256,000 $15,602,000 $15,507,000 $15,658,000 $15,699,000 -38% -39% -38% -38%
$33.06 $20.42 $20.30 $20.49 $20.55
San Joaquin County, CA $4,246,000 $4,698,000 $5,306,000 $4,241,000 $4,189,000 11% 25% 0% -1%
$12.08 $13.37 $15.10 $12.07 $11.92
San Jose, CA $12,146,000 $13,352,000 $13,086,000 $11,771,000 $11,981,000 10% 8% -3% -1%
$13.49 $14.83 $14.53 $13.07 $13.31
San Leandro, CA $895,000 $920,000 $1,027,000 $979,000 $997,000 3% 15% 9% 11%
$11.10 $11.41 $12.74 $12.15 $12.36
San Luis Obispo County, CA $2,526,000 $2,093,000 $2,445,000 $2,217,000 $2,191,000 -17% -3% -12% -13%
$10.78 $8.93 $10.44 $9.47 $9.35
San Marcos City, CA $811,000 $909,000 $867,000 $806,000 $806,000 12% 7% -1% -1%
$13.05 $14.64 $13.95 $12.97 $12.98
San Mateo, CA $963,000 $968,000 $999,000 $788,000 $803,000 1% 4% -18% -17%
$10.47 $10.53 $10.87 $8.57 $8.73
San Mateo County, CA $3,460,000 $3,436,000 $3,490,000 $2,361,000 $2,396,000 -1% 1% -32% -31%
$9.23 $9.16 $9.31 $6.30 $6.39
Santa Ana, CA $8,363,000 $10,412,000 $10,223,000 $9,571,000 $9,646,000 24% 22% 14% 15%
$24.35 $30.32 $29.77 $27.87 $28.09

CDBG Formula Targeting to Community Development Need
B-16

Total Grant Amount/
Per Capita Grant Amount
Alternative Change in Funding
Relative to FY 2004
Jurisdiction
Name FY 2004 Grant Alternative 1 Alternative 2 Alternative 3 Alternative 4 Alt. 1 Alt. 2 Alt. 3 Alt. 4
Santa Barbara, CA $1,319,000 $1,317,000 $1,547,000 $1,163,000 $1,164,000 0% 17% -12% -12%
$14.76 $14.74 $17.31 $13.01 $13.02
Santa Clara, CA $1,298,000 $1,289,000 $1,227,000 $892,000 $921,000 -1% -5% -31% -29%
$12.74 $12.65 $12.05 $8.76 $9.04
Santa Clara County, CA $2,143,000 $2,011,000 $2,029,000 $1,227,000 $1,232,000 -6% -5% -43% -43%
$8.02 $7.53 $7.60 $4.59 $4.61
Santa Clarita, CA $1,361,000 $1,366,000 $1,344,000 $807,000 $808,000 0% -1% -41% -41%
$8.48 $8.51 $8.37 $5.03 $5.03
Santa Cruz, CA $737,000 $613,000 $770,000 $747,000 $744,000 -17% 5% 1% 1%
$13.69 $11.38 $14.31 $13.88 $13.82
Santa Maria, CA $1,529,000 $1,870,000 $1,952,000 $1,974,000 $1,956,000 22% 28% 29% 28%
$19.11 $23.37 $24.40 $24.67 $24.45
Santa Monica, CA $1,635,000 $892,000 $1,062,000 $763,000 $761,000 -45% -35% -53% -53%
$18.84 $10.28 $12.24 $8.79 $8.77
Santa Rosa, CA $1,532,000 $1,498,000 $1,633,000 $1,410,000 $1,410,000 -2% 7% -8% -8%
$9.98 $9.76 $10.64 $9.19 $9.19
Santee, CA $388,000 $360,000 $391,000 $342,000 $341,000 -7% 1% -12% -12%
$7.29 $6.77 $7.34 $6.43 $6.41
Seaside, CA $492,000 $563,000 $563,000 $540,000 $543,000 14% 14% 10% 10%
$15.22 $17.40 $17.41 $16.71 $16.81
Simi Valley, CA $878,000 $853,000 $841,000 $620,000 $616,000 -3% -4% -29% -30%
$7.53 $7.32 $7.21 $5.32 $5.29
Sonoma County, CA $2,435,000 $2,271,000 $2,619,000 $2,233,000 $2,224,000 -7% 8% -8% -9%
$9.38 $8.75 $10.09 $8.60 $8.57
South Gate, CA $2,552,000 $3,211,000 $3,396,000 $3,322,000 $3,353,000 26% 33% 30% 31%
$25.83 $32.51 $34.37 $33.62 $33.94
South San Francisco, CA $728,000 $784,000 $732,000 $625,000 $651,000 8% 1% -14% -11%
$12.14 $13.07 $12.20 $10.43 $10.85
Stanislaus County, CA $2,288,000 $2,705,000 $3,063,000 $2,656,000 $2,619,000 18% 34% 16% 14%
$16.02 $18.94 $21.45 $18.60 $18.34
Stockton, CA $5,022,000 $6,100,000 $7,076,000 $6,962,000 $6,840,000 21% 41% 39% 36%
$19.11 $23.21 $26.92 $26.49 $26.02

CDBG Formula Targeting to Community Development Need
B-17

Total Grant Amount/
Per Capita Grant Amount
Alternative Change in Funding
Relative to FY 2004
Jurisdiction
Name FY 2004 Grant Alternative 1 Alternative 2 Alternative 3 Alternative 4 Alt. 1 Alt. 2 Alt. 3 Alt. 4
Sunnyvale, CA $1,504,000 $1,551,000 $1,412,000 $849,000 $885,000 3% -6% -44% -41%
$11.60 $11.96 $10.89 $6.55 $6.82
Thousand Oaks, CA $831,000 $770,000 $733,000 $436,000 $434,000 -7% -12% -48% -48%
$6.77 $6.27 $5.97 $3.55 $3.54
Torrance, CA $1,436,000 $1,458,000 $1,474,000 $846,000 $860,000 2% 3% -41% -40%
$10.14 $10.30 $10.41 $5.98 $6.07
Tulare, CA $819,000 $1,013,000 $1,127,000 $986,000 $969,000 24% 38% 20% 18%
$17.81 $22.04 $24.51 $21.45 $21.07
Turlock, CA $890,000 $976,000 $1,081,000 $914,000 $906,000 10% 22% 3% 2%
$14.44 $15.84 $17.54 $14.83 $14.69
Tustin, CA $977,000 $1,085,000 $1,027,000 $711,000 $731,000 11% 5% -27% -25%
$14.23 $15.80 $14.96 $10.36 $10.65
Union City, CA $785,000 $855,000 $788,000 $687,000 $703,000 9% 0% -12% -10%
$11.23 $12.24 $11.27 $9.83 $10.06
Upland, CA $855,000 $927,000 $1,042,000 $667,000 $660,000 8% 22% -22% -23%
$12.05 $13.06 $14.67 $9.40 $9.30
Vacaville, CA $686,000 $655,000 $674,000 $546,000 $545,000 -5% -2% -20% -21%
$7.33 $7.00 $7.20 $5.84 $5.83
Vallejo, CA $1,438,000 $1,537,000 $1,863,000 $1,726,000 $1,724,000 7% 30% 20% 20%
$12.00 $12.83 $15.56 $14.41 $14.39
Ventura County, CA $2,450,000 $2,714,000 $2,871,000 $2,350,000 $2,351,000 11% 17% -4% -4%
$12.03 $13.33 $14.10 $11.54 $11.55
Victorville, CA $1,032,000 $1,225,000 $1,382,000 $1,460,000 $1,428,000 19% 34% 41% 38%
$14.57 $17.29 $19.51 $20.62 $20.16
Visalia, CA $1,413,000 $1,659,000 $1,852,000 $1,202,000 $1,181,000 17% 31% -15% -16%
$14.58 $17.13 $19.11 $12.40 $12.19
Vista, CA $1,443,000 $1,663,000 $1,700,000 $1,655,000 $1,653,000 15% 18% 15% 15%
$15.76 $18.16 $18.57 $18.07 $18.05
Walnut Creek, CA $396,000 $315,000 $306,000 $185,000 $186,000 -20% -23% -53% -53%
$6.06 $4.82 $4.68 $2.83 $2.85
Watsonville, CA $1,031,000 $1,264,000 $1,358,000 $1,365,000 $1,366,000 23% 32% 32% 33%
$22.10 $27.09 $29.11 $29.26 $29.29

CDBG Formula Targeting to Community Development Need
B-18

Total Grant Amount/
Per Capita Grant Amount
Alternative Change in Funding
Relative to FY 2004
Jurisdiction
Name FY 2004 Grant Alternative 1 Alternative 2 Alternative 3 Alternative 4 Alt. 1 Alt. 2 Alt. 3 Alt. 4
West Covina, CA $1,450,000 $1,616,000 $1,556,000 $1,211,000 $1,232,000 11% 7% -16% -15%
$13.46 $15.00 $14.45 $11.25 $11.44
Westminster, CA $1,512,000 $1,787,000 $1,735,000 $1,631,000 $1,640,000 18% 15% 8% 8%
$16.89 $19.97 $19.39 $18.22 $18.32
Whittier, CA $1,149,000 $1,293,000 $1,418,000 $1,110,000 $1,115,000 13% 23% -3% -3%
$13.45 $15.14 $16.59 $12.99 $13.05
Woodland, CA $701,000 $776,000 $828,000 $825,000 $825,000 11% 18% 18% 18%
$13.79 $15.25 $16.29 $16.22 $16.23
Yorba Linda, CA $325,000 $279,000 $250,000 $150,000 $149,000 -14% -23% -54% -54%
$5.32 $4.56 $4.09 $2.45 $2.44
Yuba City, CA $635,000 $721,000 $833,000 $728,000 $718,000 14% 31% 15% 13%
$13.45 $15.27 $17.63 $15.43 $15.21
California State Program $49,911,000 $53,918,000 $39,579,000 $39,579,000 $45,382,000 8% -21% -21% -9%
$15.53 $16.77 $12.31 $12.31 $14.12
TOTAL $553,750,000 $606,191,000 $642,593,000 $564,983,000 $569,091,000 9% 16% 2% 3%
$15.78 $17.27 $18.31 $16.10 $16.21

Colorado
Adams County, CO $1,988,000 $1,949,000 $2,038,000 $1,597,000 $1,585,000 -2% 2% -20% -20%
$8.11 $7.96 $8.32 $6.52 $6.47
Arapahoe County, CO $1,221,000 $1,086,000 $1,214,000 $882,000 $877,000 -11% -1% -28% -28%
$7.59 $6.75 $7.55 $5.48 $5.45
Arvada, CO $618,000 $529,000 $585,000 $552,000 $540,000 -14% -5% -11% -13%
$6.05 $5.17 $5.73 $5.40 $5.29
Aurora, CO $2,951,000 $3,104,000 $3,357,000 $3,370,000 $3,359,000 5% 14% 14% 14%
$10.32 $10.85 $11.74 $11.78 $11.74
Boulder, CO $1,141,000 $633,000 $804,000 $807,000 $799,000 -45% -30% -29% -30%
$12.12 $6.72 $8.53 $8.57 $8.48
Centennial, CO $380,000 $248,000 $223,000 $153,000 $150,000 -35% -41% -60% -61%
$3.82 $2.50 $2.24 $1.53 $1.51
Colorado Springs, CO $3,101,000 $2,886,000 $3,599,000 $3,248,000 $3,192,000 -7% 16% 5% 3%
$8.35 $7.77 $9.69 $8.75 $8.60

CDBG Formula Targeting to Community Development Need
B-19

Total Grant Amount/
Per Capita Grant Amount
Alternative Change in Funding
Relative to FY 2004
Jurisdiction
Name FY 2004 Grant Alternative 1 Alternative 2 Alternative 3 Alternative 4 Alt. 1 Alt. 2 Alt. 3 Alt. 4
Denver, CO $11,025,000 $9,697,000 $10,490,000 $10,888,000 $10,750,000 -12% -5% -1% -2%
$19.67 $17.30 $18.72 $19.43 $19.18
Douglas County, CO $694,000 $473,000 $401,000 $261,000 $257,000 -32% -42% -62% -63%
$4.06 $2.77 $2.35 $1.53 $1.51
Fort Collins, CO $1,219,000 $713,000 $893,000 $920,000 $902,000 -42% -27% -25% -26%
$9.78 $5.72 $7.17 $7.38 $7.23
Grand Junction, CO $407,000 $413,000 $503,000 $476,000 $466,000 1% 24% 17% 14%
$9.43 $9.56 $11.65 $11.02 $10.79
Greeley, CO $1,031,000 $963,000 $1,218,000 $1,212,000 $1,189,000 -7% 18% 18% 15%
$12.56 $11.73 $14.83 $14.76 $14.48
Jefferson County, CO $1,362,000 $1,058,000 $1,179,000 $890,000 $877,000 -22% -13% -35% -36%
$5.62 $4.36 $4.86 $3.67 $3.62
Lakewood, CO $1,125,000 $1,004,000 $1,167,000 $1,036,000 $1,025,000 -11% 4% -8% -9%
$7.83 $6.98 $8.12 $7.20 $7.13
Longmont, CO $648,000 $643,000 $726,000 $507,000 $501,000 -1% 12% -22% -23%
$8.23 $8.17 $9.22 $6.45 $6.37
Loveland, CO $347,000 $304,000 $372,000 $376,000 $370,000 -12% 7% 8% 7%
$6.28 $5.50 $6.73 $6.81 $6.69
Pueblo, CO $1,971,000 $2,440,000 $2,305,000 $2,564,000 $2,503,000 24% 17% 30% 27%
$19.06 $23.59 $22.29 $24.80 $24.20
Westminster, CO $681,000 $595,000 $607,000 $502,000 $501,000 -13% -11% -26% -26%
$6.57 $5.74 $5.86 $4.85 $4.84
Colorado State Program $13,006,000 $12,719,000 $12,275,000 $12,275,000 $13,278,000 -2% -6% -6% 2%
$9.06 $8.86 $8.55 $8.55 $9.25
TOTAL $44,916,000 $41,456,000 $43,955,000 $42,516,000 $43,120,000 -8% -2% -5% -4%
$9.97 $9.21 $9.76 $9.44 $9.57

Connecticut
Bridgeport, CT $3,946,000 $3,965,000 $3,660,000 $4,590,000 $4,499,000 0% -7% 16% 14%
 $28.16 $28.30 $26.12 $32.76 $32.11
Bristol, CT $714,000 $539,000 $570,000 $666,000 $652,000 -25% -20% -7% -9%
$11.79 $8.90 $9.41 $11.00 $10.77

CDBG Formula Targeting to Community Development Need
B-20

Total Grant Amount/
Per Capita Grant Amount
Alternative Change in Funding
Relative to FY 2004
Jurisdiction
Name FY 2004 Grant Alternative 1 Alternative 2 Alternative 3 Alternative 4 Alt. 1 Alt. 2 Alt. 3 Alt. 4
Danbury, CT $756,000 $707,000 $868,000 $984,000 $979,000 -6% 15% 30% 29%
$9.83 $9.19 $11.28 $12.80 $12.72
East Hartford, CT $748,000 $754,000 $759,000 $920,000 $903,000 1% 1% 23% 21%
$15.07 $15.19 $15.28 $18.53 $18.20
Fairfield, CT $628,000 $195,000 $217,000 $198,000 $194,000 -69% -65% -68% -69%
$10.88 $3.39 $3.76 $3.43 $3.36
Greenwich, CT $1,115,000 $333,000 $372,000 $283,000 $279,000 -70% -67% -75% -75%
$18.05 $5.38 $6.03 $4.59 $4.51
Hamden Town, CT $602,000 $470,000 $509,000 $498,000 $488,000 -22% -15% -17% -19%
$10.39 $8.11 $8.79 $8.60 $8.42
Hartford, CT $4,672,000 $5,642,000 $5,108,000 $6,513,000 $6,367,000 21% 9% 39% 36%
$37.51 $45.30 $41.01 $52.29 $51.12
Manchester, CT $779,000 $576,000 $646,000 $662,000 $650,000 -26% -17% -15% -17%
$14.14 $10.46 $11.72 $12.02 $11.80
Meriden, CT $1,094,000 $935,000 $899,000 $1,092,000 $1,067,000 -15% -18% 0% -2%
$18.65 $15.93 $15.32 $18.61 $18.19
Middletown, CT $533,000 $408,000 $398,000 $430,000 $422,000 -24% -25% -19% -21%
$12.07 $9.23 $9.01 $9.73 $9.57
Milford Town, CT $639,000 $246,000 $286,000 $248,000 $244,000 -61% -55% -61% -62%
$11.95 $4.61 $5.36 $4.64 $4.56
New Britain, CT $2,266,000 $2,121,000 $1,698,000 $2,226,000 $2,181,000 -6% -25% -2% -4%
$31.65 $29.62 $23.72 $31.09 $30.47
New Haven, CT $4,481,000 $4,446,000 $3,698,000 $4,823,000 $4,712,000 -1% -17% 8% 5%
$36.09 $35.81 $29.78 $38.84 $37.95
New London, CT $1,086,000 $727,000 $531,000 $693,000 $680,000 -33% -51% -36% -37%
$41.66 $27.90 $20.37 $26.60 $26.08
Norwalk, CT $1,107,000 $690,000 $899,000 $1,009,000 $999,000 -38% -19% -9% -10%
$13.16 $8.20 $10.69 $11.99 $11.87
Norwich, CT $1,215,000 $818,000 $627,000 $801,000 $785,000 -33% -48% -34% -35%
$33.75 $22.73 $17.41 $22.26 $21.80
Stamford, CT $1,300,000 $1,142,000 $1,397,000 $1,368,000 $1,362,000 -12% 7% 5% 5%
$10.85 $9.53 $11.66 $11.41 $11.36

CDBG Formula Targeting to Community Development Need
B-21

Total Grant Amount/
Per Capita Grant Amount
Alternative Change in Funding
Relative to FY 2004
Jurisdiction
Name FY 2004 Grant Alternative 1 Alternative 2 Alternative 3 Alternative 4 Alt. 1 Alt. 2 Alt. 3 Alt. 4
Stratford, CT $796,000 $466,000 $377,000 $483,000 $474,000 -41% -53% -39% -40%
$15.87 $9.29 $7.51 $9.63 $9.44
Waterbury, CT $2,713,000 $2,712,000 $2,440,000 $3,172,000 $3,101,000 0% -10% 17% 14%
$25.15 $25.14 $22.61 $29.40 $28.74
West Hartford, CT $1,306,000 $371,000 $413,000 $334,000 $329,000 -72% -68% -74% -75%
$21.28 $6.04 $6.73 $5.44 $5.36
West Haven, CT $852,000 $580,000 $656,000 $737,000 $727,000 -32% -23% -13% -15%
$16.16 $10.99 $12.43 $13.98 $13.78
Connecticut State Program $15,862,000 $9,740,000 $9,496,000 $9,496,000 $9,865,000 -39% -40% -40% -38%
$8.41 $5.17 $5.04 $5.04 $5.23
TOTAL $49,210,000 $38,584,000 $36,523,000 $42,227,000 $41,959,000 -22% -26% -14% -15%
$14.22 $11.15 $10.55 $12.20 $12.13

Delaware
Dover, DE $326,000 $327,000 $457,000 $420,000 $409,000 0% 40% 29% 26%
$10.01 $10.03 $14.03 $12.88 $12.56
New Castle County, DE $2,888,000 $2,386,000 $2,951,000 $2,551,000 $2,508,000 -17% 2% -12% -13%
$6.57 $5.43 $6.71 $5.80 $5.70
Wilmington, DE $2,999,000 $2,704,000 $2,106,000 $2,681,000 $2,617,000 -10% -30% -11% -13%
$41.36 $37.29 $29.04 $36.97 $36.10
Delaware State Program $2,296,000 $2,400,000 $2,597,000 $2,597,000 $2,688,000 5% 13% 13% 17%
$8.75 $9.14 $9.90 $9.90 $10.24
TOTAL $8,509,000 $7,817,000 $8,111,000 $8,249,000 $8,222,000 -8% -5% -3% -3%
$10.54 $9.68 $10.05 $10.22 $10.18

District of Columbia
Washington, DC $22,462,000 $18,635,000 $15,340,000 $15,807,000 $15,567,000 -17% -32% -30% -31%
$39.35 $32.64 $26.87 $27.69 $27.27

Florida
Boca Raton, FL $540,000 $451,000 $465,000 $301,000 $296,000 -16% -14% -44% -45%
$6.98 $5.83 $6.01 $3.89 $3.82

CDBG Formula Targeting to Community Development Need
B-22

Total Grant Amount/
Per Capita Grant Amount
Alternative Change in Funding
Relative to FY 2004
Jurisdiction
Name FY 2004 Grant Alternative 1 Alternative 2 Alternative 3 Alternative 4 Alt. 1 Alt. 2 Alt. 3 Alt. 4
Boynton Beach, FL $636,000 $676,000 $701,000 $722,000 $712,000 6% 10% 14% 12%
$9.99 $10.61 $11.01 $11.34 $11.18
Bradenton, FL $582,000 $615,000 $756,000 $862,000 $844,000 6% 30% 48% 45%
$11.33 $11.98 $14.72 $16.78 $16.42
Brevard County, FL $1,964,000 $1,774,000 $1,915,000 $1,525,000 $1,482,000 -10% -2% -22% -25%
$6.98 $6.31 $6.81 $5.42 $5.27
Broward County, FL $5,543,000 $6,033,000 $6,441,000 $5,350,000 $5,275,000 9% 16% -3% -5%
$11.86 $12.91 $13.78 $11.44 $11.28
Cape Coral, FL $748,000 $690,000 $711,000 $722,000 $702,000 -8% -5% -3% -6%
$6.63 $6.11 $6.30 $6.39 $6.22
Clearwater, FL $1,143,000 $1,116,000 $1,371,000 $1,193,000 $1,168,000 -2% 20% 4% 2%
$10.55 $10.30 $12.66 $11.01 $10.79
Cocoa, FL $278,000 $322,000 $410,000 $474,000 $460,000 16% 47% 70% 65%
$16.95 $19.60 $24.99 $28.89 $28.02
Collier County, FL $2,628,000 $2,741,000 $2,695,000 $2,354,000 $2,328,000 4% 3% -10% -11%
$10.31 $10.75 $10.58 $9.24 $9.13
Coral Springs, FL $1,092,000 $1,128,000 $1,194,000 $890,000 $880,000 3% 9% -19% -19%
$8.69 $8.98 $9.50 $7.08 $7.00
Davie, FL $764,000 $727,000 $772,000 $629,000 $622,000 -5% 1% -18% -19%
$9.57 $9.11 $9.67 $7.88 $7.78
Daytona Beach, FL $999,000 $1,127,000 $1,400,000 $1,551,000 $1,513,000 13% 40% 55% 51%
$15.46 $17.45 $21.67 $24.01 $23.43
Deerfield Beach, FL $731,000 $772,000 $823,000 $696,000 $681,000 6% 13% -5% -7%
$11.14 $11.77 $12.55 $10.61 $10.38
Delray Beach, FL $700,000 $745,000 $820,000 $689,000 $679,000 6% 17% -2% -3%
$11.24 $11.97 $13.17 $11.07 $10.90
Deltona, FL $589,000 $605,000 $634,000 $630,000 $617,000 3% 8% 7% 5%
$7.98 $8.20 $8.59 $8.54 $8.36
Destin, FL $72,000 $53,000 $55,000 $35,000 $34,000 -26% -23% -52% -52%
$6.18 $4.56 $4.74 $2.98 $2.95
Escambia County, FL $2,538,000 $2,685,000 $3,343,000 $3,291,000 $3,192,000 6% 32% 30% 26%
$10.56 $11.18 $13.92 $13.70 $13.29

CDBG Formula Targeting to Community Development Need
B-23

Total Grant Amount/
Per Capita Grant Amount
Alternative Change in Funding
Relative to FY 2004
Jurisdiction
Name FY 2004 Grant Alternative 1 Alternative 2 Alternative 3 Alternative 4 Alt. 1 Alt. 2 Alt. 3 Alt. 4
Fort Pierce, FL $829,000 $995,000 $1,201,000 $1,361,000 $1,323,000 20% 45% 64% 60%
$21.82 $26.19 $31.61 $35.82 $34.83
Fort Walton Beach, FL $176,000 $168,000 $207,000 $184,000 $180,000 -4% 17% 5% 2%
$8.76 $8.37 $10.28 $9.16 $8.95
Fort Lauderdale, FL $2,357,000 $2,492,000 $2,897,000 $2,113,000 $2,081,000 6% 23% -10% -12%
$14.90 $15.76 $18.31 $13.36 $13.16
Fort Myers, FL $812,000 $914,000 $1,100,000 $1,212,000 $1,187,000 13% 35% 49% 46%
$16.25 $18.29 $22.02 $24.26 $23.75
Gainesville, FL $1,483,000 $1,062,000 $1,423,000 $1,503,000 $1,465,000 -28% -4% 1% -1%
$15.58 $11.16 $14.96 $15.79 $15.39
Hialeah, FL $5,147,000 $6,277,000 $6,335,000 $6,030,000 $6,067,000 22% 23% 17% 18%
$22.56 $27.51 $27.77 $26.43 $26.59
Hillsborough County, FL $7,074,000 $7,074,000 $7,687,000 $6,492,000 $6,392,000 0% 9% -8% -10%
$9.58 $9.58 $10.41 $8.79 $8.65 
Hollywood, FL $1,846,000 $1,966,000 $2,171,000 $1,900,000 $1,881,000 7% 18% 3% 2%
$12.89 $13.73 $15.16 $13.27 $13.14
Jacksonville-Duval, FL $8,166,000 $8,443,000 $10,942,000 $10,563,000 $10,345,000 3% 34% 29% 27%
$10.15 $10.49 $13.60 $13.13 $12.86
Kissimmee, FL $724,000 $791,000 $867,000 $887,000 $879,000 9% 20% 23% 21%
$14.00 $15.30 $16.76 $17.15 $16.99
Lake County, FL $1,013,000 $957,000 $1,010,000 $926,000 $900,000 -5% 0% -9% -11%
$6.77 $6.40 $6.75 $6.19 $6.02
Lakeland, FL $933,000 $964,000 $1,273,000 $1,134,000 $1,104,000 3% 36% 22% 18%
$10.83 $11.19 $14.77 $13.16 $12.81
Largo, FL $568,000 $520,000 $587,000 $555,000 $540,000 -8% 3% -2% -5%
$8.04 $7.36 $8.31 $7.86 $7.65
Lauderhill, FL $990,000 $1,146,000 $1,255,000 $1,262,000 $1,250,000 16% 27% 27% 26%
$16.83 $19.48 $21.33 $21.46 $21.25
Lee County, FL $2,568,000 $2,493,000 $2,553,000 $1,985,000 $1,941,000 -3% -1% -23% -24%
$8.21 $7.97 $8.16 $6.35 $6.21
Manatee County, FL $1,814,000 $1,766,000 $1,878,000 $1,674,000 $1,637,000 -3% 4% -8% -10%
$8.20 $7.98 $8.49 $7.56 $7.40

CDBG Formula Targeting to Community Development Need
B-24

Total Grant Amount/
Per Capita Grant Amount
Alternative Change in Funding
Relative to FY 2004
Jurisdiction
Name FY 2004 Grant Alternative 1 Alternative 2 Alternative 3 Alternative 4 Alt. 1 Alt. 2 Alt. 3 Alt. 4
Margate, FL $510,000 $524,000 $535,000 $491,000 $486,000 3% 5% -4% -5%
$9.31 $9.57 $9.76 $8.96 $8.87
Marion County, FL $2,059,000 $2,152,000 $2,351,000 $2,105,000 $2,039,000 5% 14% 2% -1%
$9.40 $9.83 $10.74 $9.62 $9.31
Melbourne, FL $677,000 $642,000 $709,000 $699,000 $680,000 -5% 5% 3% 0%
$9.17 $8.69 $9.61 $9.47 $9.22
Miami, FL $9,928,000 $11,963,000 $14,543,000 $15,636,000 $15,518,000 20% 46% 57% 56%
$26.49 $31.92 $38.80 $41.72 $41.40
Miami Beach, FL $2,118,000 $2,292,000 $2,914,000 $1,947,000 $1,951,000 8% 38% -8% -8%
$23.64 $25.58 $32.53 $21.74 $21.78
Miami-Dade County, FL $23,676,000 $27,354,000 $28,802,000 $21,127,000 $21,067,000 16% 22% -11% -11%
$15.39 $17.78 $18.72 $13.73 $13.69
Miramar, FL $906,000 $964,000 $973,000 $919,000 $928,000 6% 7% 1% 2%
$10.03 $10.66 $10.77 $10.17 $10.27
Naples, FL $137,000 $121,000 $120,000 $79,000 $77,000 -12% -12% -42% -44%
$6.47 $5.71 $5.68 $3.74 $3.65
North Miami, FL $1,503,000 $1,818,000 $2,027,000 $2,071,000 $2,067,000 21% 35% 38% 37%
$25.04 $30.28 $33.76 $34.50 $34.42
Ocala, FL $576,000 $612,000 $754,000 $682,000 $662,000 6% 31% 18% 15%
$12.27 $13.03 $16.06 $14.53 $14.10
Orange County, FL $7,330,000 $7,310,000 $7,875,000 $6,718,000 $6,620,000 0% 7% -8% -10%
$10.30 $10.27 $11.07 $9.44 $9.30
Orlando, FL $2,657,000 $2,881,000 $3,475,000 $3,051,000 $3,005,000 8% 31% 15% 13%
$13.72 $14.87 $17.94 $15.75 $15.51
Palm Bay, FL $716,000 $719,000 $795,000 $857,000 $837,000 0% 11% 20% 17%
$8.62 $8.66 $9.58 $10.32 $10.08
Palm Beach County, FL $8,274,000 $8,506,000 $9,053,000 $8,079,000 $7,961,000 3% 9% -2% -4%
$9.31 $9.57 $10.19 $9.09 $8.96
Panama City, FL $477,000 $591,000 $642,000 $662,000 $643,000 24% 35% 39% 35%
$12.99 $16.10 $17.49 $18.02 $17.51
Pasco County, FL $2,935,000 $2,943,000 $3,176,000 $3,352,000 $3,243,000 0% 8% 14% 11%
$8.37 $8.40 $9.06 $9.57 $9.25

CDBG Formula Targeting to Community Development Need
B-25

Total Grant Amount/
Per Capita Grant Amount
Alternative Change in Funding
Relative to FY 2004
Jurisdiction
Name FY 2004 Grant Alternative 1 Alternative 2 Alternative 3 Alternative 4 Alt. 1 Alt. 2 Alt. 3 Alt. 4
Pembroke Pines, FL $1,086,000 $1,046,000 $1,039,000 $787,000 $788,000 -4% -4% -28% -27%
$7.41 $7.13 $7.08 $5.37 $5.37
Pensacola, FL $1,133,000 $1,204,000 $1,098,000 $994,000 $968,000 6% -3% -12% -15%
$20.51 $21.80 $19.88 $17.99 $17.52
Pinellas County, FL $3,701,000 $3,381,000 $3,915,000 $3,094,000 $3,014,000 -9% 6% -16% -19%
$7.41 $6.77 $7.84 $6.20 $6.04
Plantation, FL $634,000 $570,000 $599,000 $404,000 $400,000 -10% -6% -36% -37%
$7.47 $6.72 $7.06 $4.76 $4.72
Polk County, FL $3,646,000 $3,925,000 $4,459,000 $4,006,000 $3,910,000 8% 22% 10% 7%
$10.24 $11.03 $12.53 $11.26 $10.99
Pompano Beach, FL $1,252,000 $1,360,000 $1,442,000 $1,199,000 $1,180,000 9% 15% -4% -6%
$14.37 $15.61 $16.54 $13.76 $13.53
Port St. Lucie, FL $715,000 $696,000 $717,000 $770,000 $750,000 -3% 0% 8% 5%
$7.26 $7.06 $7.27 $7.82 $7.61
Punta Gorda, FL $97,000 $80,000 $80,000 $53,000 $52,000 -18% -18% -45% -47%
$6.06 $4.99 $4.97 $3.33 $3.23
Sarasota, FL $688,000 $701,000 $885,000 $906,000 $887,000 2% 29% 32% 29%
$12.90 $13.14 $16.60 $17.00 $16.64
Sarasota County, FL $1,769,000 $1,551,000 $1,648,000 $1,357,000 $1,320,000 -12% -7% -23% -25%
$6.29 $5.51 $5.86 $4.82 $4.69
Seminole County, FL $2,886,000 $2,629,000 $2,922,000 $2,196,000 $2,159,000 -9% 1% -24% -25%
$7.56 $6.89 $7.66 $5.75 $5.66
St. Petersburg, FL $2,716,000 $2,995,000 $3,868,000 $3,885,000 $3,804,000 10% 42% 43% 40%
$10.93 $12.05 $15.56 $15.63 $15.30
Sunrise, FL $895,000 $965,000 $1,025,000 $1,033,000 $1,020,000 8% 14% 15% 14%
$10.12 $10.90 $11.58 $11.67 $11.53
Tallahassee, FL $2,310,000 $1,499,000 $1,880,000 $1,791,000 $1,752,000 -35% -19% -22% -24%
$14.89 $9.66 $12.11 $11.54 $11.29
Tamarac, FL $509,000 $513,000 $535,000 $468,000 $459,000 1% 5% -8% -10%
$8.86 $8.93 $9.31 $8.15 $7.99
Tampa, FL $4,505,000 $5,402,000 $6,592,000 $6,146,000 $6,025,000 20% 46% 36% 34%
$14.30 $17.14 $20.92 $19.50 $19.12

CDBG Formula Targeting to Community Development Need
B-26

Total Grant Amount/
Per Capita Grant Amount
Alternative Change in Funding
Relative to FY 2004
Jurisdiction
Name FY 2004 Grant Alternative 1 Alternative 2 Alternative 3 Alternative 4 Alt. 1 Alt. 2 Alt. 3 Alt. 4
Titusville, FL $406,000 $401,000 $499,000 $523,000 $509,000 -1% 23% 29% 25%
$9.87 $9.76 $12.13 $12.71 $12.37
Volusia County, FL $2,677,000 $2,573,000 $3,055,000 $2,702,000 $2,628,000 -4% 14% 1% -2%
$8.41 $8.08 $9.60 $8.49 $8.26
West Palm Beach, FL $1,304,000 $1,420,000 $1,878,000 $2,192,000 $2,155,000 9% 44% 68% 65%
$15.07 $16.42 $21.70 $25.34 $24.91
Winterhaven, FL $319,000 $341,000 $445,000 $377,000 $369,000 7% 39% 18% 16%
$12.07 $12.90 $16.84 $14.27 $13.95
Florida State Program $33,334,000 $34,950,000 $30,703,000 $30,703,000 $32,498,000 5% -8% -8% -3%
$10.76 $11.28 $9.91 $9.91 $10.49
TOTAL $189,108,000 $199,883,000 $215,919,000 $195,762,000 $195,084,000 6% 14% 4% 3%
$11.32 $11.96 $12.92 $11.71 $11.67

Georgia
Albany, GA $1,402,000 $1,610,000 $2,112,000 $2,148,000 $2,087,000 15% 51% 53% 49%
$18.37 $21.09 $27.67 $28.15 $27.35
Athens-Clarke, GA $1,765,000 $1,207,000 $1,632,000 $1,664,000 $1,628,000 -32% -8% -6% -8%
$16.99 $11.62 $15.71 $16.02 $15.67
Atlanta, GA $11,284,000 $10,879,000 $10,834,000 $10,019,000 $9,781,000 -4% -4% -11% -13%
$26.56 $25.61 $25.50 $23.58 $23.02
Augusta, GA $2,755,000 $3,098,000 $4,272,000 $4,445,000 $4,324,000 12% 55% 61% 57%
$13.93 $15.66 $21.59 $22.47 $21.85
Brunswick, GA $548,000 $625,000 $562,000 $704,000 $685,000 14% 3% 28% 25%
$35.13 $40.04 $36.02 $45.13 $43.91
Clayton County, GA $2,182,000 $2,303,000 $2,669,000 $2,776,000 $2,747,000 6% 22% 27% 26%
$9.70 $10.24 $11.87 $12.34 $12.21
Cobb County, GA $3,921,000 $3,457,000 $3,640,000 $2,678,000 $2,653,000 -12% -7% -32% -32%
$6.65 $5.86 $6.17 $4.54 $4.50
Columbus-Muscogee, GA $2,189,000 $2,405,000 $2,763,000 $2,299,000 $2,231,000 10% 26% 5% 2%
$11.77 $12.93 $14.86 $12.36 $12.00
Dalton, GA $487,000 $562,000 $593,000 $418,000 $416,000 15% 22% -14% -15%
$16.29 $18.80 $19.84 $13.97 $13.91

CDBG Formula Targeting to Community Development Need
B-27

Total Grant Amount/
Per Capita Grant Amount
Alternative Change in Funding
Relative to FY 2004
Jurisdiction
Name FY 2004 Grant Alternative 1 Alternative 2 Alternative 3 Alternative 4 Alt. 1 Alt. 2 Alt. 3 Alt. 4
DeKalb County, GA $6,893,000 $7,025,000 $8,044,000 $7,002,000 $6,938,000 2% 17% 2% 1%
$10.67 $10.87 $12.45 $10.83 $10.74
Fulton County, GA $3,149,000 $3,106,000 $3,648,000 $2,386,000 $2,352,000 -1% 16% -24% -25%
$8.91 $8.78 $10.32 $6.75 $6.65
Gainesville, GA $470,000 $545,000 $594,000 $519,000 $510,000 16% 26% 10% 9%
$16.80 $19.49 $21.25 $18.56 $18.25
Gwinnett County, GA $4,827,000 $4,536,000 $4,453,000 $2,790,000 $2,784,000 -6% -8% -42% -42%
$7.27 $6.83 $6.70 $4.20 $4.19
Hinesville, GA $367,000 $423,000 $503,000 $422,000 $410,000 15% 37% 15% 12%
$12.02 $13.86 $16.47 $13.81 $13.44
Macon, GA $1,606,000 $2,457,000 $2,935,000 $3,452,000 $3,355,000 53% 83% 115% 109%
$16.75 $25.63 $30.61 $36.01 $35.00
Marietta, GA $835,000 $850,000 $992,000 $906,000 $895,000 2% 19% 8% 7%
$13.46 $13.70 $15.99 $14.61 $14.42
Rome, GA $620,000 $806,000 $844,000 $860,000 $840,000 30% 36% 39% 35%
$17.60 $22.86 $23.94 $24.42 $23.83
Roswell, GA $550,000 $501,000 $496,000 $301,000 $299,000 -9% -10% -45% -46%
$6.96 $6.34 $6.28 $3.81 $3.79
Savannah, GA $3,323,000 $3,721,000 $3,378,000 $4,175,000 $4,071,000 12% 2% 26% 22%
$26.02 $29.14 $26.46 $32.70 $31.88
Valdosta, GA $718,000 $751,000 $1,026,000 $962,000 $935,000 5% 43% 34% 30%
$16.06 $16.81 $22.95 $21.52 $20.92
Warner Robins, GA $543,000 $594,000 $725,000 $696,000 $678,000 9% 34% 28% 25%
$10.33 $11.30 $13.80 $13.24 $12.90
Georgia State Program $47,121,000 $51,398,000 $52,398,000 $52,398,000 $54,479,000 9% 11% 11% 16%
$10.49 $11.44 $11.67 $11.67 $12.13
TOTAL $97,555,000 $102,857,000 $109,113,000 $104,021,000 $105,098,000 5% 12% 7% 8%
$11.40 $12.02 $12.75 $12.15 $12.28

Hawaii
Honolulu, HI $11,856,000 $12,725,000 $12,661,000 $9,617,000 $9,739,000 7% 7% -19% -18%
$13.23 $14.20 $14.13 $10.73 $10.87

CDBG Formula Targeting to Community Development Need
B-28

Total Grant Amount/
Per Capita Grant Amount
Alternative Change in Funding
Relative to FY 2004
Jurisdiction
Name FY 2004 Grant Alternative 1 Alternative 2 Alternative 3 Alternative 4 Alt. 1 Alt. 2 Alt. 3 Alt. 4
Hawaii State Program $6,137,000 $6,423,000 $3,619,000 $3,619,000 $4,569,000 5% -41% -41% -26%
$17.59 $18.41 $10.37 $10.37 $13.10
TOTAL $17,993,000 $19,148,000 $16,280,000 $13,236,000 $14,308,000 6% -10% -26% -20%
$14.45 $15.38 $13.08 $10.63 $11.49

Idaho
Boise, ID $1,562,000 $1,389,000 $1,765,000 $1,440,000 $1,418,000 -11% 13% -8% -9%
$8.23 $7.31 $9.30 $7.59 $7.47
Idaho Falls, ID $491,000 $491,000 $656,000 $584,000 $572,000 0% 34% 19% 16%
$9.61 $9.61 $12.84 $11.43 $11.19
Lewiston, ID $323,000 $429,000 $430,000 $439,000 $428,000 33% 33% 36% 33%
$10.59 $14.08 $14.10 $14.40 $14.04
Nampa, ID $613,000 $629,000 $745,000 $838,000 $823,000 3% 22% 37% 34%
$10.17 $10.44 $12.36 $13.91 $13.66
Pocatello, ID $604,000 $803,000 $868,000 $861,000 $842,000 33% 44% 42% 39%
$11.79 $15.67 $16.93 $16.80 $16.43
Idaho State Program $10,549,000 $10,876,000 $10,290,000 $10,290,000 $11,084,000 3% -2% -2% 5%
$11.10 $11.44 $10.83 $10.83 $11.66
TOTAL $14,142,000 $14,618,000 $14,754,000 $14,453,000 $15,167,000 3% 4% 2% 7%
$10.61 $10.96 $11.07 $10.84 $11.37

Illinois
Arlington Heights, IL $363,000 $270,000 $235,000 $177,000 $176,000 -25% -35% -51% -51%
$4.75 $3.54 $3.08 $2.32 $2.31
Aurora, IL $1,470,000 $1,533,000 $1,847,000 $1,819,000 $1,804,000 4% 26% 24% 23%
$9.36 $9.77 $11.76 $11.59 $11.49
Belleville, IL $862,000 $677,000 $610,000 $757,000 $738,000 -21% -29% -12% -14%
$20.86 $16.39 $14.76 $18.32 $17.85
Berwyn, IL $1,596,000 $985,000 $795,000 $996,000 $986,000 -38% -50% -38% -38%
$29.94 $18.48 $14.91 $18.68 $18.49
Bloomington, IL $730,000 $637,000 $630,000 $607,000 $597,000 -13% -14% -17% -18%
$10.83 $9.44 $9.34 $9.01 $8.85

CDBG Formula Targeting to Community Development Need
B-29

Total Grant Amount/
Per Capita Grant Amount
Alternative Change in Funding
Relative to FY 2004
Jurisdiction
Name FY 2004 Grant Alternative 1 Alternative 2 Alternative 3 Alternative 4 Alt. 1 Alt. 2 Alt. 3 Alt. 4
Bolingbrook, IL $372,000 $339,000 $340,000 $288,000 $286,000 -9% -9% -23% -23%
$5.92 $5.40 $5.42 $4.58 $4.55
Champaign, IL $916,000 $657,000 $721,000 $778,000 $764,000 -28% -21% -15% -17%
$13.19 $9.47 $10.38 $11.21 $11.01
Chicago, IL $100,851,000 $98,448,000 $83,622,000 $101,911,000 $100,044,000 -2% -17% 1% -1%
$34.94 $34.11 $28.97 $35.31 $34.66
Chicago Heights, IL $684,000 $771,000 $790,000 $949,000 $932,000 13% 15% 39% 36%
$20.98 $23.65 $24.22 $29.11 $28.58
Cicero, IL $1,631,000 $1,786,000 $2,241,000 $2,535,000 $2,516,000 10% 37% 55% 54%
$19.36 $21.20 $26.60 $30.09 $29.87
Cook County, IL $12,693,000 $12,415,000 $14,502,000 $11,698,000 $11,565,000 -2% 14% -8% -9%
$7.58 $7.42 $8.67 $6.99 $6.91
Danville, IL $1,168,000 $1,220,000 $854,000 $959,000 $936,000 4% -27% -18% -20%
$35.01 $36.57 $25.59 $28.74 $28.04
Decatur, IL $1,772,000 $1,956,000 $1,659,000 $1,877,000 $1,825,000 10% -6% 6% 3%
$22.19 $24.50 $20.78 $23.51 $22.85
DeKalb, IL $495,000 $283,000 $359,000 $421,000 $416,000 -43% -27% -15% -16%
$12.34 $7.05 $8.96 $10.51 $10.36
Des Plaines, IL $416,000 $384,000 $395,000 $334,000 $334,000 -8% -5% -20% -20%
$7.08 $6.55 $6.72 $5.69 $5.69
Downers Grove, IL $262,000 $155,000 $161,000 $115,000 $114,000 -41% -39% -56% -57%
$5.36 $3.16 $3.29 $2.35 $2.32
DuPage County, IL $4,312,000 $3,804,000 $3,747,000 $2,448,000 $2,449,000 -12% -13% -43% -43%
$6.30 $5.56 $5.48 $3.58 $3.58
East St Louis, IL $2,261,000 $2,125,000 $1,430,000 $1,826,000 $1,774,000 -6% -37% -19% -22%
$72.95 $68.56 $46.13 $58.91 $57.24
Elgin, IL $1,015,000 $1,102,000 $1,265,000 $1,249,000 $1,248,000 9% 25% 23% 23%
$10.51 $11.41 $13.10 $12.93 $12.92
Evanston, IL $2,395,000 $927,000 $886,000 $708,000 $699,000 -61% -63% -70% -71%
$32.62 $12.63 $12.07 $9.65 $9.52
Joliet, IL $1,092,000 $1,167,000 $1,482,000 $1,803,000 $1,768,000 7% 36% 65% 62%
$9.22 $9.86 $12.52 $15.23 $14.93

CDBG Formula Targeting to Community Development Need
B-30

Total Grant Amount/
Per Capita Grant Amount
Alternative Change in Funding
Relative to FY 2004
Jurisdiction
Name FY 2004 Grant Alternative 1 Alternative 2 Alternative 3 Alternative 4 Alt. 1 Alt. 2 Alt. 3 Alt. 4
Kane County, IL $1,423,000 $1,250,000 $1,284,000 $942,000 $933,000 -12% -10% -34% -34%
$5.73 $5.04 $5.17 $3.80 $3.76
Kankakee, IL $707,000 $817,000 $777,000 $979,000 $955,000 16% 10% 38% 35%
$26.02 $30.09 $28.61 $36.04 $35.17
Lake County, IL $3,061,000 $2,611,000 $2,794,000 $2,073,000 $2,050,000 -15% -9% -32% -33%
$5.59 $4.77 $5.11 $3.79 $3.75
Madison County, IL $3,689,000 $3,536,000 $3,237,000 $3,721,000 $3,627,000 -4% -12% 1% -2%
$13.92 $13.34 $12.22 $14.04 $13.69
McHenry County, IL $1,518,000 $1,252,000 $1,296,000 $1,061,000 $1,048,000 -18% -15% -30% -31%
$5.32 $4.38 $4.54 $3.71 $3.67
Moline, IL $1,070,000 $809,000 $641,000 $638,000 $626,000 -24% -40% -40% -42%
$24.76 $18.71 $14.83 $14.76 $14.48
Mount Prospect, IL $452,000 $448,000 $405,000 $276,000 $280,000 -1% -11% -39% -38%
$8.06 $7.98 $7.21 $4.93 $4.99
Naperville, IL $583,000 $424,000 $371,000 $238,000 $235,000 -27% -36% -59% -60%
$4.31 $3.13 $2.74 $1.76 $1.74
Normal, IL $487,000 $209,000 $267,000 $324,000 $317,000 -57% -45% -33% -35%
$10.34 $4.43 $5.67 $6.88 $6.73
North Chicago, IL $380,000 $410,000 $475,000 $519,000 $512,000 8% 25% 36% 35%
$10.53 $11.36 $13.17 $14.37 $14.17
Oak Lawn, IL $346,000 $313,000 $334,000 $312,000 $304,000 -9% -3% -10% -12%
$6.24 $5.66 $6.04 $5.62 $5.49
Oak Park, IL $2,327,000 $523,000 $502,000 $409,000 $402,000 -78% -78% -82% -83%
$45.10 $10.14 $9.73 $7.92 $7.80
Palatine Village, IL $501,000 $473,000 $441,000 $267,000 $269,000 -5% -12% -47% -46%
$7.54 $7.13 $6.64 $4.02 $4.05
Pekin, IL $492,000 $377,000 $366,000 $406,000 $396,000 -23% -26% -17% -20%
$14.72 $11.29 $10.95 $12.15 $11.84
Peoria, IL $2,304,000 $2,750,000 $2,507,000 $2,748,000 $2,673,000 19% 9% 19% 16%
$20.45 $24.41 $22.25 $24.39 $23.73
Rantoul, IL $445,000 $291,000 $164,000 $172,000 $168,000 -35% -63% -61% -62%
$34.22 $22.38 $12.61 $13.22 $12.90

CDBG Formula Targeting to Community Development Need
B-31

Total Grant Amount/
Per Capita Grant Amount
Alternative Change in Funding
Relative to FY 2004
Jurisdiction
Name FY 2004 Grant Alternative 1 Alternative 2 Alternative 3 Alternative 4 Alt. 1 Alt. 2 Alt. 3 Alt. 4
Rock Island, IL $1,409,000 $1,242,000 $796,000 $934,000 $911,000 -12% -44% -34% -35%
$36.09 $31.80 $20.38 $23.92 $23.34
Rockford, IL $2,546,000 $2,775,000 $2,758,000 $3,053,000 $2,983,000 9% 8% 20% 17%
$16.85 $18.37 $18.26 $20.21 $19.75
Schaumburg Village, IL $434,000 $353,000 $333,000 $202,000 $205,000 -19% -23% -53% -53%
$5.79 $4.71 $4.44 $2.70 $2.73
Skokie, IL $648,000 $472,000 $486,000 $363,000 $362,000 -27% -25% -44% -44%
$10.27 $7.48 $7.71 $5.75 $5.73
Springfield, IL $1,540,000 $1,456,000 $1,593,000 $1,632,000 $1,590,000 -5% 3% 6% 3%
$13.77 $13.02 $14.25 $14.59 $14.22
St. Clair County, IL $1,726,000 $1,800,000 $2,367,000 $2,532,000 $2,456,000 4% 37% 47% 42%
$9.44 $9.85 $12.95 $13.85 $13.44
Urbana, IL $565,000 $430,000 $497,000 $611,000 $599,000 -24% -12% 8% 6%
$14.77 $11.24 $13.00 $15.98 $15.66
Waukegan, IL $1,287,000 $1,454,000 $1,680,000 $1,801,000 $1,786,000 13% 31% 40% 39%
$14.09 $15.92 $18.40 $19.72 $19.56
Wheaton City, IL $293,000 $231,000 $221,000 $142,000 $141,000 -21% -25% -52% -52%
$5.29 $4.17 $4.00 $2.57 $2.54
Will County, IL $1,588,000 $1,235,000 $1,355,000 $1,247,000 $1,224,000 -22% -15% -21% -23%
$4.74 $3.69 $4.05 $3.73 $3.66
Illinois State Program $37,843,000 $32,694,000 $32,847,000 $32,847,000 $33,566,000 -14% -13% -13% -11%
$12.76 $11.02 $11.08 $11.08 $11.32
TOTAL $207,020,000 $192,279,000 $179,367,000 $194,704,000 $192,587,000 -7% -13% -6% -7%
$16.43 $15.26 $14.23 $15.45 $15.28

Indiana
Anderson, IN $1,086,000 $1,013,000 $998,000 $1,091,000 $1,063,000 -7% -8% 0% -2%
$18.45 $17.22 $16.95 $18.54 $18.06
Bloomington, IN $1,014,000 $719,000 $702,000 $824,000 $805,000 -29% -31% -19% -21%
$14.49 $10.27 $10.03 $11.77 $11.50
Columbus, IN $355,000 $418,000 $453,000 $462,000 $452,000 18% 28% 30% 27%
$9.16 $10.78 $11.70 $11.93 $11.67

CDBG Formula Targeting to Community Development Need
B-32

Total Grant Amount/
Per Capita Grant Amount
Alternative Change in Funding
Relative to FY 2004
Jurisdiction
Name FY 2004 Grant Alternative 1 Alternative 2 Alternative 3 Alternative 4 Alt. 1 Alt. 2 Alt. 3 Alt. 4
East Chicago, IN $1,664,000 $1,622,000 $1,175,000 $1,517,000 $1,482,000 -3% -29% -9% -11%
$52.44 $51.13 $37.04 $47.80 $46.71
Elkhart, IN $882,000 $774,000 $941,000 $1,036,000 $1,017,000 -12% 7% 18% 15%
$17.03 $14.94 $18.17 $20.01 $19.63
Evansville, IN $3,553,000 $2,992,000 $2,096,000 $2,451,000 $2,391,000 -16% -41% -31% -33%
$29.84 $25.13 $17.60 $20.58 $20.08
Fort Wayne, IN $3,053,000 $2,949,000 $3,178,000 $3,723,000 $3,634,000 -3% 4% 22% 19%
$14.53 $14.04 $15.13 $17.72 $17.30
Gary, IN $4,469,000 $4,566,000 $3,488,000 $4,419,000 $4,308,000 2% -22% -1% -4%
$44.27 $45.24 $34.55 $43.78 $42.67
Goshen, IN $335,000 $286,000 $360,000 $360,000 $355,000 -15% 8% 8% 6%
$11.29 $9.63 $12.14 $12.14 $11.96
Hamilton County, IN $710,000 $502,000 $541,000 $387,000 $380,000 -29% -24% -45% -46%
$4.38 $3.09 $3.34 $2.39 $2.34
Hammond, IN $2,774,000 $2,525,000 $1,808,000 $2,343,000 $2,296,000 -9% -35% -16% -17%
$34.07 $31.02 $22.21 $28.78 $28.20
Indianapolis, IN $11,328,000 $11,412,000 $11,874,000 $12,837,000 $12,556,000 1% 5% 13% 11%
$14.27 $14.38 $14.96 $16.17 $15.82
Kokomo, IN $1,192,000 $1,060,000 $826,000 $978,000 $954,000 -11% -31% -18% -20%
$25.94 $23.07 $17.97 $21.29 $20.75
La Porte, IN $594,000 $402,000 $329,000 $365,000 $357,000 -32% -45% -39% -40%
$27.90 $18.87 $15.47 $17.15 $16.77
Lafayette, IN $782,000 $778,000 $867,000 $899,000 $882,000 -1% 11% 15% 13%
$12.91 $12.84 $14.31 $14.83 $14.55
Lake County, IN $1,609,000 $1,357,000 $1,707,000 $1,440,000 $1,415,000 -16% 6% -11% -12%
$5.90 $4.97 $6.25 $5.28 $5.19
Michigan City, IN $866,000 $673,000 $563,000 $639,000 $623,000 -22% -35% -26% -28%
$26.59 $20.66 $17.28 $19.62 $19.14
Mishawaka, IN $662,000 $532,000 $613,000 $672,000 $659,000 -20% -7% 1% 0%
$13.72 $11.03 $12.71 $13.92 $13.66
Muncie, IN $1,697,000 $1,977,000 $1,427,000 $1,955,000 $1,906,000 16% -16% 15% 12%
$25.25 $29.42 $21.24 $29.10 $28.36

CDBG Formula Targeting to Community Development Need
B-33

Total Grant Amount/
Per Capita Grant Amount
Alternative Change in Funding
Relative to FY 2004
Jurisdiction
Name FY 2004 Grant Alternative 1 Alternative 2 Alternative 3 Alternative 4 Alt. 1 Alt. 2 Alt. 3 Alt. 4
New Albany, IN $866,000 $802,000 $676,000 $833,000 $810,000 -7% -22% -4% -6%
$23.08 $21.37 $18.02 $22.19 $21.59
South Bend, IN $3,379,000 $2,977,000 $2,320,000 $2,766,000 $2,700,000 -12% -31% -18% -20%
$31.71 $27.94 $21.77 $25.96 $25.34
Terre Haute, IN $2,227,000 $1,961,000 $1,310,000 $1,616,000 $1,576,000 -12% -41% -27% -29%
$37.98 $33.45 $22.34 $27.55 $26.87
West Lafayette, IN $531,000 $324,000 $257,000 $306,000 $300,000 -39% -52% -42% -44%
$18.26 $11.13 $8.85 $10.51 $10.31
Indiana State Program $36,840,000 $29,195,000 $30,490,000 $30,490,000 $31,458,000 -21% -17% -17% -15%
$10.15 $8.04 $8.40 $8.40 $8.67
TOTAL $82,468,000 $71,817,000 $69,002,000 $74,410,000 $74,378,000 -13% -16% -10% -10%
$13.39 $11.66 $11.20 $12.08 $12.08

Iowa
Ames, IA $589,000 $350,000 $388,000 $417,000 $408,000 -41% -34% -29% -31%
$11.57 $6.88 $7.61 $8.18 $8.02
Cedar Falls, IA $376,000 $342,000 $321,000 $345,000 $338,000 -9% -15% -8% -10%
$10.26 $9.33 $8.75 $9.41 $9.22
Cedar Rapids, IA $1,549,000 $1,075,000 $1,144,000 $1,149,000 $1,127,000 -31% -26% -26% -27%
$12.64 $8.78 $9.33 $9.38 $9.20
Council Bluffs, IA $1,302,000 $924,000 $839,000 $1,028,000 $1,007,000 -29% -36% -21% -23%
$22.20 $15.76 $14.31 $17.52 $17.16
Davenport, IA $2,098,000 $2,091,000 $1,768,000 $2,055,000 $2,005,000 0% -16% -2% -4%
$21.46 $21.39 $18.08 $21.02 $20.51
Des Moines, IA $5,108,000 $3,663,000 $3,025,000 $3,611,000 $3,549,000 -28% -41% -29% -31%
$25.79 $18.49 $15.27 $18.23 $17.92
Dubuque, IA $1,481,000 $1,056,000 $718,000 $800,000 $782,000 -29% -51% -46% -47%
$25.97 $18.51 $12.60 $14.03 $13.71
Iowa City, IA $804,000 $606,000 $559,000 $646,000 $634,000 -25% -30% -20% -21%
$12.60 $9.50 $8.76 $10.12 $9.93
Sioux City, IA $2,276,000 $1,746,000 $1,406,000 $1,446,000 $1,420,000 -23% -38% -36% -38%
$27.05 $20.75 $16.72 $17.18 $16.88

CDBG Formula Targeting to Community Development Need
B-34

Total Grant Amount/
Per Capita Grant Amount
Alternative Change in Funding
Relative to FY 2004
Jurisdiction
Name FY 2004 Grant Alternative 1 Alternative 2 Alternative 3 Alternative 4 Alt. 1 Alt. 2 Alt. 3 Alt. 4
Waterloo, IA $1,647,000 $1,527,000 $1,231,000 $1,315,000 $1,284,000 -7% -25% -20% -22%
$24.31 $22.54 $18.18 $19.41 $18.96
Iowa State Program $30,975,000 $24,018,000 $22,886,000 $22,886,000 $23,453,000 -22% -26% -26% -24%
$14.76 $11.44 $10.90 $10.90 $11.17
TOTAL $48,205,000 $37,399,000 $34,286,000 $35,697,000 $36,007,000 -22% -29% -26% -25%
$16.42 $12.74 $11.68 $12.16 $12.26

Kansas
Johnson County, KS $1,427,000 $1,093,000 $1,222,000 $840,000 $829,000 -23% -14% -41% -42%
$5.23 $4.01 $4.48 $3.08 $3.04
Kansas City, KS $2,869,000 $3,092,000 $3,248,000 $3,976,000 $3,890,000 8% 13% 39% 36%
$19.52 $21.04 $22.10 $27.05 $26.46
Lawrence, KS $963,000 $701,000 $782,000 $822,000 $807,000 -27% -19% -15% -16%
$11.80 $8.59 $9.58 $10.08 $9.89
Leavenworth, KS $435,000 $307,000 $392,000 $477,000 $467,000 -30% -10% 10% 7%
$12.28 $8.66 $11.08 $13.48 $13.19
Overland Park, KS $778,000 $573,000 $554,000 $355,000 $351,000 -26% -29% -54% -55%
$4.91 $3.62 $3.50 $2.24 $2.22
Shawnee, KS $264,000 $191,000 $187,000 $131,000 $131,000 -27% -29% -50% -51%
$5.01 $3.63 $3.55 $2.49 $2.48
Topeka, KS $2,388,000 $2,157,000 $1,849,000 $1,972,000 $1,928,000 -10% -23% -17% -19%
$19.56 $17.66 $15.14 $16.15 $15.79
Wichita, KS $3,464,000 $4,111,000 $4,989,000 $4,912,000 $4,817,000 19% 44% 42% 39%
$9.75 $11.58 $14.05 $13.83 $13.56
Kansas State Program $20,158,000 $18,627,000 $18,550,000 $18,550,000 $19,346,000 -8% -8% -8% -4%
$13.54 $12.51 $12.46 $12.46 $12.99
TOTAL $32,746,000 $30,851,000 $31,774,000 $32,037,000 $32,567,000 -6% -3% -2% -1%
$12.06 $11.37 $11.71 $11.80 $12.00

Kentucky
Ashland, KY $842,000 $743,000 $489,000 $460,000 $446,000 -12% -42% -45% -47%
$38.98 $34.40 $22.64 $21.31 $20.66

CDBG Formula Targeting to Community Development Need
B-35

Total Grant Amount/
Per Capita Grant Amount
Alternative Change in Funding
Relative to FY 2004
Jurisdiction
Name FY 2004 Grant Alternative 1 Alternative 2 Alternative 3 Alternative 4 Alt. 1 Alt. 2 Alt. 3 Alt. 4
Bowling Green, KY $676,000 $643,000 $863,000 $876,000 $852,000 -5% 28% 30% 26%
$13.46 $12.79 $17.18 $17.45 $16.96
Covington, KY $2,018,000 $1,770,000 $1,169,000 $1,624,000 $1,585,000 -12% -42% -20% -21%
$46.95 $41.17 $27.19 $37.79 $36.89
Elizabethtown, KY $193,000 $193,000 $251,000 $198,000 $193,000 0% 30% 3% 0%
$8.36 $8.35 $10.87 $8.60 $8.36
Henderson, KY $306,000 $426,000 $498,000 $576,000 $558,000 39% 63% 88% 82%
$11.16 $15.55 $18.18 $21.00 $20.35
Hopkinsville, KY $346,000 $455,000 $579,000 $604,000 $586,000 31% 67% 74% 69%
$11.82 $15.53 $19.78 $20.62 $20.01
Jefferson County, KY $3,009,000 $2,736,000 $3,365,000 $2,692,000 $2,622,000 -9% 12% -11% -13%
$6.74 $6.12 $7.53 $6.03 $5.87
Lexington-Fayette, KY $2,505,000 $2,294,000 $2,948,000 $2,797,000 $2,729,000 -8% 18% 12% 9%
$9.50 $8.70 $11.18 $10.61 $10.35
Louisville, KY $11,324,000 $10,748,000 $7,339,000 $9,303,000 $9,070,000 -5% -35% -18% -20%
$45.04 $42.75 $29.19 $37.00 $36.08
Owensboro, KY $635,000 $890,000 $934,000 $984,000 $956,000 40% 47% 55% 51%
$11.72 $16.42 $17.24 $18.16 $17.65
Kentucky State Program $31,820,000 $39,521,000 $46,920,000 $46,920,000 $46,911,000 24% 47% 47% 47%
$11.04 $13.71 $16.28 $16.28 $16.27
TOTAL $53,674,000 $60,418,000 $65,355,000 $67,034,000 $66,508,000 13% 22% 25% 24%
$13.11 $14.76 $15.97 $16.38 $16.25

Louisiana
Alexandria, LA $802,000 $1,310,000 $1,431,000 $1,416,000 $1,373,000 63% 78% 77% 71%
$17.49 $28.56 $31.21 $30.89 $29.94
Baton Rouge, LA $5,096,000 $5,152,000 $6,804,000 $5,876,000 $5,722,000 1% 34% 15% 12%
$13.18 $13.32 $17.60 $15.20 $14.80
Bossier City, LA $633,000 $691,000 $932,000 $923,000 $897,000 9% 47% 46% 42%
$11.07 $12.09 $16.31 $16.14 $15.70
Houma-Terrebonne, LA $1,492,000 $1,768,000 $2,137,000 $1,964,000 $1,905,000 18% 43% 32% 28%
$14.12 $16.73 $20.23 $18.59 $18.03

CDBG Formula Targeting to Community Development Need
B-36

Total Grant Amount/
Per Capita Grant Amount
Alternative Change in Funding
Relative to FY 2004
Jurisdiction
Name FY 2004 Grant Alternative 1 Alternative 2 Alternative 3 Alternative 4 Alt. 1 Alt. 2 Alt. 3 Alt. 4
Jefferson Parish, LA $4,403,000 $4,762,000 $5,815,000 $4,997,000 $4,876,000 8% 32% 13% 11%
$11.52 $12.46 $15.21 $13.07 $12.75
Kenner, LA $827,000 $914,000 $1,046,000 $881,000 $860,000 11% 26% 6% 4%
$11.73 $12.97 $14.83 $12.49 $12.20
Lafayette, LA $1,976,000 $1,999,000 $2,515,000 $2,127,000 $2,073,000 1% 27% 8% 5%
$11.84 $11.98 $15.07 $12.74 $12.42
Lake Charles, LA $1,009,000 $1,349,000 $1,524,000 $1,466,000 $1,427,000 34% 51% 45% 41%
$14.27 $19.08 $21.54 $20.73 $20.17
Monroe, LA $1,063,000 $1,283,000 $1,652,000 $1,637,000 $1,585,000 21% 55% 54% 49%
$20.30 $24.50 $31.54 $31.26 $30.26
New Orleans, LA $18,071,000 $21,818,000 $18,145,000 $20,758,000 $20,261,000 21% 0% 15% 12%
$38.15 $46.06 $38.31 $43.82 $42.77
Shreveport, LA $3,167,000 $3,879,000 $5,062,000 $4,821,000 $4,683,000 22% 60% 52% 48%
$15.91 $19.49 $25.43 $24.22 $23.53
Slidell, LA $240,000 $249,000 $294,000 $254,000 $246,000 4% 23% 6% 2%
$9.07 $9.41 $11.13 $9.60 $9.29
Thibodaux, LA $248,000 $308,000 $355,000 $323,000 $314,000 24% 43% 30% 27%
$17.09 $21.23 $24.44 $22.24 $21.62
Louisiana State Program $34,125,000 $40,007,000 $42,495,000 $42,495,000 $43,705,000 17% 25% 25% 28%
$14.04 $16.46 $17.48 $17.48 $17.98
TOTAL $73,152,000 $85,489,000 $90,207,000 $89,937,000 $89,925,000 17% 23% 23% 23%
$16.32 $19.07 $20.13 $20.07 $20.06

Maine
Auburn, ME $763,000 $651,000 $439,000 $471,000 $460,000 -15% -42% -38% -40%
$32.97 $28.12 $18.97 $20.36 $19.89
Bangor, ME $1,252,000 $1,036,000 $625,000 $672,000 $656,000 -17% -50% -46% -48%
$39.69 $32.84 $19.83 $21.30 $20.80
Lewiston, ME $1,251,000 $1,344,000 $841,000 $1,038,000 $1,015,000 7% -33% -17% -19%
$35.09 $37.72 $23.60 $29.13 $28.47
Portland, ME $2,567,000 $1,879,000 $1,227,000 $1,389,000 $1,359,000 -27% -52% -46% -47%
$40.18 $29.42 $19.22 $21.75 $21.27

CDBG Formula Targeting to Community Development Need
B-37

Total Grant Amount/
Per Capita Grant Amount
Alternative Change in Funding
Relative to FY 2004
Jurisdiction
Name FY 2004 Grant Alternative 1 Alternative 2 Alternative 3 Alternative 4 Alt. 1 Alt. 2 Alt. 3 Alt. 4
South Portland, ME $542,000 $325,000 $217,000 $238,000 $233,000 -40% -60% -56% -57%
$23.31 $13.99 $9.31 $10.23 $10.00
Maine State Program $16,856,000 $14,217,000 $14,318,000 $14,318,000 $14,488,000 -16% -15% -15% -14%
$15.11 $12.75 $12.84 $12.84 $12.99
TOTAL $23,231,000 $19,453,000 $17,667,000 $18,126,000 $18,211,000 -16% -24% -22% -22%
$17.97 $15.05 $13.67 $14.02 $14.09

Maryland
Annapolis, MD $414,000 $378,000 $533,000 $457,000 $447,000 -9% 29% 10% 8%
$11.44 $10.44 $14.71 $12.63 $12.36
Anne Arundel County, MD $2,577,000 $2,128,000 $2,468,000 $2,007,000 $1,970,000 -17% -4% -22% -24%
$5.52 $4.56 $5.28 $4.30 $4.22
Baltimore, MD $28,468,000 $27,871,000 $20,156,000 $27,030,000 $26,378,000 -2% -29% -5% -7%
$44.58 $43.64 $31.56 $42.33 $41.31
Baltimore County, MD $5,094,000 $4,390,000 $5,969,000 $5,369,000 $5,265,000 -14% 17% 5% 3%
$6.61 $5.70 $7.75 $6.97 $6.84
Bowie City, MD $202,000 $120,000 $117,000 $97,000 $97,000 -41% -42% -52% -52%
$3.88 $2.30 $2.25 $1.86 $1.86
Cumberland, MD $1,216,000 $1,110,000 $648,000 $785,000 $764,000 -9% -47% -35% -37%
$57.68 $52.66 $30.72 $37.22 $36.24
Frederick, MD $469,000 $345,000 $476,000 $574,000 $564,000 -27% 1% 22% 20%
$8.37 $6.15 $8.49 $10.24 $10.06
Gaithersburg, MD $545,000 $552,000 $558,000 $526,000 $531,000 1% 2% -3% -3%
$9.68 $9.81 $9.91 $9.35 $9.44
Hagerstown, MD $1,159,000 $1,128,000 $897,000 $1,108,000 $1,078,000 -3% -23% -4% -7%
$31.62 $30.76 $24.47 $30.24 $29.42
Harford County, MD $1,270,000 $1,082,000 $1,308,000 $1,254,000 $1,224,000 -15% 3% -1% -4%
$5.58 $4.75 $5.74 $5.51 $5.37
Howard County, MD $1,409,000 $1,147,000 $1,216,000 $785,000 $776,000 -19% -14% -44% -45%
$5.42 $4.41 $4.67 $3.02 $2.98
Montgomery County, MD $6,221,000 $5,892,000 $6,220,000 $4,826,000 $4,817,000 -5% 0% -22% -23%
$7.40 $7.01 $7.40 $5.74 $5.73

CDBG Formula Targeting to Community Development Need
B-38

Total Grant Amount/
Per Capita Grant Amount
Alternative Change in Funding
Relative to FY 2004
Jurisdiction
Name FY 2004 Grant Alternative 1 Alternative 2 Alternative 3 Alternative 4 Alt. 1 Alt. 2 Alt. 3 Alt. 4
Prince Georges County, MD $7,445,000 $7,425,000 $8,930,000 $9,376,000 $9,364,000 0% 20% 26% 26%
$9.54 $9.52 $11.44 $12.02 $12.00
Salisbury, MD $360,000 $406,000 $510,000 $617,000 $601,000 13% 42% 71% 67%
$14.61 $16.46 $20.68 $25.04 $24.40
Maryland State Program $9,358,000 $8,243,000 $8,963,000 $8,963,000 $9,183,000 -12% -4% -4% -2%
$7.86 $6.92 $7.53 $7.53 $7.71
TOTAL $66,207,000 $62,217,000 $58,967,000 $63,775,000 $63,061,000 -6% -11% -4% -5%
$12.13 $11.40 $10.80 $11.68 $11.55

Massachusetts
Arlington, MA $1,558,000 $285,000 $261,000 $259,000 $254,000 -82% -83% -83% -84%
$36.97 $6.77 $6.19 $6.14 $6.03
Attleboro, MA $565,000 $381,000 $393,000 $390,000 $383,000 -33% -30% -31% -32%
$13.09 $8.83 $9.11 $9.02 $8.88
Barnstable, MA $425,000 $368,000 $475,000 $470,000 $458,000 -13% 12% 11% 8%
$8.70 $7.53 $9.72 $9.62 $9.37
Boston, MA $24,264,000 $20,365,000 $15,586,000 $18,890,000 $18,585,000 -16% -36% -22% -23%
$41.18 $34.56 $26.45 $32.06 $31.54
Brockton, MA $1,723,000 $1,802,000 $1,921,000 $2,467,000 $2,413,000 5% 11% 43% 40%
$18.05 $18.88 $20.13 $25.85 $25.29
Brookline, MA $1,918,000 $747,000 $645,000 $529,000 $523,000 -61% -66% -72% -73%
$33.63 $13.10 $11.32 $9.27 $9.16
Cambridge, MA $3,817,000 $1,870,000 $1,556,000 $1,673,000 $1,650,000 -51% -59% -56% -57%
$37.49 $18.37 $15.28 $16.43 $16.21
Chicopee, MA $1,561,000 $1,276,000 $949,000 $1,090,000 $1,065,000 -18% -39% -30% -32%
$28.47 $23.28 $17.32 $19.87 $19.42
Fall River, MA $3,603,000 $3,532,000 $2,605,000 $3,656,000 $3,572,000 -2% -28% 1% -1%
$38.88 $38.12 $28.11 $39.46 $38.55
Fitchburg, MA $1,414,000 $1,178,000 $889,000 $1,208,000 $1,182,000 -17% -37% -15% -16%
$35.59 $29.65 $22.37 $30.40 $29.75
Framingham, MA $645,000 $549,000 $724,000 $770,000 $760,000 -15% 12% 19% 18%
$9.65 $8.21 $10.84 $11.52 $11.37

CDBG Formula Targeting to Community Development Need
B-39

Total Grant Amount/
Per Capita Grant Amount
Alternative Change in Funding
Relative to FY 2004
Jurisdiction
Name FY 2004 Grant Alternative 1 Alternative 2 Alternative 3 Alternative 4 Alt. 1 Alt. 2 Alt. 3 Alt. 4
Gloucester, MA $942,000 $596,000 $452,000 $527,000 $515,000 -37% -52% -44% -45%
$30.72 $19.42 $14.75 $17.18 $16.79
Haverhill, MA $1,253,000 $913,000 $843,000 $1,027,000 $1,005,000 -27% -33% -18% -20%
$21.01 $15.32 $14.14 $17.22 $16.85
Holyoke, MA $1,636,000 $1,659,000 $1,429,000 $1,828,000 $1,784,000 1% -13% 12% 9%
$41.03 $41.60 $35.85 $45.84 $44.75
Lawrence, MA $2,046,000 $2,577,000 $2,583,000 $3,271,000 $3,202,000 26% 26% 60% 57%
$28.24 $35.57 $35.65 $45.14 $44.20
Leominster, MA $618,000 $553,000 $582,000 $646,000 $632,000 -11% -6% 4% 2%
$14.75 $13.19 $13.89 $15.41 $15.09
Lowell, MA $2,815,000 $2,799,000 $2,632,000 $3,412,000 $3,347,000 -1% -6% 21% 19%
$26.83 $26.68 $25.09 $32.53 $31.91
Lynn, MA $3,007,000 $2,650,000 $2,288,000 $2,954,000 $2,899,000 -12% -24% -2% -4%
$33.56 $29.58 $25.53 $32.97 $32.36
Malden, MA $1,857,000 $1,087,000 $846,000 $1,082,000 $1,068,000 -41% -54% -42% -42%
$33.07 $19.35 $15.06 $19.26 $19.02
Medford, MA $2,126,000 $980,000 $504,000 $706,000 $693,000 -54% -76% -67% -67%
$38.56 $17.77 $9.15 $12.80 $12.56
New Bedford, MA $3,585,000 $3,914,000 $2,953,000 $4,125,000 $4,026,000 9% -18% 15% 12%
$38.10 $41.60 $31.39 $43.84 $42.79
Newton, MA $2,700,000 $535,000 $522,000 $419,000 $410,000 -80% -81% -84% -85%
$32.19 $6.38 $6.22 $4.99 $4.89
Northampton, MA $898,000 $543,000 $319,000 $311,000 $305,000 -39% -64% -65% -66%
$30.99 $18.75 $11.02 $10.74 $10.53
Pittsfield, MA $1,793,000 $1,334,000 $815,000 $982,000 $959,000 -26% -55% -45% -47%
$39.82 $29.63 $18.10 $21.82 $21.31
Plymouth, MA $478,000 $280,000 $359,000 $405,000 $396,000 -41% -25% -15% -17%
$8.89 $5.21 $6.67 $7.53 $7.36
Quincy, MA $2,513,000 $1,187,000 $957,000 $970,000 $960,000 -53% -62% -61% -62%
$28.18 $13.31 $10.73 $10.88 $10.76
Salem, MA $1,352,000 $827,000 $608,000 $743,000 $730,000 -39% -55% -45% -46%
$32.08 $19.61 $14.42 $17.64 $17.32

CDBG Formula Targeting to Community Development Need
B-40

Total Grant Amount/
Per Capita Grant Amount
Alternative Change in Funding
Relative to FY 2004
Jurisdiction
Name FY 2004 Grant Alternative 1 Alternative 2 Alternative 3 Alternative 4 Alt. 1 Alt. 2 Alt. 3 Alt. 4
Somerville, MA $3,450,000 $2,097,000 $1,304,000 $1,770,000 $1,745,000 -39% -62% -49% -49%
$44.85 $27.26 $16.96 $23.01 $22.68
Springfield, MA $5,007,000 $5,215,000 $4,628,000 $6,006,000 $5,854,000 4% -8% 20% 17%
$32.96 $34.33 $30.46 $39.53 $38.53
Taunton, MA $1,022,000 $848,000 $819,000 $954,000 $930,000 -17% -20% -7% -9%
$18.04 $14.98 $14.46 $16.83 $16.43
Waltham, MA $1,280,000 $813,000 $562,000 $700,000 $694,000 -37% -56% -45% -46%
$21.67 $13.76 $9.52 $11.85 $11.75
Westfield, MA $539,000 $532,000 $546,000 $560,000 $547,000 -1% 1% 4% 1%
$13.37 $13.20 $13.54 $13.89 $13.57
Weymouth, MA $940,000 $535,000 $434,000 $491,000 $480,000 -43% -54% -48% -49%
$17.17 $9.77 $7.93 $8.97 $8.76
Worcester, MA $5,607,000 $5,314,000 $4,181,000 $5,554,000 $5,432,000 -5% -25% -1% -3%
$32.05 $30.37 $23.90 $31.74 $31.05
Yarmouth, MA $175,000 $146,000 $180,000 $192,000 $187,000 -17% 3% 10% 7%
$6.93 $5.77 $7.14 $7.61 $7.41
Massachusetts State Program $40,541,000 $26,721,000 $25,539,000 $25,539,000 $26,418,000 -34% -37% -37% -35%
$11.36 $7.49 $7.16 $7.16 $7.40
TOTAL $129,673,000 $97,008,000 $82,890,000 $96,572,000 $96,063,000 -25% -36% -26% -26%
$20.17 $15.09 $12.90 $15.02 $14.95

Michigan
Ann Arbor, MI $1,308,000 $1,119,000 $1,082,000 $1,164,000 $1,154,000 -14% -17% -11% -12%
$11.35 $9.71 $9.40 $10.10 $10.01
Battle Creek, MI $1,557,000 $1,443,000 $1,070,000 $1,196,000 $1,168,000 -7% -31% -23% -25%
$29.02 $26.90 $19.94 $22.29 $21.78
Bay City, MI $1,742,000 $1,371,000 $827,000 $1,102,000 $1,076,000 -21% -53% -37% -38%
$48.60 $38.25 $23.07 $30.75 $30.03
Benton Harbor, MI $572,000 $725,000 $625,000 $806,000 $783,000 27% 9% 41% 37%
$51.76 $65.56 $56.56 $72.89 $70.85
Canton Twp., MI $434,000 $358,000 $351,000 $223,000 $220,000 -17% -19% -49% -49%
$5.34 $4.40 $4.32 $2.74 $2.70

CDBG Formula Targeting to Community Development Need
B-41

Total Grant Amount/
Per Capita Grant Amount
Alternative Change in Funding
Relative to FY 2004
Jurisdiction
Name FY 2004 Grant Alternative 1 Alternative 2 Alternative 3 Alternative 4 Alt. 1 Alt. 2 Alt. 3 Alt. 4
Clinton Twp., MI $641,000 $575,000 $630,000 $602,000 $592,000 -10% -2% -6% -8%
$6.68 $5.99 $6.57 $6.28 $6.17
Dearborn, MI $2,485,000 $2,498,000 $2,133,000 $1,977,000 $1,930,000 1% -14% -20% -22%
$25.40 $25.54 $21.81 $20.21 $19.73 
Dearborn Heights, MI $1,282,000 $867,000 $458,000 $369,000 $362,000 -32% -64% -71% -72%
$22.09 $14.93 $7.90 $6.35 $6.24
Detroit, MI $45,828,000 $50,410,000 $35,975,000 $47,496,000 $46,373,000 10% -22% 4% 1%
$49.54 $54.49 $38.89 $51.34 $50.13
East Lansing, MI $727,000 $438,000 $423,000 $552,000 $544,000 -40% -42% -24% -25%
$15.71 $9.46 $9.15 $11.93 $11.77
Farmington Hills, MI $463,000 $376,000 $371,000 $250,000 $246,000 -19% -20% -46% -47%
$5.69 $4.62 $4.55 $3.07 $3.03
Flint, MI $5,216,000 $5,373,000 $4,232,000 $5,447,000 $5,303,000 3% -19% 4% 2%
$42.84 $44.13 $34.76 $44.73 $43.55
Genesee County, MI $2,257,000 $2,111,000 $2,759,000 $3,276,000 $3,194,000 -6% 22% 45% 42%
$7.23 $6.76 $8.84 $10.49 $10.23
Grand Rapids, MI $4,737,000 $4,641,000 $4,191,000 $5,200,000 $5,089,000 -2% -12% 10% 7%
$24.10 $23.61 $21.32 $26.45 $25.88
Holland, MI $386,000 $302,000 $391,000 $436,000 $430,000 -22% 1% 13% 11%
$11.13 $8.72 $11.27 $12.58 $12.38
Jackson, MI $1,677,000 $1,478,000 $1,017,000 $1,394,000 $1,360,000 -12% -39% -17% -19%
$47.22 $41.63 $28.64 $39.25 $38.30
Kalamazoo, MI $2,166,000 $2,011,000 $1,558,000 $2,054,000 $2,009,000 -7% -28% -5% -7%
$28.55 $26.51 $20.54 $27.07 $26.49
Kent County, MI $1,838,000 $1,526,000 $1,778,000 $1,232,000 $1,209,000 -17% -3% -33% -34%
$5.78 $4.80 $5.59 $3.88 $3.80
Lansing, MI $2,536,000 $2,524,000 $2,485,000 $3,067,000 $2,998,000 0% -2% 21% 18%
$21.38 $21.28 $20.96 $25.86 $25.28
Lincoln Park, MI $989,000 $773,000 $450,000 $455,000 $447,000 -22% -54% -54% -55%
$24.94 $19.49 $11.36 $11.48 $11.27
Livonia, MI $487,000 $379,000 $384,000 $261,000 $256,000 -22% -21% -46% -47%
$4.85 $3.78 $3.83 $2.60 $2.55

CDBG Formula Targeting to Community Development Need
B-42

Total Grant Amount/
Per Capita Grant Amount
Alternative Change in Funding
Relative to FY 2004
Jurisdiction
Name FY 2004 Grant Alternative 1 Alternative 2 Alternative 3 Alternative 4 Alt. 1 Alt. 2 Alt. 3 Alt. 4
Macomb County, MI $1,984,000 $1,691,000 $1,991,000 $2,061,000 $2,022,000 -15% 0% 4% 2%
$5.87 $5.00 $5.89 $6.10 $5.99
Midland, MI $303,000 $257,000 $344,000 $257,000 $250,000 -15% 13% -15% -18%
$7.20 $6.11 $8.16 $6.12 $5.94
Monroe, MI $629,000 $534,000 $412,000 $501,000 $489,000 -15% -35% -20% -22%
$28.55 $24.24 $18.70 $22.76 $22.21
Muskegon, MI $1,212,000 $1,196,000 $994,000 $1,292,000 $1,261,000 -1% -18% 7% 4%
$30.74 $30.33 $25.20 $32.77 $31.98
Muskegon Heights, MI $569,000 $727,000 $548,000 $740,000 $721,000 28% -4% 30% 27%
$47.99 $61.29 $46.18 $62.42 $60.82
Niles, MI $397,000 $303,000 $232,000 $291,000 $284,000 -24% -42% -27% -28%
$33.16 $25.29 $19.34 $24.28 $23.76
Norton Shores, MI $153,000 $135,000 $146,000 $116,000 $113,000 -12% -5% -24% -26%
$6.63 $5.83 $6.30 $5.01 $4.89
Oakland County, MI $3,811,000 $3,225,000 $3,837,000 $3,210,000 $3,154,000 -15% 1% -16% -17%
$5.89 $4.99 $5.93 $4.96 $4.88
Pontiac, MI $1,900,000 $1,992,000 $1,876,000 $2,286,000 $2,240,000 5% -1% 20% 18%
$28.73 $30.12 $28.36 $34.56 $33.88
Port Huron, MI $1,023,000 $919,000 $724,000 $973,000 $948,000 -10% -29% -5% -7%
$31.67 $28.46 $22.42 $30.12 $29.33
Portage, MI $262,000 $203,000 $229,000 $164,000 $162,000 -22% -13% -37% -38%
$5.80 $4.50 $5.07 $3.64 $3.58
Redford, MI $1,161,000 $772,000 $374,000 $317,000 $313,000 -34% -68% -73% -73%
$22.65 $15.06 $7.30 $6.18 $6.10
Rochester Hills, MI $359,000 $292,000 $287,000 $202,000 $199,000 -19% -20% -44% -45%
$5.23 $4.25 $4.18 $2.94 $2.90
Roseville, MI $672,000 $548,000 $453,000 $543,000 $531,000 -18% -33% -19% -21%
$13.90 $11.33 $9.38 $11.24 $10.98
Royal Oak, MI $1,650,000 $258,000 $298,000 $277,000 $273,000 -84% -82% -83% -83%
$27.86 $4.35 $5.04 $4.67 $4.61
Saginaw, MI $3,016,000 $3,115,000 $2,398,000 $3,154,000 $3,071,000 3% -20% 5% 2%
$50.19 $51.83 $39.90 $52.49 $51.10

CDBG Formula Targeting to Community Development Need
B-43

Total Grant Amount/
Per Capita Grant Amount
Alternative Change in Funding
Relative to FY 2004
Jurisdiction
Name FY 2004 Grant Alternative 1 Alternative 2 Alternative 3 Alternative 4 Alt. 1 Alt. 2 Alt. 3 Alt. 4
Southfield, MI $629,000 $593,000 $702,000 $619,000 $611,000 -6% 12% -2% -3%
$8.08 $7.62 $9.02 $7.96 $7.85
St. Clair Shores, MI $1,116,000 $680,000 $314,000 $337,000 $331,000 -39% -72% -70% -70%
$17.79 $10.83 $5.00 $5.37 $5.27
Sterling Heights, MI $828,000 $770,000 $757,000 $726,000 $714,000 -7% -9% -12% -14%
$6.56 $6.10 $6.00 $5.75 $5.66
Taylor, MI $620,000 $656,000 $839,000 $786,000 $767,000 6% 35% 27% 24%
$9.41 $9.95 $12.74 $11.93 $11.64
Troy City, MI $429,000 $342,000 $310,000 $200,000 $201,000 -20% -28% -53% -53%
$5.30 $4.23 $3.83 $2.47 $2.48
Warren, MI $1,053,000 $1,000,000 $1,230,000 $1,433,000 $1,405,000 -5% 17% 36% 33%
$7.65 $7.26 $8.94 $10.41 $10.21
Washtenaw County, MI $906,000 $850,000 $1,001,000 $876,000 $861,000 -6% 10% -3% -5%
$8.60 $8.07 $9.50 $8.31 $8.17
Waterford Twp., MI $451,000 $365,000 $449,000 $436,000 $429,000 -19% 0% -3% -5%
$6.12 $4.95 $6.10 $5.91 $5.83
Wayne County, MI $6,543,000 $6,330,000 $6,303,000 $6,981,000 $6,836,000 -3% -4% 7% 4%
$12.12 $11.72 $11.67 $12.93 $12.66
Westland, MI $1,270,000 $971,000 $744,000 $601,000 $593,000 -24% -41% -53% -53%
$14.72 $11.26 $8.63 $6.96 $6.87
Wyoming, MI $573,000 $540,000 $670,000 $650,000 $643,000 -6% 17% 13% 12%
$8.15 $7.68 $9.52 $9.25 $9.15
Michigan State Program $42,906,000 $34,545,000 $36,630,000 $36,630,000 $37,950,000 -19% -15% -15% -12%
$10.47 $8.43 $8.94 $8.94 $9.26
TOTAL $155,753,000 $145,106,000 $128,285,000 $145,217,000 $144,117,000 -7% -18% -7% -7%
$15.51 $14.45 $12.77 $14.46 $14.35

Minnesota
Anoka County, MN $1,359,000 $1,118,000 $1,199,000 $1,177,000 $1,162,000 -18% -12% -13% -15%
$5.49 $4.51 $4.84 $4.76 $4.69
Bloomington, MN $501,000 $394,000 $413,000 $302,000 $302,000 -21% -18% -40% -40%
$5.96 $4.69 $4.91 $3.59 $3.59

CDBG Formula Targeting to Community Development Need
B-44

Total Grant Amount/
Per Capita Grant Amount
Alternative Change in Funding
Relative to FY 2004
Jurisdiction
Name FY 2004 Grant Alternative 1 Alternative 2 Alternative 3 Alternative 4 Alt. 1 Alt. 2 Alt. 3 Alt. 4
Coon Rapids, MN $374,000 $331,000 $374,000 $368,000 $362,000 -11% 0% -2% -3%
$6.00 $5.31 $6.01 $5.90 $5.81
Dakota County, MN $2,058,000 $1,621,000 $1,810,000 $1,567,000 $1,552,000 -21% -12% -24% -25%
$5.35 $4.21 $4.71 $4.08 $4.04
Duluth, MN $3,402,000 $2,757,000 $1,641,000 $1,868,000 $1,829,000 -19% -52% -45% -46%
$39.37 $31.90 $18.99 $21.62 $21.17
Hennepin County, MN $3,514,000 $2,887,000 $3,120,000 $2,209,000 $2,195,000 -18% -11% -37% -38%
$5.85 $4.81 $5.20 $3.68 $3.66
Minneapolis, MN $16,313,000 $11,040,000 $8,333,000 $9,808,000 $9,660,000 -32% -49% -40% -41%
$43.43 $29.39 $22.18 $26.11 $25.72
Moorhead, MN $341,000 $254,000 $338,000 $381,000 $370,000 -26% -1% 12% 9%
$10.47 $7.79 $10.37 $11.68 $11.37
Plymouth, MN $317,000 $213,000 $205,000 $127,000 $127,000 -33% -35% -60% -60%
$4.71 $3.17 $3.04 $1.88 $1.89
Ramsey County, MN $1,286,000 $1,018,000 $1,137,000 $948,000 $937,000 -21% -12% -26% -27%
$5.67 $4.49 $5.02 $4.18 $4.13
Rochester, MN $674,000 $591,000 $780,000 $714,000 $701,000 -12% 16% 6% 4%
$7.45 $6.52 $8.62 $7.89 $7.75
St. Cloud, MN $576,000 $382,000 $470,000 $458,000 $450,000 -34% -18% -20% -22%
$9.64 $6.39 $7.87 $7.67 $7.53
St. Louis County, MN $2,931,000 $2,122,000 $1,428,000 $1,505,000 $1,471,000 -28% -51% -49% -50%
$26.00 $18.82 $12.67 $13.35 $13.05
St. Paul, MN $9,526,000 $6,507,000 $5,907,000 $7,228,000 $7,105,000 -32% -38% -24% -25%
$33.54 $22.91 $20.80 $25.45 $25.01
Washington County, MN $960,000 $718,000 $763,000 $637,000 $628,000 -25% -21% -34% -35%
$4.65 $3.48 $3.69 $3.08 $3.04
Minnesota State Program $24,290,000 $19,719,000 $19,622,000 $19,622,000 $20,338,000 -19% -19% -19% -16%
$11.68 $9.48 $9.43 $9.43 $9.78
TOTAL $68,422,000 $51,671,000 $47,542,000 $48,920,000 $49,191,000 -24% -31% -29% -28%
$13.68 $10.33 $9.51 $9.78 $9.84

CDBG Formula Targeting to Community Development Need
B-45

Total Grant Amount/
Per Capita Grant Amount
Alternative Change in Funding
Relative to FY 2004
Jurisdiction
Name FY 2004 Grant Alternative 1 Alternative 2 Alternative 3 Alternative 4 Alt. 1 Alt. 2 Alt. 3 Alt. 4

Mississippi
Biloxi, MS $580,000 $687,000 $817,000 $773,000 $756,000 18% 41% 33% 30%
$11.64 $13.79 $16.41 $15.52 $15.17
Gulfport, MS $928,000 $1,015,000 $1,319,000 $1,250,000 $1,216,000 9% 42% 35% 31%
$12.80 $14.00 $18.19 $17.23 $16.77
Hattiesburg, MS $748,000 $795,000 $1,023,000 $1,066,000 $1,034,000 6% 37% 42% 38%
$16.34 $17.38 $22.36 $23.28 $22.59
Jackson, MS $3,060,000 $3,573,000 $4,644,000 $4,687,000 $4,561,000 17% 52% 53% 49%
$16.92 $19.75 $25.67 $25.91 $25.22
Moss Point, MS $214,000 $249,000 $341,000 $365,000 $355,000 17% 60% 70% 66%
$13.83 $16.12 $22.06 $23.57 $22.95
Pascagoula, MS $376,000 $440,000 $561,000 $536,000 $520,000 17% 49% 43% 38%
$14.47 $16.93 $21.59 $20.64 $20.02
Mississippi State Program $35,331,000 $41,512,000 $44,414,000 $44,414,000 $45,579,000 17% 26% 26% 29%
$14.27 $16.76 $17.93 $17.93 $18.41
TOTAL $41,237,000 $48,272,000 $53,119,000 $53,091,000 $54,022,000 17% 29% 29% 31%
$14.38 $16.84 $18.53 $18.52 $18.84

Missouri
Columbia, MO $1,010,000 $793,000 $935,000 $954,000 $931,000 -21% -7% -6% -8%
$11.61 $9.12 $10.75 $10.96 $10.70
Florissant, MO $274,000 $226,000 $282,000 $279,000 $275,000 -18% 3% 2% 0%
$5.48 $4.52 $5.64 $5.57 $5.50
Independence, MO $911,000 $964,000 $1,245,000 $1,473,000 $1,439,000 6% 37% 62% 58%
$8.06 $8.53 $11.01 $13.03 $12.73
Jefferson City, MO $381,000 $383,000 $441,000 $403,000 $392,000 0% 16% 6% 3%
$9.75 $9.79 $11.28 $10.31 $10.02
Jefferson County, MO $1,379,000 $1,279,000 $1,536,000 $1,648,000 $1,609,000 -7% 11% 20% 17%
$6.78 $6.29 $7.56 $8.11 $7.91
Joplin, MO $814,000 $890,000 $794,000 $798,000 $777,000 9% -2% -2% -5%
$17.62 $19.27 $17.20 $17.27 $16.83

CDBG Formula Targeting to Community Development Need
B-46

Total Grant Amount/
Per Capita Grant Amount
Alternative Change in Funding
Relative to FY 2004
Jurisdiction
Name FY 2004 Grant Alternative 1 Alternative 2 Alternative 3 Alternative 4 Alt. 1 Alt. 2 Alt. 3 Alt. 4
Kansas City, MO $10,741,000 $9,918,000 $8,379,000 $9,582,000 $9,377,000 -8% -22% -11% -13%
$24.22 $22.36 $18.89 $21.61 $21.14
Lees Summit, MO $367,000 $293,000 $329,000 $256,000 $250,000 -20% -10% -30% -32%
$4.90 $3.92 $4.39 $3.42 $3.34
O'Fallon, MO $269,000 $206,000 $197,000 $179,000 $176,000 -24% -27% -34% -35%
$4.51 $3.45 $3.31 $2.99 $2.94
Springfield, MO $1,637,000 $2,070,000 $2,230,000 $2,377,000 $2,317,000 26% 36% 45% 42%
$10.84 $13.71 $14.77 $15.74 $15.34
St. Charles, MO $380,000 $328,000 $422,000 $385,000 $376,000 -14% 11% 1% -1%
$6.25 $5.39 $6.94 $6.34 $6.19
St. Joseph, MO $2,132,000 $1,833,000 $1,272,000 $1,410,000 $1,376,000 -14% -40% -34% -35%
$29.15 $25.05 $17.39 $19.28 $18.81
St. Louis, MO $24,897,000 $21,133,000 $12,465,000 $17,008,000 $16,607,000 -15% -50% -32% -33%
$73.58 $62.46 $36.84 $50.27 $49.08
St. Louis County, MO $6,480,000 $5,903,000 $8,265,000 $6,755,000 $6,601,000 -9% 28% 4% 2%
$7.00 $6.38 $8.93 $7.30 $7.13
St. Peters City, MO $232,000 $165,000 $174,000 $153,000 $150,000 -29% -25% -34% -35%
$4.33 $3.07 $3.24 $2.85 $2.80
Missouri State Program $28,398,000 $33,048,000 $36,815,000 $36,815,000 $37,549,000 16% 30% 30% 32%
$9.61 $11.19 $12.46 $12.46 $12.71
TOTAL $80,302,000 $79,431,000 $75,781,000 $80,474,000 $80,201,000 -1% -6% 0% 0%
$14.16 $14.00 $13.36 $14.19 $14.14

Montana
Billings, MT $843,000 $940,000 $1,180,000 $1,179,000 $1,148,000 12% 40% 40% 36%
$9.16 $10.22 $12.82 $12.81 $12.48
Great Falls, MT $1,157,000 $1,283,000 $1,066,000 $1,101,000 $1,074,000 11% -8% -5% -7%
$20.64 $22.88 $19.02 $19.64 $19.16
Missoula, MT $752,000 $983,000 $970,000 $1,071,000 $1,047,000 31% 29% 42% 39%
$12.63 $16.52 $16.30 $17.99 $17.59
Montana State Program $8,012,000 $8,751,000 $9,158,000 $9,158,000 $9,444,000 9% 14% 14% 18%
$12.07 $13.18 $13.79 $13.79 $14.22

CDBG Formula Targeting to Community Development Need
B-47

Total Grant Amount/
Per Capita Grant Amount
Alternative Change in Funding
Relative to FY 2004
Jurisdiction
Name FY 2004 Grant Alternative 1 Alternative 2 Alternative 3 Alternative 4 Alt. 1 Alt. 2 Alt. 3 Alt. 4
TOTAL $10,764,000 $11,957,000 $12,374,000 $12,508,000 $12,712,000 11% 15% 16% 18%
$12.35 $13.72 $14.20 $14.35 $14.59

Nebraska
Lincoln, NE $2,131,000 $1,784,000 $2,242,000 $2,223,000 $2,185,000 -16% 5% 4% 3%
$9.17 $7.68 $9.65 $9.57 $9.40
Omaha, NE $6,115,000 $5,640,000 $5,714,000 $5,830,000 $5,714,000 -8% -7% -5% -7%
$15.31 $14.12 $14.31 $14.60 $14.31
Nebraska State Program $14,711,000 $12,803,000 $12,661,000 $12,661,000 $13,095,000 -13% -14% -14% -11%
$13.46 $11.71 $11.58 $11.58 $11.98
TOTAL $22,957,000 $20,226,000 $20,617,000 $20,714,000 $20,993,000 -12% -10% -10% -9%
$13.31 $11.73 $11.95 $12.01 $12.17

Nevada
Carson City, NV $536,000 $553,000 $606,000 $505,000 $500,000 3% 13% -6% -7%
$9.87 $10.19 $11.16 $9.30 $9.20
Clark County, NV $7,390,000 $7,551,000 $7,581,000 $6,064,000 $6,055,000 2% 3% -18% -18%
$11.01 $11.25 $11.29 $9.03 $9.02
Henderson, NV $1,299,000 $1,119,000 $1,164,000 $796,000 $788,000 -14% -10% -39% -39%
$6.30 $5.43 $5.65 $3.86 $3.82
Las Vegas, NV $6,122,000 $6,525,000 $6,776,000 $5,355,000 $5,320,000 7% 11% -13% -13%
$12.04 $12.83 $13.32 $10.53 $10.46
North Las Vegas, NV $1,841,000 $2,131,000 $2,156,000 $2,128,000 $2,111,000 16% 17% 16% 15%
$13.55 $15.68 $15.87 $15.66 $15.54
Reno, NV $2,424,000 $2,417,000 $2,673,000 $2,389,000 $2,384,000 0% 10% -1% -2%
$12.74 $12.71 $14.05 $12.56 $12.53
Sparks, NV $729,000 $758,000 $781,000 $704,000 $707,000 4% 7% -3% -3%
$9.89 $10.27 $10.59 $9.55 $9.59
Nevada State Program $3,176,000 $3,172,000 $2,240,000 $2,240,000 $2,548,000 0% -29% -29% -20%
$9.74 $9.73 $6.87 $6.87 $7.82
TOTAL $23,517,000 $24,226,000 $23,976,000 $20,181,000 $20,413,000 3% 2% -14% -13%
$10.86 $11.18 $11.07 $9.32 $9.42

CDBG Formula Targeting to Community Development Need
B-48

Total Grant Amount/
Per Capita Grant Amount
Alternative Change in Funding
Relative to FY 2004
Jurisdiction
Name FY 2004 Grant Alternative 1 Alternative 2 Alternative 3 Alternative 4 Alt. 1 Alt. 2 Alt. 3 Alt. 4

New Hampshire
Dover, NH $425,000 $256,000 $256,000 $293,000 $287,000 -40% -40% -31% -32%
$15.30 $9.22 $9.23 $10.54 $10.33
Manchester, NH $2,227,000 $1,834,000 $1,652,000 $2,079,000 $2,037,000 -18% -26% -7% -9%
$20.54 $16.92 $15.24 $19.18 $18.79
Nashua, NH $890,000 $794,000 $872,000 $899,000 $882,000 -11% -2% 1% -1%
$10.15 $9.05 $9.94 $10.25 $10.05
Portsmouth, NH $789,000 $300,000 $239,000 $233,000 $227,000 -62% -70% -70% -71%
$37.49 $14.25 $11.37 $11.06 $10.81
Rochester, NH $369,000 $296,000 $329,000 $428,000 $418,000 -20% -11% 16% 13%
$12.57 $10.10 $11.21 $14.58 $14.23
New Hampshire State Program $10,765,000 $7,003,000 $6,947,000 $6,947,000 $7,177,000 -35% -35% -35% -33%
$10.76 $7.00 $6.94 $6.94 $7.17
TOTAL $15,465,000 $10,484,000 $10,295,000 $10,879,000 $11,027,000 -32% -33% -30% -29%
$12.13 $8.22 $8.07 $8.53 $8.65

New Jersey
Asbury Park, NJ $540,000 $722,000 $744,000 $933,000 $914,000 34% 38% 73% 69%
$32.15 $43.02 $44.28 $55.56 $54.44
Atlantic City, NJ $1,651,000 $1,449,000 $1,269,000 $1,524,000 $1,502,000 -12% -23% -8% -9%
$41.10 $36.07 $31.58 $37.94 $37.38
Atlantic County, NJ $1,708,000 $1,658,000 $2,029,000 $1,766,000 $1,735,000 -3% 19% 3% 2%
$7.95 $7.72 $9.45 $8.22 $8.08
Bayonne, NJ $2,255,000 $1,600,000 $1,095,000 $1,331,000 $1,307,000 -29% -51% -41% -42%
$36.60 $25.96 $17.78 $21.61 $21.22
Bergen County, NJ $12,648,000 $5,727,000 $7,166,000 $5,056,000 $5,019,000 -55% -43% -60% -60%
$14.13 $6.40 $8.01 $5.65 $5.61
Bloomfield, NJ $1,350,000 $733,000 $505,000 $563,000 $557,000 -46% -63% -58% -59%
$28.41 $15.42 $10.62 $11.85 $11.73
Brick Twp., NJ $438,000 $374,000 $419,000 $442,000 $433,000 -15% -4% 1% -1%
$5.63 $4.81 $5.38 $5.68 $5.57

CDBG Formula Targeting to Community Development Need
B-49

Total Grant Amount/
Per Capita Grant Amount
Alternative Change in Funding
Relative to FY 2004
Jurisdiction
Name FY 2004 Grant Alternative 1 Alternative 2 Alternative 3 Alternative 4 Alt. 1 Alt. 2 Alt. 3 Alt. 4
Bridgeton, NJ $521,000 $652,000 $678,000 $849,000 $828,000 25% 30% 63% 59%
$23.00 $28.76 $29.94 $37.46 $36.55
Burlington County, NJ $1,960,000 $1,607,000 $1,915,000 $1,566,000 $1,539,000 -18% -2% -20% -21%
$5.33 $4.37 $5.21 $4.26 $4.18
Camden, NJ $3,425,000 $4,249,000 $3,876,000 $4,868,000 $4,758,000 24% 13% 42% 39%
$42.98 $53.32 $48.64 $61.09 $59.71
Camden County, NJ $3,037,000 $1,855,000 $2,398,000 $2,358,000 $2,316,000 -39% -21% -22% -24%
$10.66 $6.51 $8.42 $8.28 $8.13
Cherry Hill, NJ $529,000 $297,000 $298,000 $200,000 $196,000 -44% -44% -62% -63%
$7.52 $4.23 $4.24 $2.85 $2.79
Clifton, NJ $1,705,000 $1,167,000 $878,000 $905,000 $896,000 -32% -48% -47% -47%
$21.41 $14.66 $11.03 $11.37 $11.25
Dover Twp., NJ $553,000 $486,000 $553,000 $591,000 $576,000 -12% 0% 7% 4%
$5.95 $5.23 $5.96 $6.36 $6.20
East Orange, NJ $1,999,000 $2,078,000 $2,017,000 $2,484,000 $2,447,000 4% 1% 24% 22%
$28.66 $29.80 $28.92 $35.62 $35.08
Edison, NJ $790,000 $743,000 $718,000 $528,000 $535,000 -6% -9% -33% -32%
$7.91 $7.43 $7.19 $5.29 $5.36
Elizabeth, NJ $2,480,000 $2,973,000 $3,402,000 $4,027,000 $3,982,000 20% 37% 62% 61%
$20.12 $24.11 $27.60 $32.66 $32.30
Essex County, NJ $7,217,000 $2,601,000 $3,086,000 $2,362,000 $2,327,000 -64% -57% -67% -68%
$21.01 $7.57 $8.98 $6.88 $6.77
Ewing Twp., NJ $245,000 $225,000 $240,000 $281,000 $275,000 -8% -2% 15% 12%
$6.78 $6.24 $6.64 $7.76 $7.62
Franklin Twp., NJ $388,000 $337,000 $358,000 $272,000 $273,000 -13% -8% -30% -30%
$6.97 $6.05 $6.44 $4.89 $4.91
Gloucester County, NJ $1,783,000 $1,517,000 $1,913,000 $2,012,000 $1,966,000 -15% 7% 13% 10%
$6.80 $5.79 $7.30 $7.68 $7.50
Gloucester Twp., NJ $432,000 $370,000 $431,000 $413,000 $405,000 -14% 0% -4% -6%
$6.58 $5.64 $6.56 $6.28 $6.16
Hamilton Twp., NJ $674,000 $482,000 $575,000 $619,000 $610,000 -28% -15% -8% -9%
$7.58 $5.42 $6.47 $6.97 $6.86

CDBG Formula Targeting to Community Development Need
B-50

Total Grant Amount/
Per Capita Grant Amount
Alternative Change in Funding
Relative to FY 2004
Jurisdiction
Name FY 2004 Grant Alternative 1 Alternative 2 Alternative 3 Alternative 4 Alt. 1 Alt. 2 Alt. 3 Alt. 4
Hudson County, NJ $4,402,000 $3,597,000 $3,596,000 $3,265,000 $3,230,000 -18% -18% -26% -27%
$23.95 $19.57 $19.57 $17.76 $17.57
Irvington, NJ $1,261,000 $1,446,000 $1,640,000 $1,944,000 $1,920,000 15% 30% 54% 52%
$20.84 $23.89 $27.10 $32.13 $31.72
Jersey City, NJ $7,932,000 $7,979,000 $7,270,000 $8,997,000 $8,873,000 1% -8% 13% 12%
$33.04 $33.23 $30.28 $37.47 $36.96
Lakewood Twp., NJ $943,000 $1,163,000 $1,300,000 $1,450,000 $1,409,000 23% 38% 54% 49%
$14.46 $17.83 $19.93 $22.23 $21.61
Long Branch, NJ $617,000 $650,000 $706,000 $876,000 $858,000 5% 14% 42% 39%
$19.54 $20.60 $22.36 $27.76 $27.19
Middlesex County, NJ $2,370,000 $2,052,000 $2,257,000 $1,923,000 $1,919,000 -13% -5% -19% -19%
$6.36 $5.50 $6.05 $5.16 $5.15
Middletown, NJ $348,000 $239,000 $274,000 $226,000 $222,000 -31% -21% -35% -36%
$5.29 $3.63 $4.17 $3.44 $3.37
Millville, NJ $353,000 $447,000 $529,000 $501,000 $488,000 27% 50% 42% 38%
$13.11 $16.61 $19.66 $18.62 $18.13
Monmouth County, NJ $3,780,000 $2,706,000 $3,332,000 $2,904,000 $2,841,000 -28% -12% -23% -25%
$7.42 $5.31 $6.54 $5.70 $5.57
Morris County, NJ $2,732,000 $1,632,000 $1,894,000 $1,372,000 $1,350,000 -40% -31% -50% -51%
$6.67 $3.98 $4.62 $3.35 $3.29
New Brunswick, NJ $971,000 $1,014,000 $1,221,000 $1,429,000 $1,417,000 4% 26% 47% 46%
$19.66 $20.53 $24.72 $28.93 $28.68
Newark, NJ $10,651,000 $11,928,000 $10,333,000 $12,872,000 $12,598,000 12% -3% 21% 18%
$38.45 $43.06 $37.30 $46.47 $45.48
North Bergen Twp., NJ $795,000 $846,000 $1,084,000 $1,247,000 $1,235,000 6% 36% 57% 55%
$13.47 $14.33 $18.37 $21.12 $20.93
Ocean City, NJ $364,000 $145,000 $141,000 $114,000 $112,000 -60% -61% -69% -69%
$23.46 $9.33 $9.06 $7.35 $7.20
Ocean County, NJ $1,713,000 $1,485,000 $1,649,000 $1,911,000 $1,857,000 -13% -4% 12% 8%
$5.69 $4.93 $5.48 $6.35 $6.17
Old Bridge Twp., NJ $397,000 $360,000 $363,000 $323,000 $321,000 -9% -9% -19% -19%
$6.30 $5.70 $5.76 $5.11 $5.09

CDBG Formula Targeting to Community Development Need
B-51

Total Grant Amount/
Per Capita Grant Amount
Alternative Change in Funding
Relative to FY 2004
Jurisdiction
Name FY 2004 Grant Alternative 1 Alternative 2 Alternative 3 Alternative 4 Alt. 1 Alt. 2 Alt. 3 Alt. 4
Parsippany-Troy Hills, NJ $350,000 $319,000 $313,000 $227,000 $229,000 -9% -10% -35% -35%
$6.87 $6.25 $6.15 $4.46 $4.49
Passaic, NJ $1,405,000 $1,936,000 $2,361,000 $2,780,000 $2,748,000 38% 68% 98% 96%
$20.53 $28.28 $34.50 $40.62 $40.15
Paterson, NJ $3,417,000 $4,468,000 $4,905,000 $5,921,000 $5,821,000 31% 44% 73% 70%
$22.67 $29.64 $32.54 $39.27 $38.62
Perth Amboy, NJ $827,000 $980,000 $1,283,000 $1,475,000 $1,458,000 18% 55% 78% 76%
$17.18 $20.35 $26.65 $30.63 $30.29
Sayreville, NJ $282,000 $259,000 $277,000 $275,000 $273,000 -8% -2% -3% -3%
$6.75 $6.19 $6.63 $6.57 $6.54
Somerset County, NJ $1,502,000 $1,199,000 $1,379,000 $950,000 $944,000 -20% -8% -37% -37%
$6.05 $4.83 $5.55 $3.82 $3.80
Trenton, NJ $3,686,000 $3,331,000 $2,639,000 $3,431,000 $3,362,000 -10% -28% -7% -9%
$43.04 $38.89 $30.81 $40.06 $39.25
Union, NJ $782,000 $523,000 $413,000 $474,000 $468,000 -33% -47% -39% -40%
$14.08 $9.42 $7.44 $8.53 $8.42
Union City, NJ $1,548,000 $2,166,000 $2,546,000 $3,024,000 $2,999,000 40% 64% 95% 94%
$23.14 $32.38 $38.06 $45.20 $44.83
Union County, NJ $6,316,000 $2,446,000 $3,212,000 $2,810,000 $2,776,000 -61% -49% -56% -56%
$17.95 $6.95 $9.13 $7.98 $7.89
Vineland, NJ $666,000 $694,000 $923,000 $802,000 $787,000 4% 39% 20% 18%
$11.82 $12.32 $16.38 $14.24 $13.97
Wayne Twp., NJ $245,000 $180,000 $180,000 $127,000 $124,000 -26% -27% -48% -49%
$4.46 $3.29 $3.27 $2.31 $2.26
Woodbridge, NJ $733,000 $627,000 $694,000 $686,000 $686,000 -14% -5% -6% -6%
$7.30 $6.25 $6.91 $6.83 $6.83
New Jersey State Program $9,403,000 $6,688,000 $6,725,000 $6,725,000 $7,099,000 -29% -28% -28% -25%
$9.57 $6.81 $6.84 $6.84 $7.22
TOTAL $119,119,000 $97,405,000 $102,004,000 $107,011,000 $105,822,000 -18% -14% -10% -11%
$13.87 $11.34 $11.87 $12.46 $12.32

CDBG Formula Targeting to Community Development Need
B-52

Total Grant Amount/
Per Capita Grant Amount
Alternative Change in Funding
Relative to FY 2004
Jurisdiction
Name FY 2004 Grant Alternative 1 Alternative 2 Alternative 3 Alternative 4 Alt. 1 Alt. 2 Alt. 3 Alt. 4

New Mexico
Albuquerque, NM $5,249,000 $5,236,000 $6,473,000 $5,604,000 $5,496,000 0% 23% 7% 5%
$11.32 $11.29 $13.96 $12.08 $11.85
Farmington, NM $520,000 $586,000 $648,000 $438,000 $428,000 13% 25% -16% -18%
$12.82 $14.45 $15.97 $10.79 $10.55
Las Cruces, NM $1,189,000 $1,217,000 $1,506,000 $1,238,000 $1,202,000 2% 27% 4% 1%
$15.85 $16.22 $20.08 $16.50 $16.02
Rio Rancho, NM $346,000 $306,000 $316,000 $258,000 $255,000 -11% -9% -25% -26%
$6.11 $5.41 $5.57 $4.56 $4.50
Santa Fe, NM $689,000 $678,000 $860,000 $734,000 $721,000 -2% 25% 6% 5%
$10.58 $10.42 $13.21 $11.26 $11.07
New Mexico State Program $16,626,000 $19,297,000 $18,463,000 $18,463,000 $19,573,000 16% 11% 11% 18%
$15.87 $18.42 $17.62 $17.62 $18.68
TOTAL $24,619,000 $27,321,000 $28,267,000 $26,734,000 $27,675,000 11% 15% 9% 12%
$14.08 $15.62 $16.16 $15.29 $15.82

New York
Albany, NY $4,531,000 $4,174,000 $2,631,000 $3,728,000 $3,649,000 -8% -42% -18% -19%
$48.32 $44.50 $28.05 $39.75 $38.91
Amherst Town, NY $726,000 $572,000 $726,000 $536,000 $523,000 -21% 0% -26% -28%
$6.19 $4.88 $6.20 $4.58 $4.47
Auburn, NY $1,296,000 $984,000 $641,000 $767,000 $747,000 -24% -51% -41% -42%
$45.98 $34.90 $22.75 $27.21 $26.51
Babylon Town, NY $1,576,000 $1,510,000 $1,778,000 $2,039,000 $2,003,000 -4% 13% 29% 27%
$7.31 $7.00 $8.24 $9.45 $9.28
Binghamton, NY $2,825,000 $2,658,000 $1,536,000 $2,011,000 $1,965,000 -6% -46% -29% -30%
$60.45 $56.88 $32.87 $43.02 $42.05
Buffalo, NY $19,551,000 $19,180,000 $11,863,000 $16,872,000 $16,473,000 -2% -39% -14% -16%
$67.96 $66.67 $41.23 $58.65 $57.26
Cheektowaga Town, NY $1,144,000 $1,041,000 $811,000 $882,000 $861,000 -9% -29% -23% -25%
$12.31 $11.20 $8.73 $9.49 $9.26

CDBG Formula Targeting to Community Development Need
B-53

Total Grant Amount/
Per Capita Grant Amount
Alternative Change in Funding
Relative to FY 2004
Jurisdiction
Name FY 2004 Grant Alternative 1 Alternative 2 Alternative 3 Alternative 4 Alt. 1 Alt. 2 Alt. 3 Alt. 4
Clay Town, NY $356,000 $302,000 $393,000 $344,000 $336,000 -15% 10% -3% -6%
$6.02 $5.11 $6.64 $5.82 $5.69
Colonie Town, NY $475,000 $350,000 $440,000 $384,000 $376,000 -26% -7% -19% -21%
$5.94 $4.38 $5.50 $4.80 $4.70
Dunkirk, NY $688,000 $603,000 $429,000 $511,000 $497,000 -12% -38% -26% -28%
$53.58 $46.92 $33.40 $39.79 $38.73
Dutchess County, NY $1,933,000 $1,279,000 $1,523,000 $1,391,000 $1,363,000 -34% -21% -28% -30%
$8.13 $5.38 $6.41 $5.85 $5.73
Elmira, NY $1,657,000 $1,463,000 $929,000 $1,317,000 $1,282,000 -12% -44% -20% -23%
$54.48 $48.09 $30.53 $43.31 $42.16
Erie County, NY $3,396,000 $2,232,000 $2,011,000 $1,897,000 $1,854,000 -34% -41% -44% -45%
$12.65 $8.31 $7.49 $7.07 $6.91
Glens Falls, NY $678,000 $522,000 $329,000 $402,000 $393,000 -23% -52% -41% -42%
$47.77 $36.74 $23.17 $28.34 $27.67
Greece, NY $522,000 $439,000 $549,000 $504,000 $492,000 -16% 5% -4% -6%
$5.52 $4.64 $5.80 $5.33 $5.20
Hamburg Town, NY $529,000 $270,000 $338,000 $310,000 $303,000 -49% -36% -41% -43%
$9.33 $4.76 $5.96 $5.46 $5.34
Huntington Town, NY $1,115,000 $947,000 $1,066,000 $816,000 $797,000 -15% -4% -27% -29%
$5.62 $4.77 $5.37 $4.11 $4.02
Irondequoit, NY $1,174,000 $647,000 $404,000 $395,000 $385,000 -45% -66% -66% -67%
$22.45 $12.38 $7.73 $7.55 $7.36
Islip Town, NY $2,509,000 $2,484,000 $2,708,000 $2,928,000 $2,885,000 -1% 8% 17% 15%
$7.61 $7.54 $8.21 $8.88 $8.75
Ithaca, NY $976,000 $1,042,000 $601,000 $933,000 $918,000 7% -38% -4% -6%
$32.56 $34.76 $20.05 $31.14 $30.64
Jamestown, NY $1,680,000 $1,485,000 $953,000 $1,213,000 $1,182,000 -12% -43% -28% -30%
$54.14 $47.86 $30.72 $39.08 $38.10
Kingston, NY $977,000 $786,000 $536,000 $662,000 $647,000 -20% -45% -32% -34%
$41.85 $33.68 $22.94 $28.35 $27.71
Middletown, NY $690,000 $652,000 $644,000 $777,000 $762,000 -6% -7% 13% 10%
$26.77 $25.30 $25.00 $30.15 $29.57

CDBG Formula Targeting to Community Development Need
B-54

Total Grant Amount/
Per Capita Grant Amount
Alternative Change in Funding
Relative to FY 2004
Jurisdiction
Name FY 2004 Grant Alternative 1 Alternative 2 Alternative 3 Alternative 4 Alt. 1 Alt. 2 Alt. 3 Alt. 4
Monroe County, NY $1,799,000 $1,252,000 $1,524,000 $1,227,000 $1,200,000 -30% -15% -32% -33%
$5.41 $3.76 $4.58 $3.69 $3.61
Mount Vernon, NY $2,192,000 $1,897,000 $1,691,000 $1,991,000 $1,966,000 -13% -23% -9% -10%
$31.95 $27.65 $24.64 $29.02 $28.65
Nassau County, NY $18,477,000 $8,018,000 $9,774,000 $9,187,000 $9,063,000 -57% -47% -50% -51%
$14.93 $6.48 $7.90 $7.42 $7.32
New Rochelle, NY $2,035,000 $1,591,000 $1,284,000 $993,000 $981,000 -22% -37% -51% -52%
$28.08 $21.95 $17.72 $13.70 $13.54
New York City, NY $218,834,000 $264,274,000 $268,369,000 $288,735,000 $284,767,000 21% 23% 32% 30%
$27.07 $32.69 $33.20 $35.72 $35.22
Newburgh, NY $1,015,000 $1,193,000 $1,124,000 $1,424,000 $1,399,000 18% 11% 40% 38%
$35.76 $42.04 $39.61 $50.18 $49.29
Niagara Falls, NY $3,088,000 $2,799,000 $1,628,000 $2,276,000 $2,219,000 -9% -47% -26% -28%
$56.81 $51.49 $29.95 $41.88 $40.83
Onondaga County, NY $2,526,000 $1,573,000 $1,743,000 $1,466,000 $1,429,000 -38% -31% -42% -43%
$9.88 $6.15 $6.82 $5.73 $5.59
Orange County, NY $1,970,000 $1,283,000 $1,599,000 $1,484,000 $1,452,000 -35% -19% -25% -26%
$7.34 $4.78 $5.96 $5.53 $5.41
Poughkeepsie, NY $1,244,000 $1,155,000 $920,000 $1,211,000 $1,186,000 -7% -26% -3% -5%
$41.37 $38.41 $30.59 $40.27 $39.42
Rochester, NY $11,607,000 $11,417,000 $8,130,000 $11,236,000 $10,961,000 -2% -30% -3% -6%
$53.45 $52.57 $37.44 $51.74 $50.47
Rockland County, NY $2,552,000 $2,672,000 $2,946,000 $2,245,000 $2,208,000 5% 15% -12% -13%
$8.97 $9.39 $10.35 $7.89 $7.76
Rome, NY $1,456,000 $1,129,000 $668,000 $714,000 $696,000 -22% -54% -51% -52%
$41.95 $32.53 $19.24 $20.58 $20.04
Saratoga Springs, NY $445,000 $283,000 $253,000 $244,000 $238,000 -36% -43% -45% -46%
$16.47 $10.47 $9.37 $9.03 $8.81
Schenectady, NY $3,112,000 $2,747,000 $1,849,000 $2,610,000 $2,548,000 -12% -41% -16% -18%
$50.67 $44.73 $30.10 $42.49 $41.48
Suffolk County, NY $4,474,000 $3,939,000 $4,509,000 $4,723,000 $4,625,000 -12% 1% 6% 3%
$6.36 $5.60 $6.41 $6.71 $6.57

CDBG Formula Targeting to Community Development Need
B-55

Total Grant Amount/
Per Capita Grant Amount
Alternative Change in Funding
Relative to FY 2004
Jurisdiction
Name FY 2004 Grant Alternative 1 Alternative 2 Alternative 3 Alternative 4 Alt. 1 Alt. 2 Alt. 3 Alt. 4
Syracuse, NY $7,444,000 $7,098,000 $4,824,000 $6,693,000 $6,529,000 -5% -35% -10% -12%
$51.28 $48.89 $33.23 $46.10 $44.98
Tonawanda Town, NY $2,247,000 $1,564,000 $756,000 $799,000 $780,000 -30% -66% -64% -65%
$29.27 $20.37 $9.85 $10.41 $10.16
Troy, NY $2,494,000 $1,943,000 $1,226,000 $1,740,000 $1,700,000 -22% -51% -30% -32%
$51.09 $39.79 $25.11 $35.65 $34.83
Union Town, NY $1,687,000 $1,416,000 $905,000 $967,000 $944,000 -16% -46% -43% -44%
$30.20 $25.36 $16.20 $17.32 $16.91
Utica, NY $3,550,000 $3,597,000 $2,228,000 $3,008,000 $2,933,000 1% -37% -15% -17%
$59.22 $60.01 $37.16 $50.18 $48.93
West Seneca Town, NY $353,000 $239,000 $269,000 $267,000 $261,000 -32% -24% -24% -26%
$7.77 $5.27 $5.92 $5.89 $5.75
Westchester County, NY $6,887,000 $3,121,000 $3,938,000 $2,852,000 $2,815,000 -55% -43% -59% -59%
$13.32 $6.03 $7.61 $5.51 $5.44
White Plains, NY $1,103,000 $725,000 $810,000 $554,000 $552,000 -34% -27% -50% -50%
$19.91 $13.08 $14.62 $10.01 $9.96
Yonkers, NY $4,485,000 $4,588,000 $4,735,000 $4,942,000 $4,866,000 2% 6% 10% 9%
$22.74 $23.26 $24.01 $25.06 $24.67
New York State Program $57,278,000 $46,991,000 $46,800,000 $46,800,000 $47,666,000 -18% -18% -18% -17%
$15.23 $12.50 $12.44 $12.44 $12.68
TOTAL $415,358,000 $424,123,000 $408,340,000 $442,007,000 $436,676,000 2% -2% 6% 5%
$21.69 $22.15 $21.32 $23.08 $22.80

North Carolina
Asheville, NC $1,546,000 $1,472,000 $1,191,000 $1,281,000 $1,250,000 -5% -23% -17% -19%
$22.34 $21.28 $17.22 $18.51 $18.06
Burlington, NC $518,000 $547,000 $745,000 $701,000 $686,000 6% 44% 35% 32%
$11.26 $11.88 $16.18 $15.24 $14.91
Cary, NC $522,000 $402,000 $379,000 $237,000 $236,000 -23% -27% -55% -55%
$5.32 $4.10 $3.87 $2.42 $2.41
Chapel Hill, NC $711,000 $581,000 $609,000 $581,000 $582,000 -18% -14% -18% -18%
$13.77 $11.25 $11.79 $11.26 $11.27

CDBG Formula Targeting to Community Development Need
B-56

Total Grant Amount/
Per Capita Grant Amount
Alternative Change in Funding
Relative to FY 2004
Jurisdiction
Name FY 2004 Grant Alternative 1 Alternative 2 Alternative 3 Alternative 4 Alt. 1 Alt. 2 Alt. 3 Alt. 4
Charlotte, NC $5,599,000 $5,526,000 $6,699,000 $5,350,000 $5,267,000 -1% 20% -4% -6%
$9.64 $9.52 $11.54 $9.21 $9.07
Concord, NC $463,000 $473,000 $632,000 $682,000 $669,000 2% 36% 47% 44%
$7.92 $8.08 $10.80 $11.66 $11.43
Cumberland County, NC $1,669,000 $1,766,000 $2,105,000 $1,996,000 $1,943,000 6% 26% 20% 16%
$9.32 $9.86 $11.76 $11.15 $10.85
Durham, NC $2,304,000 $2,292,000 $3,038,000 $3,166,000 $3,107,000 -1% 32% 37% 35%
$11.76 $11.70 $15.50 $16.16 $15.86
Fayetteville, NC $1,395,000 $1,490,000 $1,977,000 $1,657,000 $1,614,000 7% 42% 19% 16%
$11.22 $11.99 $15.91 $13.34 $12.99
Gastonia, NC $772,000 $853,000 $1,157,000 $1,377,000 $1,341,000 10% 50% 78% 74%
$11.38 $12.57 $17.06 $20.30 $19.77
Goldsboro, NC $488,000 $595,000 $768,000 $775,000 $752,000 22% 57% 59% 54%
$12.68 $15.46 $19.97 $20.13 $19.55
Greensboro, NC $2,296,000 $2,163,000 $2,853,000 $2,478,000 $2,430,000 -6% 24% 8% 6%
$10.06 $9.48 $12.50 $10.86 $10.65
Greenville, NC $962,000 $714,000 $977,000 $916,000 $892,000 -26% 2% -5% -7%
$14.69 $10.90 $14.91 $13.99 $13.62
Hickory, NC $386,000 $380,000 $483,000 $359,000 $353,000 -1% 25% -7% -9%
$9.82 $9.68 $12.29 $9.14 $8.98
High Point, NC $929,000 $961,000 $1,298,000 $1,278,000 $1,247,000 3% 40% 38% 34%
$10.25 $10.60 $14.32 $14.10 $13.75
Jacksonville, NC $622,000 $676,000 $778,000 $732,000 $712,000 9% 25% 18% 15%
$9.30 $10.10 $11.63 $10.95 $10.64
Kannapolis, NC $491,000 $455,000 $487,000 $595,000 $581,000 -7% -1% 21% 18%
$12.91 $11.97 $12.80 $15.63 $15.29
Lenoir, NC $180,000 $219,000 $281,000 $316,000 $307,000 21% 56% 75% 70%
$9.96 $12.09 $15.55 $17.46 $16.97
Morganton, NC $183,000 $187,000 $233,000 $195,000 $190,000 2% 27% 7% 4%
$10.57 $10.82 $13.44 $11.26 $10.99
Raleigh, NC $2,813,000 $2,438,000 $2,939,000 $2,645,000 $2,603,000 -13% 4% -6% -7%
$9.16 $7.94 $9.57 $8.62 $8.48

CDBG Formula Targeting to Community Development Need
B-57

Total Grant Amount/
Per Capita Grant Amount
Alternative Change in Funding
Relative to FY 2004
Jurisdiction
Name FY 2004 Grant Alternative 1 Alternative 2 Alternative 3 Alternative 4 Alt. 1 Alt. 2 Alt. 3 Alt. 4
Rocky Mount, NC $804,000 $986,000 $1,331,000 $1,252,000 $1,217,000 23% 66% 56% 51%
$14.35 $17.61 $23.77 $22.35 $21.72
Salisbury, NC $397,000 $406,000 $451,000 $432,000 $421,000 2% 13% 9% 6%
$15.01 $15.36 $17.04 $16.32 $15.91
Wake County, NC $1,626,000 $1,460,000 $1,693,000 $1,467,000 $1,434,000 -10% 4% -10% -12%
$6.28 $5.64 $6.54 $5.67 $5.54
Wilmington, NC $1,059,000 $1,453,000 $1,513,000 $1,567,000 $1,529,000 37% 43% 48% 44%
$11.68 $16.03 $16.69 $17.29 $16.87
Winston Salem, NC $2,197,000 $2,292,000 $3,217,000 $3,028,000 $2,960,000 4% 46% 38% 35%
$11.63 $12.13 $17.03 $16.03 $15.67
North Carolina State Program $52,454,000 $56,305,000 $63,936,000 $63,936,000 $65,960,000 7% 22% 22% 26%
$9.87 $10.60 $12.04 $12.04 $12.42
TOTAL $83,386,000 $87,091,000 $101,769,000 $98,998,000 $100,283,000 4% 22% 19% 20%
$10.03 $10.48 $12.24 $11.91 $12.06

North Dakota
Bismarck, ND $415,000 $382,000 $484,000 $455,000 $445,000 -8% 17% 10% 7%
$7.38 $6.80 $8.61 $8.09 $7.91
Fargo, ND $835,000 $744,000 $878,000 $837,000 $820,000 -11% 5% 0% -2%
$9.16 $8.16 $9.63 $9.18 $8.99
Grand Forks, ND $504,000 $413,000 $540,000 $512,000 $500,000 -18% 7% 2% -1%
$10.38 $8.52 $11.13 $10.55 $10.31
North Dakota State Program $5,717,000 $5,664,000 $5,633,000 $5,633,000 $5,711,000 -1% -1% -1% 0%
$13.64 $13.51 $13.44 $13.44 $13.63
TOTAL $7,471,000 $7,204,000 $7,535,000 $7,438,000 $7,477,000 -4% 1% 0% 0%
$12.14 $11.71 $12.25 $12.09 $12.15

Ohio
Akron, OH $8,226,000 $7,406,000 $5,045,000 $6,906,000 $6,727,000 -10% -39% -16% -18%
$38.38 $34.55 $23.54 $32.22 $31.38
Alliance, OH $835,000 $734,000 $507,000 $688,000 $668,000 -12% -39% -18% -20%
$36.33 $31.92 $22.08 $29.92 $29.08

CDBG Formula Targeting to Community Development Need
B-58

Total Grant Amount/
Per Capita Grant Amount
Alternative Change in Funding
Relative to FY 2004
Jurisdiction
Name FY 2004 Grant Alternative 1 Alternative 2 Alternative 3 Alternative 4 Alt. 1 Alt. 2 Alt. 3 Alt. 4
Barberton, OH $898,000 $766,000 $533,000 $726,000 $707,000 -15% -41% -19% -21%
$32.46 $27.69 $19.26 $26.26 $25.57
Bowling Green, OH $369,000 $229,000 $230,000 $308,000 $301,000 -38% -38% -17% -18%
$12.52 $7.76 $7.80 $10.43 $10.21
Butler County, OH $1,389,000 $910,000 $1,085,000 $959,000 $938,000 -35% -22% -31% -32%
$6.05 $3.96 $4.72 $4.18 $4.09
Canton, OH $3,512,000 $3,179,000 $2,116,000 $2,930,000 $2,853,000 -9% -40% -17% -19%
$44.03 $39.85 $26.52 $36.73 $35.77
Cincinnati, OH $16,103,000 $14,688,000 $9,750,000 $12,302,000 $12,014,000 -9% -39% -24% -25%
$49.72 $45.35 $30.10 $37.98 $37.09
Cleveland, OH $29,026,000 $28,790,000 $18,443,000 $25,642,000 $24,978,000 -1% -36% -12% -14%
$62.04 $61.54 $39.42 $54.81 $53.39
Cleveland Heights, OH $2,072,000 $1,258,000 $749,000 $742,000 $724,000 -39% -64% -64% -65%
$41.66 $25.30 $15.06 $14.91 $14.57
Columbus, OH $7,820,000 $9,791,000 $11,438,000 $13,068,000 $12,762,000 25% 46% 67% 63%
$10.78 $13.50 $15.77 $18.02 $17.60
Cuyahoga County, OH $3,841,000 $2,806,000 $3,603,000 $2,960,000 $2,895,000 -27% -6% -23% -25%
$6.45 $4.71 $6.05 $4.97 $4.86
Cuyahoga Falls, OH $1,150,000 $450,000 $351,000 $350,000 $342,000 -61% -69% -70% -70%
$22.88 $8.96 $6.99 $6.96 $6.80
Dayton, OH $7,675,000 $7,148,000 $4,682,000 $6,394,000 $6,227,000 -7% -39% -17% -19%
$47.18 $43.94 $28.78 $39.31 $38.28
East Cleveland, OH $1,339,000 $1,697,000 $1,248,000 $1,749,000 $1,702,000 27% -7% 31% 27%
$50.24 $63.69 $46.83 $65.64 $63.84
Elyria, OH $772,000 $706,000 $796,000 $947,000 $920,000 -9% 3% 23% 19%
$13.72 $12.53 $14.14 $16.83 $16.34
Euclid, OH $1,221,000 $915,000 $646,000 $760,000 $742,000 -25% -47% -38% -39%
$23.52 $17.62 $12.45 $14.64 $14.29
Fairborn, OH $322,000 $257,000 $357,000 $408,000 $397,000 -20% 11% 27% 23%
$9.92 $7.92 $10.98 $12.58 $12.23
Franklin County, OH $2,222,000 $1,838,000 $2,330,000 $1,792,000 $1,750,000 -17% 5% -19% -21%
$5.72 $4.73 $6.00 $4.62 $4.51

CDBG Formula Targeting to Community Development Need
B-59

Total Grant Amount/
Per Capita Grant Amount
Alternative Change in Funding
Relative to FY 2004
Jurisdiction
Name FY 2004 Grant Alternative 1 Alternative 2 Alternative 3 Alternative 4 Alt. 1 Alt. 2 Alt. 3 Alt. 4
Hamilton City, OH $1,831,000 $1,609,000 $1,137,000 $1,534,000 $1,495,000 -12% -38% -16% -18%
$30.47 $26.77 $18.91 $25.52 $24.89
Hamilton County, OH $3,294,000 $2,680,000 $3,425,000 $3,306,000 $3,233,000 -19% 4% 0% -2%
$8.22 $6.68 $8.54 $8.25 $8.06
Kent, OH $366,000 $348,000 $399,000 $516,000 $503,000 -5% 9% 41% 37%
$13.19 $12.53 $14.40 $18.61 $18.14
Kettering, OH $616,000 $231,000 $314,000 $248,000 $243,000 -63% -49% -60% -61%
$10.87 $4.07 $5.53 $4.37 $4.29
Lake County, OH $1,664,000 $1,186,000 $1,248,000 $1,240,000 $1,209,000 -29% -25% -25% -27%
$9.33 $6.65 $7.00 $6.95 $6.78
Lakewood, OH $2,609,000 $1,418,000 $835,000 $897,000 $880,000 -46% -68% -66% -66%
$47.19 $25.64 $15.10 $16.23 $15.92
Lancaster, OH $670,000 $588,000 $528,000 $711,000 $693,000 -12% -21% 6% 3%
$18.57 $16.31 $14.63 $19.70 $19.20
Lima, OH $1,454,000 $1,604,000 $1,211,000 $1,654,000 $1,609,000 10% -17% 14% 11%
$35.62 $39.29 $29.67 $40.53 $39.42
Lorain, OH $1,523,000 $1,495,000 $1,459,000 $1,839,000 $1,788,000 -2% -4% 21% 17%
$22.49 $22.09 $21.55 $27.17 $26.42
Mansfield, OH $1,152,000 $1,211,000 $1,008,000 $1,151,000 $1,120,000 5% -12% 0% -3%
$22.70 $23.86 $19.87 $22.68 $22.07
Marietta, OH $534,000 $412,000 $294,000 $322,000 $312,000 -23% -45% -40% -42%
$37.82 $29.21 $20.85 $22.78 $22.12
Massillon, OH $889,000 $597,000 $447,000 $552,000 $537,000 -33% -50% -38% -40%
$28.17 $18.92 $14.16 $17.50 $17.03
Mentor, OH $216,000 $157,000 $177,000 $155,000 $151,000 -27% -18% -28% -30%
$4.30 $3.14 $3.52 $3.09 $3.02
Middletown, OH $799,000 $752,000 $781,000 $931,000 $905,000 -6% -2% 17% 13%
$15.61 $14.70 $15.25 $18.20 $17.69
Montgomery County, OH $2,278,000 $2,054,000 $2,800,000 $2,508,000 $2,444,000 -10% 23% 10% 7%
$6.68 $6.03 $8.22 $7.36 $7.17
Newark, OH $1,020,000 $934,000 $794,000 $1,074,000 $1,045,000 -8% -22% 5% 2%
$21.96 $20.10 $17.09 $23.12 $22.49

CDBG Formula Targeting to Community Development Need
B-60

Total Grant Amount/
Per Capita Grant Amount
Alternative Change in Funding
Relative to FY 2004
Jurisdiction
Name FY 2004 Grant Alternative 1 Alternative 2 Alternative 3 Alternative 4 Alt. 1 Alt. 2 Alt. 3 Alt. 4
Parma, OH $1,098,000 $725,000 $527,000 $548,000 $536,000 -34% -52% -50% -51%
$12.99 $8.57 $6.24 $6.48 $6.34
Sandusky, OH $967,000 $785,000 $589,000 $759,000 $739,000 -19% -39% -22% -24%
$35.35 $28.68 $21.54 $27.74 $27.00
Springfield, OH $2,400,000 $2,132,000 $1,478,000 $1,898,000 $1,848,000 -11% -38% -21% -23%
$37.42 $33.24 $23.04 $29.60 $28.82
Stark County, OH $1,729,000 $1,192,000 $1,479,000 $1,329,000 $1,293,000 -31% -14% -23% -25%
$7.04 $4.85 $6.02 $5.41 $5.26
Steubenville, OH $908,000 $924,000 $527,000 $574,000 $559,000 2% -42% -37% -38%
$46.12 $46.95 $26.75 $29.16 $28.37
Summit County, OH $1,252,000 $959,000 $1,109,000 $862,000 $841,000 -23% -11% -31% -33%
$4.90 $3.75 $4.34 $3.38 $3.30
Toledo, OH $9,459,000 $9,450,000 $7,374,000 $9,510,000 $9,262,000 0% -22% 1% -2%
$30.60 $30.57 $23.86 $30.77 $29.96
Warren, OH $1,572,000 $1,529,000 $1,183,000 $1,405,000 $1,365,000 -3% -25% -11% -13%
$33.29 $32.37 $25.05 $29.74 $28.90
Youngstown, OH $4,897,000 $4,596,000 $2,687,000 $3,723,000 $3,620,000 -6% -45% -24% -26%
$61.19 $57.43 $33.58 $46.52 $45.23
Ohio State Program $57,071,000 $50,441,000 $52,330,000 $52,330,000 $53,158,000 -12% -8% -8% -7%
$10.88 $9.62 $9.98 $9.98 $10.14
TOTAL $191,060,000 $173,576,000 $150,048,000 $171,209,000 $169,037,000 -9% -21% -10% -12%
$16.73 $15.20 $13.14 $14.99 $14.80

Oklahoma
Broken Arrow, OK $468,000 $406,000 $432,000 $344,000 $339,000 -13% -8% -26% -28%
$5.63 $4.88 $5.20 $4.15 $4.08
Edmond, OK $479,000 $379,000 $454,000 $316,000 $309,000 -21% -5% -34% -36%
$6.79 $5.37 $6.44 $4.48 $4.38
Enid, OK $678,000 $906,000 $854,000 $894,000 $870,000 34% 26% 32% 28%
$14.57 $19.48 $18.34 $19.22 $18.70
Lawton, OK $1,056,000 $1,165,000 $1,523,000 $1,472,000 $1,431,000 10% 44% 39% 36%
$11.56 $12.75 $16.67 $16.12 $15.67

CDBG Formula Targeting to Community Development Need
B-61

Total Grant Amount/
Per Capita Grant Amount
Alternative Change in Funding
Relative to FY 2004
Jurisdiction
Name FY 2004 Grant Alternative 1 Alternative 2 Alternative 3 Alternative 4 Alt. 1 Alt. 2 Alt. 3 Alt. 4
Midwest City, OK $586,000 $637,000 $843,000 $886,000 $861,000 9% 44% 51% 47%
$10.75 $11.69 $15.46 $16.26 $15.80
Norman, OK $1,026,000 $733,000 $958,000 $877,000 $858,000 -29% -7% -15% -16%
$10.49 $7.49 $9.79 $8.96 $8.77
Oklahoma City, OK $6,355,000 $7,117,000 $9,347,000 $9,174,000 $8,956,000 12% 47% 44% 41%
$12.24 $13.71 $18.01 $17.67 $17.26
Shawnee, OK $482,000 $555,000 $562,000 $591,000 $574,000 15% 17% 23% 19%
$16.44 $18.93 $19.18 $20.17 $19.59
Tulsa, OK $4,512,000 $4,648,000 $6,297,000 $5,506,000 $5,384,000 3% 40% 22% 19%
$11.51 $11.86 $16.07 $14.05 $13.74
Oklahoma State Program $20,040,000 $23,419,000 $25,557,000 $25,557,000 $26,328,000 17% 28% 28% 31%
$10.89 $12.72 $13.88 $13.88 $14.30
TOTAL $35,682,000 $39,965,000 $46,826,000 $45,617,000 $45,910,000 12% 31% 28% 29%
$11.06 $12.39 $14.52 $14.14 $14.24

Oregon
Ashland, OR $250,000 $242,000 $302,000 $278,000 $271,000 -3% 21% 11% 8%
$12.37 $11.95 $14.95 $13.74 $13.39
Beaverton, OR $711,000 $668,000 $700,000 $514,000 $513,000 -6% -2% -28% -28%
$8.91 $8.38 $8.78 $6.44 $6.43
Bend, OR $491,000 $446,000 $556,000 $520,000 $509,000 -9% 13% 6% 4%
$8.61 $7.83 $9.75 $9.13 $8.93
Clackamas County, OR $2,562,000 $2,366,000 $2,680,000 $2,145,000 $2,112,000 -8% 5% -16% -18%
$7.18 $6.63 $7.51 $6.01 $5.92
Corvallis, OR $659,000 $574,000 $640,000 $730,000 $716,000 -13% -3% 11% 9%
$13.24 $11.53 $12.85 $14.67 $14.39
Eugene, OR $1,666,000 $1,538,000 $1,796,000 $1,672,000 $1,637,000 -8% 8% 0% -2%
$11.87 $10.96 $12.79 $11.91 $11.66
Gresham, OR $1,067,000 $1,132,000 $1,220,000 $1,217,000 $1,196,000 6% 14% 14% 12%
$11.27 $11.95 $12.88 $12.85 $12.63
Hillsboro, OR $767,000 $778,000 $786,000 $675,000 $673,000 1% 2% -12% -12%
$10.10 $10.25 $10.35 $8.89 $8.86

CDBG Formula Targeting to Community Development Need
B-62

Total Grant Amount/
Per Capita Grant Amount
Alternative Change in Funding
Relative to FY 2004
Jurisdiction
Name FY 2004 Grant Alternative 1 Alternative 2 Alternative 3 Alternative 4 Alt. 1 Alt. 2 Alt. 3 Alt. 4
Medford, OR $739,000 $775,000 $1,055,000 $977,000 $956,000 5% 43% 32% 29%
$11.43 $11.99 $16.31 $15.12 $14.79
Multnomah County, OR $360,000 $328,000 $387,000 $288,000 $283,000 -9% 8% -20% -21%
$7.88 $7.17 $8.48 $6.30 $6.21
Portland, OR $12,105,000 $9,239,000 $8,736,000 $9,118,000 $8,979,000 -24% -28% -25% -26%
$22.44 $17.13 $16.19 $16.90 $16.65
Salem, OR $1,741,000 $1,832,000 $2,221,000 $1,945,000 $1,910,000 5% 28% 12% 10%
$12.35 $12.99 $15.75 $13.80 $13.55
Springfield, OR $739,000 $805,000 $1,027,000 $1,190,000 $1,161,000 9% 39% 61% 57%
$13.68 $14.89 $19.01 $22.03 $21.49
Washington County, OR $2,415,000 $2,238,000 $2,366,000 $1,826,000 $1,806,000 -7% -2% -24% -25%
$7.64 $7.08 $7.49 $5.78 $5.71
Oregon State Program $16,683,000 $17,378,000 $17,392,000 $17,392,000 $18,637,000 4% 4% 4% 12%
$11.27 $11.74 $11.75 $11.75 $12.59
TOTAL $42,955,000 $40,339,000 $41,862,000 $40,489,000 $41,360,000 -6% -3% -6% -4%
$12.22 $11.47 $11.91 $11.51 $11.76

Pennsylvania
Abington, PA $987,000 $253,000 $281,000 $228,000 $225,000 -74% -71% -77% -77%
$17.59 $4.51 $5.02 $4.07 $4.00
Allegheny County, PA $19,327,000 $14,677,000 $9,585,000 $9,084,000 $8,851,000 -24% -50% -53% -54%
$22.26 $16.90 $11.04 $10.46 $10.19
Allentown, PA $3,331,000 $3,313,000 $2,751,000 $3,673,000 $3,586,000 -1% -17% 10% 8%
$31.39 $31.23 $25.92 $34.62 $33.79
Altoona, PA $2,411,000 $2,019,000 $1,218,000 $1,537,000 $1,497,000 -16% -49% -36% -38%
$49.72 $41.63 $25.11 $31.69 $30.88
Beaver County, PA $4,672,000 $3,629,000 $2,345,000 $2,899,000 $2,823,000 -22% -50% -38% -40%
$26.15 $20.31 $13.13 $16.23 $15.80
Bensalem Twp., PA $465,000 $428,000 $495,000 $471,000 $464,000 -8% 6% 1% 0%
$7.93 $7.29 $8.43 $8.02 $7.90
Berks County, PA $3,257,000 $1,638,000 $1,695,000 $1,620,000 $1,584,000 -50% -48% -50% -51%
$10.80 $5.43 $5.62 $5.37 $5.25

CDBG Formula Targeting to Community Development Need
B-63

Total Grant Amount/
Per Capita Grant Amount
Alternative Change in Funding
Relative to FY 2004
Jurisdiction
Name FY 2004 Grant Alternative 1 Alternative 2 Alternative 3 Alternative 4 Alt. 1 Alt. 2 Alt. 3 Alt. 4
Bethlehem, PA $2,036,000 $1,778,000 $1,335,000 $1,666,000 $1,626,000 -13% -34% -18% -20%
$28.38 $24.78 $18.61 $23.22 $22.66
Bristol Twp., PA $787,000 $607,000 $506,000 $584,000 $572,000 -23% -36% -26% -27%
$14.17 $10.93 $9.11 $10.52 $10.30
Bucks County, PA $2,864,000 $1,920,000 $2,305,000 $1,871,000 $1,830,000 -33% -20% -35% -36%
$5.77 $3.87 $4.64 $3.77 $3.69
Carlisle, PA $511,000 $406,000 $304,000 $358,000 $349,000 -21% -41% -30% -32%
$28.33 $22.52 $16.85 $19.83 $19.37
Chester, PA $1,760,000 $1,795,000 $1,305,000 $1,711,000 $1,668,000 2% -26% -3% -5%
$47.49 $48.44 $35.21 $46.17 $45.02
Chester County, PA $3,319,000 $2,190,000 $2,633,000 $2,001,000 $1,962,000 -34% -21% -40% -41%
$7.37 $4.87 $5.85 $4.45 $4.36
Dauphin County, PA $1,840,000 $1,266,000 $1,574,000 $1,506,000 $1,473,000 -31% -14% -18% -20%
$9.00 $6.20 $7.70 $7.37 $7.21
Delaware County, PA $4,937,000 $3,633,000 $3,217,000 $3,030,000 $2,960,000 -26% -35% -39% -40%
$12.75 $9.38 $8.31 $7.82 $7.65
Easton, PA $1,164,000 $885,000 $580,000 $818,000 $799,000 -24% -50% -30% -31%
$44.53 $33.85 $22.19 $31.30 $30.58
Erie, PA $4,334,000 $3,998,000 $2,659,000 $3,552,000 $3,463,000 -8% -39% -18% -20%
$42.44 $39.15 $26.04 $34.78 $33.91
Harrisburg, PA $2,537,000 $2,414,000 $1,719,000 $2,307,000 $2,251,000 -5% -32% -9% -11%
$52.27 $49.74 $35.41 $47.52 $46.37
Haverford, PA $1,200,000 $277,000 $243,000 $219,000 $214,000 -77% -80% -82% -82%
$24.86 $5.75 $5.03 $4.53 $4.43
Hazleton, PA $1,147,000 $895,000 $528,000 $646,000 $630,000 -22% -54% -44% -45%
$50.41 $39.35 $23.22 $28.41 $27.70
Johnstown, PA $1,926,000 $1,608,000 $843,000 $1,181,000 $1,149,000 -17% -56% -39% -40%
$82.91 $69.21 $36.28 $50.84 $49.48
Lancaster, PA $2,157,000 $2,071,000 $1,669,000 $2,246,000 $2,196,000 -4% -23% 4% 2%
$38.78 $37.23 $30.00 $40.38 $39.48
Lancaster County, PA $4,057,000 $2,685,000 $3,149,000 $3,055,000 $2,978,000 -34% -22% -25% -27%
$9.59 $6.35 $7.45 $7.22 $7.04

CDBG Formula Targeting to Community Development Need
B-64

Total Grant Amount/
Per Capita Grant Amount
Alternative Change in Funding
Relative to FY 2004
Jurisdiction
Name FY 2004 Grant Alternative 1 Alternative 2 Alternative 3 Alternative 4 Alt. 1 Alt. 2 Alt. 3 Alt. 4
Lebanon, PA $1,023,000 $762,000 $553,000 $745,000 $727,000 -26% -46% -27% -29%
$42.60 $31.73 $23.02 $31.04 $30.25
Lower Merion, PA $1,388,000 $363,000 $325,000 $272,000 $267,000 -74% -77% -80% -81%
$23.14 $6.05 $5.42 $4.54 $4.44
Luzerne County, PA $6,025,000 $4,267,000 $2,982,000 $3,211,000 $3,124,000 -29% -51% -47% -48%
$26.05 $18.45 $12.89 $13.88 $13.51
McKeesport, PA $1,486,000 $1,295,000 $770,000 $1,071,000 $1,043,000 -13% -48% -28% -30%
$63.01 $54.90 $32.63 $45.40 $44.21
Millcreek Twp., PA $302,000 $245,000 $301,000 $223,000 $216,000 -19% 0% -26% -29%
$5.74 $4.66 $5.73 $4.23 $4.10
Montgomery County, PA $4,445,000 $2,400,000 $3,024,000 $2,461,000 $2,417,000 -46% -32% -45% -46%
$7.46 $4.03 $5.07 $4.13 $4.06
Norristown, PA $1,231,000 $1,096,000 $814,000 $1,090,000 $1,067,000 -11% -34% -11% -13%
$39.32 $34.99 $26.00 $34.81 $34.08
Penn Hills, PA $861,000 $673,000 $453,000 $488,000 $475,000 -22% -47% -43% -45%
$18.42 $14.39 $9.70 $10.45 $10.17
Philadelphia, PA $63,066,000 $70,630,000 $51,401,000 $70,234,000 $68,629,000 12% -18% 11% 9%
$42.26 $47.33 $34.45 $47.07 $45.99
Pittsburgh, PA $20,289,000 $16,728,000 $9,028,000 $11,460,000 $11,191,000 -18% -56% -44% -45%
$61.88 $51.02 $27.53 $34.95 $34.13
Reading, PA $3,756,000 $3,961,000 $3,158,000 $4,250,000 $4,150,000 5% -16% 13% 10%
$46.66 $49.21 $39.23 $52.80 $51.55
Scranton, PA $4,140,000 $2,940,000 $1,610,000 $2,135,000 $2,081,000 -29% -61% -48% -50%
$55.41 $39.36 $21.54 $28.57 $27.86
Sharon, PA $834,000 $673,000 $404,000 $535,000 $521,000 -19% -52% -36% -38%
$52.58 $42.44 $25.46 $33.75 $32.84
State College, PA $862,000 $397,000 $416,000 $498,000 $502,000 -54% -52% -42% -42%
$22.63 $10.42 $10.92 $13.06 $13.19
Upper Darby, PA $2,329,000 $1,745,000 $1,201,000 $1,468,000 $1,441,000 -25% -48% -37% -38%
$28.77 $21.56 $14.84 $18.14 $17.80
Washington County, PA $5,228,000 $4,129,000 $2,730,000 $3,166,000 $3,082,000 -21% -48% -39% -41%
$25.56 $20.19 $13.35 $15.48 $15.07

CDBG Formula Targeting to Community Development Need
B-65

Total Grant Amount/
Per Capita Grant Amount
Alternative Change in Funding
Relative to FY 2004
Jurisdiction
Name FY 2004 Grant Alternative 1 Alternative 2 Alternative 3 Alternative 4 Alt. 1 Alt. 2 Alt. 3 Alt. 4
Westmoreland County, PA $5,282,000 $3,997,000 $3,242,000 $3,621,000 $3,517,000 -24% -39% -31% -33%
$16.26 $12.30 $9.98 $11.14 $10.82
Wilkes-Barre, PA $2,352,000 $1,766,000 $1,012,000 $1,421,000 $1,386,000 -25% -57% -40% -41%
$55.97 $42.03 $24.08 $33.83 $32.98
Williamsport, PA $1,536,000 $1,310,000 $790,000 $1,075,000 $1,049,000 -15% -49% -30% -32%
$51.06 $43.54 $26.25 $35.72 $34.87
York, PA $2,060,000 $2,023,000 $1,453,000 $2,015,000 $1,967,000 -2% -29% -2% -4%
$51.12 $50.20 $36.07 $50.01 $48.82
York County, PA $3,154,000 $1,747,000 $2,026,000 $2,009,000 $1,961,000 -45% -36% -36% -38%
$9.04 $5.01 $5.81 $5.76 $5.62
Pennsylvania State Program $59,971,000 $54,554,000 $52,545,000 $52,545,000 $53,112,000 -9% -12% -12% -11%
$14.70 $13.37 $12.88 $12.88 $13.02
TOTAL $262,646,000 $232,087,000 $183,175,000 $212,257,000 $209,075,000 -12% -30% -19% -20%
$21.29 $18.82 $14.85 $17.21 $16.95

Rhode Island
Cranston, RI $1,266,000 $896,000 $778,000 $806,000 $788,000 -29% -39% -36% -38%
$15.61 $11.05 $9.59 $9.94 $9.72
East Providence, RI $941,000 $661,000 $591,000 $685,000 $669,000 -30% -37% -27% -29%
$18.95 $13.31 $11.90 $13.79 $13.47
Pawtucket, RI $2,472,000 $2,457,000 $1,908,000 $2,586,000 $2,528,000 -1% -23% 5% 2%
$33.39 $33.19 $25.77 $34.94 $34.14
Providence, RI $6,792,000 $7,715,000 $6,408,000 $8,469,000 $8,280,000 14% -6% 25% 22%
$38.61 $43.86 $36.43 $48.15 $47.07
Warwick, RI $1,034,000 $747,000 $697,000 $667,000 $652,000 -28% -33% -35% -37%
$11.88 $8.58 $8.01 $7.66 $7.49
Woonsocket, RI $1,605,000 $1,548,000 $1,221,000 $1,670,000 $1,628,000 -4% -24% 4% 1%
$36.58 $35.29 $27.83 $38.06 $37.10
Rhode Island State Program $6,156,000 $5,355,000 $5,279,000 $5,279,000 $5,440,000 -13% -14% -14% -12%
$11.03 $9.59 $9.46 $9.46 $9.75
TOTAL $20,266,000 $19,379,000 $16,882,000 $20,163,000 $19,984,000 -4% -17% -1% -1%
$18.95 $18.12 $15.78 $18.85 $18.68

CDBG Formula Targeting to Community Development Need
B-66

Total Grant Amount/
Per Capita Grant Amount
Alternative Change in Funding
Relative to FY 2004
Jurisdiction
Name FY 2004 Grant Alternative 1 Alternative 2 Alternative 3 Alternative 4 Alt. 1 Alt. 2 Alt. 3 Alt. 4

South Carolina
Aiken, SC $256,000 $296,000 $373,000 $300,000 $291,000 16% 46% 17% 14%
$9.83 $11.36 $14.34 $11.52 $11.16
Anderson, SC $920,000 $860,000 $582,000 $594,000 $577,000 -7% -37% -35% -37%
$35.81 $33.46 $22.65 $23.13 $22.44
Charleston, SC $1,288,000 $1,937,000 $1,877,000 $1,786,000 $1,742,000 50% 46% 39% 35%
$13.04 $19.61 $19.00 $18.07 $17.63
Charleston County, SC $2,438,000 $2,602,000 $3,372,000 $3,057,000 $2,969,000 7% 38% 25% 22%
$11.16 $11.91 $15.43 $13.99 $13.59
Columbia, SC $1,543,000 $1,846,000 $2,080,000 $2,220,000 $2,162,000 20% 35% 44% 40%
$13.14 $15.73 $17.72 $18.91 $18.41
Conway, SC $154,000 $179,000 $250,000 $291,000 $282,000 16% 62% 89% 83%
$12.81 $14.90 $20.79 $24.24 $23.48
Florence, SC $407,000 $485,000 $623,000 $512,000 $496,000 19% 53% 26% 22%
$13.56 $16.14 $20.76 $17.05 $16.54
Greenville, SC $1,329,000 $1,324,000 $1,017,000 $931,000 $906,000 0% -23% -30% -32%
$23.66 $23.56 $18.11 $16.56 $16.13
Greenville County, SC $2,860,000 $2,813,000 $3,539,000 $2,883,000 $2,809,000 -2% 24% 1% -2%
$8.33 $8.19 $10.31 $8.40 $8.18
Lexington County, SC $1,185,000 $1,098,000 $1,278,000 $1,092,000 $1,062,000 -7% 8% -8% -10%
$7.10 $6.58 $7.66 $6.54 $6.36
Myrtle Beach, SC $241,000 $211,000 $240,000 $180,000 $177,000 -13% 0% -25% -27%
$9.83 $8.59 $9.78 $7.35 $7.22
Richland County, SC $1,647,000 $1,593,000 $1,934,000 $1,639,000 $1,600,000 -3% 17% 0% -3%
$8.54 $8.26 $10.03 $8.50 $8.30
Rock Hill, SC $553,000 $524,000 $718,000 $857,000 $838,000 -5% 30% 55% 52%
$10.13 $9.59 $13.15 $15.70 $15.35
Spartanburg, SC $921,000 $1,055,000 $1,016,000 $1,053,000 $1,022,000 15% 10% 14% 11%
$23.57 $27.02 $26.00 $26.95 $26.17
Spartanburg County, SC $1,558,000 $1,535,000 $1,944,000 $1,801,000 $1,755,000 -1% 25% 16% 13%
$8.20 $8.08 $10.24 $9.48 $9.24

CDBG Formula Targeting to Community Development Need
B-67

Total Grant Amount/
Per Capita Grant Amount
Alternative Change in Funding
Relative to FY 2004
Jurisdiction
Name FY 2004 Grant Alternative 1 Alternative 2 Alternative 3 Alternative 4 Alt. 1 Alt. 2 Alt. 3 Alt. 4
Sumter, SC $460,000 $516,000 $710,000 $638,000 $618,000 12% 54% 39% 34%
$11.68 $13.10 $18.03 $16.20 $15.69
South Carolina State Program $27,822,000 $30,831,000 $33,880,000 $33,880,000 $34,753,000 11% 22% 22% 25%
$11.26 $12.47 $13.71 $13.71 $14.06
TOTAL $45,582,000 $49,704,000 $55,435,000 $53,714,000 $54,058,000 9% 22% 18% 19%
$11.10 $12.10 $13.50 $13.08 $13.16

South Dakota
Rapid City, SD $596,000 $577,000 $775,000 $712,000 $694,000 -3% 30% 20% 16%
$9.89 $9.58 $12.86 $11.82 $11.52
Sioux Falls, SD $980,000 $859,000 $1,154,000 $1,075,000 $1,053,000 -12% 18% 10% 7%
$7.51 $6.59 $8.84 $8.24 $8.07
South Dakota State Program $7,774,000 $7,119,000 $7,019,000 $7,019,000 $7,173,000 -8% -10% -10% -8%
$14.73 $13.49 $13.30 $13.30 $13.59
TOTAL $9,350,000 $8,555,000 $8,947,000 $8,806,000 $8,920,000 -9% -4% -6% -5%
$13.01 $11.91 $12.45 $12.25 $12.41

Tennessee
Bristol, TN $278,000 $418,000 $431,000 $443,000 $430,000 50% 55% 59% 55%
$11.17 $16.79 $17.31 $17.81 $17.29
Chattanooga, TN $2,265,000 $3,200,000 $3,241,000 $3,379,000 $3,287,000 41% 43% 49% 45%
$14.57 $20.59 $20.85 $21.74 $21.15
Clarksville, TN $958,000 $969,000 $1,212,000 $1,091,000 $1,066,000 1% 27% 14% 11%
$9.05 $9.15 $11.45 $10.30 $10.07
Cleveland, TN $405,000 $472,000 $567,000 $558,000 $542,000 16% 40% 38% 34%
$10.83 $12.61 $15.18 $14.94 $14.50
Jackson, TN $709,000 $955,000 $1,165,000 $1,204,000 $1,172,000 35% 64% 70% 65%
$11.69 $15.75 $19.21 $19.85 $19.33
Johnson City, TN $589,000 $811,000 $855,000 $800,000 $777,000 38% 45% 36% 32%
$10.38 $14.28 $15.07 $14.09 $13.68
Kingsport, TN $496,000 $980,000 $941,000 $900,000 $873,000 98% 90% 81% 76%
$11.18 $22.09 $21.22 $20.29 $19.68

CDBG Formula Targeting to Community Development Need
B-68

Total Grant Amount/
Per Capita Grant Amount
Alternative Change in Funding
Relative to FY 2004
Jurisdiction
Name FY 2004 Grant Alternative 1 Alternative 2 Alternative 3 Alternative 4 Alt. 1 Alt. 2 Alt. 3 Alt. 4
Knox County, TN $1,203,000 $1,027,000 $1,259,000 $1,067,000 $1,036,000 -15% 5% -11% -14%
$6.10 $5.20 $6.38 $5.41 $5.25
Knoxville, TN $2,262,000 $3,095,000 $3,272,000 $3,949,000 $3,841,000 37% 45% 75% 70%
$13.03 $17.82 $18.84 $22.74 $22.12
Memphis, TN $9,742,000 $11,834,000 $15,938,000 $17,215,000 $16,785,000 21% 64% 77% 72%
$15.01 $18.24 $24.56 $26.53 $25.87
Morristown, TN $349,000 $434,000 $511,000 $526,000 $512,000 24% 46% 51% 47%
$13.88 $17.27 $20.32 $20.93 $20.36
Murfreesboro, TN $722,000 $550,000 $671,000 $685,000 $669,000 -24% -7% -5% -7%
$9.64 $7.34 $8.96 $9.15 $8.94
Nashville-Davidson, TN $5,954,000 $5,960,000 $8,048,000 $7,451,000 $7,280,000 0% 35% 25% 22%
$10.43 $10.44 $14.10 $13.05 $12.75
Oak Ridge, TN $313,000 $599,000 $450,000 $414,000 $405,000 91% 44% 32% 29%
$11.50 $21.99 $16.54 $15.21 $14.86
Shelby County, TN $1,366,000 $1,162,000 $1,261,000 $853,000 $834,000 -15% -8% -38% -39%
$5.32 $4.53 $4.91 $3.32 $3.25
Tennessee State Program $31,244,000 $34,182,000 $40,455,000 $40,455,000 $40,969,000 9% 29% 29% 31%
$9.36 $10.24 $12.12 $12.12 $12.28
TOTAL $58,855,000 $66,646,000 $80,279,000 $80,993,000 $80,478,000 13% 36% 38% 37%
$10.15 $11.50 $13.85 $13.97 $13.88

Texas
Abilene, TX $1,329,000 $1,483,000 $1,792,000 $1,731,000 $1,692,000 12% 35% 30% 27%
$11.53 $12.87 $15.55 $15.03 $14.68
Allen, TX $263,000 $205,000 $179,000 $126,000 $125,000 -22% -32% -52% -53%
$4.60 $3.59 $3.13 $2.20 $2.18
Amarillo, TX $2,168,000 $2,503,000 $3,152,000 $2,945,000 $2,885,000 15% 45% 36% 33%
$12.25 $14.14 $17.81 $16.64 $16.30
Arlington, TX $3,825,000 $3,950,000 $4,121,000 $3,204,000 $3,198,000 3% 8% -16% -16%
$10.93 $11.29 $11.78 $9.16 $9.14
Austin, TX $8,967,000 $8,400,000 $9,175,000 $7,697,000 $7,660,000 -6% 2% -14% -15%
$13.35 $12.50 $13.66 $11.46 $11.40

CDBG Formula Targeting to Community Development Need
B-69

Total Grant Amount/
Per Capita Grant Amount
Alternative Change in Funding
Relative to FY 2004
Jurisdiction
Name FY 2004 Grant Alternative 1 Alternative 2 Alternative 3 Alternative 4 Alt. 1 Alt. 2 Alt. 3 Alt. 4
Baytown City, TX $1,003,000 $1,178,000 $1,359,000 $1,442,000 $1,422,000 17% 36% 44% 42%
$14.89 $17.49 $20.18 $21.41 $21.10
Beaumont, TX $2,126,000 $2,502,000 $2,608,000 $2,387,000 $2,326,000 18% 23% 12% 9%
$18.84 $22.16 $23.11 $21.15 $20.61
Bexar County, TX $2,067,000 $2,243,000 $2,422,000 $1,998,000 $1,958,000 9% 17% -3% -5%
$9.54 $10.35 $11.18 $9.22 $9.04
Brazoria County, TX $2,329,000 $2,482,000 $2,653,000 $2,380,000 $2,347,000 7% 14% 2% 1%
$9.75 $10.39 $11.11 $9.97 $9.83
Brownsville, TX $3,916,000 $5,190,000 $5,729,000 $5,563,000 $5,421,000 33% 46% 42% 38%
$26.03 $34.50 $38.09 $36.98 $36.03
Bryan, TX $1,129,000 $1,141,000 $1,325,000 $1,186,000 $1,163,000 1% 17% 5% 3%
$16.93 $17.11 $19.87 $17.78 $17.44
Carrollton, TX $950,000 $949,000 $933,000 $648,000 $653,000 0% -2% -32% -31%
$8.25 $8.24 $8.10 $5.63 $5.67
College Station, TX $1,345,000 $628,000 $667,000 $619,000 $607,000 -53% -50% -54% -55%
$19.06 $8.90 $9.46 $8.77 $8.60
Conroe, TX $656,000 $766,000 $832,000 $865,000 $853,000 17% 27% 32% 30%
$16.79 $19.60 $21.30 $22.14 $21.84
Corpus Christi, TX $4,105,000 $4,737,000 $5,975,000 $5,337,000 $5,228,000 15% 46% 30% 27%
$14.74 $17.01 $21.45 $19.16 $18.77
Dallas, TX $21,184,000 $24,598,000 $27,798,000 $25,786,000 $25,578,000 16% 31% 22% 21%
$17.49 $20.30 $22.95 $21.28 $21.11
Dallas County, TX $2,252,000 $2,272,000 $2,480,000 $1,987,000 $1,974,000 1% 10% -12% -12%
$8.27 $8.34 $9.10 $7.29 $7.25
Denison, TX $450,000 $508,000 $451,000 $496,000 $483,000 13% 0% 10% 7%
$19.42 $21.91 $19.46 $21.39 $20.86
Denton, TX $1,005,000 $763,000 $902,000 $1,013,000 $1,000,000 -24% -10% 1% 0%
$11.12 $8.44 $9.98 $11.22 $11.07
Edinburg, TX $1,091,000 $1,368,000 $1,507,000 $1,086,000 $1,058,000 25% 38% 0% -3%
$20.68 $25.94 $28.57 $20.58 $20.05
El Paso, TX $10,236,000 $12,705,000 $15,000,000 $12,500,000 $12,207,000 24% 47% 22% 19%
$17.73 $22.00 $25.98 $21.65 $21.14

CDBG Formula Targeting to Community Development Need
B-70

Total Grant Amount/
Per Capita Grant Amount
Alternative Change in Funding
Relative to FY 2004
Jurisdiction
Name FY 2004 Grant Alternative 1 Alternative 2 Alternative 3 Alternative 4 Alt. 1 Alt. 2 Alt. 3 Alt. 4
Flower Mound, TX $246,000 $184,000 $159,000 $104,000 $101,000 -25% -36% -58% -59%
$4.19 $3.14 $2.70 $1.77 $1.73
Fort Bend County, TX $2,148,000 $2,253,000 $2,277,000 $1,708,000 $1,694,000 5% 6% -20% -21%
$8.94 $9.38 $9.48 $7.11 $7.05
Fort Worth, TX $7,900,000 $8,857,000 $11,018,000 $11,608,000 $11,437,000 12% 39% 47% 45%
$13.92 $15.61 $19.41 $20.45 $20.15
Galveston, TX $1,748,000 $1,891,000 $1,637,000 $1,974,000 $1,933,000 8% -6% 13% 11%
$30.84 $33.35 $28.88 $34.83 $34.09
Garland, TX $2,552,000 $2,818,000 $2,876,000 $2,707,000 $2,717,000 10% 13% 6% 6%
$11.62 $12.83 $13.09 $12.32 $12.37
Grand Prairie, TX $1,639,000 $1,838,000 $1,996,000 $1,893,000 $1,883,000 12% 22% 16% 15%
$12.11 $13.58 $14.75 $13.99 $13.92
Harlingen, TX $1,149,000 $1,431,000 $1,703,000 $1,209,000 $1,181,000 25% 48% 5% 3%
$19.35 $24.10 $28.67 $20.35 $19.89
Harris County, TX $12,729,000 $13,528,000 $14,003,000 $10,614,000 $10,545,000 6% 10% -17% -17%
$9.62 $10.22 $10.58 $8.02 $7.97
Hidalgo County, TX $10,116,000 $13,693,000 $14,521,000 $15,476,000 $15,020,000 35% 44% 53% 48%
$29.31 $39.68 $42.07 $44.84 $43.52
Houston, TX $36,209,000 $42,271,000 $47,690,000 $43,443,000 $42,994,000 17% 32% 20% 19%
$18.02 $21.03 $23.73 $21.62 $21.39
Irving, TX $2,755,000 $2,998,000 $3,040,000 $2,384,000 $2,413,000 9% 10% -13% -12%
$14.05 $15.29 $15.50 $12.16 $12.31
Killeen, TX $1,126,000 $1,249,000 $1,372,000 $1,225,000 $1,210,000 11% 22% 9% 7%
$12.15 $13.47 $14.79 $13.22 $13.05
Laredo, TX $4,336,000 $5,630,000 $6,225,000 $5,213,000 $5,098,000 30% 44% 20% 18%
$22.64 $29.39 $32.50 $27.22 $26.61
League City, TX $316,000 $288,000 $279,000 $183,000 $181,000 -9% -12% -42% -43%
$6.15 $5.61 $5.42 $3.55 $3.52
Lewisville, TX $662,000 $615,000 $617,000 $475,000 $477,000 -7% -7% -28% -28%
$7.88 $7.33 $7.35 $5.66 $5.68
Longview, TX $928,000 $1,029,000 $1,301,000 $1,131,000 $1,103,000 11% 40% 22% 19%
$12.48 $13.85 $17.51 $15.21 $14.84

CDBG Formula Targeting to Community Development Need
B-71

Total Grant Amount/
Per Capita Grant Amount
Alternative Change in Funding
Relative to FY 2004
Jurisdiction
Name FY 2004 Grant Alternative 1 Alternative 2 Alternative 3 Alternative 4 Alt. 1 Alt. 2 Alt. 3 Alt. 4
Lubbock, TX $2,782,000 $2,657,000 $3,248,000 $2,915,000 $2,852,000 -4% 17% 5% 3%
$13.66 $13.04 $15.95 $14.31 $14.00
Marshall, TX $499,000 $702,000 $672,000 $738,000 $718,000 41% 35% 48% 44%
$20.81 $29.28 $28.03 $30.77 $29.94
McAllen, TX $2,134,000 $2,681,000 $2,920,000 $1,869,000 $1,827,000 26% 37% -12% -14%
$18.74 $23.54 $25.65 $16.41 $16.04
McKinney, TX $539,000 $493,000 $514,000 $381,000 $376,000 -9% -5% -29% -30%
$7.38 $6.74 $7.03 $5.22 $5.15
Mesquite, TX $1,097,000 $1,099,000 $1,174,000 $1,104,000 $1,101,000 0% 7% 1% 0%
$8.52 $8.53 $9.12 $8.57 $8.55
Midland, TX $1,092,000 $1,197,000 $1,411,000 $1,229,000 $1,203,000 10% 29% 13% 10%
$11.40 $12.49 $14.73 $12.82 $12.55
Mission, TX $985,000 $1,267,000 $1,363,000 $903,000 $878,000 29% 38% -8% -11%
$19.15 $24.63 $26.50 $17.56 $17.08
Missouri City, TX $333,000 $290,000 $284,000 $178,000 $178,000 -13% -15% -47% -46%
$5.63 $4.89 $4.79 $3.00 $3.01
Montgomery County, TX $2,065,000 $2,036,000 $2,056,000 $1,440,000 $1,413,000 -1% 0% -30% -32%
$7.70 $7.60 $7.67 $5.37 $5.27
New Braunfels, TX $396,000 $417,000 $493,000 $440,000 $432,000 5% 24% 11% 9%
$9.60 $10.12 $11.94 $10.66 $10.46
North Richland Hills, TX $392,000 $360,000 $381,000 $269,000 $269,000 -8% -3% -31% -31%
$6.62 $6.09 $6.44 $4.55 $4.54
Odessa, TX $1,363,000 $1,597,000 $1,902,000 $1,592,000 $1,554,000 17% 40% 17% 14%
$14.98 $17.56 $20.91 $17.50 $17.09
Orange, TX $543,000 $604,000 $520,000 $549,000 $534,000 11% -4% 1% -2%
$29.84 $33.17 $28.56 $30.17 $29.35
Pasadena, TX $2,337,000 $2,766,000 $2,956,000 $3,026,000 $2,998,000 18% 26% 30% 28%
$16.11 $19.07 $20.38 $20.87 $20.67
Pharr, TX $1,321,000 $1,762,000 $1,853,000 $1,635,000 $1,592,000 33% 40% 24% 21%
$25.76 $34.37 $36.14 $31.88 $31.04
Plano, TX $1,477,000 $1,328,000 $1,273,000 $765,000 $762,000 -10% -14% -48% -48%
$6.20 $5.58 $5.34 $3.21 $3.20

CDBG Formula Targeting to Community Development Need
B-72

Total Grant Amount/
Per Capita Grant Amount
Alternative Change in Funding
Relative to FY 2004
Jurisdiction
Name FY 2004 Grant Alternative 1 Alternative 2 Alternative 3 Alternative 4 Alt. 1 Alt. 2 Alt. 3 Alt. 4
Port Arthur, TX $1,666,000 $1,937,000 $1,845,000 $2,211,000 $2,158,000 16% 11% 33% 30%
$29.29 $34.06 $32.44 $38.88 $37.93
Richardson, TX $777,000 $688,000 $659,000 $418,000 $421,000 -11% -15% -46% -46%
$8.01 $7.10 $6.80 $4.32 $4.34
Round Rock, TX $447,000 $394,000 $393,000 $302,000 $304,000 -12% -12% -32% -32%
$6.05 $5.34 $5.32 $4.09 $4.12
San Angelo, TX $1,084,000 $1,170,000 $1,527,000 $1,451,000 $1,416,000 8% 41% 34% 31%
$12.40 $13.39 $17.46 $16.60 $16.20
San Antonio, TX $17,379,000 $20,078,000 $24,497,000 $23,218,000 $22,789,000 16% 41% 34% 31%
$14.55 $16.81 $20.51 $19.44 $19.08
San Benito, TX $609,000 $803,000 $941,000 $890,000 $868,000 32% 54% 46% 43%
$25.30 $33.38 $39.08 $36.98 $36.08
San Marcos, TX $618,000 $405,000 $450,000 $490,000 $485,000 -34% -27% -21% -22%
$14.86 $9.74 $10.81 $11.78 $11.65
Sherman, TX $391,000 $453,000 $558,000 $550,000 $540,000 16% 43% 41% 38%
$10.93 $12.67 $15.58 $15.38 $15.09
Sugar Land, TX $388,000 $343,000 $340,000 $211,000 $209,000 -12% -12% -46% -46%
$5.66 $4.99 $4.96 $3.07 $3.05
Tarrant County, TX $3,800,000 $3,695,000 $3,923,000 $2,866,000 $2,842,000 -3% 3% -25% -25%
$7.68 $7.46 $7.93 $5.79 $5.74
Temple, TX $618,000 $662,000 $903,000 $742,000 $725,000 7% 46% 20% 17%
$11.35 $12.17 $16.58 $13.62 $13.31
Texarkana, TX $555,000 $755,000 $903,000 $844,000 $820,000 36% 63% 52% 48%
$15.76 $21.44 $25.64 $23.99 $23.30
Texas City, TX $521,000 $581,000 $752,000 $880,000 $861,000 12% 44% 69% 65%
$12.10 $13.50 $17.46 $20.44 $19.99
Tyler, TX $1,132,000 $1,242,000 $1,601,000 $1,419,000 $1,386,000 10% 41% 25% 22%
$13.01 $14.28 $18.40 $16.30 $15.93
Victoria, TX $762,000 $862,000 $1,063,000 $919,000 $900,000 13% 40% 21% 18%
$12.49 $14.12 $17.42 $15.06 $14.74
Waco, TX $2,006,000 $2,232,000 $2,672,000 $3,022,000 $2,950,000 11% 33% 51% 47%
$17.33 $19.28 $23.09 $26.11 $25.49

CDBG Formula Targeting to Community Development Need
B-73

Total Grant Amount/
Per Capita Grant Amount
Alternative Change in Funding
Relative to FY 2004
Jurisdiction
Name FY 2004 Grant Alternative 1 Alternative 2 Alternative 3 Alternative 4 Alt. 1 Alt. 2 Alt. 3 Alt. 4
Wichita Falls, TX $1,641,000 $1,593,000 $1,501,000 $1,500,000 $1,463,000 -3% -9% -9% -11%
$15.94 $15.47 $14.58 $14.57 $14.22
Williamson County, TX $1,215,000 $1,089,000 $1,157,000 $1,004,000 $994,000 -10% -5% -17% -18%
$6.03 $5.40 $5.74 $4.98 $4.93
Texas State Program $86,718,000 $98,206,000 $89,187,000 $89,187,000 $95,771,000 13% 3% 3% 10%
$13.18 $14.92 $13.55 $13.55 $14.55
TOTAL $300,637,000 $339,587,000 $359,667,000 $333,502,000 $336,410,000 13% 20% 11% 12%
$13.80 $15.59 $16.51 $15.31 $15.45

Utah
Clearfield, UT $279,000 $254,000 $297,000 $324,000 $319,000 -9% 6% 16% 14%
$10.60 $9.66 $11.28 $12.31 $12.11
Layton, UT $409,000 $386,000 $406,000 $333,000 $328,000 -6% -1% -19% -20%
$6.81 $6.42 $6.75 $5.54 $5.46
Logan, UT $705,000 $553,000 $704,000 $719,000 $708,000 -22% 0% 2% 0%
$16.43 $12.88 $16.41 $16.75 $16.50
Ogden, UT $1,367,000 $1,653,000 $1,698,000 $1,896,000 $1,863,000 21% 24% 39% 36%
$17.38 $21.02 $21.59 $24.11 $23.69
Orem, UT $727,000 $713,000 $741,000 $591,000 $580,000 -2% 2% -19% -20%
$8.69 $8.52 $8.85 $7.07 $6.94
Provo, UT $2,039,000 $1,487,000 $1,596,000 $1,585,000 $1,573,000 -27% -22% -22% -23%
$19.39 $14.14 $15.18 $15.07 $14.96
Salt Lake City, UT $4,891,000 $3,897,000 $3,509,000 $3,373,000 $3,325,000 -20% -28% -31% -32%
$26.98 $21.50 $19.36 $18.61 $18.34
Salt Lake County, UT $2,969,000 $2,803,000 $3,006,000 $2,446,000 $2,417,000 -6% 1% -18% -19%
$7.33 $6.92 $7.42 $6.04 $5.97
Sandy City, UT $475,000 $406,000 $403,000 $313,000 $307,000 -15% -15% -34% -35%
$5.32 $4.55 $4.52 $3.51 $3.44
St. George, UT $548,000 $555,000 $577,000 $454,000 $445,000 1% 5% -17% -19%
$10.14 $10.27 $10.67 $8.40 $8.24
Taylorsville, UT $457,000 $445,000 $456,000 $420,000 $418,000 -3% 0% -8% -8%
$7.73 $7.53 $7.71 $7.11 $7.08

CDBG Formula Targeting to Community Development Need
B-74

Total Grant Amount/
Per Capita Grant Amount
Alternative Change in Funding
Relative to FY 2004
Jurisdiction
Name FY 2004 Grant Alternative 1 Alternative 2 Alternative 3 Alternative 4 Alt. 1 Alt. 2 Alt. 3 Alt. 4
West Jordan, UT $486,000 $459,000 $443,000 $428,000 $424,000 -6% -9% -12% -13%
$6.63 $6.25 $6.04 $5.84 $5.77
West Valley, UT $1,112,000 $1,202,000 $1,260,000 $1,283,000 $1,273,000 8% 13% 15% 14%
$10.00 $10.81 $11.33 $11.53 $11.44
Utah State Program $7,525,000 $7,517,000 $6,431,000 $6,431,000 $7,001,000 0% -15% -15% -7%
$8.04 $8.03 $6.87 $6.87 $7.48
TOTAL $23,989,000 $22,329,000 $21,526,000 $20,596,000 $20,982,000 -7% -10% -14% -13%
$10.40 $9.68 $9.33 $8.93 $9.10

Vermont
Burlington, VT $1,044,000 $1,036,000 $711,000 $965,000 $945,000 -1% -32% -8% -9%
$26.45 $26.25 $18.01 $24.44 $23.95
Vermont State Program $8,692,000 $6,962,000 $6,787,000 $6,787,000 $6,927,000 -20% -22% -22% -20%
$15.06 $12.06 $11.76 $11.76 $12.00
TOTAL $9,736,000 $7,998,000 $7,498,000 $7,752,000 $7,872,000 -18% -23% -20% -19%
$15.79 $12.97 $12.16 $12.57 $12.77

Virginia
Alexandria, VA $1,499,000 $1,527,000 $1,700,000 $1,108,000 $1,114,000 2% 13% -26% -26%
$11.46 $11.67 $13.00 $8.47 $8.51
Arlington County, VA $2,248,000 $2,027,000 $2,240,000 $1,465,000 $1,479,000 -10% 0% -35% -34%
$11.21 $10.10 $11.17 $7.30 $7.37
Blacksburg, VA $774,000 $280,000 $347,000 $425,000 $413,000 -64% -55% -45% -47%
$19.30 $6.98 $8.65 $10.60 $10.29
Bristol, VA $348,000 $377,000 $314,000 $350,000 $339,000 8% -10% 1% -3%
$20.33 $22.01 $18.37 $20.47 $19.81
Charlottesville, VA $643,000 $585,000 $617,000 $810,000 $793,000 -9% -4% 26% 23%
$14.67 $13.34 $14.08 $18.47 $18.09
Chesapeake, VA $1,476,000 $1,450,000 $1,790,000 $1,593,000 $1,557,000 -2% 21% 8% 5%
$7.14 $7.02 $8.66 $7.71 $7.53
Chesterfield County, VA $1,475,000 $1,226,000 $1,388,000 $1,145,000 $1,121,000 -17% -6% -22% -24%
$5.44 $4.52 $5.12 $4.22 $4.13

CDBG Formula Targeting to Community Development Need
B-75

Total Grant Amount/
Per Capita Grant Amount
Alternative Change in Funding
Relative to FY 2004
Jurisdiction
Name FY 2004 Grant Alternative 1 Alternative 2 Alternative 3 Alternative 4 Alt. 1 Alt. 2 Alt. 3 Alt. 4
Christiansburg, VA $124,000 $111,000 $154,000 $135,000 $131,000 -11% 24% 9% 5%
$7.07 $6.32 $8.78 $7.68 $7.46
Colonial Heights, VA $106,000 $104,000 $137,000 $134,000 $132,000 -2% 29% 26% 24%
$6.21 $6.10 $8.02 $7.84 $7.71
Danville, VA $1,258,000 $1,521,000 $1,259,000 $1,339,000 $1,301,000 21% 0% 6% 3%
$26.43 $31.95 $26.46 $28.13 $27.33
Fairfax County, VA $7,310,000 $6,812,000 $6,558,000 $4,113,000 $4,139,000 -7% -10% -44% -43%
$7.17 $6.68 $6.43 $4.03 $4.06
Fredericksburg, VA $279,000 $209,000 $255,000 $322,000 $313,000 -25% -9% 15% 12%
$13.90 $10.40 $12.68 $16.03 $15.61
Hampton, VA $1,330,000 $1,326,000 $1,824,000 $1,782,000 $1,741,000 0% 37% 34% 31%
$9.11 $9.09 $12.50 $12.21 $11.93
Harrisonburg, VA $648,000 $346,000 $440,000 $490,000 $479,000 -47% -32% -24% -26%
$15.84 $8.46 $10.76 $11.98 $11.71
Henrico County, VA $1,760,000 $1,516,000 $1,907,000 $1,526,000 $1,499,000 -14% 8% -13% -15%
$6.56 $5.65 $7.11 $5.69 $5.59
Hopewell, VA $253,000 $308,000 $410,000 $497,000 $484,000 22% 62% 96% 91%
$11.23 $13.66 $18.19 $22.05 $21.47
Loudoun County, VA $949,000 $718,000 $697,000 $533,000 $530,000 -24% -27% -44% -44%
$4.65 $3.52 $3.41 $2.61 $2.60
Lynchburg, VA $1,100,000 $1,286,000 $1,209,000 $1,322,000 $1,288,000 17% 10% 20% 17%
$17.02 $19.91 $18.72 $20.46 $19.93
Newport News, VA $1,961,000 $2,081,000 $2,913,000 $3,170,000 $3,094,000 6% 49% 62% 58%
$10.88 $11.54 $16.16 $17.58 $17.16
Norfolk, VA $6,249,000 $5,665,000 $4,856,000 $5,536,000 $5,406,000 -9% -22% -11% -13%
$26.14 $23.70 $20.32 $23.16 $22.61
Petersburg, VA $819,000 $876,000 $835,000 $1,053,000 $1,026,000 7% 2% 29% 25%
$24.73 $26.45 $25.21 $31.79 $30.97
Portsmouth, VA $2,174,000 $2,364,000 $2,058,000 $2,562,000 $2,497,000 9% -5% 18% 15%
$21.79 $23.69 $20.63 $25.68 $25.03
Prince William County, VA $2,238,000 $2,031,000 $2,122,000 $2,058,000 $2,045,000 -9% -5% -8% -9%
$6.22 $5.64 $5.89 $5.72 $5.68

CDBG Formula Targeting to Community Development Need
B-76

Total Grant Amount/
Per Capita Grant Amount
Alternative Change in Funding
Relative to FY 2004
Jurisdiction
Name FY 2004 Grant Alternative 1 Alternative 2 Alternative 3 Alternative 4 Alt. 1 Alt. 2 Alt. 3 Alt. 4
Radford, VA $248,000 $174,000 $152,000 $204,000 $200,000 -30% -39% -18% -19%
$15.83 $11.09 $9.68 $13.04 $12.79
Richmond, VA $5,945,000 $5,855,000 $4,968,000 $5,933,000 $5,787,000 -2% -16% 0% -3%
$30.11 $29.65 $25.16 $30.05 $29.31
Roanoke, VA $2,207,000 $2,277,000 $1,918,000 $2,306,000 $2,246,000 3% -13% 4% 2%
$23.51 $24.26 $20.43 $24.57 $23.93
Suffolk, VA $652,000 $761,000 $994,000 $1,067,000 $1,036,000 17% 52% 64% 59%
$9.32 $10.88 $14.21 $15.25 $14.80
Virginia Beach, VA $3,012,000 $2,790,000 $3,199,000 $2,543,000 $2,496,000 -7% 6% -16% -17%
$6.94 $6.43 $7.37 $5.86 $5.75
Winchester, VA $306,000 $307,000 $339,000 $334,000 $327,000 0% 11% 9% 7%
$12.63 $12.69 $14.00 $13.79 $13.50
Virginia State Program $22,735,000 $25,911,000 $28,900,000 $28,900,000 $29,354,000 14% 27% 27% 29%
$8.21 $9.36 $10.44 $10.44 $10.61
TOTAL $72,126,000 $72,820,000 $76,500,000 $74,755,000 $74,364,000 1% 6% 4% 3%
$9.89 $9.98 $10.49 $10.25 $10.20

Washington
Anacortes, WA $128,000 $113,000 $142,000 $136,000 $132,000 -12% 11% 6% 4%
$8.42 $7.41 $9.36 $8.92 $8.72
Auburn, WA $482,000 $498,000 $627,000 $604,000 $594,000 3% 30% 25% 23%
$10.92 $11.28 $14.21 $13.69 $13.45
Bellevue, WA $859,000 $771,000 $732,000 $430,000 $431,000 -10% -15% -50% -50%
$7.61 $6.83 $6.48 $3.81 $3.82
Bellingham, WA $1,022,000 $973,000 $976,000 $1,052,000 $1,032,000 -5% -5% 3% 1%
$14.50 $13.80 $13.85 $14.93 $14.64
Bremerton, WA $631,000 $1,009,000 $955,000 $1,259,000 $1,233,000 60% 51% 99% 95%
$17.38 $27.79 $26.29 $34.67 $33.96
Clark County, WA $1,576,000 $1,507,000 $1,684,000 $1,581,000 $1,548,000 -4% 7% 0% -2%
$7.03 $6.72 $7.51 $7.05 $6.90
Everett, WA $1,127,000 $1,178,000 $1,511,000 $1,734,000 $1,710,000 4% 34% 54% 52%
$11.61 $12.13 $15.56 $17.86 $17.61

CDBG Formula Targeting to Community Development Need
B-77

Total Grant Amount/
Per Capita Grant Amount
Alternative Change in Funding
Relative to FY 2004
Jurisdiction
Name FY 2004 Grant Alternative 1 Alternative 2 Alternative 3 Alternative 4 Alt. 1 Alt. 2 Alt. 3 Alt. 4
Federal Way, WA $867,000 $902,000 $984,000 $994,000 $988,000 4% 14% 15% 14%
$10.55 $10.98 $11.98 $12.10 $12.02
Kennewick, WA $679,000 $753,000 $837,000 $697,000 $685,000 11% 23% 3% 1%
$11.72 $13.00 $14.45 $12.02 $11.82
Kent City, WA $953,000 $1,001,000 $1,104,000 $1,138,000 $1,127,000 5% 16% 19% 18%
$11.66 $12.25 $13.51 $13.93 $13.80
King County, WA $5,325,000 $4,911,000 $5,416,000 $3,489,000 $3,461,000 -8% 2% -34% -35%
$7.28 $6.71 $7.40 $4.77 $4.73
Kitsap County, WA $1,402,000 $1,295,000 $1,507,000 $1,300,000 $1,274,000 -8% 8% -7% -9%
$7.06 $6.52 $7.59 $6.54 $6.41
Lakewood, WA $785,000 $838,000 $1,041,000 $948,000 $931,000 7% 33% 21% 19%
$13.36 $14.26 $17.71 $16.12 $15.84
Longview, WA $443,000 $542,000 $684,000 $675,000 $658,000 22% 54% 52% 49%
$12.49 $15.27 $19.29 $19.04 $18.57
Mount Vernon, WA $385,000 $421,000 $484,000 $524,000 $517,000 9% 26% 36% 34%
$14.15 $15.48 $17.80 $19.26 $18.99
Olympia, WA $472,000 $496,000 $528,000 $545,000 $536,000 5% 12% 15% 13%
$10.85 $11.39 $12.13 $12.52 $12.31
Pasco, WA $698,000 $854,000 $958,000 $1,020,000 $1,006,000 22% 37% 46% 44%
$19.71 $24.11 $27.04 $28.79 $28.40
Pierce County, WA $3,555,000 $3,390,000 $3,877,000 $3,277,000 $3,223,000 -5% 9% -8% -9%
$7.49 $7.14 $8.17 $6.91 $6.79
Renton City, WA $545,000 $537,000 $635,000 $635,000 $632,000 -2% 17% 17% 16%
$10.25 $10.09 $11.95 $11.95 $11.88
Richland, WA $323,000 $306,000 $405,000 $302,000 $296,000 -5% 26% -6% -8%
$7.78 $7.38 $9.77 $7.28 $7.14
Seattle, WA $14,803,000 $7,755,000 $7,645,000 $7,102,000 $7,028,000 -48% -48% -52% -53%
$25.95 $13.60 $13.40 $12.45 $12.32
Shoreline, WA $427,000 $386,000 $452,000 $452,000 $448,000 -10% 6% 6% 5%
$8.09 $7.32 $8.56 $8.56 $8.48
Snohomish County, WA $3,677,000 $3,379,000 $3,591,000 $3,533,000 $3,502,000 -8% -2% -4% -5%
$7.07 $6.50 $6.90 $6.79 $6.73

CDBG Formula Targeting to Community Development Need
B-78

Total Grant Amount/
Per Capita Grant Amount
Alternative Change in Funding
Relative to FY 2004
Jurisdiction
Name FY 2004 Grant Alternative 1 Alternative 2 Alternative 3 Alternative 4 Alt. 1 Alt. 2 Alt. 3 Alt. 4
Spokane, WA $4,583,000 $4,841,000 $4,022,000 $4,511,000 $4,411,000 6% -12% -2% -4%
$23.35 $24.66 $20.49 $22.98 $22.47
Spokane County, WA $1,831,000 $1,642,000 $2,019,000 $1,826,000 $1,784,000 -10% 10% 0% -3%
$7.92 $7.10 $8.73 $7.90 $7.72
Tacoma, WA $3,354,000 $3,489,000 $3,937,000 $4,306,000 $4,222,000 4% 17% 28% 26%
$16.98 $17.66 $19.93 $21.80 $21.37
Vancouver, WA $1,606,000 $1,668,000 $2,018,000 $2,084,000 $2,046,000 4% 26% 30% 27%
$10.72 $11.13 $13.47 $13.91 $13.65
Yakima, WA $1,389,000 $1,647,000 $2,146,000 $1,939,000 $1,908,000 19% 55% 40% 37%
$18.95 $22.47 $29.28 $26.46 $26.03
Washington State Program $18,647,000 $19,471,000 $18,653,000 $18,653,000 $20,195,000 4% 0% 0% 8%
$12.22 $12.76 $12.23 $12.23 $13.24
TOTAL $72,574,000 $66,571,000 $69,572,000 $66,744,000 $67,556,000 -8% -4% -8% -7%
$12.02 $11.02 $11.52 $11.05 $11.19

West Virginia
Charleston, WV $2,271,000 $1,932,000 $1,088,000 $907,000 $882,000 -15% -52% -60% -61%
$43.92 $37.37 $21.05 $17.53 $17.06
Huntington, WV $2,546,000 $2,574,000 $1,455,000 $1,685,000 $1,640,000 1% -43% -34% -36%
$51.01 $51.58 $29.16 $33.75 $32.86
Martinsburg, WV $495,000 $492,000 $386,000 $502,000 $488,000 -1% -22% 1% -1%
$32.74 $32.57 $25.53 $33.20 $32.29
Morgantown, WV $675,000 $1,058,000 $669,000 $917,000 $899,000 57% -1% 36% 33%
$24.69 $38.70 $24.46 $33.54 $32.90
Parkersburg, WV $1,276,000 $1,250,000 $838,000 $1,032,000 $1,001,000 -2% -34% -19% -22%
$39.51 $38.70 $25.93 $31.95 $30.98
Weirton, WV $592,000 $467,000 $251,000 $243,000 $235,000 -21% -58% -59% -60%
$29.56 $23.30 $12.55 $12.12 $11.75
Wheeling, WV $1,799,000 $1,490,000 $796,000 $863,000 $841,000 -17% -56% -52% -53%
$59.24 $49.06 $26.21 $28.42 $27.70

CDBG Formula Targeting to Community Development Need
B-79

Total Grant Amount/
Per Capita Grant Amount
Alternative Change in Funding
Relative to FY 2004
Jurisdiction
Name FY 2004 Grant Alternative 1 Alternative 2 Alternative 3 Alternative 4 Alt. 1 Alt. 2 Alt. 3 Alt. 4
West Virginia State Program $19,912,000 $27,709,000 $30,106,000 $30,106,000 $29,988,000 39% 51% 51% 51%
$12.64 $17.59 $19.11 $19.11 $19.04
TOTAL $29,566,000 $36,973,000 $35,589,000 $36,254,000 $35,975,000 25% 20% 23% 22%
$16.41 $20.52 $19.75 $20.12 $19.97

Wisconsin
Appleton, WI $723,000 $440,000 $541,000 $520,000 $512,000 -39% -25% -28% -29%
$10.24 $6.22 $7.65 $7.37 $7.25
Beloit, WI $813,000 $736,000 $660,000 $850,000 $833,000 -9% -19% 5% 2%
$22.79 $20.64 $18.49 $23.81 $23.34
Dane County, WI $1,317,000 $946,000 $1,160,000 $999,000 $987,000 -28% -12% -24% -25%
$6.29 $4.52 $5.54 $4.77 $4.71
Eau Claire, WI $771,000 $793,000 $714,000 $813,000 $798,000 3% -7% 6% 3%
$12.36 $12.72 $11.44 $13.04 $12.80
Fond du Lac, WI $670,000 $395,000 $395,000 $433,000 $424,000 -41% -41% -35% -37%
$15.84 $9.35 $9.35 $10.25 $10.03
Green Bay, WI $1,128,000 $1,136,000 $1,366,000 $1,478,000 $1,453,000 1% 21% 31% 29%
$11.11 $11.19 $13.46 $14.56 $14.32
Janesville, WI $651,000 $451,000 $521,000 $507,000 $497,000 -31% -20% -22% -24%
$10.69 $7.40 $8.55 $8.32 $8.16
Kenosha, WI $1,287,000 $1,076,000 $1,214,000 $1,539,000 $1,510,000 -16% -6% 20% 17%
$13.91 $11.63 $13.12 $16.64 $16.32
La Crosse, WI $1,204,000 $924,000 $695,000 $842,000 $825,000 -23% -42% -30% -31%
$23.51 $18.05 $13.57 $16.45 $16.11
Madison, WI $2,398,000 $2,355,000 $2,330,000 $2,519,000 $2,489,000 -2% -3% 5% 4%
$11.14 $10.94 $10.83 $11.71 $11.56
Milwaukee, WI $20,715,000 $21,157,000 $17,382,000 $22,612,000 $22,098,000 2% -16% 9% 7%
$35.06 $35.80 $29.42 $38.27 $37.40
Milwaukee County, WI $1,956,000 $1,054,000 $1,338,000 $1,099,000 $1,079,000 -46% -32% -44% -45%
$8.18 $4.41 $5.60 $4.60 $4.52
Neenah, WI $253,000 $158,000 $191,000 $171,000 $168,000 -38% -24% -32% -34%
$10.34 $6.45 $7.81 $6.99 $6.87

CDBG Formula Targeting to Community Development Need
B-80

Total Grant Amount/
Per Capita Grant Amount
Alternative Change in Funding
Relative to FY 2004
Jurisdiction
Name FY 2004 Grant Alternative 1 Alternative 2 Alternative 3 Alternative 4 Alt. 1 Alt. 2 Alt. 3 Alt. 4
Oshkosh, WI $979,000 $735,000 $660,000 $831,000 $815,000 -25% -33% -15% -17%
$15.43 $11.59 $10.40 $13.10 $12.85
Racine, WI $2,388,000 $2,028,000 $1,696,000 $2,152,000 $2,107,000 -15% -29% -10% -12%
$29.59 $25.13 $21.01 $26.66 $26.10
Sheboygan, WI $1,251,000 $737,000 $637,000 $728,000 $714,000 -41% -49% -42% -43%
$25.30 $14.90 $12.88 $14.72 $14.45
Superior, WI $1,042,000 $750,000 $470,000 $573,000 $559,000 -28% -55% -45% -46%
$38.29 $27.56 $17.28 $21.05 $20.53
Waukesha, WI $516,000 $358,000 $437,000 $394,000 $392,000 -31% -15% -24% -24%
$7.80 $5.42 $6.60 $5.95 $5.92
Waukesha County, WI $1,257,000 $878,000 $885,000 $635,000 $624,000 -30% -30% -50% -50%
$4.15 $2.89 $2.92 $2.09 $2.06
Wausau, WI $843,000 $736,000 $624,000 $673,000 $658,000 -13% -26% -20% -22%
$22.34 $19.52 $16.54 $17.82 $17.44
Wauwatosa, WI $1,431,000 $267,000 $270,000 $234,000 $229,000 -81% -81% -84% -84%
$30.63 $5.72 $5.79 $5.01 $4.90
West Allis, WI $1,661,000 $928,000 $578,000 $680,000 $667,000 -44% -65% -59% -60%
$27.39 $15.31 $9.53 $11.22 $11.00
Wisconsin State Program $33,072,000 $22,965,000 $22,709,000 $22,709,000 $23,534,000 -31% -31% -31% -29%
$11.43 $7.94 $7.85 $7.85 $8.13
TOTAL $78,326,000 $62,006,000 $57,473,000 $63,993,000 $63,973,000 -21% -27% -18% -18%
$14.44 $11.43 $10.59 $11.80 $11.79

Wyoming
Casper, WY $551,000 $573,000 $631,000 $623,000 $605,000 4% 15% 13% 10%
$11.01 $11.45 $12.62 $12.45 $12.10
Cheyenne, WY $663,000 $609,000 $574,000 $593,000 $579,000 -8% -13% -11% -13%
$12.36 $11.35 $10.69 $11.04 $10.79
Wyoming State Program $3,754,000 $3,811,000 $4,195,000 $4,195,000 $4,369,000 2% 12% 12% 16%
$9.67 $9.82 $10.81 $10.81 $11.26
TOTAL $4,968,000 $4,993,000 $5,400,000 $5,411,000 $5,553,000 0% 9% 9% 12%
$10.10 $10.15 $10.98 $11.00 $11.29

CDBG Formula Targeting to Community Development Need
B-81

Total Grant Amount/
Per Capita Grant Amount
Alternative Change in Funding
Relative to FY 2004
Jurisdiction
Name FY 2004 Grant Alternative 1 Alternative 2 Alternative 3 Alternative 4 Alt. 1 Alt. 2 Alt. 3 Alt. 4

Puerto Rico
Aguadilla Municipio, PR $2,249,000 $2,988,000 $3,529,000 $2,862,000 $2,760,000 33% 57% 27% 23%
$34.28 $45.54 $53.78 $43.62 $42.07
Arecibo Municipio, PR $3,313,000 $4,438,000 $5,149,000 $5,765,000 $5,565,000 34% 55% 74% 68%
$32.71 $43.82 $50.84 $56.92 $54.94
Bayamon Municipio, PR $5,539,000 $7,250,000 $8,038,000 $6,821,000 $6,608,000 31% 45% 23% 19%
$24.65 $32.27 $35.78 $30.36 $29.41
Cabo Rojo Municipio, PR $1,491,000 $1,969,000 $2,196,000 $1,838,000 $1,775,000 32% 47% 23% 19%
$30.77 $40.63 $45.32 $37.92 $36.62
Caguas Municipio, PR $4,097,000 $5,425,000 $6,100,000 $5,602,000 $5,424,000 32% 49% 37% 32%
$28.91 $38.29 $43.05 $39.54 $38.28
Canovanas Municipio, PR $1,609,000 $2,181,000 $2,393,000 $2,614,000 $2,527,000 36% 49% 62% 57%
$36.15 $49.01 $53.76 $58.74 $56.78
Carolina Municipio, PR $4,708,000 $6,101,000 $6,760,000 $4,995,000 $4,855,000 30% 44% 6% 3%
$25.11 $32.54 $36.06 $26.64 $25.90
Cayey Municipio, PR $1,581,000 $2,138,000 $2,439,000 $2,739,000 $2,644,000 35% 54% 73% 67%
$33.28 $45.01 $51.35 $57.65 $55.67
Cidra Municipio, PR $1,427,000 $1,930,000 $2,081,000 $2,048,000 $1,983,000 35% 46% 44% 39%
$32.39 $43.80 $47.24 $46.48 $45.02
Fajardo Municipio, PR $1,169,000 $1,540,000 $1,798,000 $1,676,000 $1,622,000 32% 54% 43% 39%
$28.25 $37.23 $43.46 $40.51 $39.20
Guayama Municipio, PR $1,490,000 $2,017,000 $2,349,000 $1,934,000 $1,867,000 35% 58% 30% 25%
$33.29 $45.06 $52.47 $43.21 $41.71
Guaynabo Municipio, PR $2,317,000 $2,997,000 $3,381,000 $2,221,000 $2,160,000 29% 46% -4% -7%
$22.88 $29.59 $33.38 $21.93 $21.33
Humacao Municipio, PR $1,893,000 $2,517,000 $2,838,000 $2,943,000 $2,845,000 33% 50% 55% 50%
$31.71 $42.17 $47.55 $49.30 $47.67
Isabela Municipio, PR $1,579,000 $2,151,000 $2,426,000 $1,983,000 $1,908,000 36% 54% 26% 21%
$34.80 $47.40 $53.46 $43.69 $42.05
Juana Diaz Municipio, PR $1,916,000 $2,603,000 $2,889,000 $3,053,000 $2,948,000 36% 51% 59% 54%
$37.23 $50.57 $56.13 $59.32 $57.28

CDBG Formula Targeting to Community Development Need
B-82

Total Grant Amount/
Per Capita Grant Amount
Alternative Change in Funding
Relative to FY 2004
Jurisdiction
Name FY 2004 Grant Alternative 1 Alternative 2 Alternative 3 Alternative 4 Alt. 1 Alt. 2 Alt. 3 Alt. 4
Manati Municipio, PR $1,591,000 $2,155,000 $2,461,000 $2,638,000 $2,550,000 35% 55% 66% 60%
$34.13 $46.23 $52.78 $56.58 $54.70
Mayaguez Municipio, PR $3,451,000 $4,258,000 $5,125,000 $4,791,000 $4,651,000 23% 49% 39% 35%
$35.26 $43.50 $52.36 $48.95 $47.51
Ponce Municipio, PR $6,256,000 $8,416,000 $9,992,000 $8,489,000 $8,201,000 35% 60% 36% 31%
$33.61 $45.22 $53.69 $45.61 $44.06
Rio Grande Municipio, PR $1,725,000 $2,303,000 $2,525,000 $2,683,000 $2,600,000 33% 46% 56% 51%
$32.21 $43.00 $47.14 $50.10 $48.55
San German Municipio, PR $1,263,000 $1,685,000 $1,957,000 $1,690,000 $1,638,000 33% 55% 34% 30%
$33.71 $44.97 $52.22 $45.11 $43.72
San Juan Municipio, PR $12,558,000 $16,263,000 $20,449,000 $14,290,000 $13,920,000 30% 63% 14% 11%
$28.97 $37.52 $47.18 $32.97 $32.12
San Sebastian Municipio, PR $1,668,000 $2,279,000 $2,514,000 $2,428,000 $2,340,000 37% 51% 46% 40%
$36.94 $50.46 $55.66 $53.77 $51.82
Toa Alta Municipio, PR $1,847,000 $2,452,000 $2,654,000 $2,389,000 $2,318,000 33% 44% 29% 26%
$27.18 $36.08 $39.06 $35.16 $34.12
Toa Baja Municipio, PR $2,569,000 $3,411,000 $3,789,000 $3,453,000 $3,336,000 33% 48% 34% 30%
$27.08 $35.96 $39.94 $36.40 $35.17
Trujillo Alto Municipio, PR $1,884,000 $2,444,000 $2,700,000 $1,927,000 $1,869,000 30% 43% 2% -1%
$24.02 $31.15 $34.42 $24.56 $23.83
Vega Baja Municipio, PR $2,077,000 $2,817,000 $3,200,000 $3,544,000 $3,419,000 36% 54% 71% 65%
$32.99 $44.75 $50.82 $56.28 $54.30
Yauco Municipio, PR $1,769,000 $2,412,000 $2,717,000 $2,185,000 $2,112,000 36% 54% 24% 19%
$37.53 $51.18 $57.65 $46.36 $44.80
Puerto Rico State Program $55,714,000 $74,172,000 $61,831,000 $61,831,000 $65,100,000 33% 11% 11% 17%
$41.03 $54.62 $45.53 $45.53 $47.94
TOTAL $130,750,000 $173,312,000 $176,279,000 $161,431,000 $161,547,000 33% 35% 23% 24%
$33.88 $44.91 $45.68 $41.83 $41.86

CDBG Formula Targeting to Community Development Need
References - 1
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