PRESS RELEASE FROM THE OFFICE OF THE 
V.I. CONGRESSIONAL DELEGATE
 
FOR IMMEDIATE RELEASE
CONTACT: Monique Clendinen Watson (202) 226-7973
 
Delegate Lauds Change in CDBG Law That Will Benefit Virgin Islands
(Washington, DC, December 16, 2003) — Delegate to Congress Donna M. Christensen today lauded changes to the Community Development Block Grant Program (CDBG) which were signed into law by President Bush today as part of S. 211, the American Dream Downpayment Act.

Included in the new law are provisions that make the territories, including the Virgin Islands, part of the national formula for CDBG funding instead of the previously held discretionary designation. “What this does is codify territorial inclusion in the program which guarantees our participation based on population,” said Delegate Christensen, “instead of leaving us at the discretion of what’s left over when the states and entitlement communities have been satisfied.”

Even more importantly, said Christensen, it opens the door for Virgin Islands participation in the Section 108 program, which allows the government to leverage up to five times the amount of its yearly allocation for up to 20 years in order to fund bigger projects. “Currently the Virgin Islands receives about $2 million of CDBG funding for projects for which there is much competition,” said Christensen. “Access to the Section 108 program will allow the government to use the $2 million as leverage for up to $10 million more to fund public facilities improvements such as to water and wastewater systems, streets and community centers, housing rehabilitation and landmark structures, among other uses,” the Delegate said.

In addition to the CDBG changes, S. 811 includes funding for Housing and Urban Development Programs which provides among other things downpayment and closing cost assistance for first time low income homebuyers.

Delegate Christensen thanked Delegate Madeleine Bordallo of Guam, who sperheaded the initiative of territorial delegates to have the CDBG changes made.

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