Date: 2010-07-29
Speaker: EDDIE BERNICE JOHNSON (democrat)
Chamber: H
State: Texas

Mr. Chairman. I rise today to support additional funding for activities under section 107 of the Community Development Grant program at HUD. Specifically. I would like to ask for these funds to be diverted for community development grants for minorityserving institutions and Historically Black Colleges and Universities. This program assists minorityserving institutions to expand their role and effectiveness in addressing community development needs in their localities. An increase of $10 million for this program would double the budget now and allow for an additional 12 to 20 minorityserving institutions to meet urgent community needs. I know these funds are particularly needed at many of our Nations Historically Black Colleges and Universities. This is an important investment for these schools. It builds a strong relationship between school and community to promote social economic development initiatives. It will create jobs and help revitalize struggling neighborhoods. Many of our urban HBCUs and other minorityserving institutions are located in areas that are blighted and struggling economically. This program creates a partnership between school and community. raising standards and expectations of the next generation. We want to create neighborhoods that are places people want to reside and feel a connection. You often hear the phrase "university town" associated with other institutions. We want "university town" for these colleges as well. areas where the university is the center of economic and social life and people are proud to be part of it. We want neighborhoods where a college education is valued and seen as a common practice. The program has made an immense impact at Benedict College in Columbia. South Carolina. Located less than 10 minutes from the University of South Carolina. Benedict College is an economically depressed neighborhood. With funding from this grant. Benedict College has created a partnership and has been able to build and renovate homes. construct a community recreational park. and build a business development center. Similar success has been seen at Winston Salem State University in North Carolina where funds have been used for affordable housing development. small business development. and neighborhood cleanup. This grant creates partnerships that enable students. faculty. and neighborhood organizations to work together to revitalize the economy. generate jobs. and rebuild healthy communities. Funding this program at an additional $10 million would make an immense difference for these schools and communities. I have used the reverse mortgage fund to offset this funding. This program is not without controversy. Many do not understand that proceeds received under a reverse mortgage may impact Medicaid eligibility. At a time when property values remain low. a reverse mortgage may not be the best route for many individuals. The value that one gets from a reverse mortgage is based on the current appraised value of the property. I have chosen this offset due to the current slump in the real estate market. I thank the leadership for allowing this amendment to be considered. and I would ask humbly for your support. I yield back the balance of my time.