Federally Mandated Sequestration Affects San Diego

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Dollar Symbol On The American Currency

washington_money_mgnThe Federal Sequestration, which went into effect on March 1, affects not only the nation as a whole, but the San Diego community. Many facets of the community organizations and programs will be affected financially, whether largely or minimally. The sequestration mandated a 5.1 percent reduction to numerous federally-funded programs, which includes those administered by the County of San Diego Department of Housing and Community Development (HCD). As a result, many of the funding for entitlement programs administered by County HCD will be modified.

It is anticipated that the total budget authority for the entitlement programs administered by County HCD-Community Development Block Grant (CDBG), HOME, Emergency Solutions Grant (ESG) and Housing for Persons with Aids (HOPWA) – will be reduced by approximately $450,000 in the upcoming funding cycle. Many of these programs are essential to underserved communities and communities of color. Specifically the Community Development Block Grant is a necessary grant for areas including southeastern San Diego.

Although the County of San Diego advises that projects and programs currently under contract will not be impacted, these budget reductions will result in projects and/or programs being funded at a lower rate, and/or fewer projects will be funded during County Fiscal Year 2013-2014 (July 1, 2013 through June 30, 2014). And with the reduction, even less funding will be available for organizations currently providing service to much needed areas.

The County of San Diego acknowledges they will know more about the effects of sequestration in the coming weeks and will provide more specific information as it becomes available. During this time, County HCD will continue to administer programs in a fiscally responsible manner. The County urges the community to contact them with any questions you may have.

The Federal Sequestration, which went into effect on March 1, affects not only the nation as a whole, but the San Diego community. Many facets of the community organizations and programs will be affected financially, whether largely or minimally. The sequestration mandated a 5.1 percent reduction to numerous federally-funded programs, which includes those administered by the County of San Diego Department of Housing and Community Development (HCD). As a result, many of the funding for entitlement programs administered by County HCD will be modified.

It is anticipated that the total budget authority for the entitlement programs administered by County HCD-Community Development Block Grant (CDBG), HOME, Emergency Solutions Grant (ESG) and Housing for Persons with Aids (HOPWA) – will be reduced by approximately $450,000 in the upcoming funding cycle. Many of these programs are essential to underserved communities and communities of color. Specifically the Community Development Block Grant is a necessary grant for areas including southeastern San Diego.
Although the County of San Diego advises that projects and programs currently under contract will not be impacted, these budget reductions will result in projects and/or programs being funded at a lower rate, and/or fewer projects will be funded during County Fiscal Year 2013-2014 (July 1, 2013 through June 30, 2014). And with the reduction, even less funding will be available for organizations currently providing service to much needed areas.
The County of San Diego acknowledges they will know more about the effects of sequestration in the coming weeks and will provide more specific information as it becomes available. During this time, County HCD will continue to administer programs in a fiscally responsible manner. The County urges the community to contact them with any questions you may have.