May.03, 2010

Floretta Irvin is tired of not having services for seniors and programs for youths in her Lincoln-Lemington neighborhood while other communities thrive.

"That needs to change," said Irvin, 69, a community activist and secretary of the Allegheny County Democratic Committee. "I believe in equality, but the poorer neighborhoods have been deprived for too long."

City Councilman Ricky Burgess said the city has a history of using Community Development Block Grant money from the federal Department of Housing and Urban Development to pay for essential services in poor neighborhoods.

Donna White, a HUD spokeswoman, said the federal money is supposed to be used in conjunction with city funds — not as the sole resource — to pay for projects in poor communities.

"Not only are poor communities not getting their fair share, they're not even getting equal share," Burgess said. "The city makes money off the backs of poor people in this city and it should go to improve their neighborhoods."

Burgess introduced legislation in March that he said would ensure tax dollars are more evenly disbursed throughout the city before CDBG money goes to eligible neighborhoods and groups. Burgess' plan would change the way council members can each dole out $75,000 to eligible areas and groups in their districts, and set the minimum grant at $5,000.

The block grants are meant to help poor communities break the cycle of poverty, not to allow the city to shift its own money away from those areas, said Paul O'Hanlon, co-chair of the Allegheny County Task Force on Disabilities.

"This kind of money laundering started on a small scale but has grown to characterize the program," O'Hanlon said.

The city expects to receive $16.5 million in CDBG money this year, based on the 4,726 blocks that meet federal guidelines for distressed status. That's about 58 percent of the 8,186 blocks in the city.

Burgess said that between 2005 and 2009, $8 million in city money was used for paving roads in CDBG-eligible communities, while $24 million was used in non-CDBG eligible areas, Burgess said.

White said the HUD office in Pittsburgh plans to review how the city spends its CDBG money this summer. Officials at the local HUD office did not return calls seeking comment.

Officials from Mayor Luke Ravenstahl's finance department said the city has administered CDBG funds the same way for 32 years.

"Our CDBG administering agent spoke with the local HUD officer, who said the city is fully in compliance with the use of the funds," said Cathy Qureshi, the city's assistant finance director.

Councilman Bill Peduto questioned why the CDBG money goes toward paving and other essential services when it's supposed to be used to help communities.

"I think we really have to rethink this entire program," he said.

Councilman Patrick Dowd said the CDBG funding isn't just about closing the gap between the poor neighborhoods and wealthier ones.

"Ultimately it's not about CDBG dollars," Dowd said. "It's about how we're deploying all (city) resources."