CDBG Funds Not Useful Focus for Zoning Reform

Linking zoning reform mandates to CDBG funding is not an effective way to change exclusionary zoning.

2 minute read

November 8, 2018, 10:00 AM PST

By Camille Fink


Los Angeles

shalunts / Shutterstock

Jenny Schuetz considers a strategy to address exclusionary zoning by putting provisions on grants to cities through the Community Development Block Grant (CDBG) program. The award of CDBG grants could require reform of regulations that hinder local development, says Schuetz.

“A statutory formula set by Congress determines the amount of funding for each locality, based on population size, poverty, housing age, and housing conditions. By design, larger and poorer communities receive more funds through the entitlement program,” notes Schuetz. For an exclusionary zoning reform mechanism to work, CDBG funds need to be a primary revenue source for a community receiving the funds directly from the Department of Housing and Urban Development (HUD). 

Schuetz takes a closer look at exclusive cities, “defined as those with high rents and little rental or multifamily housing,” in California and New Jersey. Only 17 percent of these California cities receive CDBG funding, and no exclusive cities in New Jersey receive these funds. The California cities could be targets for zoning reform to encourage more affordable housing, says Schuetz:

However, low-income residents who are the intended beneficiaries of CDBG projects have little political influence over zoning decisions in affluent neighborhoods. Moreover, these cities are a small share of CDBG grantees. Undertaking the costly process of revising a federal regulation that affects thousands of communities in order to influence a handful of grantees is like performing brain surgery with a chainsaw.

Schuetz suggests alternative strategies HUD could pursue, including the HUD Secretary talking more directly about the need for zoning reform. “Explain how restrictive zoning harms not just low-income families but regional housing markets. Name and shame worst offenders, or applaud cities that have undertaken zoning reform. Provide direct guidance on what specific zoning practices should be changed.”

She also encourages HUD staff to use the wealth of data and analysis available to the agency and recommends that HUD bring together different stakeholders to come up with politically viable solutions.

Monday, October 15, 2018 in Brookings

portrait of professional woman

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching. Mary G., Urban Planner

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching.

Mary G., Urban Planner

Get top-rated, practical training

High-rise apartment buildings in Waikiki, Hawaii with steep green mountains in background.

Study: Maui’s Plan to Convert Vacation Rentals to Long-Term Housing Could Cause Nearly $1 Billion Economic Loss

The plan would reduce visitor accommodation by 25,% resulting in 1,900 jobs lost.

April 6, 2025 - Honolulu Civil Beat

Two yellow and white Dallas Area Rapid Transit light rail streetcars at station in Dallas, Texas.

North Texas Transit Leaders Tout Benefits of TOD for Growing Region

At a summit focused on transit-oriented development, policymakers discussed how North Texas’ expanded light rail system can serve as a tool for economic growth.

April 3, 2025 - KERA News

Blue and white Seattle Link light rail train exiting concrete Downtown Bellevue Tunnel in Bellevue, WA.

Why Should We Subsidize Public Transportation?

Many public transit agencies face financial stress due to rising costs, declining fare revenue, and declining subsidies. Transit advocates must provide a strong business case for increasing public transit funding.

April 7, 2025 - Todd Litman

Amtrak Acela

How to Make US Trains Faster

Changes to boarding platforms and a switch to electric trains could improve U.S. passenger rail service without the added cost of high-speed rail.

April 11 - Bloomberg CityLab

Mural showing tools and craft supplies with banner reading 'Things are made here' in front of makerspace in Columbia, Missouri.

Columbia’s Revitalized ‘Loop’ Is a Hub for Local Entrepreneurs

A focus on small businesses is helping a commercial corridor in Columbia, Missouri thrive.

April 11 - Next City

Close-up of wood log with emerald ash borer larvae tracks etched in the wood.

Invasive Insect Threatens Minnesota’s Ash Forests

The Emerald Ash Borer is a rapidly spreading invasive pest threatening Minnesota’s ash trees, and homeowners are encouraged to plant diverse replacement species, avoid moving ash firewood, and monitor for signs of infestation.

April 11 - The Bemidji Pioneer