InsideOut at City Hall

by Annise D. Parker

MONEY HUNT

Though not a treasure chest, the city does offer access to some grants

Cheryl Murray, Mayor Lee Brown's grants team director, regularly interrupts her work to answer a call referred by 311. "How can I get a city grant?" the caller asks. Paulette Wagner in Housing and Community Development tells the same story.

Nonprofits ask the city for grants for everything from community centers and housing developments to HIV/AIDS service contracts and $5,000 Planning Department neighborhood matching grants. Many organizations have become savvy enough to read the department's grants web page first (www.ci.houston.tx.us/hcd/newpages/consolidated.html).

The city devotes almost no general fund (local tax) dollars to grants. Instead, it administers or "passes through" grants of federal and state dollars. The bulk of these grants are concentrated in three departments-Housing and Community Development, Health, and the Mayor's Office-with Planning offering small matching grants for things like esplanade plantings.

The buzz about "city grants" floating around has apparently confused some people, who innocently ask if there are any grants available for their particular nonprofit. Some people see the city as a treasure chest of grants (not to mention contracts and consulting jobs) for the well connected. The truth is that in a very real sense, city government may be the city's largest nonprofit partially funded by external grants. Our $2.5 billion budget includes $147.5 million in federal, state, and foundation grant funds, and we need to do an even better job of acquiring grants.

Murray was appointed in 1999 to step up city efforts to win public safety grants. Reflecting the mayor's emphasis on children, she concentrates on juvenile delinquency, anti-gang efforts, and after-school program grants.

When someone asks Murray how to get a city grant, or any grant, she recommends some basic resources:

• Funding Fax, the weekly e-mail grants bulletin from the University of Houston Graduate School of Social Work ($75/year). Contact Amy Blakeney, 713/743-8143 or access www.uh.edu/ocp/tfs.htm.

• Houston Public Library (central) searchable foundation database.

• Federal Register and Texas Register (www.access.gpo.gov/su_docs/aces/aces140.html and www.governor.state.tx.us/divisions/stategrants).

• United Way Management Assistance Program, which provides consulting and training for nonprofits. Call 713/685-2312.

• Association of Fundraising Professionals (www.afpnet.org).

Murray also hopes to put more grant information on the city website. (Information about the mayor's grants team and youth programs: www.ci.houston.tx.us/opsdp/grants.htm.)

Like many grant writers, Murray learned on the job. As she sees it, "The city's main role is to help nonprofits, which carry the load, become stronger and more successful with grant applications. There's a lot of money out there."

It may not seem that way to some Houston nonprofits caught in the downward spiral of corporate contributions and energy industry collapses. I was surprised to learn recently that U.S. foundation grants have more than doubled since 1996, and that despite the economy the outlook for grants is quite rosy. According to a new report from the Foundation Center, foundations gave about $29 billion in 2001. The center tracks more than 56,000 grant-making foundations, twice the number of foundations since 1987. The report notes that these newer, mostly independent foundations have brightened the grant picture because most will receive their principal endowments over the next 15 years.

Paulette Wagner, manager of Strategic Planning, helps administer the largest and most flexible block of grants that passes through the city: $57 million in federal Housing and Urban Development grants that fund the city's entire Housing and Community Development Department. The grants are broken into four categories:

• Community Development Block Grants (CDBG), $38.4 million, is the primary source of federal funding for cities to improve the physical, social, and economic conditions in low- and moderate-income communities.

• HOME, $13.7 million, funds affordable housing through mortgage assistance and construction funds and provides home repair for the elderly and disabled.

• Emergency Shelter Grant, $1.2 million, for homeless services.

• Housing Opportunities for Persons with AIDS, $4.4 million, funds Houston's problem-riddled program. Let me just say for now that new director Daisy Stiner is working hard to improve the administration of the program.

The city applies for the grants, which are based on population, income levels, and housing needs, through its lengthy consolidated plan. Many hands have a finger in this big pie: nonprofits, department heads, and, traditionally, citizens with varying degrees of influence. The final plan is approved by the housing director and the mayor and adopted by council.

By law, 15 percent of the funds (about $8.7 million) can be used for "public services," including health care as well as elderly and disabled services, homeless and youth services, job training, and so forth. In FY2003, $182,000 of this went to HIV/AIDS education, $120,000 was spent on health transportation services, and $610,000 was allocated for tuberculosis control, all of which impact the GLBT community.

As money gets even tighter at the city, the fight for these funds will intensify. Some council members may be looking at CDBG funds to help pay for the city's storm water-drainage needs (to offset the need for a $3.50-$5/month drainage fee). I would also hope that we could find more federal public service funds for HIV/AIDS and Hep C prevention, which is greatly needed, especially considering the city's miniscule HIV/AIDS general fund contribution of $200,000-$300,000.

Only slightly smaller than the $57 million CDBG bundle is the $52.7 million in grants that fund half the city health department budget. As you may know, about $5.4 million of that is federal Centers for Disease Control funds awarded to local HIV/AIDS service providers in a program that has required considerable intervention from council members over the years. (I wrote about this extensively in the August 2002 OutSmart.)

The good news is that, so far, grants to the health department are trending up, $52.7 million in FY2002 from $41.6 million in FY2000. The bad news is that the economy and budget cuts have stripped the department to bare bones. The contribution from the city's general fund has actually declined:

• $56.4 million in FY2001

• $58.1 million in FY2002

• $54.5 million in FY2003

Health department personnel and services cannot keep pace with the demands of a growing city with an escalating HIV/AIDS and Hep C crisis and a large uninsured population. Organizations seeking grants and services from the department are dealing with about 15 percent fewer employees (operating under greater stress) than three years ago.

Still, I hope this information makes it easier to apply for a grant from the city. As always, council offices are here to help guide you through the processes in the various departments.

Annise Parker is serving her third term in Houston City Council At-large Position 1 and has announced her candidacy for city controller. To receive her bi-monthly e-mail newsletter, contact annise.parker@cityofhouston.net or call 713/247-2014. Her website is www.ci.houston.tx.us/city govt/council.

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