Congresswoman Asks for Changes to System That Found Toledo, Vader and Pe Ell ‘Too Affluent’ for Grants

U.S. Congresswoman Jaime Herrera Beutler has helped pen a letter to the U.S. Government Accountability Office asking for changes to a system that found communities such as Toledo, Vader and Pe Ell to be “too affluent” for certain federal grants.

The letter, co-authored by Appropriations Subcommittee on Transportation, Housing, and Urban Development Chairman Mario Diaz-Balart, addresses the data sources used in allocating Community Development Block grants by the U.S. Department of Housing and Urban Development.

The lawmakers referred to the current system as “flawed.”

The grants are currently given based largely on the U.S. Census Bureau’s American Community Survey.

Herrera Beutler and others say reliance on that data alone has been damaging for small, rural communities that rely on federal assistance for housing, economic development, revatilzation programs and other projects.

“These programs are in place to help struggling communities like Vader, Pe Ell and Toledo with critical development projects,” Herrera Beutler said in a release. “But if the communities these programs are intended for are being excluded based on bad data, HUD has a responsibility to fix the problem and get accurate information. This is a huge problem for towns in our region but it is likely an indicator of a problem happening around the country and I am going to continue pressing for solutions.”

The 3rd District congresswoman learned of the issue following an October meeting of Lewis County mayors, and subsequently sought relief for the communities on an individual basis.

This week’s letter is aimed at finding a permanent solution, she said.

The press release also included the following comments from local officials:

• Lewis County Commissioner Edna Fund: “When I travel Lewis County, from Packwood to Pe Ell, from North Centralia to Vader, I see a county trying to recover from the recession, and flooding, with the most recent unemployment figures at 8.6 percent, which is among the highest in the state. When I learned that Toledo, Vader, and Pe Ell were denied assistance from Community Development Block Grant (CDBG) funds because they were too affluent, I was in a state of shock. Lewis County appreciates Congresswoman Jaime Herrera Beutler's efforts to assist our citizens living in our economically-challenged areas.”

• Vader Mayor Ken Smith: “The City of Vader relies heavily on CDBG funding for upkeep, repair and improvement of essential services such as public utilities (i.e., wastewater treatment and drinking water), transportation and streets and several other vital community programs that help us provide basic services to our residents. In our day to day contact with the persons who reside in Vader, we are quite certain that income levels of any new residents over the last few years would not cause a significant increase in the city’s income levels.”

• Toledo Clerk/Treasurer Michelle Whitten: “When Toledo applied for CDBG funding two years ago the Toledo School District Free and Reduced Lunch Program was at 55.5 percent of the student population. In checking today, 56 percent of the students receive Free and Reduced Lunches. Toledo is a small community and we are still seeing homes being foreclosed on, homes on the market for extensive amount of time, more people using assistance in paying utility bills, Food Bank serving more citizens, etc. These are all indications the economy in Toledo is not better.”