primary objective of this program is the development of viable urban
communities by providing decent housing, a suitable living environment,
and expanding economic opportunities, principally for persons of
low and moderate income.
Formula Grants. Place Cursor Here for Definition
AND USE RESTRICTIONS:
Cities develop their own programs and funding priorities. Generally,
as in the case of entitlement grants, most activities previously
eligible under the categorical program consolidated under the Housing
and Community Development Act of 1974, and defined by the statute
and regulations may be carried out, i.e., acquisition, rehabilitation
or construction of certain public works facilities and improvements,
clearance, housing rehabilitation, code enforcement, direct assistance
to facilitate and expand homeownership among persons of low and
moderate income, relocation payments and assistance, administrative
expenses, economic development, completing existing urban renewal
projects, and certain public services with some restrictions. Neighborhood-based
nonprofit organizations, local development corporations, Small Business
Investment Companies, or other nonprofit organizations serving the
development needs of nonentitlement areas may act as subgrantees
to carry out neighborhood revitalization or community economic development
projects in furtherance of CDBG objectives. Recipients may provide
assistance to for-profit entities when the recipient determines
that the provision of such assistance is appropriate to carry out
an economic development project. Communities are restricted from
constructing or rehabilitating public facilities for the general
conduct of government and from making housing allowances or other
income maintenance-type payments. The projected use of funds must
be developed to give maximum feasible priority to activities which
benefit low and moderate income persons or aid in the prevention
or elimination of slums or blight. The projected use of funds may
also include activities which the applicant certifies are designed
to meet other community development needs having a particular urgency
because existing conditions pose a serious and immediate threat
to the health or welfare of the community where other financial
resources are not available to meet such needs. At least 70 percent
of each grant made available to a unit of general local government
must benefit low and moderate income persons.
Eligibility: HUD continues to administer the
Small Cities Program only for the nonentitlement communities within
the jurisdiction of the State of Hawaii. Eligible applicants are
units of general local government (including counties), except metropolitan
cities, urban counties or units participating in an urban county's
CDBG program, and Indian tribes eligible for assistance under Section
106(a) of the Act, as amended. Under the CDBG Program/State Program
(14.228) each State may now elect to administer all aspects of the
Small Cities Program for the nonentitlement communities within its
jurisdiction. The State of New York's decision to assume administration
of the Small Cities program in Fiscal Year 2000, brings participation
in the State program to 49 States, including Puerto Rico. Only Hawaii
remains in the HUD administered Small Cities Program.
Eligibility: The principal beneficiaries of
CDBG funds are low and moderate income persons. For metropolitan
areas, low and moderate income is generally defined as a member
of a family having an income equal to or less than the Section
8 low income limit established by HUD. For non-metropolitan areas,
low and moderate income is generally defined as 80 percent of
the median income for non- metropolitan areas of the State, as
adjusted by family size.
Costs will be determined in accordance with OMB Circular No. A-87
for State and local governments.
Coordination: This program is covered under
E.O. 12372, "Intergovernmental Review of Federal Programs" and Part
85. Recipients should consult the office or the official designated
as the single point of contact in the respective State for more
information on the process the State requires to be followed in
applying for assistance, if the State has selected the program for
Procedure: The three eligible Hawaii counties
will be invited to apply for a formula amount. Their applications
will be funded if they are for eligible activities that meet a
national objective, and at least 70 percent of the funds are for
activities that benefit low and moderate income persons, and the
requirements of the regulations are met.
Procedure: Hawaii applicants will be notified
of the results of the review of their application by the field
office, and offered a grant agreement if the application is acceptable.
The three Hawaii Counties will be notified of the application
deadline by letter.
of Approval/Disapproval Time: Although not
required by statute, the Hawaii State Office will attempt to notify
the eligible Hawaiian counties of the results of its review per
its Con Plan.
There are no automatic renewals. Complete new applications must
and Matching Requirements: Allocations to States
are based on a dual formula under Section 106 of the Act using statistical
factors. Allocations for each State are based on an amount equaling
the greater of the amounts calculated under two formulas. The factors
involved in the first formula are population, extent of poverty
and extent of overcrowding, weighted 0.25, 0.50, and 0.25, respectively.
The factors involved in the second formula are population, poverty,
and age of housing weighted 0.20, 0.30, and 0.50, respectively.
The statistical factors used for fund allocation are (1) total resident
population for all places in nation from the 2000 Census; (2) number
of persons with incomes below the poverty level from the 1999 Census
estimates; (3) number of housing units with 1.01 or more persons
per room from the 1990 Census; and (4) age of housing; number of
year-round housing units built in 1939 or earlier from the 1990
Census. The statistical factors for each State have been reduced
to reflect only the non-entitled area; that is, the State area excluding
metropolitan cities and urban counties. Each of the three eligible
counties in Hawaii receives its prorata share of the nonentitlement
allocation for Hawaii. Address questions concerning the formula
to Robert Meehan, Systems Development and Evaluation Division, Community
Planning and Development,451 7th Street, SW., Washington, DC 20410.
Telephone: (202) 708-0790.
and Time Phasing of Assistance: Assistance
is for an annual program of activities, but activities may be
continued beyond one year until completed.
Performance Assessment Report and Financial Reports.
In accordance with the provisions of OMB Circular No. A- 133,
"Audits of State and Local Governments and Non-Profit Organizations",
nonfederal entities that expend $300,000 or more in a year in
Federal awards shall have a single audit conducted for that year
in accordance with the provisions of the Circular.
All information on grant-assisted transactions and activities
must be maintained and retained in accordance with 24 CFR 85.42.
(General purpose discretionary) FY 01 $5,152,000; FY 02 est $5,175,000;
and FY 03 est $5,314,800. (NOTE: Amounts reported reflect allocation
of new budget authority rather than obligation amounts).
and Average of Financial Assistance:
the amount awarded to Hawaii County: FY 01 $2,295,000, FY 02 $2,304,000;
Maui County: FY 01 $1,936,000, FY 02 $1,977,000; Kauai County:
FY 01 $921,000, FY 02 $924,000.
Administrative Regulations for Community Development Block Grants,
24 CFR 570, Subpart F.
or Local Office: Contact the Hawaii State Office
listed in the Catalog Address Appendix IV of the Catalog.
Office: State and Small Cities Division, Office
of Block Grant Assistance, Community Planning and Development,
Department of Housing and Urban Development, 451 7th Street, SW.,
Washington, DC 20410. Telephone: (202) 708-1322. Use the same
number for FTS.
Site Address: http://www.hud.gov/offices/cpd/about/cpd_programs.cfm
OF FUNDED PROJECTS:
Neighborhood revitalization projects emphasizing rehabilitation
of private homes, and including appropriate improvements of public
facilities; economic development projects for expanded employment
opportunities; and projects to address serious deficiencies in public
facilities such as water and sewer.
FOR SELECTING PROPOSALS:
In Hawaii, funds are proportionally distributed to the three eligible
units of general local government according to the formula factors
used to determine the statewide allocation.