Content provided by the Catalog of Federal Domestic Assistance
14.228 Community Development Block Grants_State's Program
COMMUNITY PLANNING AND DEVELOPMENT, DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
Housing and Community Development Act of 1974, Title I, as amended, Public Law 93-383, 88 Stat. 633, 42 U.S.C. 5301.
The 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. Each activity funded must meet one of the program's National Objectives by either: benefiting low and moderate income families; aiding in the prevention or elimination of slums or blight; or meeting 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.
TYPES OF ASSISTANCE:
USES AND USE RESTRICTIONS:
States develop their own programs and funding priorities. Each State may elect to administer Community Development Block Grant (CDBG) funds for areas that do not receive CDBG entitlement grants (14.218). If, a State were to decide to stop administering the CDBG program, the funds that would have been allocated to the State would be reallocated among the other States. In States which elect to administer the nonentitlement funds, HUD awards the formula grants to the States under the CDBG/State's Program. All States except Hawaii administer CDBG funding for nonentitlement areas through the State CDBG Program. In States which do not elect to administer the nonentitlement funds, HUD awards competitive grants to units of general local government under the CDBG/Small Cities Program (14.219). Each State may use $100,000 plus up to two percent of its grant to administer the program and must match each Federal dollar in excess of $100,000 used for administration with a dollar of its own. Each State may use up to one percent of its grant to provide technical assistance to local governments and nonprofit program recipients. Units of general local government funded by the State may undertake a wide range of activities directed toward neighborhood revitalization, economic development, or provision of improved community facilities and services. Specific activities that can be carried out with block grant funds include acquisition of real property, relocation and demolition, rehabilitation of residential and nonresidential structures, direct assistance to facilitate and expand homeownership among persons of low and moderate income, and provision of public facilities and improvements, such as water and sewer facilities, streets, and neighborhood centers. In addition, block grant funds may be used to pay for certain public services within certain limits. 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 block grant 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. 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 and 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. The aggregate use of over a period specified by the State, but not exceeding three years, must ensure that not less than 70 percent of the funds received benefit low and moderate income persons.
Applicant Eligibility: State governments. States must distribute the funds to units of general local government in nonentitlement areas.
Pre-application Coordination: None. This program is excluded from coverage under Part 85 and E.O. 12372.
Formula and Matching Requirements: (1) 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 the nation from the 2000 Census; (2) number of persons with incomes below the poverty level from 1999 Census estimates; (3) number of housing units with 1.01 or more persons per room from the source 1990 Census; and (4) age of housing; number of year-round housing units built in 1939 or earlier from the source 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. 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. (The amount of non-entitlement funds allocated to a State is not affected by whether the State or HUD administers the fund in that State.)
POST ASSISTANCE REQUIREMENTS:
Reports: Annual performance report covering all programs included in the Consolidated Plan.
Account Identification: 86-0162-0-1-451.
The fiscal year 2001 funding level will provide an estimated 25,111 housing units for nonentitlement communities, and approximately 67,546 jobs will be created.
REGULATIONS, GUIDELINES, AND LITERATURE:
24 CFR Part 570.
Regional or Local Office: See Regional Agency Offices. Contact the appropriate HUD Field Office listed in Appendix IV of the print edition of this Catalog. Or on the Internet, see: http://www.hud.gov/local/index.cfm. Contact the Honolulu Field Office for the non-entitled Hawaii counties.
EXAMPLES OF FUNDED PROJECTS:
Projects are selected by States.
CRITERIA FOR SELECTING PROPOSALS:
All States are eligible if they meet the requirements outlined in Credentials/Documentation. States are responsible for determining the methods of distribution of funds to their units of general local government in nonentitlement areas.