Transaction Description:
PURPOSE: THE COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) PROGRAM PROVIDES ANNUAL GRANTS ON A FORMULA BASIS TO STATES, CITIES, AND COUNTIES TO DEVELOP VIABLE URBAN COMMUNITIES BY PROVIDING DECENT HOUSING AND A SUITABLE LIVING ENVIRONMENT, AND BY EXPANDING ECONOMIC OPPORTUNITIES, PRINCIPALLY FOR LOW- AND MODERATE-INCOME PERSONS. THE PROGRAM IS AUTHORIZED UNDER TITLE 1 OF THE HOUSING AND COMMUNITY DEVELOPMENT ACT OF 1974, PUBLIC LAW 93-383, AS AMENDED 42 U.S.C. 5301 ET SEQ. THE CDBG PROGRAM COVERS FOUR DISTINCT PROGRAMS, EACH WITH THEIR OWN SET OF GOVERNING REGULATIONS: CDBG ENTITLEMENT, CDBG NON-ENTITLED COUNTIES IN HAWAII, CDBG INSULAR AREAS, AND STATE CDBG.
IN THE CDBG ENTITLEMENT PROGRAM, HUD AWARDS GRANTS TO ENTITLEMENT COMMUNITY GRANTEES TO CARRY OUT A WIDE RANGE OF COMMUNITY DEVELOPMENT ACTIVITIES. ENTITLEMENT COMMUNITIES DEVELOP THEIR OWN PROGRAMS AND FUNDING PRIORITIES.
IN THE CDBG NON-ENTITLED COUNTIES IN HAWAII PROGRAM, THREE COUNTIES QUALIFY: HAWAII, KAUAI, AND MAUI. THE FY 2004 APPROPRIATIONS ACT REQUIRED THE GOVERNOR OF HAWAII TO DECIDE IF THE STATE WISHED TO PARTICIPATE IN THE STATE CDBG PROGRAM BY JULY 31, 2004. THE STATE MADE THE DECISION NOT TO PARTICIPATE IN THE PROGRAM. AS A RESULT OF THIS DECISION HUD'S HONOLULU FIELD OFFICE ADMINISTERS THE NON-ENTITLED GRANTS IN HAWAII. FUNDS ARE ALLOCATED USING A FORMULA BASED ON POPULATION, POVERTY, AND HOUSING OVERCROWDING, WITH THE POVERTY FACTOR CARRYING A DOUBLE WEIGHT.
FOR THE CDBG INSULAR AREAS PROGRAM, HUD ANNUALLY ALLOCATES CDBG GRANTS TO FOUR DESIGNATED AREAS: AMERICAN SAMOA; GUAM; NORTHERN MARIANA ISLANDS; AND THE U.S. VIRGIN ISLANDS. THE FUNDS ARE ALLOCATED IN PROPORTION TO THE POPULATIONS OF THE ELIGIBLE TERRITORIES. THE PROGRAM IS ADMINISTERED BY HUD'S FIELD OFFICES IN PUERTO RICO AND HAWAII.
UNDER THE STATE CDBG PROGRAM, STATES PASS THROUGH CDBG GRANTS TO UNITS OF GENERAL LOCAL GOVERNMENT. ANNUALLY, EACH STATE DEVELOPS FUNDING PRIORITIES AND CRITERIA FOR SELECTING PROJECTS. SINCE STATES ARE IN THE BEST POSITION TO KNOW, AND TO RESPOND TO, THE NEEDS OF LOCAL GOVERNMENTS, CONGRESS AMENDED THE HOUSING AND COMMUNITY DEVELOPMENT ACT OF 1974 (HCD ACT) IN 1981 TO GIVE EACH STATE THE OPPORTUNITY TO ADMINISTER CDBG FUNDS FOR NON-ENTITLEMENT AREAS. NON-ENTITLEMENT AREAS INCLUDE THOSE UNITS OF GENERAL LOCAL GOVERNMENT WHICH DO NOT RECEIVE CDBG FUNDS DIRECTLY FROM HUD. GENERALLY, NON-ENTITLEMENT AREAS ARE CITIES WITH POPULATIONS OF LESS THAN 50,000 (EXCEPT CITIES THAT ARE DESIGNATED PRINCIPAL CITIES OF METROPOLITAN STATISTICAL AREAS), AND COUNTIES WITH POPULATIONS OF LESS THAN 200,000.
CURRENT CDBG AWARDS AND ALLOCATIONS ARE INCLUDED IN THIS LIST OF HUD COMMUNITY PLANNING AND DEVELOPMENT (CPD) AWARDS AND ALLOCATIONS LOCATED AT: HTTPS://WWW.HUDEXCHANGE.INFO/GRANTEES/ALLOCATIONS-AWARDS/; ACTIVITIES TO BE PERFORMED: CDBG FUNDS MAY BE USED FOR ACTIVITIES WHICH INCLUDE, BUT ARE NOT LIMITED TO: ACQUISITION OF REAL PROPERTY; RELOCATION AND DEMOLITION; REHABILITATION OF RESIDENTIAL AND NON-RESIDENTIAL STRUCTURES; CONSTRUCTION OF PUBLIC FACILITIES AND IMPROVEMENTS, SUCH AS WATER AND SEWER FACILITIES, STREETS, NEIGHBORHOOD CENTERS, AND THE CONVERSION OF SCHOOL BUILDINGS FOR ELIGIBLE PURPOSES; PUBLIC SERVICES, WITHIN CERTAIN LIMITS; ACTIVITIES RELATING TO ENERGY CONSERVATION AND RENEWABLE ENERGY RESOURCES; PROVISION OF ASSISTANCE TO PROFIT-MOTIVATED BUSINESSES TO CARRY OUT ECONOMIC DEVELOPMENT AND JOB CREATION/RETENTION ACTIVITIES. EACH ACTIVITY MUST MEET ONE OF THE FOLLOWING NATIONAL OBJECTIVES FOR THE PROGRAM: BENEFIT LOW- AND MODERATE-INCOME PERSONS, PREVENTION OR ELIMINATION OF SLUMS OR BLIGHT, OR ADDRESS COMMUNITY DEVELOPMENT NEEDS HAVING A PARTICULAR URGENCY BECAUSE EXISTING CONDITIONS POSE A SERIOUS AND IMMEDIATE THREAT TO THE HEALTH OR WELFARE OF THE COMMUNITY FOR WHICH OTHER FUNDING IS NOT AVAILABLE. GENERALLY, THE FOLLOWING TYPES OF ACTIVITIES ARE INELIGIBLE: ACQUISITION, CONSTRUCTION, OR RECONSTRUCTION OF BUILDINGS FOR THE GENERAL CONDUCT OF GOVERNMENT; POLITICAL ACTIVITIES; CERTAIN INCOME PAYMENTS; CONSTRUCTION OF NEW HOUSING (WITH SOME EXCEPTIONS).
UNDER THE STATE CDBG PROGRAM, STATES MAY USE $100,000 PLUS UP TO A MAXIMUM OF THREE PERCENT OF ITS CDBG ALLOCATION. AMOUNTS EXPENDED ON ADMINISTRATION IN EXCESS OF $100,000 MUST BE MATCHED. STATES MAY EXPEND UP TO THREE PERCENT OF THEIR CDBG ALLOCATION ON TECHNICAL ASSISTANCE ACTIVITIES. HOWEVER, THE TOTAL A STATE SPENDS ON BOTH ADMINISTRATIVE AND TECHNICAL ASSISTANCE EXPENSES MAY NOT EXCEED $100,000 PLUS THREE PERCENT OF THE STATE'S ALLOCATION.
CPD HAS DEVELOPED PROFILES THAT DISPLAY GRANTEE-REPORTED ACCOMPLISHMENTS FOR SELECTED HOUSING, ECONOMIC DEVELOPMENT, PUBLIC IMPROVEMENT, AND PUBLIC SERVICE ACTIVITIES. PROFILES FOR GRANTEES WILL VARY, AS GRANTEES HAVE FLEXIBILITY IN DETERMINING THE HOUSING, ECONOMIC, AND COMMUNITY DEVELOPMENT ACTIVITIES THEY CARRY OUT WITH CDBG FUNDS. THE MOST RECENT ACCOMPLISHMENTS CAN BE VIEWED WITHIN THE NATIONAL ACCOMPLISHMENT REPORTS LOCATED AT: HTTPS://WWW.HUDEXCHANGE.INFO/PROGRAMS/CDBG/CDBG-ACCOMPLISHMENT-REPORTS/; EXPECTED OUTCOMES: THE CDBG PROGRAM REINFORCES SEVERAL IMPORTANT VALUES AND PRINCIPLES OF COMMUNITY DEVELOPMENT: PROGRAM FLEXIBILITY TO EMPOWER PEOPLE AND COMMUNITIES TO DESIGN AND IMPLEMENT STRATEGIES TAILORED TO THEIR OWN NEEDS AND PRIORITIES; AN EMPHASIS ON CONSOLIDATED PLANNING THAT EXPANDS AND STRENGTHENS PARTNERSHIPS AMONG ALL LEVELS OF GOVERNMENT AND THE PRIVATE SECTOR IN ENHANCING COMMUNITY DEVELOPMENT; TECHNICAL ASSISTANCE ACTIVITIES AND SET-ASIDE FOR GRANTEES TO BUILD THE CAPACITY OF THESE PARTNERS. EACH CDBG GRANTEE’S EXPECTED OUTCOMES ARE DESCRIBED AS GOALS IN THEIR CONSOLIDATED PLAN. THE MOST RECENT CONSOLIDATED PLANS CAN BE VIEWED AT: HTTPS://WWW.HUDEXCHANGE.INFO/GRANTEES/REPORTS/#CONSOLIDATED-PLANS-ANNUAL-ACTION-PLANS-AND-CAPERS; INTENDED BENEFICIARIES: OVER A 1, 2, OR 3-YEAR PERIOD, AS SELECTED BY THE GRANTEE, NOT LESS THAN 70 PERCENT OF CDBG FUNDS MUST BE USED FOR ACTIVITIES THAT BENEFIT LOW- AND MODERATE-INCOME PERSONS. HUD DOES NOT PROVIDE CDBG ASSISTANCE DIRECTLY TO INDIVIDUALS, BUSINESSES, NONPROFIT OR ORGANIZATIONS OR OTHER NON-GOVERNMENTAL ENTITIES. INDIVIDUALS WHO ARE INTERESTED IN PARTICIPATING IN THIS PROGRAM, SHOULD CONTACT THEIR LOCAL MUNICIPAL OR COUNTY OFFICIALS TO FIND OUT HOW THE PROGRAM OPERATES IN THEIR COMMUNITY. PARTICIPATION REQUIREMENTS MAY DIFFER FROM ONE GRANTEE TO ANOTHER.
WITH THE EXCEPTION OF THE STATE CDBG PROGRAM, THE LOCAL GOVERNMENT GRANTEE ADMINISTERS THE CDBG PROGRAM AND DETERMINES WHICH LOCAL PROJECTS RECEIVE FUNDING. ELIGIBLE GRANTEES ARE AS FOLLOWS: PRINCIPAL CITIES OF METROPOLITAN STATISTICAL AREAS (MSAS); OTHER METROPOLITAN CITIES WITH POPULATIONS OF AT LEAST 50,000; QUALIFIED URBAN COUNTIES WITH POPULATIONS OF AT LEAST 200,000 (EXCLUDING THE POPULATION OF ENTITLED CITIES); STATES AND INSULAR AREAS.
THE DISTRICT OF COLUMBIA IS FUNDED UNDER THE CDBG ENTITLEMENT PROGRAM. THE STATE OF HAWAII DOES NOT PARTICIPATE, AND HUD ALLOCATES THE STATE'S SHARE OF FUNDS TO THE THREE HAWAII NON-ENTITLED COUNTIES.
THE STATES ADMINISTER CDBG FUNDS IN THE STATE CDBG PROGRAM. SINCE STATES ARE IN THE BEST POSITION TO KNOW, AND TO RESPOND TO, THE NEEDS OF LOCAL GOVERNMENTS, CONGRESS AMENDED THE HOUSING AND COMMUNITY DEVELOPMENT ACT OF 1974 (HCD ACT) IN 1981 TO GIVE EACH STATE THE OPPORTUNITY TO ADMINISTER CDBG FUNDS FOR NON-ENTITLEMENT AREAS.; SUBRECIPIENT ACTIVITIES: THE SUBRECIPIENT ACTIVITIES ARE UNKNOWN AT THE TIME OF AWARD.
