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Community Development Block Grant (CDBG) ProgramBackground The Community Development Block Grant (CDBG) program provides annual grants on a formula basis to entitled cities, urban counties and states 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 grants pay for a wide range of community development activities directed toward revitalizing neighborhoods, economic development, and providing improved community facilities and services. Eligibility The annual appropriation for CDBG is split between states and local jurisdictions called "entitlement communities". Entitlement communities are central cities of Metropolitan Statistical Areas (MSAs); other metropolitan cities with populations of at least 50,000; and qualified urban counties with populations of at least 200,000 (excluding the population of entitled cities). States distribute the funds to localites who do not qualify as entitlement communities. HUD determines the amount of each grant by a formula which uses several objective measures of community needs, including the extent of poverty, population, housing overcrowding, age of housing and population growth lag in relationship to other metropolitan areas. Consolidated Plan States and entitlements must submit (to HUD) a Consolidated Plan, which is a jurisdiction's comprehensive planning document and application for funding for CDBG, as well as HOME Investment Partnerships, Housing Opportunities for Persons with AIDS (HOPWA), and Emergency Shelter Grants (ESG). In its Consolidated Plan, the jurisdiction must identify its housing and community development goals for these programs. The Plan must also state how the jurisdiction will attempt to affirmatively further fair housing. The goals will serve as the criteria against which HUD will evaluate a jurisdiction's Plan and its performance under the Plan. HUD will disapprove a Consolidated Plan if it is inconsistent with the purposes of the National Affordable Housing Act or is substantially incomplete. Citizen Participation A grantee must develop and follow a detailed plan which provides for, and encourages, citizen participation and which emphasizes participation by persons of low- or moderate-income, particularly residents of predominantly low- and moderate-income neighborhoods, slum or blighted areas, and areas in which the grantee proposes to use CDBG funds. The plan must provide citizens with reasonable and timely access to local meetings, an opportunity to review of proposed activities, and review of program performance; provide for timely written answers to written complaints and grievances; and identify how the needs of non-English speaking residents will be met in the case of public hearings where a significant number of non-English speaking residents can be reasonably expected to participate. Eligible Activities Not less than 70% of the CDBG funds must be used for activities that benefit low- and moderate-income persons. All activities must meet one of the following national objectives for the program: maximum feasible priority to activities which benefit low- and moderate-income persons, prevention or elimination of slums or blight, community development needs having a particular urgency because existing conditions pose a serious and immediate threat to the health or welfare of the community. Eligible activities for CDBG funds include but are not limited to:
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; and construction of new housing by units of general local government. Legal Authority Title 1 of the Housing and Community Development Act of 1974, Public Law 93-383, as amended., 42 USC 5301, et.seq. NAHRO Policy Position NAHRO Policy Position NAHRO does not support changes to the CDBG and HOME programs proposed in S. 23 or any other legislation that would allow an increase in income limits to the HOME and CDBG programs for homeownership exclusively for municipal workers; or provisions that allow people served by municipal homeownership programs (for people at 115% of median) to be counted toward the low-mod benefit or targeting requirements in HOME or CDBG. Instead, NAHRO supports an increase to the income limits to 115% of area median for homeownership programs for all workers (everyone) operating in revitalization areas and count these households or people towards the low-mod benefit because it has a broad public benefit. This also supports smart growth activities as it promotes live-near-your-work activities. NAHRO does not support increasing CDBG targeting from 70% to 80%, creating a 40% low-income requirements, and changing the way funds are calculated for direct and area benefit, as outlines in HR 1191, and opposes the use of a community per capita income variable within the CDBG formula. For more information, please contact Dionne Roberts, Policy Analyst for Community Development, at 202-289-3500, ext. 239 or by e-mail at droberts@nahro.org.
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