Building Strong Communities Community Development Block Grant CDBG

Building Strong Communities

Community Development Block Grant (CDBG) • The CDBG Program is authorized under Title I of the Housing and Community Development Act of 1974, as amended. The primary objective of this act is the development of viable urban communities. HUD’s goals include providing the following, principally for persons of low and moderate income: Decent housing A suitable living environment Expanded economic opportunities

The HUD Required CDBG Process 1. Submit Consolidated Plan 2. Select Activities that Meet a National Objective 3. Select Eligible Activities 4. Address Financial and Administrative Requirements 5. Enter Results into IDIS 6. Report and Monitor Progress

National Objectives Every funded activity must meet one of the following National Objectives: Benefit to low and moderate income (LMI) persons § Directly to LMI individuals § Jobs for low-mod individuals § Benefit to a LMI area Aid in the prevention/elimination of slums or blight Meet a need having a particular urgency (referred to as urgent need – rarely used)

Eligible Activities Remember, the goal is to develop urban communities through decent housing, suitable living environments and economic opportunity! • Housing rehab & historic preservation • Microenterprise assistance • Public facility improvements • Large scale development using the Section 108 Program • Remediation/clearance of contaminated sites • Assistance to institutions of higher education • Direct home ownership assistance

Eligible Activities (continued) • Code enforcement • Acquisition of property • Job creation • Commercial Rehab • Economic Development • Public service (limited to 15% per year) • Construction of housing • Match to other federal grants • Handicap Accessibility • Façade Improvements

CDBG Summary ü Does the Activity meet a National Objective? ü Is it eligible - allowed by HUD? ü Does the activity meet a need/goal outlined in the Consolidated Plan? ü Who are the beneficiaries?

HOME Investment Partnership Program The HOME Program is designed exclusively to create affordable housing for low-income households.

Eligible HOME Activities Homebuyer Assistance Rental Housing Development Owner-Occupied Rehab Tenant Based Rental Assistance (Vouchers)

Annual HOME Allocation 70 -75% CHDO Set-Aside (minimum required) Projects • Homeowner Rehab • Homebuyer assistance & projects • Rental projects • Tenant Based Rental Assistance 15% 10% 5% Administration CHDO Operating (maximum - optional) Must result in HOME units

Eligible Participants • • • Low-income individuals Faith Based organizations For profit entities Not-for profit entities Community Housing Development Organizations (CHDOs)

What is a CHDO? (pronounced cho’do) A private nonprofit, community-based service organization whose primary purpose is to provide and develop decent, affordable housing for the community it serves. • Must be certified by the City • Strict criteria to qualify • Eligible for the 15% set-aside of HOME funds

Key HOME Requirements • • • Needs identified in Consolidated Plan Occupancy by low-income households Unit standards (quality, construction) Affordability (5 -20 years) Affordable rents Eligible costs CHDO eligible activities Long-term monitoring for rental Match requirement

Snapshot of Funding