Community Development Block Grants/State"s program and Non-Entitlement Grants in Hawaii

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: 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.
Related Programs

Examples of Funded Projects

Fiscal Year 2008: Projects are selected by the grantee.

Fiscal Year 2009: Projects are selected by the grantee.

Fiscal Year 2010: Projects are selected by the grantee.


Agency - Department of Housing and Urban Development

The Department of Housing and Urban Development's mission is to increase homeownership, support community development and increase access to affordable housing free from discrimination. HUD fulfills this mission through high ethical standards, management and accountability, and by forming partnerships with community organizations.

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.


Program Accomplishments

Fiscal Year 2008: Accomplishments reported by states provided 17,493 housing benefits for nonentitlement communities, and created or retained 21,440 jobs. Fiscal Year 2009: No Current Data Available Fiscal Year 2010: No Current Data Available

Uses and Use Restrictions

Thirty percent of funds available for distribution under each annual appropriation for the Community Development Block Grant (CDBG) program is allocated among the States and Puerto Rico (which is considered to be a state for the State CDBG program) for use in areas which are not a metropolitan city or part of an urban county (nonentitlement areas).

All States except Hawaii have elected to administer these CDBG funds for areas that do not receive CDBG entitlement grants (14.218).

HUD awards the formula grants to these States under the CDBG/State Program.

In Hawaii, HUD awards the state"s share of these funds to three non-entitlement counties.

States must distribute CDBG funds to units of general local government (counties, towns, etc.) in nonentitlement areas.

States develop their own programs and funding priorities.

Units of general local government then carry out community development activities funded by the State.

Eligible activities are 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, rehabilitation or construction of certain public works facilities and improvements, such as streets, water and sewer facilities, neighborhood centers, recreation facilities, and other public works; demolition and clearance; rehabilitation of public and private buildings including housing; code enforcement; relocation payments and assistance; economic development; planning activities; certain public services with some restrictions; and administrative expenses.

The projected use of funds must be developed to ensure that all activities will meet one of the three national objectives described under "OBJECTIVES".

Communities receiving CDBG funds from a state may select subgrantees to carry out approved projects.

Such subgrantees may include: Neighborhood-based nonprofit organizations; local development corporations; Small Business Investment Companies; or other nonprofit organizations serving the development needs of nonentitlement areas.

Grant 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.

Each State may use a limited portion of its grant, subject to a matching requirement, to administer the program.

Each State may also use a limited portion of its grant, with no matching requirement, to provide technical assistance to local governments and nonprofit program recipients.

At least seventy percent of the funds received must benefit low and moderate income persons.

Eligibility Requirements

Applicant Eligibility

State (includes District of Columbia, public institutions of higher education and hospitals): Community Development (includes Federal surplus property); Economic Development

Beneficiary Eligibility

Local; Moderate Income; Low Income

Credentials/Documentation

Grantees must certify that they will comply with program requirements specified in 24 CFR Part 91. OMB Circular No. A-87 applies to this program.

Aplication and Award Process

Preapplication Coordination

Preapplication coordination is not applicable.

An environmental impact assessment is required for this program.

This program is excluded from coverage under E.O.

12372.

Application Procedures

This program is excluded from coverage under OMB Circular No. A-102. This program is excluded from coverage under OMB Circular No. A-110. States must follow the fiscal requirements contained in 24 CFR 570.489. Each state and non-entitled Hawaii county must submit a Consolidated Plan, an annual action plan and certifications to HUD. The Consolidated Plan and annual action plan cover four major formula-distribution HUD community development programs, including CDBG. The annual action plan must contain the method by which the State will distribute its CDBG funds.

Award Procedures

HUD will provide funds after the State or non-entitled Hawaii county submits its Consolidated Plan, annual action plan and Certifications.

Deadlines

Nov 15, 2008 to Aug 16, 2009 Consolidated Plans may be submitted between November 15 and August 16 of each fiscal year in which the grantee will administer funds.

Authorization

Housing and Community Development Act of 1974, Title I, Section 101-122, Public Law 93-383, 88 Stat. 633, 42 U.S.C 5301-5322.

Range of Approval/Disapproval Time

HUD will review plan submissions for completeness and consistency with the purposes of the Act, within 45 days of receipt from a grantee.

Appeals

The procedure is described in regulations (24 CFR Part 570 Subpart I for states and 24 CFR Part 570 Subpart O for non-entitlement counties in Hawaii).

Renewals

Not Applicable.

Assistance Considerations

Formula and Matching Requirements

Statutory Formula: Title 24, Chapter V, Part 570, Subpart A, Public Law 93-383.

Matching Requirements: For state administration of the program, after an initial allowance of $100,000 with no match, states may take an additional allowance of up to 3% of the grant amount but must match such expenditures on a dollar for dollar basis. There is no matching requirement for the non-entitlement counties in Hawaii.

This program does not have MOE requirements.

Length and Time Phasing of Assistance

Assistance is provided to States and non-entitlement counties in Hawaii on an annual basis. Individual States may impose time limitations on the implementation of grants to recipients. Method of awarding/releasing assistance: by letter of credit.

Post Assistance Requirements

Reports

Annual performance report covering all programs included in the Consolidated Plan as prescribed at 24 CFR 91.520.

For Hawaii counties, SF-272 Federal Cash Transactions Report.

Annual Performance and Evaluation Report details the state"s performance in completing activities undertaken with each allocation of funds.

Disbursement reports are a standard feature of the Integrated Disbursement and Information System used to access the grantee"s line of credit.

Program performance monitoring is conducted by field office staff based on risk analysis factors.

Audits

In accordance with the provisions of OMB Circular No. A-133 (Revised, June 27, 2003), "Audits of States, Local Governments, and Non-Profit Organizations," nonfederal entities that expend financial assistance of $500,000 or more in Federal awards will have a single or a program-specific audit conducted for that year. Nonfederal entities that expend less than $500,000 a year in Federal awards are exempt from Federal audit requirements for that year, except as noted in Circular No. A-133.

Records

Records must demonstrate that the State or non-entitlement county in Hawaii has met the requirements of Title I of the Act.

Financial Information

Account Identification

86-0162-0-1-451.

Obigations

(Formula Grants) FY 08 $1,075,911,000; FY 09 est $1,090,490,000; FY 10 est $1,253,400,000

Range and Average of Financial Assistance

State grant amounts are determined by formula. Of the 50 grants awarded to states under the State CDBG program in FY 2009, the average (mean) grant amount was $21,703,659. Grant amounts ranged from $2,028,182 to $73,017,739. These totals do not include Hawaii s allocation awarded to its 3 non-entitled counties. Hawaii s share of the 2009 allocation is $5,307,115.

Regulations, Guidelines, and Literature

24 CFR Part 570, 24 CFR Part 91, 24 CFR Part 58.

Information Contacts

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.

Headquarters Office

Diane L. Lobasso 451 7th St SW, Washington, District of Columbia 20410 Email: Diane.L.Lobasso@hud.gov Phone: 202-708-1322

Criteria for Selecting Proposals

Not Applicable.



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