Community Development Block Grant ARRA Entitlement Grants (CDBG-R)(Recovery Act Funded)

The overall CDBG program objective is to develop viable urban communities, by providing decent housing and a suitable living environment, and by expanding economic opportunities, principally for persons of low and moderate
income.

CDBG-R[A1] program funds are to be used to maximize job retention
and creation, and economic benefit, carry out infrastructure improvements on an expedited basis, carry out activities to encourage energy efficiency, and provide assistance to unemployed persons.


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 appropriate HUD Field Office
listed in Appendix IV of the Catalog.


Program Accomplishments

Fiscal Year 2008: There are approximately 1,150 units of local government eligible to receive entitlement grants during fiscal year 2008. Fiscal Year 2009: No Current Data Available Fiscal Year 2010: No Current Data Available

Uses and Use Restrictions

Recipients may undertake a wide range of activities directed toward neighborhood revitalization, economic development, and provision of improved community facilities and services.

Grantees are to give a priority to projects and activities where bids can be awarded within 120 days after funds are available to the grantee.

Entitlement communities develop their own programs and funding priorities as long as programs/activities conform to the statutory standards and program regulations.

Some of the specific activities that can be carried out with Community Development Block Grant (CDBG) funds include acquisition of real property; relocation; clearance and demolition; rehabilitation of residential and
nonresidential structures; provision of public facilities and improvements, such as water and sewer facilities (which require reviews by the State single point of contact or a Regional Planning Agency in accordance with Executive Order 12372), streets, and neighborhood centers.

In addition, CDBG funds may be used to pay for public services within certain limits.

Recipients may contract with other local agencies or nonprofit organizations to carry out part or all of their programs.

Community-based development organizations may carry out neighborhood revitalization, community economic development or energy conservation projects to further achieve the national objectives of the CDBG program.

Recipients may provide assistance to microenterprises or other
for-profit entities when the recipient determines that the provision of
such assistance is appropriate to carry out an economic development
project.

Recipients of CDBG-R funds are urged to use the recovery funds for activities that maximize job creation and retention, economic benefit, and to carry out infrastructure improvements on an expedited basis, carry out activities to encourage energy efficiency, and provide assistance to unemployed persons.

Section 1604 of ARRA prohibits the use of funds for casinos, aquariums, zoos, golf courses, or swimming pools.

All eligible activities must either benefit low- and moderate-income persons, aid in the prevention or elimination of slums or blight, or meet other community development needs having a particular urgency that the grantee is unable to finance on its own.



Eligibility Requirements

Applicant Eligibility

Anyone/general public: Housing

Beneficiary Eligibility

Individual/Family; Moderate Income; Low Income

Credentials/Documentation

Costs will be determined in accordance
with OMB Circular No. A-87 for State and local governments. OMB Circular No. A-87 applies to this program.

Aplication and Award Process

Preapplication Coordination

Grantees that received Federal Fiscal Year 2008 CDBG entitlement grants have already prepared a consolidated plan in accordance with the requirements of 24 CFR 91; have and followed a detailed citizen participation plan; provided information to citizens on the amount of CDBG funds available and the range of community development and housing activities that may be undertaken; held public hearings; published a proposed action plan which included a description of activities in sufficient detail, including location, to afford affected citizens an opportunity to submit views and comments prior to the preparation of a final action plan; prepared and submitted a final action plan to HUD.

To receive CDBG-R funds, each grantee must prepare and submit its annual Action Plan amendment to HUD in accordance with the consolidated plan procedures for substantial amendments.

This program is covered under E.O.

12372,"Intergovernmental Review of Federal Programs." Recipients should consult the office or the official designated as the single point of contact in its respective State for more information on the process the
State requires to be followed when funds are used for the planning or the construction (reconstruction or rehabilitation) of water or sewer facilities.

Environmental impact information is not required for this program.

This program is eligible for coverage under E.O.

12372, "Intergovernmental Review of Federal Programs." An applicant should consult the office or official designated as the single point of contact in his or her State for more information on the process the State requires to be followed in applying for assistance, if the State has selected the program for review.

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. HUD is treating a grantee s use of its CDBG-R grant to be a substantial amendment to its current approved consolidated plan and FY 2008 annual action plan. To receive CDBG-R funding, each CDBG grantee eligible to receive the funding must submit an action plan substantial amendment to HUD in accordance with instructions to be published in the Federal Register. Each grantee will have until 30 days from the date the Federal Register Notice is published to complete and submit a substantial amendment to its annual action plan. This submission will include a signed standard federal form SF-424, signed certifications, and a substantial action plan amendment. HUD is providing alternative requirements to 42 U.S.C. 5304(a)(2) and waiving 24 CFR 91.105(k) and 91.115(i) to the extent necessary to allow the grantee to provide for citizen comment for its initial CDBG-R submission, and to require that, at the time of submission to HUD, each grantee post its approved action plan amendment and any subsequent CDBG-R amendments on its official website along with a summary of citizen comments received within the comment period.

Award Procedures

After HUD processes and approves the plan amendment and both HUD and the grantee have signed the grant agreement, HUD will establish the grantee s line of credit in the amount of funds included in the Action Plan amendment, up to the allocation amount.

Deadlines

May 06, 2009 to Jun 05, 2009: Each grantee will have until 30 days from the date of the Federal Register Notice is published. For formula grants, to receive CDBG-R funding, each CDBG grantee eligible to receive the funding must submit a substantial action plan amendment to HUD in accordance with instructions to be published in the Federal Register. Each grantee will have until 30 days from the date of the Federal Register Notice is published to complete and submit a substantial amendment to its annual action plan.

Authorization

Housing and Community Development Act of 1974, Title I, as amended, Public Law 93-383; American Recovery and Reinvestment Act of 2009 (ARRA), Title XII, Public Law 111-5.

Range of Approval/Disapproval Time

From 30 to 60 days. For formula grants, to receive CDBG-R funding, each CDBG grantee eligible to receive the funding must submit a substantial action plan amendment to HUD in accordance with instructions to be published in the Federal Register. Each grantee will have until 30 days from the date of the Federal Register Notice is published to complete and submit a substantial amendment to its annual action plan.

Appeals

Administrative appeals process followed if entitlement
grant funds are withheld or reduced, or repayment proposed for non-
compliance or non-performance.

Renewals

None.

Assistance Considerations

Formula and Matching Requirements

Title 24, Chapter V, Part 570, Subpart A, Public Law 111-5. Entitlements are based on a
dual formula under Section 106 of the Act using statistical factors.
Each metropolitan city and urban county is entitled to receive 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 overcrowded housing, weighted 0.25, 0.50, and 0.25,
respectively. The factors involved in the second formula are population
growth lag, poverty, and age of housing, weighted 0.20, 0.30, and 0.50,
respectively. The statistical factors used for fund allocation are (1)
most current population estimates from the Bureau of Census 90 days
before the end of the fiscal year; (2) number of persons with incomes
below the poverty level from the source 2000 Census; (3) number of
housing units with 1.01 or more persons per room from the source 2000
Census; (4) age of housing; number of year-round housing units built in
1939 or earlier from the source 2000 Census; (5) growth lag; the lag in
population growth as computed from population in 1960 to current
population from the source 1960 Census and P25, Census Report.
Statistical factors used for eligibility are (1) metropolitan city:
principal city of a Metropolitan Area (MA) or city within MA with 50,000
population from the source Census and OMB; (2) urban county: generally,
counties in MA having a net population of 200,000 or more, excluding
entitlement cities located therein, from the source Census and OMB.
Questions concerning the formula should be addressed to the Systems
Development and Evaluation Division, Community Planning and Development,
451 7th Street S.W., Washington, DC 20410. Telephone: (202) 708-0790. MOE requirements are not applicable to this program.

Length and Time Phasing of Assistance

Length and Time Phasing of Assistance: Assistance is for an annual
program of activities, but activities generally may be continued beyond
one year until completed. See the following for information on how assistance is awarded/released: No information provided.

Post Assistance Requirements

Reports

An annual performance report is required on the use of
funds to meet program requirements including the grantee"s objectives
and the national objectives of the program.

Cash reports are not applicable.

Progress reports are not applicable.

Expenditure reports are not applicable.

Quarterly performance reports are required and will be posted by HUD to www.recovery.gov.

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. In accordance with the provisions of OMB Circular No.
A-133 (Revised, June 27, 2003), "Audits of State and Local Governments
and Nonprofit Organizations," nonfederal entities that expend $500,000
or more in Federal awards in a year shall generally have conducted for that year . (The auditee may elect to have a program-specific audit conducted under certain limited circumstances).

Records

The applicant must maintain records with regard to
eligibility, national objectives, financial management, citizen
participation, relocation, other resources, acquisition, housing
assistance to units and households, equal opportunity, environmental
impact, labor standards and other requirements set forth in regulations.
Records shall be retained for four years after submission of the report
in which the activity is reported as completed, except as otherwise
prescribed in the published regulations.

Financial Information

Account Identification

86-0161-0-1-451 - 86-0161 2009/2010.

Obigations

(Formula Grants) FY 08 $0; FY 09 est $681,000,000; FY 10 est $0

Range and Average of Financial Assistance

Determined by formula. Of the 1145 entitlement grants awarded under the CDBG-R program in FY 2009, the average (mean) grant amount was $2,186,157. Grant amounts ranged from $19,618 to $48,315,183.

Regulations, Guidelines, and Literature

Administrative Regulations for Community Development Block Grants, 24 CFR 570.

Information Contacts

Regional or Local Office

See Regional Agency Offices. Contact appropriate HUD Field Office
listed in Appendix IV of the Catalog.

Headquarters Office

Office of Block Grant Assistance Community Planning and Development
451 7th Street, S.W, Washington 20410 Email: Jessie.handforth.kome@hud.gov Phone: (202) 708-1322

Criteria for Selecting Proposals

Not Applicable.



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