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

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.

State CDBG-R 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 the appropriate HUD Field Office
listed in Appendix IV of the print edition of this Catalog.

Or on the
Internet, see:

Contact the Honolulu
Field Office for the non-entitled Hawaii counties.

Program Accomplishments

Fiscal Year 2008: Accomplishment data for the new program will be reported as housing units improved and jobs retained or created. 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.

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 (outside of Hawaii) 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.

The three Hawaii counties directly carry out eligible CDBG activities.

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 or the three Hawaii non-entitlement counties may select sub grantees or other entities to carry out approved projects.

Such sub grantees 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 and the three Hawaii counties may use a limited portion of its grant to administer the program.

Each State may also use a limited portion of its grant to provide technical assistance to local governments and nonprofit program

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

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)

Beneficiary Eligibility

Moderate Income; Low Income


Each State and the three Hawaii Counties must submit an amended Consolidated Plan or Annual Action Plan, which contains a list of the activities it intends to fund with the CDBG-R allocation. This program is covered under OMB Circular No. A-87. OMB Circular No. A-87 applies to this program.

Aplication and Award Process

Preapplication Coordination

Preapplication coordination is required.

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 State or in the case of the three non-entitled counties in Hawaii CDBG-R grant to be a substantial amendment to its current approved consolidated plan and FY 2008 annual action plan. To receive funding, each 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 State or non-entitled county in Hawaii will have until 30 days from the date the Federal Register Notice is published or until May 18, 2009 if they are receiving an direct allocation of Homelessness Prevention and Rapid Re-housing Program funding 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.

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.


May 06, 2009 to Jun 05, 2009: Each State or non-entitled county in Hawaii will have until 30 days from the date the Federal Register Notice is published or until May 18, 2009 if they are receiving an direct allocation of Homelessness Prevention and Rapid Re-housing Program funding to.


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

As indicated in forthcoming guidance.





Assistance Considerations

Formula and Matching Requirements

Statutory Formula: Title 24, Chapter V, Part 576, Subpart A, Public Law 111-5.

This program has no matching requirements. Allocations to States are based
on U.S. Census data using a dual formula prescribed under Section 106 of
the Act. Allocations for each State are based on an amount equaling the
greater of the amounts calculated under the two formulas. The factors
involved in the first formula are population, extent of poverty and
extent of overcrowding, weighted 0.25, 0.50, and 0.25, respectively. The
factors involved in the second formula are population, poverty, and age
of housing, weighted 0.20, 0.30, and 0.50, respectively. The statistical
factors used for fund allocation are (1) total resident population for
all places in the nation (2) number of persons with incomes below the
poverty level; (3) number of housing units with 1.01 or more persons per
room; and (4) age of housing (number of year-round housing units built
in 1939 or earlier). The statistical factors for each State are adjusted
to reflect only the non-entitled area; that is, the State area excluding
metropolitan cities and urban counties. There is no matching requirement
for the allocation of funds under the formula. Address questions
concerning the formula to the Systems Development and Evaluation
Division Rm. 7224, Community Planning and Development, 451 7th Street,
SW. Washington, DC 20410. Telephone: (202) 708-0790.

MOE requirements are not applicable to this program.

Length and Time Phasing of Assistance

Assistance is available until project completion, and is released through a letter of credit. Grantees are encouraged to give priority to activities that can obligate funds by competitive contract within 120 days of the funds being made available. All funds must be expended by September 30, 2012. Method of awarding/releasing assistance: by letter of credit.

Post Assistance Requirements


Quarterly performance reports.

SF-272 Federal Cash Transactions Report.

Quarterly progress reports are required.

No expenditure reports are required.

Annual performance reports as required by 24 CFR 91.520
Quarterly performance reports to be posted by HUD to


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, "Audits of State and Local Governments and Non-Profit Organizations", nonfederal entities that expend $500,000 or more in a
year shall have a single audit conducted for that year in accordance with the provisions of the circular.


Records must demonstrate that the State has met the
requirements of Title I of the Act.

Financial Information

Account Identification

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


(Formula Grants) FY 08 $0; FY 09 est $292,000,000; FY 10 est $0

Range and Average of Financial Assistance

State grant amounts are
determined by formula. Of the 50 state grants awarded under the State CDBG-R
program in FY 2009, the average (mean) grant amount was $5,908,690.
Grant amounts ranged from $537,718 to $19,473,698. These totals do not include Hawaii s allocations awarded to its 3 non-entitled counties. Hawaii s share of the 2009 allocation is $1,415,496.

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: Contact the Honolulu
Field Office for the non-entitled Hawaii counties.

Headquarters Office

Diane L Lobasso State and Small Cities Division, Office of
Block Grant Assistance, Community Planning and Development, Department
of Housing and Urban Development, 451 7th Street, SW, Washington 20410- Email: Phone: (202) 708-1322

Criteria for Selecting Proposals

Not Applicable.

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