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BASICALLY CDBG

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Operate in specific geographic area within grantee's jurisdiction ... To meet the 51% low/mod representation: Residents of service area ... – PowerPoint PPT presentation

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Title: BASICALLY CDBG


1
BASICALLY CDBG
2
CDBG PROGRAM
  • Title I of the Housing Community Development
    Act of 1974, as amended 42 U.S.C. 5301 et seq.
  • Regulations 24 CFR Part 570
  • Annual formula grants to states and local
    governments (metro cities with populations of
    50,000 and urban counties with populations of
    200,000)
  • States and local governments must have an
    approved Consolidated Plan
  • States must make grants to smaller local
    governments

3
PRIMARY OBJECTIVE
  • Development of viable urban communities,
    principally for low/mod persons, through
  • Decent housing
  • Suitable living environment
  • Expanded economic opportunity
  • All activities must meet national objective and
    be eligible

4
NATIONAL OBJECTIVES
NATIONAL OBJECTIVES
URGENT NEED
LOW/MOD
SLUM/BLIGHT
!
Area Benefit
Limited Clientele
Area Basis
Spot Basis
Housing
Jobs
Urban Renewal
5
LOW MODERATE INCOME
  • Low moderate income for CDBG means 80 of
    area median income equals low income in the
    HOME, Section 8, and Public Housing programs
  • Annual income definitions
  • Section 8 Annual Income (24 CFR Part 5)
  • Census Long Form
  • IRS 1040 Series (Long Form)

6
LOW/MOD BENEFIT HOUSING
  • To meet the national objective, housing
    structures must be occupied by low/mod
    households
  • One unit structures occupied by low/mod
    household
  • One unit of duplex occupied by low/mod household
  • 51 of 3 units occupied by low/mod household
  • Aggregation allowed in some instances
  • Reg cite 570.208

7
LOW/MOD BENEFITHOUSING
  • May have less than 51 low/mod family occupancy
  • To reduce development cost of the new
    construction of multi-family, non-elderly rental
    housing project
  • Not less than 20 of the units will be occupied
    by low/mod households at affordable rents
  • CDBG funds pay prorated share of total
    development costs

8
LOW/MOD BENEFITHOUSING
  • Rents charged -- affordable rents
  • Grantee must adopt and make public its standards
    for determining affordable rents
  • Reg cite 570.208

9
LOW/MOD BENEFIT OVERALL REQUIREMENT
  • Requires that 70 of all CDBG expenditures
    benefit low/mod persons
  • Cumulative expenditures, not budgeted
  • Certification period of 1-3 years
  • Reg cite 570.201

10
ELIGIBLE ACTIVITIES
  • Wide variety possible
  • Real property activities
  • Economic development
  • Public services
  • CBDO activities
  • Planning and administration
  • Others
  • Reg cites 570.201 - 570.206

11
RENTAL HOUSING ELIGIBLE ACTIVITIES
  • May use CDBG to acquire or rehab rental housing
    under 570.202
  • Assistance may be loans, grants, loan guarantees,
    interest subsidies
  • Properties may be
  • Publicly or privately owned
  • Residential or mixed use

12
OTHER ACTIVITIES TO SUPPORT HOUSING
  • Acquisition Grantees may acquire real property
    to be used for housing and resell it at a lower
    price to developers.
  • Clearance Grantees may clear a property that
    they own to be used for housing and resell it at
    a lower price to developers.

13
OTHER ACTIVITIES TO SUPPORT HOUSING
  • Infrastructure and site improvements Grantees
    may construct, reconstruct, rehabilitate, or
    install public facilities and improvements,
    including streets, sidewalks, parks, water,
    sewer, and utility lines on public property in
    support of housing.

14
COMMUNITY BASED DEVELOPMENT ORGANIZATIONS (CBDOs)
  • Reg cite 570.204
  • CBDOs may carry out
  • Neighborhood revitalization project
  • Community economic development project
  • Energy conservation project
  • All activities they undertake must be part of one
    of these types of projects -- which may include
    new housing construction

15
CBDO REQUIREMENTS
  • Organization must
  • Be organized under state/local law for specific
    community development activities
  • Operate in specific geographic area within
    grantees jurisdiction
  • Have as its primary focus the improvement of
    economic/ physical/social aspect of service area,
    particularly for low/mod persons
  • Have a governing body of at least 51 low/mod reps

16
CBDO GOVERNING BODY
  • To meet the 51 low/mod representation
  • Residents of service area
  • Owners/officers of entities located in service
    area OR
  • Reps of low/mod groups in service area
  • Less than 1/3 of board may be elected/ appointed
    public officials or employees of grantee
  • Governing body must be nominated by general
    membership

17
OTHER CBDO REQUIREMENTS
  • If CBDO is a for-profit entity, profits to
    shareholders/ members must be incidental to
    operations
  • Single-neighborhood-based CHDOs automatically
    meet CBDO requirements other CHDOs must qualify
  • Certain SBA organizations may qualify

18
OTHER REQUIREMENTS
  • Nondiscrimination
  • Labor standards Davis-Bacon wages
  • Environmental review
  • Relocation benefits and replacement of housing
    converted or demolished
  • Lead-based paint
  • Subpart K of the regulations

19
Information on website www.hud.gov/offices/cpd/
www.hud.gov/offices/cpd/communitydevelopment/progr
ams/index.cfm
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