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CDBG Entitlement Status Discussion. September 13, 2011 City Council Workshop. Background. Received l etter from Department of Housing and Urban Development providing City with option to pursue CDBG Entitlement Status City must respond in writing no later than September 16

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CDBG Entitlement Status Discussion

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cdbg entitlement status discussion

CDBGEntitlement Status Discussion

September 13, 2011

City Council Workshop

  • Received letter from Department of Housing and Urban Development providing City with option to pursue CDBG Entitlement Status
  • City must respond in writing no later than September 16
  • Must decide whether to:
    • Pursue CDBG Entitlement Status, or
    • Continue under Small Cities CDBG Program
cdbg program in general
CDBG Program in General
  • Federal Program that started in 1974 in order to provide funding for housing and community development.
  • The National Objectives of the Program are to:
    • Benefit low- and moderate-income persons (LMI)
    • Prevent or eliminate slum or blight
    • Address urgent community development needs (Emergency)
  • The program, administered and funded by the Department of Housing and Urban Development, consists of two components:
    • Entitlement - provides funds directly to urban areas
    • Small Cities - provides funds to the states for distribution to rural areas
small cities cdbg program
Small Cities CDBG Program

FFY 2011 - 22.6 Million (@30-35 Grants)

Currently undergoing review by Governor for FFY2012

Competitive Program (246 Eligible Communities)

$750,000 Maximum Grant Award

Two Categories: Regular and Economic Development

The City currently has $750,000 grant in Regular Category for Owner-Occupied Housing Rehabilitation Program

small cities cdbg program regular category
Small Cities CDBG ProgramRegular Category
  • Annual Application Cycle
  • City Eligible Every 3 Years for Grant Award
  • Three Areas in Regular Category
    • Neighborhood Revitalization
      • Primarily Infrastructure Funding
      • Area Benefiting Must Be LMI
      • Not really an area that Qualifies for LMI
    • Commercial Revitalization
      • City Not Eligible (51% of Entire City Must be LMI)
    • Housing Rehabilitation
      • Current Owner-Occupied Housing Rehabilitation Grant
      • Housing Beneficiary Must Be LMI
small cities cdbg program economic development category
Small Cities CDBG ProgramEconomic Development Category

Open Application Cycle, Up to 2 Open ED Grants

Infrastructure, Grants/Loans to Businesses

Must Create at Least 22 Jobs, 51% Must be Offered to LMI

What if Business Doesn’t Create Jobs?Grant Paid Back!

cdbg entitlement program
CDBG Entitlement Program
  • Based on FFY2011, Annual City Allocation may be $330,100
  • Funding for FFY2012 and Future is Uncertain
  • Local Decision on Programs & Projects to Fund
  • Must meet National Objectives
    • Area Must Qualify (51% Must be LMI)
      • Very Difficult to Demonstrate in Palm Coast
    • Beneficiary Must Qualify (Must be LMI)
cdbg entitlement program1
CDBG Entitlement Program

Example Project/Programs that Beneficiary Must be LMI

  • Housing Related Activities
    • Acquisition
    • Construction
    • Rehabilitation
  • Public Services (Limited to 15% of Grant)
    • Senior Services
    • Handicapped Services
    • Legal Services
    • Youth Services
    • Transportation Services
  • Economic Development
    • Infrastructure Development
    • Direct Financial Assistance to For-Profits
    • Technical Assistance
    • Microenterprise Assistance
cdbg entitlement program2
CDBG Entitlement Program
  • If Entitlement Status is Pursued, Following Must Be Completed
    • Analysis of Impediments
    • Consolidation Action Plan
    • Annual Action Plan
  • Staff would recommend existing program/projects that would meet National Objectives for CDBG funding
    • Business Assistance Center Activities
    • Afterschool and Summer Recreation Programs
    • Current Owner-Occupied Housing Rehabilitation Program