Presentation on theme: "BASICALLY CDBG Kathleen M. Bialas OGC/HHQ/HUD Pages in Book: None 1."— Presentation transcript:
1 BASICALLY CDBGKathleen M. BialasOGC/HHQ/HUDPages in Book:None1
2 CDBG PROGRAMTitle I of the Housing & Community Development Act of 1974, as amended [42 U.S.C et seq.]Regulations: 24 CFR Part 570Annual 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 PlanStates must make grants to smaller local governments898
3 PRIMARY OBJECTIVEDevelopment of viable urban communities, principally for low/mod persons, through:Decent housingSuitable living environmentExpanded economic opportunityAll activities must meet national objective and be eligible101110
4 ! NATIONAL OBJECTIVES NATIONAL OBJECTIVES LOW/MOD SLUM/BLIGHT URGENT NEED!Area BenefitLimited ClienteleArea BasisSpot BasisHousingJobsUrban 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 FormIRS 1040 Series (Long Form)
6 LOW/MOD BENEFIT HOUSING To meet the national objective, housing structures must be occupied by low/mod householdsOne unit structures occupied by low/mod householdOne unit of duplex occupied by low/mod household51% of 3+ units occupied by low/mod householdAggregation allowed in some instancesReg cite §151615
7 LOW/MOD BENEFIT HOUSING May have less than 51% low/mod family occupancy:To reduce development cost of the new construction of multi-family, non-elderly rental housing projectNot less than 20% of the units will be occupied by low/mod households at affordable rentsCDBG funds pay prorated share of total development costs
8 LOW/MOD BENEFIT HOUSING Rents charged -- affordable rentsGrantee must adopt and make public its standards for determining “affordable rents”Reg cite §
9 LOW/MOD BENEFIT OVERALL REQUIREMENT Requires that 70% of all CDBG expenditures benefit low/mod personsCumulative expenditures, not budgetedCertification period of 1-3 yearsReg cite §453445
10 ELIGIBLE ACTIVITIES Wide variety possible Real property activitiesEconomic developmentPublic servicesCBDO activitiesPlanning and administrationOthersReg cites § §262726
11 RENTAL HOUSING ELIGIBLE ACTIVITIES May use CDBG to acquire or rehab rental housing under §Assistance may be loans, grants, loan guarantees, interest subsidiesProperties may be:Publicly or privately ownedResidential or mixed use106
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 §CBDOs may carry out:Neighborhood revitalization projectCommunity economic development projectEnergy conservation projectAll activities they undertake must be part of one of these types of projects -- which may include new housing constructionPages in Book:Explain the types of activities generally available to CBDONote that these categories are pretty broad66
15 CBDO REQUIREMENTS Organization must: Be organized under state/local law for specific community development activitiesOperate in specific geographic area within grantee’s jurisdictionHave as its primary focus the improvement of economic/ physical/social aspect of service area, particularly for low/mod personsHave a governing body of at least 51% low/mod repsPages in Book:Go over definitionKeys:Accountability to residentsSeparation from govt (firewall)Works on CD and ED issues67
16 CBDO GOVERNING BODY To meet the 51% low/mod representation: Residents of service areaOwners/officers of entities located in service area ORReps of low/mod groups in service areaLess than 1/3 of board may be elected/ appointed public officials or employees of granteeGoverning body must be nominated by general membershipPages in Book:This helps define accountability to residentsNote the difference from CHDO31% for CHDO51% for CBDOThus, not all CHDO = CBDO68
17 OTHER CBDO REQUIREMENTS If CBDO is a for-profit entity, profits to shareholders/ members must be incidental to operationsSingle-neighborhood-based CHDOs automatically meet CBDO requirements; other CHDOs must qualifyCertain SBA organizations may qualifyPages in book:Explain when CHDO automatically qualifies69
18 OTHER REQUIREMENTS Nondiscrimination Labor standards [Davis-Bacon wages]Environmental reviewRelocation benefits and replacement of housing converted or demolishedLead-based paintSubpart K of the regulations
19 Information on website www.hud.gov/offices/cpd/
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