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BASICALLY CDBG Kathleen M. Bialas OGC/HHQ/HUD. CDBG PROGRAM q Title I of the Housing & Community Development Act of 1974, as amended [42 U.S.C. 5301 et.

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Presentation on theme: "BASICALLY CDBG Kathleen M. Bialas OGC/HHQ/HUD. CDBG PROGRAM q Title I of the Housing & Community Development Act of 1974, as amended [42 U.S.C. 5301 et."— Presentation transcript:

1 BASICALLY CDBG Kathleen M. Bialas OGC/HHQ/HUD

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

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

4 ! NATIONAL OBJECTIVES URGENT NEED LOW/MOD Area Benefit Limited Clientele HousingJobs SLUM/BLIGHT Area Basis Spot Basis Urban Renewal NATIONAL OBJECTIVES

5 LOW & MODERATE INCOME q Low & moderate income for CDBG means 80% of area median income [equals low income in the HOME, Section 8, and Public Housing programs] q Annual income definitions: Section 8 Annual Income (24 CFR Part 5) Census Long Form IRS 1040 Series (Long Form)

6 LOW/MOD BENEFIT HOUSING q 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 q Aggregation allowed in some instances q Reg cite §

7 LOW/MOD BENEFIT HOUSING q 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 BENEFIT HOUSING q Rents charged -- affordable rents q Grantee must adopt and make public its standards for determining affordable rents q Reg cite §

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

10 q Wide variety possible Real property activities Economic development Public services CBDO activities Planning and administration Others q Reg cites § § ELIGIBLE ACTIVITIES

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

12 OTHER ACTIVITIES TO SUPPORT HOUSING q Acquisition: Grantees may acquire real property to be used for housing and resell it at a lower price to developers. q 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 q 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) q Reg cite § q CBDOs may carry out: Neighborhood revitalization project Community economic development project Energy conservation project q All activities they undertake must be part of one of these types of projects -- which may include new housing construction

15 CBDO REQUIREMENTS q 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 q 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 q Less than 1/3 of board may be elected/ appointed public officials or employees of grantee q Governing body must be nominated by general membership

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

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

19 Information on website


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