1. WASHINGTON STATE DEPARTMENT OF COMMERCE Public Services Funding March 2012 Community Development Block Grant Program

2. WA St Community Development Block Grant 5 grant fundsest 2012 %$12 million - General Purpose Grants(77%) - Planning-Only Grants ( 3%) - Imminent Threat Grants( 1%) - Housing Enhancement Grants ( 3%) - Public Services Grants (13%)$1.5 million 3 economic development loan funds - Rural Washington Loan Fund (RLF) - Section 8 Loan Guarantees - Float-Funded Activities

3. 2011 Funded Activities by Category

4. Public Services Grants Method of Distribution Annual allocation to set-aside fund based on prior year level, adjusted as necessary One year awards to 17 nonentitlement counties using poverty-based formula County passes funds to regional community action program (CAP) CAP subrecipient provides public services to LMI with local government’s grant oversight The 17 CAPs’ service area covers all 33 nonentitlement counties across state

5. WA State Community Action Programs

6. CSBG and Community Action Programs Community Services Block Grant (CSBG) Funded by US Health & Human Services, 1964 To address causes of poverty and help achieve self- sufficiency To support vitality of statewide CAP network Community Action Programs (CAP) Federally designated non-profit private/public organizations Community-based board (tri-partite) Provides services based on community assessment

7. CDBG Funded Public Services Wide range, depending on local needs Education: literacy, money management, parenting, before/after school programs Nutrition: food banks, home delivered meals Employment: job training, professional wardrobe, mentoring Emergency assistance: rent, heat, fuel Health care: dental clinics, sobering programs, senior home health care Self-sufficiency: asset development, case management, community referrals

8. CDBG & CSBG Partnership History Began in 1993 St Legislature directed CDBG to offset Community Services Block Grant (CSBG) reductions CDBG awards 17 county grants for 17 CAPs Changes since 1993 County/CAP grantees adjusted due to entitlement service area overlap issues Cuts in federal CDBG result in proportionate Public Service Grant decreases Move from CDBG funds combined with CSBG to CDBG stand-alone formula and contract management

9. Why CAPs? Advantages: Builds on existing network of experienced service providers Funds local/regional prioritized services Targets funding for very low income Partners with other state and federal programs Builds partnership between county and CAP Supports CAP network in rural, underserved areas

10. Why CAPs? Disadvantages: CAPs treat CDBG like CSBG “Their funds” – exerting political weight on CDBG program CAP initiated – not county initiated Financial management – CSBG allows more flexible uses (admin, community partnership building, Director) Reporting – HUD and HHS data & definitions differ Less ownership by local government grantees

11. Public Services Grant Set-Aside Pro/Con +Easy formula-based funding results in fair distribution of service funding across rural state -Need to maintain separate application & contracting processes +Small grant amounts ($39,000 - $172,000) leverage other funds and stretch further -Small grant amounts mean higher number (17) of contracts to manage with limited CDBG staff -Grant management issues differ from “typical” CDBG- funded construction activities -Ties up 13% of annual state CDBG award

12. Lessons Learned Public services make a big impact for very low income Public services are an essential part of community development Use caution locking CDBG funds Need local government support and active participation from beginning Entitlement/Non-entitlement area overlap issues New or Increase Level of Service requirement Be clear on eligible administration costs for direct service delivery Grant budget management difficult due to fund shifting by CAP

13. Questions Other handouts and resources www.commerce.wa.gov/cdbg