Community Development Block Grants/Small Cities Program

 

The primary objective of this program is the development of viable urban communities by providing decent housing, a suitable living environment, and expanding economic opportunities, principally for persons of low and moderate income.

Deleted 05/06/2008 (Combined with 14.228 Community Development Block Grants/State's Program and Non-Entitlement Grants in Hawaii) 14.219 COMMUNITY PLANNING AND DEVELOPMENT, DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT Formula Grants. Not available. Housing and Community Development Act of 1974, Title I, as amended, Public Law 93-383, 88 Stat. 633, 42 U.S.C. 5301 - 5317. HUD continues to administer the Small Cities Program only for the nonentitlement communities within the jurisdiction of the State of Hawaii. Eligible applicants are units of general local government (including counties), except metropolitan cities, urban counties or units participating in an urban county's CDBG program, and Indian tribes eligible for assistance under Section 106(a) of the Act, as amended. Under the CDBG Program/State Program (14.228) each State may now elect to administer all aspects of the Small Cities Program for the nonentitlement communities within its jurisdiction. The State of New York's decision to assume administration of the Small Cities program in Fiscal Year 2000, brings participation in the State program to 49 States, including Puerto Rico. Only Hawaii remains in the HUD administered Small Cities Program. The principal beneficiaries of CDBG funds are low and moderate income persons. For metropolitan areas, low and moderate income is generally defined as a member of a family having an income equal to or less than the Section 8 low income limit established by HUD. For non-metropolitan areas, low and moderate income is generally defined as 80 percent of the median income for non- metropolitan areas of the State, as adjusted by family size. Costs will be determined in accordance with OMB Circular No. A-87 for State and local governments. This program is covered under E.O. 12372, "Intergovernmental Review of Federal Programs" and Part 85. Recipients should consult the office or the official designated as the single point of contact in the respective State for more information on the process the State requires to be followed in applying for assistance, if the State has selected the program for review. The three eligible Hawaii counties will be invited to apply for a formula amount. Their applications will be funded if they are for eligible activities that meet a national objective, and at least 70 percent of the funds are for activities that benefit low and moderate income persons, and the requirements of the regulations are met. Hawaii applicants will be notified of the results of the review of their application by the field office, and offered a grant agreement if the application is acceptable. The three Hawaii Counties will be notified of the application deadline by letter. Although not required by statute, the Hawaii State Office will attempt to notify the eligible Hawaiian counties of the results of its review per its Con Plan. None. There are no automatic renewals. Complete new applications must be submitted. In Hawaii, funds are proportionally distributed to the three eligible units of general local government according to the formula factors used to determine the statewide allocation. Small Cities develop their own programs and funding priorities. Generally, as in the case of entitlement grants, most activities previously eligible under the categorical program consolidated under the Housing and Community Development Act of 1974, and defined by the statute and regulations may be carried out, i.e., acquisition, rehabilitation or construction of certain public works facilities and improvements, clearance, housing rehabilitation, code enforcement, direct assistance to facilitate and expand homeownership among persons of low and moderate income, relocation payments and assistance, administrative expenses, economic development, completing existing urban renewal projects, and certain public services with some restrictions. Neighborhood-based nonprofit organizations, local development corporations, Small Business Investment Companies, or other nonprofit organizations serving the development needs of nonentitlement areas may act as subgrantees to carry out neighborhood revitalization or community economic development projects in furtherance of CDBG objectives. Recipients may provide assistance to for-profit entities when the recipient determines that the provision of such assistance is appropriate to carry out an economic development project. Communities are restricted from constructing or rehabilitating public facilities for the general conduct of government and from making housing allowances or other income maintenance-type payments. The projected use of funds must be developed to give maximum feasible priority to activities which benefit low and moderate income persons or aid in the prevention or elimination of slums or blight. The projected use of funds may also include activities which the applicant certifies are designed to meet other community development needs having a particular urgency because existing conditions pose a serious and immediate threat to the health or welfare of the community where other financial resources are not available to meet such needs. At least 70 percent of each grant made available to a unit of general local government must benefit low and moderate income persons. Performance Assessment Report and Financial Reports. In accordance with the provisions of OMB Circular No. A- 133, "Audits of State and Local Governments and Non-Profit Organizations", nonfederal entities that expend $300,000 or more in a year in Federal awards shall have a single audit conducted for that year in accordance with the provisions of the Circular. All information on grant-assisted transactions and activities must be maintained and retained in accordance with 24 CFR 85.42. Formula and Matching Requirements: Allocations to States are based on a dual formula under Section 106 of the Act using statistical factors. Allocations for each State are based on an amount equaling the greater of the amounts calculated under two formulas. The factors involved in the first formula are population, extent of poverty and extent of overcrowding, weighted 0.25, 0.50, and 0.25, respectively. The factors involved in the second formula are population, poverty, and age of housing weighted 0.20, 0.30, and 0.50, respectively. The statistical factors used for fund allocation are (1) total resident population for all places in nation from the 2000 Census; (2) number of persons with incomes below the poverty level from the 2000 Census estimates; (3) number of housing units with 1.01 or more persons per room from the 2000 Census; and (4) age of housing; number of year-round housing units built in 1939 or earlier from the 2000 Census. The statistical factors for each State have been reduced to reflect only the non-entitled area; that is, the State area excluding metropolitan cities and urban counties. Each of the three eligible counties in Hawaii receives its prorata share of the nonentitlement allocation for Hawaii. Address questions concerning the formula to Robert Meehan, Systems Development and Evaluation Division, Community Planning and Development,451 7th Street, SW., Washington, DC 20410. Telephone: (202) 708-0790. Assistance is for an annual program of activities, but activities may be continued beyond one year until completed. Contact the Hawaii State Office listed in the Catalog Address Appendix IV of the Catalog. State and Small Cities Division, Office of Block Grant Assistance, Community Planning and Development, Department of Housing and Urban Development, 451 7th Street, SW., Washington, DC 20410. Telephone: (202) 708-1322. Use the same number for FTS. http://www.hud.gov/offices/cpd/about/cpd_programs.cfm 86-0162-0-1-451. (General purpose discretionary) FY 02 $5,175,000; FY 03 $5,889,800; and FY 04 est $5,979,150. The amount awarded to Hawaii County: FY 02 $2,304,000, FY 03 $2,685,000; Maui County: FY 02 $1,947,000, FY 03 $2,304,000; Kauai County: FY 02 $924,000, FY 03 $900,000. Administrative Regulations for Community Development Block Grants, 24 CFR 570, Subpart F. Neighborhood revitalization projects emphasizing rehabilitation of private homes, and including appropriate improvements of public facilities; economic development projects for expanded employment opportunities; and projects to address serious deficiencies in public facilities such as water and sewer.