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FUNDING CRITERIA
As part of the Community Development Block Grant Program, the City must expend its CDBG funds on activities which meet the following statutory objectives as stated in the Housing and Community Development Act of 1974, as amended:
- Benefit Low and Moderate Income Persons
A project or activity meets this objective if (a) it has eligibility requirements that limit the beneficiaries to low and moderate income persons; (b) the majority of the beneficiaries are low and moderate income; (c) it benefits a category of people assumed to be or low or moderate income such as the elderly, the handicapped, battered spouses, abused children, etc.; or (d) it is a project which must be carried out prior to another project that directly benefits low and moderate income persons.
HUD defines low and moderate income as those individuals or families with gross incomes at or below 80% of the Boulder County Median Income figures (attached).
By law, the City must allocate at least 70% of its CDBG funds to projects which benefit low and moderate income persons. The City usually far exceeds this mandate having allocated an average of 92% of its funds to meet this objective since 1984.
- Prevention or Elimination of Slums and Blighting Influences
If an area is designated by the City as a slum, blighted or deteriorating area under State law, and the local grantee is operating a comprehensive improvement program in that area, then any eligible activity conducted in that are is deemed to prevent slums or blight.
If, however, a project is designed to eliminate detrimental conditions outside of an approved area as described above, an activity meets this objective only if it removes the specific incidence of blight or decay through acquisition, demolition, historic preservation, relocation or rehabilitation (only to the extent necessary to eliminate conditions detrimental to public health and safety).
- Meet an Urgent (Emergency) Need
A project meets this objective if it is designed to alleviate a serious and immediate threat to the health or welfare of the community. The project must be (a) of recent origin, (b) unable to be funded by the local government, and (c) unable to be funded from other sources.
In addition to meeting one of the above national statutory objectives, all projects must be "eligible" under Sections 570.201 through 570.206 of the CDBG administrative regulations (Code of Federal Regulations Part 24) (attached). Eligible activities include a broad range of projects, including: acquisition, disposition, construction of certain public facilities, clearance and demolition, public services, relocation, rehabilitation and preservation, economic development, planning and urban environmental design, and administration of the grant.
After a positive determination of compliance with statutory objectives and regulatory eligibility, all projects must be consistent with overall City plans and policies. Individually, projects must also be consistent with the City's community development objectives.
All projects are then considered against a variety of criteria, some of which include:
HUMAN RELATIONS COMMISSION AND THE CITY'S PROGRAM
The Human Relations Commission (HRC) serves as a citizen advisory board to the City Council for the CPD programs. The CPD program was added to the HRC's duties in 1995 so that it could act in the role of advisor in the planning, implementation and assessment of the CDBG Program. This ensures that a wide range of citizen input is included in the administration of the City's CDBG Program. The HRC reviews the CDBG and any other CPD Programs, prior to funding, and recommends to the City Council projects and activities for funding. The HRC monitors the CDBG and other CPD Programs during the remainder of the year.
Usually in late spring, the City begins its CDBG Allocation Process by meeting with the Human Relations Commission (HRC) to discuss in general how the next year's funds should be budgeted. A public notice is published to inform citizens of the amount of CDBG funds available and the types of activities for which these funds can be used. Project application forms are sent to anyone who requests one and to all who have applied in the past. A technical assistance meeting is held 30 - 60 days prior to the application due date. The application itself and the entire CDBG Program is reviewed and explained. Potential applicants are encouraged to sign up for further technical assistance in the planning and preparation of their project/applications. As applications are submitted, both the HRC and staff begin individual project reviews, including a presentation to the HRC by the applicants. The HRC then deliberates to establish a final project funding recommendation. In the past, City staff have provided several different funding scenarios to the HRC as a starting point for funding discussions. The HRC's final funding recommendation is then submitted to City Council. Council, as the actual grant recipient, has the ultimate funding decision and may accept the HRC's recommendation in its entirety, may partially accept it or may make a completely different funding decision. In the past, however, they have accepted the HRC's recommendation.
At least 30 days prior to the submission of each year's Consolidated Plan, a Public Hearing is advertised and held, outlining to the public the City's Projected Use of Funds. Any comments from the hearing are forwarded to the City Council for their consideration. After reviewing the comments received from the public hearing, the Council will approve the adoption of the Fiscal Year's projects as well as authorize the submission of the Consolidated Plan, containing the projects' descriptions to HUD.
If you have any questions you may contact Kathy Fedler, CDBG and Affordable Housing Programs Coordinator at 303-651-8736, or via e-mail at kathy.fedler@ci.longmont.co.us.