ATTACHMENT C
FEDERAL GUIDELINES FOR ELIGIBILITY
Community Development Block Grant Program
General
Title I of the Housing and Community Development Act of 1974 (Public Law 93 -383) created the Community Development Block Grant (CDBG) funding program, replacing eight former categorical grant and loan programs under which communities competed nationally for funds. Localities decide how and where the CDBG funds are to be spent, subject to compliance with certain Federal regulations. Projects are not subject to prior Federal approval, but the use of CDBG funds is monitored by the U.S. Department of Housing an d Urban Development (HUD). The City of Santa Maria is an entitlement community under the CDBG Program.
National Objectives
The proposed project or activity must meet one of the three national objectives outlined below.
1) Benefits low- and moderate -income persons as defined by the U.S.
Department of Housing and Urban Development (HUD).
To meet this national objective, the proposed activity must benefit a specific clientele or residents in a particular area of the City, 51 percent of whom are low and moderate-income people. At least 70 percent of all CDBG program funds must be expended for activities that benefit low and moderate-income persons over one, two or three consecutive program years, as specified by the grantee. This is distinct from the requirement that individual activities which are considered to meet the low and moderate-income national objective must benefit persons 51 percent of whom are low and moderate income.
A low- and moderate-income person is defined as a member of a family having an income equal to or less than the Section 8 Housing Assistance Payments Program low-income limit established by HUD. Unrelated individuals shall be considered as one-person families for this purpose.
2) Aids in the prevention or elimination of slums or blight.
To meet this national objective, the proposed activity must be provided within a designated slum or blighted area and must be designed to address one or more conditions that contributed to the deter ioration of the area. There must be a substantial number of deteriorated or deteriorating buildings or public improvements throughout the area.
3) Meets community development needs having a particular urgency where existing conditions pose a serious and i mmediate threat to the health or welfare of the community, and no other funding sources are available.
To meet this national objective, the proposed activity must be provided to deal with major catastrophes or emergencies, such as floods or earthquakes that have a community-wide impact.
ATTACHMENT C
Types of Activities
In addition to meeting one of the national objectives, the proposed project or activity must be determined eligible under one of the following activity categories:
Acquisition of real property
Disposition of real property
Acquisition, construction, reconstruction, rehabilitation or installation of public facilities and improvements
Site improvements
Privately-owned utilities
Clearance, demolition, removal of buildings and improvements, and/or movement of structures to other sites
Interim help in areas showing physical deterioration where immediate action is necessary to arrest deterioration and permanent improvements will be conducted Removal of architectural barriers
Housing rehabilitation
Code enforcement
Historic preservation
Commercial or industrial rehabilitation
Special activities by subrecipients
Public services
To be eligible, a public service must be either a new service or an increase in the level of an existing service above that which was provided in the previous 12 months. This must only be demonstrated in the first year a public service activity is funded u nder the CDBG Program.
Public services must be directed toward improving the community’s services and facilities, including, but not limited to those concerned with employment, crime prevention, childcare, health, drug abuse, education, fair housing counseling, energy conservation, welfare, or recreation. Costs may include labor, supplies and materials necessary to provide the service.
The total amount of CDBG funds allowed for public services is 15 percent of the annual entitlement grant plus 15 percent of the program income received during the preceding program year.
General program administration
The total amount of CDBG funds allowed for general program administration is 20 percent of the annual entitlement grant plus 20 percent of the program income received during the preceding program year.