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CDBG Entitlement Status Discussion

CDBG Entitlement Status Discussion. September 13, 2011 City Council Workshop. Background. Received l etter from Department of Housing and Urban Development providing City with option to pursue CDBG Entitlement Status City must respond in writing no later than September 16

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CDBG Entitlement Status Discussion

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  1. CDBGEntitlement Status Discussion September 13, 2011 City Council Workshop

  2. Background • Received letter from Department of Housing and Urban Development providing City with option to pursue CDBG Entitlement Status • City must respond in writing no later than September 16 • Must decide whether to: • Pursue CDBG Entitlement Status, or • Continue under Small Cities CDBG Program

  3. CDBG Program in General • Federal Program that started in 1974 in order to provide funding for housing and community development. • The National Objectives of the Program are to: • Benefit low- and moderate-income persons (LMI) • Prevent or eliminate slum or blight • Address urgent community development needs (Emergency) • The program, administered and funded by the Department of Housing and Urban Development, consists of two components: • Entitlement - provides funds directly to urban areas • Small Cities - provides funds to the states for distribution to rural areas

  4. Small Cities CDBG Program FFY 2011 - 22.6 Million (@30-35 Grants) Currently undergoing review by Governor for FFY2012 Competitive Program (246 Eligible Communities) $750,000 Maximum Grant Award Two Categories: Regular and Economic Development The City currently has $750,000 grant in Regular Category for Owner-Occupied Housing Rehabilitation Program

  5. Small Cities CDBG ProgramRegular Category • Annual Application Cycle • City Eligible Every 3 Years for Grant Award • Three Areas in Regular Category • Neighborhood Revitalization • Primarily Infrastructure Funding • Area Benefiting Must Be LMI • Not really an area that Qualifies for LMI • Commercial Revitalization • City Not Eligible (51% of Entire City Must be LMI) • Housing Rehabilitation • Current Owner-Occupied Housing Rehabilitation Grant • Housing Beneficiary Must Be LMI

  6. Small Cities CDBG ProgramEconomic Development Category Open Application Cycle, Up to 2 Open ED Grants Infrastructure, Grants/Loans to Businesses Must Create at Least 22 Jobs, 51% Must be Offered to LMI What if Business Doesn’t Create Jobs?Grant Paid Back!

  7. CDBG Entitlement Program • Based on FFY2011, Annual City Allocation may be $330,100 • Funding for FFY2012 and Future is Uncertain • Local Decision on Programs & Projects to Fund • Must meet National Objectives • Area Must Qualify (51% Must be LMI) • Very Difficult to Demonstrate in Palm Coast • Beneficiary Must Qualify (Must be LMI)

  8. CDBG Entitlement Program Example Project/Programs that Beneficiary Must be LMI • Housing Related Activities • Acquisition • Construction • Rehabilitation • Public Services (Limited to 15% of Grant) • Senior Services • Handicapped Services • Legal Services • Youth Services • Transportation Services • Economic Development • Infrastructure Development • Direct Financial Assistance to For-Profits • Technical Assistance • Microenterprise Assistance

  9. CDBG Entitlement Program • If Entitlement Status is Pursued, Following Must Be Completed • Analysis of Impediments • Consolidation Action Plan • Annual Action Plan • Staff would recommend existing program/projects that would meet National Objectives for CDBG funding • Business Assistance Center Activities • Afterschool and Summer Recreation Programs • Current Owner-Occupied Housing Rehabilitation Program

  10. Policy Discussion(Choice, Not Both)

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