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Community Development Block Grant (CDBG) Program

Community Development Block Grant (CDBG) Program. City of Alexandria, VA Prepared for City of Bowie, MD March 2006. CDBG Program, Alexandria VA. Since City Fiscal Year 1976, Alexandria’s annual grant has ranged from a high of $1,735,000 (FY 1976 – FY 1978) to a low of $903,000.

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Community Development Block Grant (CDBG) Program

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  1. Community Development Block Grant (CDBG) Program City of Alexandria, VA Prepared for City of Bowie, MD March 2006

  2. CDBG Program, Alexandria VA • Since City Fiscal Year 1976, Alexandria’s annual grant has ranged from a high of $1,735,000 (FY 1976 – FY 1978) to a low of $903,000. • City FY 2006 (July 2005 – June 2006) grant: $1,411,586 • City FY 2007 grant: $1,284,295

  3. Annual Grant Amounts

  4. Administration and Staffing • Primarily administered by Office of Housing • 19 of 20 Housing staff positions have some CDBG responsibilities, but only 6.9 FTEs charged to program • Supervisory/management staff charged elsewhere to avoid exceeding CDBG 20% cap on admin. costs • Program staff charged based on percentage of duties attributed to CDBG • Department of Human Services administers 3 CDBG-funded activities; no CDBG-funded staff

  5. Current CDBG-Funded Activities • Ongoing Programs • Homeownership Assistance Program (HAP) • Home Rehabilitation Loan Program (HRLP) • Rental Accessibility Modification Program (RAMP) • Eviction Assistance & Furniture Storage • Transitional Assistance Program • Winter Shelter • Administrative Activities • Program Administration • Submissions/Applications for Federal Programs • Fair Housing Testing

  6. Special Activities • Special activities, often added by program amendment, have included: • Rehabilitation of specified public housing developments • Acquisition and/or rehabilitation of special needs housing • Senior grant program (home rehabilitation) • Development of Homeless Management Information System

  7. Other Previously Funded Activities • Blighting Influences Program • Business Assistance Loan Program • Commercial Revitalization Program • Loan Loss Reserve for Microenterprise Loan Program • Rehabilitation of various non-profit facilities • Operation Match • Renovation of Group Homes • Day Care

  8. Homeownership Assistance Program (HAP) • Up to $50,000 for downpayment, closing costs, principal/interest reduction • No-interest, deferred payment 2nd (or 3rd) trust, due upon sale (or in 99 years); no monthly payments • 5-year anti-speculation surcharge • Access to special financing from Virginia Housing Development Authority • City pays $1,000 (from non-CDBG monies) of seller’s real estate commission as incentive to sell to HAP buyer

  9. Home Rehabilitation Loan Program • Provides no-interest loans to income-eligible owner-occupants of single family homes • Construction cost limit of $90,000 (may be exceeded to meet lead-based paint requirements), plus recordation, title search, termite inspection, recording fees and moving and storage expenses. • Due on sale (or in 99 years) • Architectural costs are not included in the loan; treated as costs of administering the program • Lead-based paint requirements can add substantial costs; two recent loans exceeded $150,000

  10. Special Features of HAP and Home Rehabilitation Loans • City will subordinate its second trust upon refinancing, if transaction is not deemed to pose a risk to City • If loan recipient sells and purchases another home in the City, and is still income eligible, loan may be rolled over to new property • Rollover applies to rehab loans only if first property is sold to income-eligible buyer

  11. Rental Accessibility Modification Program (RAMP) • Grants of up to $50,000 in CDBG monies to modify rental units for persons with disabilities • Mini-grants of up to $1,500 in Housing Trust Fund (non-CDBG) monies for minor items, such as grab bars

  12. Fair Housing Testing Program • Fair Housing Testing Program tests for discriminatory housing practices by landlords, real estate firms, and lenders. • Program has tested for discrimination based on race/national origin, familial status, disability, and sexual orientation. • Upon a finding of discrimination, complaints are filed with Human Rights Commission. All complaints filed have been settled.

  13. DHS Public Service • Eviction Assistance and Furniture Storage • City contracts with moving and storage company for collection and storage (up to 60 days) of belongings of households being evicted. • Transitional Assistance Program • City pays ½ of security deposit and ½ of rent for up to three months. Classified as emergency housing assistance. • Winter Shelter • Hypothermia shelter from November 1 through April 15. Housed in several churches plus additional beds in year-round shelters. Total of up to 67 beds nightly.

  14. Special Considerations in Using CDBG Monies • Program income effect on “timeliness” requirement • Section 104(d) relocation and replacement housing requirements – effect on multifamily acquisition/rehab • Lead-based paint requirements • Environmental reviews • Program administration and public service ceilings • Davis-Bacon wage rates

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