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Community Development Block Grant (CDBG)

Community Development Block Grant (CDBG) . Steve Willobee-CATeam. Brief History of CDBG. Began in 1974, Oldest HUD program Statutory formula which takes into account population, poverty, incidence of overcrowded housing, and age of housing.

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Community Development Block Grant (CDBG)

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  1. Community Development Block Grant (CDBG) Steve Willobee-CATeam

  2. Brief History of CDBG • Began in 1974, Oldest HUD program • Statutory formula which takes into account population, poverty, incidence of overcrowded housing, and age of housing. • Michigan began to administer the States Allocation in 1981 • Sometimes referred to as the Small Cities Program • Michigan’s Program Statement is annually approved by HUD

  3. National Objectives • National Policy Objectives • Benefits low and moderate income people • Elimination of Slum and Blight • Imminent Threat/Urgent Need

  4. Eligible and Ineligible Applicants • Eligible Applicants • Small cities, townships, and villages less than 50,000 in population, and non-urban counties generally are eligible to apply for grants under the Michigan CDBG Program. • Eligible counties can apply on behalf of entitlement communities. • Ineligible Applicants • Entitlement Counties • Genesee County (Except Flushing) • Kent County (Except Cedar Springs) • Macomb County • Oakland County • Wayne County • Washtenaw (Parts of)

  5. CDBG Programs • Economic Development and Downtown Infrastructure • Economic Development Planning • Discretionary Economic Development Funds

  6. Economic Development and Downtown Infrastructure • Selection Criteria • Private Investment Ratio of 2:1 or greater • Cost Per Job: $10,000 or less • Financially Viability • Job Creation/Retention: 10 or more jobs • Local Contribution: 10% or greater • Local Contribution for entitlement communities: 50% or greater

  7. Economic Development and Downtown Infrastructure cont. • Public Infrastructure Improvements necessary for the location, expansion, and/or retention of a specific for-profit firm(s): • Manufacturing • Point-of-destination tourism • Headquarter operations • Traditional downtown projects.

  8. Economic Development and Downtown Infrastructure cont. • Project Activities • Public Water & Wastewater Treatment • Sanitary Sewer Lines and related facilities • Road Improvements • Streetscape Improvements • Public Utilities • All Other Infrastructure Needs • Reviewed on case-by-case basis

  9. Planning Grants • Available to help communities accomplish project specific, public planning, and design work • Includes development and plans for downtown areas leading to economic development implementation projects.

  10. Planning Grants cont. • Guidelines • Potential future job creation • Primary beneficiaries are low/mod individuals • Impact on Community • Date of last Planning Oriented Study • Maximum Grant Amount: $50,000

  11. Discretionary Economic Development Grants • Innovative Program Approaches • Special and/or Unique Needs • Examples: • Brownfield Site Redevelopment • Downtown Development • Core Communities Initiatives

  12. Discretionary Economic Development Grants cont. • Selection Guidelines, project periods, and grant amounts will be determined for each specific project proposal • All funding considerations will be made in compliance with federal CDBG regulations and requirements

  13. Site Visit • Meeting with local officials and the Developer/Property owners • Evaluate project for selection criteria • NOI is not required at this stage • Site tour of project area • Project Timeframe: 24 months maximum • Team Approach (MSHDA, SHPO, MDOT, MDEQ, etc.)

  14. Case Study: City of Buchanan • Downtown Revitalization Project • Streetscape Activities • Days Avenue: Street reconstruction & culvert opening • Front Street: Two Public Walkways were reconstructed. • Job Creation Commitment from 9 companies • 38 jobs ($18,421 per job) • $700,000 CDBG • Streetscape • $750,000 • Private Investment-Rehab of Vacant Structure into Coffee Shop and Residential Units • $960,650 • Local Contribution-Streetscape

  15. Front St. Streetscape Improvements

  16. Days Avenue Culvert: Before

  17. Days Avenue Culvert: In Progress

  18. Days Avenue Culvert: After

  19. Conclusion • The CDBG Program considers proposals on a continuous basis and projects will be considered at any time during the year • This includes the Downtown Gateways Program • Potentional Projects will be reviewed by the CATeam or Account Managers

  20. Questions • Please address any questions or potential projects to: • Kara Wood-Southwest Michigan • (517) 373-6217 wook@michigan.org • Laura Bower-Upper Peninsula & Northwestern Lower Peninsula • (517) 241-2331 bowerl@michigan.org • Jill Babcock-Southeast Michigan • (517) 241-4642 babcockj@michigan.org • Kent Kukuk: Thumb Area & Northeastern Lower Peninsula • Starts on November 8th • Steve Willobee-Mid Michigan • (517) 241-4390 willobees@michigan.org • Bob Trezise-Managing Director • (517) 335-7258 trezise@michigan.org

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