U.S. Department of Housing and Urban Development. Community Development Block Grants (CDBG) and Healthcare Facilities

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1 U.S. Department of Housing and Urban Development Community Development Block Grants (CDBG) and Healthcare Facilities

2 HAPPY 40 th BIRTHDAY, CDBG! CDBG was authorized by Title 1 of the Housing and Community Development Act of It remains one of the most successful and flexible resources for addressing critical and unmet community needs. Since 1974, $144 Billion has been invested in urban and rural communities through CDBG.

3 HOW DOES CDBG WORK? HUD provides annual grants to: Entitlement communities (metropolitan cities with populations of at least 50,000 and urban counties with populations of at least 200,000, not including metropolitan cities) States (for their projects and for units of local government in non-entitlement communities) CDBG funds are not granted directly to nonprofits or individuals, but may be sub-granted to them

4 VIRGINIA S CDBG ENTITLEMENT COMMUNITIES Alexandria, VA Arlington County, VA Blacksburg, VA Bristol, VA Charlottesville, VA Chesapeake, VA Chesterfield County, VA Christiansburg, VA Colonial Heights, VA Danville, VA Fairfax County, VA Fredericksburg, VA Hampton, VA Harrisonburg, VA Henrico County, VA Hopewell, VA Loudoun County, VA Lynchburg, VA Newport News, VA Norfolk, VA Petersburg, VA Portsmouth, VA Prince William County, VA Radford, VA Richmond, VA Roanoke, VA Suffolk, VA Virginia Beach, VA Waynesboro, VA Winchester, VA Virginia DHCD

5 WHAT CAN CDBG BE USED FOR? Grantees are free to decide how to use their CDBG funds, as long as each activity meets one of 3 broad national objectives: 1. Benefit low and moderate income persons (at least 70% of the expenditures must be for activities that meet this objective) 2. Eliminate slums and blight 3. Meet an urgent development need that has posed a serious and immediate threat to health or welfare in the past 18 months, and for which there are no other funding resources

6 MOST FREQUENTLY FUNDED CDBG ACTIVITIES Historically, 1/3 is spent on public facilities and infrastructure improvement projects including, but not limited to: Water and Sewer Systems Safe Streets and Transit-ways Improved Drainage Systems Community Centers Public Parks

7 MOST FREQUENTLY FUNDED CDBG ACTIVITIES Economic growth and development, including job creation and small business support. (CDBG was a powerful tool used to move the economic recovery forward after the 2008 recession). Home rehabilitation for low-moderate income owners and renters. Leveraging for other federal, state, local and private funding.

8 HOW CAN CDBG FUNDING BE ACCESSED FOR MY PROJECT? Because CDBG grants are only awarded to entitlement communities and states, representatives of eligible projects must request funding from those entities. Representatives of Projects in entitlement communities, contact the City or County CDBG administrator s office (usually the City Manager or County Administrator) to discuss the project proposal and present information on: Need for the project Eligibility of the project Objective the project will meet Budget for the project Other resources that can be leveraged

9 HOW CAN CDBG FUNDING BE ACCESSED FOR MY PROJECT? For entitlement communities, the grant administrator determines whether to include the project (sub-grant) in the Consolidated Plan or Annual Action Plan. For non-entitlement communities, the local government determines whether to move to project forward to the state as a request for inclusion in the Consolidated Plan or Annual Action Plan (in Virginia, the State Grantee is the Department of Housing and Community Development).

10 HOW CAN CDBG FUNDING BE ACCESSED FOR MY PROJECT? Up to 15% of CDBG funds may also be used for important public services that are eligible activities and meet one of the CDBG program objectives. Grantees solicit applications for these funds through public means: Newspaper notices and advertisements Online notices Contact with prior sub-grantees and other organizations that have expressed interest

11 SECTION 108 Section 108 is a loan guarantee provision of CDBG that provides financing for large scale projects, including: Economic development Housing rehabilitation Public facilities Other large-scale development Current and future CDBG grants are pledged as security for the loan.

12 WHERE TO FIND MORE INFORMATION For general information about the CDBG program: or To find the CDBG grantee for your jurisdiction: m_offices/comm_planning/about/budget/budget14 For Section 108:

13 HUD s Office of Healthcare Programs Formerly known as HUD s Office of Insured Healthcare Facilities. Administers FHA s Healthcare programs: Section 232 Mortgage Insurance for Residential Care Facilities Section 242 Mortgage Insurance for Hospitals

14 Benefits of Sections 232 and 242 Affordable financing and refinancing of healthcare facilities. Integral to HUD s Community Development Mission: Reduced cost of capital for construction, renovation, acquisition or refinancing Improved access to quality healthcare Decrease in overall healthcare costs

15 HUD s Office of Healthcare Programs Includes: Office of Architecture and Engineering Office of Hospital Facilities Office of Residential Care Facilities For more information, go to: deral_housing_administration/healthcare_faci lities

16 Contact Information Carrie S. Schmidt HUD Richmond Field Office Director - carrie.s.schmidt@hud.gov Ronnie Legette HUD Richmond Community Planning and Development (CPD) Director ronnie.j.legette@hud.gov Office of Healthcare Programs hospitals@hud.gov Office of Healthcare Programs Main Line (toll-free): HLTH-FHA (or )

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