Community Development Block Grant (CDBG) Program

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1 The information provided here is for informational and educational purposes and current as of the date of publication. The information is not a substitute for legal advice and does not necessarily reflect the opinion or policy position of the Municipal Association of South Carolina. Consult your attorney for advice concerning specific situations. Community Development Block Grant (CDBG) Program 1 CDBG Purpose To address essential community development needs, primarily of low and moderate income (LMI) persons 3 CDBG Goals Goals Decent/affordable housing Economic opportunities Suitable living environments 5 1

2 CDBG Outcomes Accessibility o New access o Improved access o Improved access that meets quality standards Affordability Sustainability 5 Who Can Apply? Only units of local government Towns Cities Counties Non-profits, water & sewer authorities, individuals, and businesses are not eligible to apply 6 Who Can t Apply Localities who are part of a HUD entitlement area (they receive direct CDBG funding) cannot apply for State CDBG funding 7 2

3 All Projects Must: Address eligible activity under the State program, and meet a national objective 8 National Objectives Benefit low and moderate income (LMI) persons Address slum and blight conditions (SB) Address urgent needs which pose general health and safety hazards or imminent threats to the public health and safety (UN) 9 LMI Area Benefit Activities that will benefit all residents of area that is 51% LMI and the area is primarily residential - o Need to determine service area of the activity you are proposing 11 3

4 LMI Area Benefit Determining LMI Percentage If service area is same as a census division, it may be possible to use HUD data (i.e. town, census tract/block group) If service area does not match census division, would conduct household surveys to determine if area is at least 51% LMI 12 LMI Housing To meet the housing national objective, structures must be occupied by LMI households Income documentation is required from all occupants of household (whether related or not) 11 Slum and Blight Area blight Spot blight 12 4

5 Urgent Need Four requirements that must be met: o Must pose immediate threat to health and welfare, AND o Must be of recent origin, AND o Applicant cannot finance the activity, AND o Other funding resources are not available 13 Required Match All Projects For all projects, must have a 10% match of the total CDBG request o Match can come from the locality or any non-commerce source 14 Eligible Activities Community Infrastructure Water Sewer Drainage Roads 15 5

6 Infrastructure Service Area / Connections Must define the service area Each area must be residential and serve at least 51% LMI (both people and units) For new service, the connection rate must be at least 70% 16 Infrastructure Annexation If CDBG funds are used to provide water/sewer service to an area outside of municipal limits, a municipality may not require the area to be annexed as a condition of receiving the water or sewer 17 Infrastructure Project Example Upgrade of a Water Tank in the Town of Brunson LMA benefit - combination census and surveying 18 6

7 Infrastructure Project Examples Sewer line upgrade in Town of Williamston Portions of lines laid above ground in wooded area lines were breaking due to age and trees falling on them, releasing raw sewage Also had serious manhole backups that resulted in raw sewage overflowing into residential yards LMA benefit surveying done 19 Infrastructure Project Examples Upgrade pump station in the Town of McColl LMA benefit used town census data (system only served town) 20 Infrastructure Project Examples Drainage improvements in Sumter County to alleviate flooding conditions in an LMI neighborhood LMA benefit surveyed 21 7

8 Community Enrichment Outcomes and Priorities In priority order: 1. Increasing economic competitiveness 2. Education & workforce development 3. Safe & healthy communities 22 Clearance / Demo Meeting a National Objective LMI area benefit Slum/Blight area Slum/Blight spot 23 Downtown Projects Must occur in areas where there is significant business activity and some prior investment Must include public safety component Will have to conduct a market analysis for retail/small business support 24 8

9 Community Enrichment Project Examples City of Manning Neighborhood Demolition Demolition of approximately 15 dilapidated, vacant homes in an LMI neighborhood Structures were site of criminal activity and nearly 201 incident reports in this neighborhood within 3 years LMA benefit surveyed neighborhood 25 Community Enrichment Project Example Demolition of a vacant, dilapidated school building owned by the City of Clinton LMA national objective based on city benefit 26 Community Enrichment Project Example City of Greenwood Streetscape & Town of Abbeville o Sidewalks with ADA accessibility, curb/gutter, lighting and landscaping o LMA national objective based on town benefit 27 9

10 Community Enrichment Project Example New library in the City of Hardeeville One they had was very small, outdated, and could not hold programming LMA benefit based on city census 28 Neighborhood Revitalization 29 Revitalization Outcomes Neighborhood Revitalization Outcomes Improve neighborhood involvement and interaction Provide safety and neighborhood pride Address infrastructure and public facilities needs Improve the physical appearance and property values in the area Promote sustainability and conservation 30 10

11 Neighborhood Revitalization National Objective LMI Area (most used typically requires surveying area) Slum/Blight Area (possibly) 31 Revitalization Activities Must include a comprehensive mix of multiple activities: Infrastructure (water/sewer/drainage) Public facilities (sidewalks, lighting, police substation, green space, etc.) Infrastructure for exterior housing work fordable housing or limited Demolition of vacant dilapidated properties Public safety services (crime prevention programs) 32 Neighborhood Revitalization Project Example City of Gaffney Big Mill Village demolition of dilapidated structures, sidewalks, drainage improvements and security cameras LMA benefit surveyed neighborhood 33 11

12 Neighborhood Revitalization Project Example City of Walterboro North Lemacks sidewalks, drainage, and water upgrades LMA benefit surveyed neighborhood 34 Special Projects 35 Special Projects Purpose & Requirements Meet alternative community development needs that are not typically funded through the other CDBG programs OR one of HUD s other partners (such as HOME, ESG, HOPWA) Could include historic preservation, innovation, energy conservation, parks, and trails/greenways Projects must have significant leveraging, impact, and community support while meeting a National Objective and all other program requirements 36 12

13 Special Project Examples Electrical transformer upgrade for City of Westminster (town operated utility) Done to improve efficiency and service National objective is area benefit 37 Ready to Go Must be eligible public facility improvement under Community Infrastructure or Community Enrichment (construction project) CDBG allowed for construction and administration costs only o Activities leading up to bidding must be complete prior to application submission (including design, environmental review, permitting) 38 Application Scoring Criteria 39 Community Distress Severity of Problem Citizen Participation Level of Effort Feasibility Readiness to Proceed Cost per benefit Beneficiaries Outcome Sustainability State Priorities Capacity 5% 10% 5% 5% 15% 5% 5% 5% 20% 5% 10% 10% 13

14 Contact Us: South Carolina Department of Commerce 40 Grants Administration Division