(iii) Documentation is to be maintained by the recipient on the boundaries of the area and the conditions and standards used that qualified the area at the time of its designation. This For metropolitan areas, grantees must use employment data, as defined by the BLS, for the LMA in which the affected business is currently located and from which current jobs may be lost. !>\@ @j! CDBG funds may be used to finance the following types of rehabilitation activities, and related costs, either singly, or in combination, through the use of grants, loans, loan guarantees, interest supplements, or other means for buildings and improvements described in paragraph (a) of this section, except that rehabilitation of commercial or industrial buildings is limited as described in paragraph (a)(3) of this section. Land banks can use HOME and CDBG funding for certain activities if there is a plan in place for the property which includes a CDBG/HOME eligible end use (e.g. (ii) For metropolitan cities and urban counties, an activity that would otherwise qualify under 570.208(a)(1)(i), except that the area served contains less than 51 percent low- and moderate-income residents, will also be considered to meet the objective of benefiting low- and moderate-income persons where the proportion of such persons in the area is within the highest quartile of all areas in the recipient's jurisdiction in terms of the degree of concentration of such persons. (i) Relocation. (3) Political activities. In particular, the guidance explains how to use the CDBG-CV waiver allowing for rent payment assistance for up to 180 days without triggering costly and time-consuming lead-based paint . /Type /Page Historic preservation, however, is not authorized for buildings for the general conduct of government. CDBG funds may not be used for activities which do not meet one of these national objectives. stream This content is from the eCFR and is authoritative but unofficial. If you receive an award from the open 2020 CDBG NOFA and you would like to receive CDBG-CV funds to add to that activity you will need to reach out to HCD to discuss [53 FR 34439, Sept. 6, 1988, as amended at 54 FR 47031, Nov. 8, 1989; 57 FR 27119, June 17, 1992; 60 FR 1943, Jan. 5, 1995; 60 FR 17445, Apr. In analyzing this data to meet the requirements of this section, HUD will assume that the distribution of income among the callers generally reflects the income characteristics of the general population residing in the same geographic area where the callers reside. FAR). (2) Activities to address slums or blight on a spot basis. << 29, 1996; 71 FR 30035, May 24, 2006; 72 FR 46370, Aug. 17, 2007]. (b) Special policies governing facilities. (This would include activities where a CBDO makes loans to for-profit businesses.) Public facilities and improvements eligible for assistance under this paragraph are subject to the policies in 570.200(b). will bring you to those results. the hierarchy of the document. The Office of the Federal Register publishes documents on behalf of Federal agencies but does not have any authority over their programs. 5305(a)(21)). (3) In any case where the activity undertaken for the purpose of creating or retaining jobs is a public improvement and the area served is primarily residential, the activity must meet the requirements of paragraph (a)(1) of this section as well as those of paragraph (a)(4) of this section in order to qualify as benefiting low and moderate income persons. Payment of the cost of completing an urban renewal project funded under title I of the Housing Act of 1949 as amended. (2) In any case where the cost per job to be created or retained (as determined under paragraph (a)(4)(vi)(F)(1) of this section) is $10,000 or more, the requirement must be met by aggregating the jobs created or retained as a result of the public facility or improvement by all businesses in the service area of the facility/improvement. 46014655); (2) Microenterprises. (3) Standards for individual activities. In applying this exception, HUD will determine the lowest proportion a recipient may use to qualify an area for this purpose, as follows: (A) All census block groups in the recipient's jurisdiction shall be rank ordered from the block group of highest proportion of low and moderate income persons to the block group with the lowest. (4) To carry out a project means that the CBDO undertakes the funded activities directly or through contract with an entity other than the grantee, or through the provision of financial assistance for activities in which it retains a direct and controlling involvement and responsibilities. Such activities may be carried out by the recipient or public or private nonprofit subrecipients. (c) Special assessments under the CDBG program. About the CDBG Program Fact Sheet - HUD Exchange gU (g) Limitation on planning and administrative costs . For this purpose, the recipient must submit a statement explaining whether the lack of funds is due to the insufficiency of the amount of the available funds, restrictions on the use of such funds, or the prior commitment of funds by the recipient for other purposes; and. Y5@[fehO2@g86l=ALIs17N4uAk,7=L1pgn~ /Length 12 0 R The recipient must ensure that the appropriate level of public benefit will be derived pursuant to those guidelines before obligating funds under this authority. NpP& "8! Guidelines for selecting activities to assist under this paragraph are provided at 570.209. (1) Purchase of equipment. Provision of technical assistance to public or nonprofit entities to increase the capacity of such entities to carry out eligible neighborhood revitalization or economic development activities. Understanding HUD's CDBG-MIT Funding | ICF (5) Cost principles. Enhanced content is provided to the user to provide additional context. (v) Pre-award costs are limited to those authorized under paragraph (h) of this section. To qualify under this paragraph, the activity must meet the following criteria: (i) For an activity that creates jobs, the recipient must document that at least 51 percent of the jobs will be held by, or will be available to, low- and moderate-income persons. (iii) Flood insurance premiums for properties covered by the Flood Disaster Protection Act of 1973, pursuant to 570.605. States are required to define or reaffirm prior definitions of their LMAs on an annual basis and retain records to substantiate such areas prior to any business relocation that would be impacted by this rule. Relocation payments and other assistance for permanently and temporarily relocated individuals families, businesses, nonprofit organizations, and farm operations where the assistance is, (1) required under the provisions of 570.606 (b) or (c); or. Subpart CEligible Activities Source: 53 FR 34439, Sept. 6, 1988, unless otherwise noted. CDBG Memorandum Using Funds to Purchase Equipment for a Subrecipient (v) For purposes of determining qualification under this criterion, activities of the same type that serve different areas will be considered separately on the basis of their individual service area. (ii) Necessary to complete the urban renewal plan, as then in effect, including initial land redevelopment permitted by the plan. There are four methods of procurement that are identified in the federal regulations: Small purchase procedures; Sealed bids; Competitive proposals; and Non-competitive proposals. j -iKB,3R,E,#+},hc=:(m;qK:s>dc HUD will accept information obtained through such surveys, to be used in lieu of the decennial census data, where it determines that the survey was conducted in such a manner that the results meet standards of statistical reliability that are comparable to that of the decennial census data for areas of similar size. (h) Reimbursement for pre-award costs. (3) A CBDO that does not qualify under paragraph (c)(1) or (2) of this section may also be determined to qualify as an eligible entity under this section if the recipient demonstrates to the satisfaction of HUD, through the provision of information regarding the organization's charter and by-laws, that the organization is sufficiently similar in purpose, function, and scope to those entities qualifying under paragraph (c)(1) or (2) of this section. full text search results (However, activities under this paragraph may be directed to the removal of material and architectural barriers that restrict the mobility and accessibility of elderly or severely disabled persons to public facilities and improvements, including those provided for in 570.207(a)(1).) (3) New housing construction. (h) Urban renewal completion. /Length 19 0 R 6, 1995; 60 FR 56910, Nov. 9, 1995; 61 FR 11476, Mar. (D) If block group data are not available for the entire jurisdiction, other data acceptable to the Secretary may be used in the above calculations. << Costs incurred, whether charged on a direct or an indirect basis, must be in conformance with 2 CFR part 200, subpart E. All items of cost listed in 2 CFR part 200, subpart E, that require prior Federal agency approval are allowable without prior approval of HUD to the extent they comply with the general policies and principles stated in 2 CFR part 200, subpart E and are otherwise eligible under this subpart C, except for the following: (i) Depreciation methods for fixed assets shall not be changed without the approval of the Federal cognizant agency. /Resources << HUD Posts CDBG CARES Act Quick Guides 570.208 Criteria for national objectives. [53 FR 34439, Sept. 6, 1988; 53 FR 41330, Oct. 21, 1988, as amended at 60 FR 1944, Jan. 5, 1995; 60 FR 56911, Nov. 9, 1995; 64 FR 50225, Sept. 15, 1999; 71 FR 30035, May 24, 2006; 82 FR 92636, Dec. 20, 2016]. See the 'Cross Reference' blocks in the text of this content for more information. (2) Program year obligation test. An eligible activity carried out for the purpose of providing or improving permanent residential structures which, upon completion, will be occupied by low- and moderate-income households. On projects Where two or more rental buildings being assisted are or will be located on the same or contiguous properties, and the buildings will be under common ownership and management, the grouped buildings may be considered for this purpose as a single structure. will also bring you to search results. However, any subsequent use or disposition of the cleared property shall be treated as a change of use under 570.505. will bring you directly to the content. Despite the restrictions in (b) (1) and (2) of this section, any rehabilitation activity which benefits low and moderate income persons pursuant to paragraph (a)(3) of this section can be undertaken without regard to the area in which it is located or the extent or nature of rehabilitation assisted. The first step is to determine if the activity is included within the listing of eligible activities in the CDBG statute, as amplified by regulation. The HUD program requirements in 5.109 of this title apply to the CDBG program, including the requirements regarding disposition and change in use of real property by a faith-based organization. (e) Recipient determinations required as a condition of eligibility. Eligible planning, urban environmental design and policy-planning-management-capacity building activities. The following policies relate to special assessments under the CDBG program: (1) Definition of special assessment. %?4NT7a6 i(kb!`Oa+9c81AtoQX)'{WB&. 570.200 General policies. This is an automated process for - Where the acquisition is for the purpose of clearance which will eliminate specific conditions of blight or physical decay, the clearance activity shall be considered the actual use of the property. CDBG Entitlement Program Eligibility Requirements - HUD Exchange to assist under the CDBG program, there are six key steps a grantee should take in the early stages of the process of determining if CDBG funds may be used to assist a proposed activity. PDF Community Development Block Grant Coronavirus (CDBG-CV) CDBG-CV An activity will be considered to address prevention or elimination of slums or blight in an area if: (i) The area, delineated by the recipient, meets a definition of a slum, blighted, deteriorated or deteriorating area under State or local law; (ii) The area also meets the conditions in either paragraph (A) or (B): (A) At least 25 percent of properties throughout the area experience one or more of the following conditions: (1) Physical deterioration of buildings or improvements; (3) Chronic high occupancy turnover rates or chronic high vacancy rates in commercial or industrial buildings; (4) Significant declines in property values or abnormally low property values relative to other areas in the community; or. (3) Funds from a grant of any origin year may be used to pay planning and program administrative costs associated with any grant of any origin year. /F0 6 0 R guide. Each CDBG project must be an eligible activity and meet a national objective. CDBG funds may be used, however, to purchase or to pay depreciation in accordance with 2 CFR part 200, subpart E, for such items when necessary for use by a recipient or its subrecipients in the administration of activities assisted with CDBG funds, or when eligible as fire fighting equipment, or when such items constitute all or part of a public service pursuant to 570.201(e). This would include, but not necessarily be limited to, the acquisition or rehabilitation of property by the recipient, a subrecipient, a developer, an individual homebuyer, or an individual homeowner; conversion of nonresidential structures; and new housing construction. (B) Where CDBG funds are used to pay for the staff and overhead costs of an entity making loans to businesses exclusively from non-CDBG funds, this requirement may be met by aggregating the jobs created by all of the businesses receiving loans during each program year. (3) Aid to Families with Dependent Children (AFDC); (B) Provides jobs predominantly for residents of Public and Indian Housing units; (C) Provides jobs predominantly for homeless persons; (D) Provides jobs predominantly for low-skilled, low- and moderate-income persons, where the business agrees to provide clear opportunities for promotion and economic advancement, such as through the provision of training; (E) Provides jobs predominantly for persons residing within a census tract (or block numbering area) that has at least 20 percent of its residents who are in poverty; (F) Provides assistance to business(es) that operate(s) within a census tract (or block numbering area) that has at least 20 percent of its residents who are in poverty; (G) Stabilizes or revitalizes a neighborhood that has at least 70 percent of its residents who are low- and moderate-income; (H) Provides assistance to a Community Development Financial Institution that serve an area that is predominantly low- and moderate-income persons; (I) Provides assistance to a Community-Based Development Organization serving a neighborhood that has at least 70 percent of its residents who are low- and moderate-income; (J) Provides employment opportunities that are an integral component of a project designed to promote spatial deconcentration of low- and moderate-income and minority persons; (K) With prior HUD approval, provides substantial benefit to low-income persons through other innovative approaches; (L) Provides services to the residents of an area pursuant to a strategy approved by HUD under the provisions of 91.215(e) of this title; (M) Creates or retains jobs through businesses assisted in an area pursuant to a strategy approved by HUD under the provisions of 91.215(e) of this title. A. user convenience only and is not intended to alter agency intent (f) Means of carrying out eligible activities. (B) The assisted business is located within a census tract (or block numbering area) that meets the requirements of paragraph (a)(4)(v) of this section and the job under consideration is to be located within that census tract. Grant recipients under the Entitlement and HUD-administered Small Cities programs and recipients of insular area funds under section 106 of the Act must certify that their projected use of funds has been developed so as to give maximum feasible priority to activities which will carry out one of the national objectives of benefit to low- and moderate-income families or aid in the prevention or elimination of slums or blight. The following criteria shall be used to determine whether a CDBG-assisted activity complies with one or more of the national objectives as required under 570.200(a)(2): (a) Activities benefiting low- and moderate-income persons. Payments to housing owners for losses of rental income incurred in holding, for temporary periods, housing units to be used for the relocation of individuals and families displaced by program activities assisted under this part. The purchase of equipment, fixtures, motor vehicles, furnishings, or other personal property not an integral structural fixture is generally ineligible. CDBG funds may not be used to directly assist a business, including a business expansion, in the relocation of a plant, facility, or operation from one LMA to another LMA if the relocation is likely to result in a significant loss of jobs in the LMA from which the relocation occurs. Expenditures of program income for planning and program administrative costs are excluded from this calculation. (B) The recipient and the assisted business take actions to ensure that low- and moderate-income persons receive first consideration for filling such jobs. [53 FR 34439, Sept. 6, 1988; 53 FR 41330, Oct. 21, 1988, as amended at 60 FR 1945, Jan. 5, 1995; 60 FR 17445, Apr. (B) In any case where the total number of a recipient's block groups does not divide evenly by four, the block group which would be fractionally divided between the highest and second quartiles shall be considered to be part of the highest quartile. The objectives of the underwriting guidelines are to ensure: (2) That all sources of project financing are committed; (3) That to the extent practicable, CDBG funds are not substituted for non-Federal financial support; (4) That the project is financially feasible; (5) That to the extent practicable, the return on the owner's equity investment will not be unreasonably high; and. Activities meeting the requirements of paragraph (d)(6)(i) of this section may also be considered to qualify under paragraph (a)(1) of this section. (g) Broadband infrastructure. Unlike the guidelines for project costs and financial requirements covered under paragraph (a) of this section, the use of the standards for public benefit is mandatory. 49 CFR 172.101 Guidelines for evaluating and selecting economic development projects. (1) Where the assisted activity is acquisition of real property, a preliminary determination of whether the activity addresses a national objective may be based on the planned use of the property after acquisition. The substance and findings of the work are dedicated to the public. (g) Administrative expenses to facilitate housing. For entitlement grants under subpart D of this part, nonentitlement CDBG grants in Hawaii, and for recipients of insular area funds under section 106 of the Act, compliance is based on limiting the amount of CDBG funds obligated for public service activities in each program year to an amount no greater than 15 percent of the entitlement grant made for that program year plus 15 percent of the program income received during the grantee's immediately preceding program year.