what can cdbg funds be used for in texas

Special activities authorized under this section do not include assistance for the construction of new housing. (l) Privately owned utilities. user convenience only and is not intended to alter agency intent demolition and rehabilitation in target neighborhoods) within the time frame permitted by those programs. (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. Eligible rehabilitation and preservation activities. 570.203 Special economic development activities. Act) provided $5 billion for the Department of Housing and Urban Development's (HUD's) Community Development Block Grant (CDBG) program to cities and states that may be used to provide emergency housing and homelessness assistance. An LMA is an economically integrated geographic area within which individuals can live and find employment within a reasonable distance or can readily change employment without changing their place of residence. Demolition of HUD-assisted or HUD-owned housing units may be undertaken only with the prior approval of HUD. citations and headings Y5@[fehO2@g86l=ALIs17N4uAk,7=L1pgn~ The projected use of funds may also include activities that the recipient certifies are designed to meet other community development needs having a particular urgency because existing conditions pose a serious and immediate threat to the health or welfare of the community where other financial resources are not available to meet such needs. hN%{4KRQ dPj.G$i,I0*43c@@K:81 41cH`@:l"b #iI+*UJ-Ao!r)[`cta)@3@: 0S/g 13Lj9+7URAXEh:C0!`@ 8ZCn'! If HUD can conclude that the users have primarily consisted of low- and moderate-income persons, no further submission is needed by the recipient. Provision of public facilities and indirect assistance that will provide benefit to multiple businesses does not fall under the definition of directly assist, unless it includes the provision of infrastructure to aid a specific business that is the subject of an agreement with the specific assisted business. The official, published CFR, is updated annually and available below under In several instances under this subpart, the eligibility of an activity depends on a special local determination. (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. Pressing enter in the search box (ii) For an activity that retains jobs, the recipient must document that the jobs would actually be lost without the CDBG assistance and that either or both of the following conditions apply with respect to at least 51 percent of the jobs at the time the CDBG assistance is provided: (A) The job is known to be held by a low- or moderate-income person; or. [53 FR 34439, Sept. 6, 1988, as amended at 60 FR 1944, Jan. 5, 1995; 71 FR 30035, May 24, 2006]. /Length 22 0 R (3) Arms-length transactions. (n) Homeownership assistance. (e) Recipient determinations required as a condition of eligibility. If, after the grantee enters into a contract to provide assistance to a project, the scope or financial elements of the project change to the extent that a significant contract amendment is appropriate, the project should be reevaluated under these and the recipient's guidelines. (2) Compliance with national objectives. % If the assistance will not result in a relocation covered by this section, a certification from the assisted business that neither it, nor any of its subsidiaries, has plans to relocate jobs at the time the agreement is signed that would result in a significant job loss as defined in this rule; and. (iii) The requirements of 570.200(c)(2)(ii) are met. The use of consultants is governed by the following: (1) Employer-employee type of relationship. (g) Payment of non-Federal share. Clearance, demolition, and removal of buildings and improvements, including movement of structures to other sites and remediation of known or suspected environmental contamination. 2389 stream (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. The requirements for the HUD-administered Small Cities program in New York are at 570.420(d)(2). For purposes of qualifying as a project under paragraphs (a)(1), (a)(2), and (a)(3) of this section, the funded activity or activities may be considered either alone or in concert with other project activities either being carried out or for which funding has been committed. The effective date of the grant agreement is the program year start date or the date that the consolidated plan is received by HUD, whichever is later. 18 0 obj (a) Determination of eligibility. (2) Independent contractor relationship. << A statement from the assisted business as to whether the assisted activity will result in the relocation of any industrial or commercial plant, facility, or operation from one LMA to another, and, if so, the number of jobs that will be relocated from each LMA; (2) Required information. (5) Known or suspected environmental contamination. (vi) The total amount of pre-award costs to be paid during any program year pursuant to this provision is no more than the greater of 25 percent of the amount of the grant made for that year or $300,000. This video covers ways to leverage funds, create jobs and stimulate investment. /Filter /LZWDecode HOW CAN I/MY COMMUNITY APPLY FOR CDBG-DR FUNDS? (C) Where CDBG funds are used by a recipient or subrecipient to provide technical assistance to businesses, this requirement may be met by aggregating the jobs created or retained by all of the businesses receiving technical assistance during each program year. (v) Pre-award costs are limited to those authorized under paragraph (h) of this section. /F3 13 0 R endobj (viii) Is free to contract for goods and services from vendors of its own choosing. Special economic development activities include: (a) The acquisition, construction, reconstruction, rehabilitation or installation of commercial or industrial buildings, structures, and other real property equipment and improvements, including railroad spurs or similar extensions. Recipients are encouraged, when they develop their own programs and underwriting criteria, to also take these factors into account. Such facilities include shelters for the homeless; convalescent homes; hospitals, nursing homes; battered spouse shelters; halfway houses for run-away children, drug offenders or parolees; group homes for mentally retarded persons and temporary housing for disaster victims. Enhanced content is provided to the user to provide additional context. If housing counseling, as defined in 24 CFR 5.100, is provided, it must be carried out in accordance with 24 CFR 5.111. The eCFR is displayed with paragraphs split and indented to follow 40 FR 24693, June 9, 1975, unless otherwise noted. 3535(d) and 53015320. CDBG funds may be used to renovate closed buildings, such as closed school buildings, for use as an eligible public facility or to rehabilitate such buildings for housing. Activities meeting the criteria in paragraph (a) (1), (2), (3), or (4) of this section as applicable, will be considered to benefit low and moderate income persons unless there is substantial evidence to the contrary. Navigate by entering citations or phrases (c) Economic development services in connection with activities eligible under this section, including, but not limited to, outreach efforts to market available forms of assistance; screening of applicants; reviewing and underwriting applications for assistance; preparation of all necessary agreements; management of assisted activities; and the screening, referral, and placement of applicants for employment opportunities generated by CDBG-eligible economic development activities, including the costs of providing necessary training for persons filling those positions. Such assessments constitute program income. (3) Standards for individual activities. (ii) Necessary to complete the urban renewal plan, as then in effect, including initial land redevelopment permitted by the plan. (2) A recipient which obligated more CDBG funds for public services than 15 percent of its grant funded from origin year 1982 or 1983 appropriations (excluding program income and any assistance received under Public Law 988), may obligate more CDBG funds than allowable under paragraph (e)(1) of this section, so long as the total amount obligated in any program year does not exceed: (i) For an entitlement grantee, 15% of the program income it received during the preceding program year; plus. If the actual results demonstrate that the recipient has failed the public benefit standards, HUD may require the recipient to meet more stringent standards in future years as appropriate. These guidelines are composed of two components: guidelines for evaluating project costs and financial requirements; and standards for evaluating public benefit. This content is from the eCFR and is authoritative but unofficial. is available with paragraph structure matching the official CFR 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. Reasonable costs of overall program management, coordination, monitoring, and evaluation. ,#)[LMA:TTKwjJ^,j* "U5ui9>q;vrFF"1xQ:C9JAFwUme?j0?6=,\ZsVMD)UA{ (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. (C) The proportion of low and moderate income persons in the last census block group in the highest quartile shall be identified. (B) $1,000 per low- and moderate-income person to which goods or services are provided by the activity. 29, 1996; 65 FR 70215, Nov. 21, 2000; 67 FR 47213, July 17, 2002; 71 FR 30034, May 24, 2006; 80 FR 69870, Nov. 12, 2015; 81 FR 90659, Dec. 14, 2016]. (iv) Where CDBG assistance for an activity is limited to job training and placement and/or other employment support services, the jobs assisted with CDBG funds shall be considered to be created or retained jobs for the purposes of applying the aggregate standards. You can learn more about the process (m) Construction of housing. (B) The public improvements throughout the area are in a general state of deterioration. A condition will generally be considered to be of recent origin if it developed or became critical within 18 months preceding the certification by the recipient. .h4Tdw6a= Coa5 ~Qw$I1 )C*<7VoM8p,+Tl5k*,5LHr3'{D:@l(5^YeKJF7G"rS9fL!3/WX>]pYVAefq|+e8&FHd[@}r8Oh|i1e In assessing any such evidence, the full range of direct effects of the assisted activity will be considered. This aggregation must include businesses which, as a result of the public facility/improvement, locate or expand in the service area of the facility/improvement between the date the recipient identifies the activity in its action plan under part 91 of this title and the date one year after the physical completion of the facility/improvement. (1) Prior to the effective date of the grant agreement, a recipient may incur costs or may authorize a subrecipient to incur costs, and then after the effective date of the grant agreement pay for those costs using its CDBG funds, provided that: (i) The activity for which the costs are being incurred is included, prior to the costs being incurred, in a consolidated plan action plan, an amended consolidated plan action plan, or an application under subpart M of this part, except that a new entitlement grantee preparing to receive its first allocation of CDBG funds may incur costs necessary to develop its consolidated plan and undertake other administrative actions necessary to receive its first grant, prior to the costs being included in its consolidated plan; (ii) Citizens are advised of the extent to which these pre-award costs will affect future grants; (iii) The costs and activities funded are in compliance with the requirements of this part and with the Environmental Review Procedures stated in 24 CFR part 58; (iv) The activity for which payment is being made complies with the statutory and regulatory provisions in effect at the time the costs are paid for with CDBG funds; (v) CDBG payment will be made during a time no longer than the next two program years following the effective date of the grant agreement or amendment in which the activity is first included; and. CDBG funds may only be used to maintain property that was acquired with CDBG funds and is being actively marketed. 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. The grantee must maintain sufficient records to demonstrate the level of public benefit, based on the above standards, that is actually achieved upon completion of the CDBG-assisted economic development activity(ies) and how that compares to the level of such benefit anticipated when the CDBG assistance was obligated. (iii) Flood insurance premiums for properties covered by the Flood Disaster Protection Act of 1973, pursuant to 570.605. (This would include activities where a CBDO makes loans to for-profit businesses.) /F3 13 0 R The general rule is that any activity that is not authorized under the provisions of 570.201570.206 is ineligible to be assisted with CDBG funds. (The following kinds of activities may not qualify under paragraph (a)(2) of this section: activities, the benefits of which are available to all the residents of an area; activities involving the acquisition, construction or rehabilitation of property for housing; or activities where the benefit to low- and moderate-income persons to be considered is the creation or retention of jobs, except as provided in paragraph (a)(2)(iv) of this section.) (i) Construction equipment. For grants under section 107 of the Act, insular area recipients must meet this requirement for each separate grant. developer resources. However, any subsequent use or disposition of the cleared property shall be treated as a change of use under 570.505. Consistent with the foregoing, each recipient under the Entitlement or HUD-administered Small Cities programs, and each recipient of insular area funds under section 106 of the Act must ensure and maintain evidence that each of its activities assisted with CDBG funds meets one of the three national objectives as contained in its certification. To be eligible for CDBG assistance, a public service must be either a new service or a quantifiable increase in the level of an existing service above that which has been provided by or on behalf of the unit of general local government (through funds raised by the unit or received by the unit from the State in which it is located) in the 12 calendar months before the submission of the action plan. 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. 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. A separate drafting site If acquisition or relocation is undertaken, it must be a precursor to another eligible activity (funded with CDBG or other resources) that directly eliminates the specific conditions of blight or physical decay, or environmental contamination. >> (c) Written agreement. (C) The rehabilitation of the common areas of a residential structure that contains more than one dwelling unit and that does not qualify under paragraph (a)(3) of this section. (e) Public services. The standards set forth below identify the types of public benefit that will be recognized for this purpose and the minimum level of each that must be obtained for the amount of CDBG funds used. (ii) The individual activity standards in paragraph (b)(3)(i) of this section shall be applied to the number of jobs to be created or retained, or to the number of persons residing in the area served (as applicable), as determined at the time funds are obligated to activities. Examples of maintenance and repair activities for which CDBG funds may not be used include the filling of pot holes in streets, repairing of cracks in sidewalks, the mowing of recreational areas, and the replacement of expended street light bulbs; and. (D) The amount of funds it obligated for public services in the 1983 program year. (c) Special assessments under the CDBG program. Historic preservation, however, is not authorized for buildings for the general conduct of government. Where housing activities being assisted meet the requirements of paragraph 570.208 (d)(5)(ii) or (d)(6)(ii) of this section, all such housing may also be considered for this purpose as a single structure. (1) Where the public facility or improvement is undertaken principally for the benefit of one or more particular businesses, but where other businesses might also benefit from the assisted activity, the requirement may be met by aggregating only the jobs created or retained by those businesses for which the facility/improvement is principally undertaken, provided that the cost (in CDBG funds) for the facility/improvement is less than $10,000 per permanent full-time equivalent job to be created or retained by those businesses. (5) Where the grantee has elected to prepare an area revitalization strategy pursuant to the authority of 91.215(e) of this title and HUD has approved the strategy, the grantee may also elect the following options: (i) Activities undertaken pursuant to the strategy for the purpose of creating or retaining jobs may, at the option of the grantee, be considered to meet the requirements of this paragraph under the criteria at paragraph (a)(1)(vii) of this section in lieu of the criteria at paragraph (a)(4) of this section; and. 29, 1996; 71 FR 30035, May 24, 2006; 72 FR 46370, Aug. 17, 2007]. To qualify under paragraph (a)(2) of this section, the activity must meet one of the following tests: (A) Benefit a clientele who are generally presumed to be principally low and moderate income persons. A public facility otherwise eligible for assistance under the CDBG program may be provided with CDBG funds even if it is part of a multiple use building containing ineligible uses, if: (i) The facility which is otherwise eligible and proposed for assistance will occupy a designated and discrete area within the larger facility; and. The primary objective of the Community Development Block Grant program is to develop viable communities by providing decent housing and suitable living environments and expanding economic opportunities principally for persons of low- to moderate-income. (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. - Date Published: October 2018. { (2) Activities made eligible under 570.204(a) may only be undertaken by entities specified in that section. How are CDBG-MIT funds being used? (3) Operation. The Office of the Federal Register publishes documents on behalf of Federal agencies but does not have any authority over their programs. (4) Applying the individual activity standards. /Parent 5 0 R 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 21 0 obj 681(d)), including those which are profit making; or, (ii) Is an SBA approved Section 501 State Development Company or Section 502 Local Development Company, or an SBA Certified Section 503 Company under the Small Business Investment Act of 1958, as amended; or. /Length 12 0 R This contact form is only for website help or website suggestions. Individuals nor communities can apply for funds. We recommend you directly contact the agency associated with the content in question. See the 'Cross Reference' blocks in the text of this content for more information. (vii) Developing an inventory of properties with known or suspected environmental contamination. Provision of fair housing services designed to further the fair housing objectives of the Fair Housing Act (42 U.S.C. |mn$T+.~51M@Qa*pEg;S $CMBA?0 Public facilities and improvements eligible for assistance under this paragraph are subject to the policies in 570.200(b). (iii) Where an activity is expected both to create or retain jobs and to provide goods or services to residents of an area, the grantee may elect to count the activity under either the jobs standard or the area residents standard, but not both. (iv) An activity designed to provide job training and placement and/or other employment support services, including, but not limited to, peer support programs, counseling, child care, transportation, and other similar services, in which the percentage of low- and moderate-income persons assisted is less than 51 percent may qualify under this paragraph in the following limited circumstance: (A) In such cases where such training or provision of supportive services assists business(es), the only use of CDBG assistance for the project is to provide the job training and/or supportive services; and. /F1 7 0 R Meeting a national objective can be more complex. (b) Ineligible 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 . HUD allocates funds based on unmet recovery needs. For non-metropolitan areas, an LMA is either an area defined by the BLS as an LMA, or a state may choose to combine non-metropolitan LMAs. (iv) The assisted activity addresses one or more of the conditions which contributed to the deterioration of the area. 570.208 Criteria for national objectives. Metropolitan LMAs cannot be combined, nor can a non-metropolitan LMA be combined with a metropolitan LMA. For purposes of the CDBG program, income payments means a series of subsistence-type grant payments made to an individual or family for items such as food, clothing, housing (rent or mortgage), or utilities, but excludes emergency grant payments made over a period of up to three consecutive months to the provider of such items or services on behalf of an individual or family. Specifically, these guidelines are applicable to activities that are eligible for CDBG assistance under 570.203. (q) Assistance to institutions of higher education. (5) Any new construction or substantial rehabilitation, as substantial rehabilitation is defined by 24 CFR 5.100, of a building with more than 4 rental units, for which CDBG funds are first obligated by the recipient on or after April 19, 2017, must include installation of broadband infrastructure, as this term is also defined in 24 CFR 5.100, except where the recipient determines and, in accordance with 570.506, documents the determination that: (i) The location of the new construction or substantial rehabilitation makes installation of broadband infrastructure infeasible; (ii) The cost of installing broadband infrastructure would result in a fundamental alteration in the nature of its program or activity or in an undue financial burden; or. Eyy 0aevnKy fq9R3r/:G;AW7_)~ZnN Ic*et`Re* p*9L iI3syB!AZBRi IHq~;~Xi?O1O75>'0etWq?tPx$rv4:ApYrq Cy!=2`;C1\,h3 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. Assistance to a business that purchases business equipment, inventory, or other physical assets in an arms-length transaction, including the assets of an existing business, provided that the purchase does not result in the relocation of the sellers' business operation (including customer base or list, goodwill, product lines, or trade names) from one LMA to another LMA and does not produce a significant loss of jobs in the LMA from which the relocation occurs. /Font << endstream nf#`[hJb0)3^:#D7/pEQd\| l"#9hg E08{HXI+\r>$KM/7N4j will bring you directly to the content. CDBG funds may used to provide interim assistance where: Immediate action is necessary to stop physical deterioration until something permanent can be done; or Emergency conditions threaten the public health and safety. 5305(a)(21)). Payment of the cost of completing an urban renewal project funded under title I of the Housing Act of 1949 as amended. No person providing consultant services in an employer-employee type of relationship shall receive more than a reasonable rate of compensation for personal services paid with CDBG funds. Activities meeting one or more of the following criteria, in the absence of substantial evidence to the contrary, will be considered to aid in the prevention or elimination of slums or blight: (1) Activities to address slums or blight on an area basis. The recipient may provide CDBG funds as grants or loans to any CBDO qualified under this section to carry out a neighborhood revitalization, community economic development, or energy conservation project. and Payments of principal and interest on loans made using CDBG funds; Proceeds from sale or (long-term) lease of property purchased or improved with CDBG funds; Proceeds from the sale of obligations secured by loans made with CDBG funds. Assistance to microenterprises as defined by Section 102(a)(22) of the Housing and Community Development Act of 1974; and. (b) Disposition. /Font << (i) Relocation. (iii) An activity to develop, establish, and operate for up to two years after the establishment of, a uniform emergency telephone number system serving an area having less than the percentage of low- and moderate-income residents required under paragraph (a)(1)(i) of this section or (as applicable) paragraph (a)(1)(ii) of this section, provided the recipient obtains prior HUD approval. For purposes of this paragraph, persons determined to be low and moderate income may be presumed to continue to qualify as such for up to a three-year period. Each CDBG project must be an eligible activity and meet a national objective. Displaying title 24, up to date as of 6/29/2023. A written determination is required for any activity carried out under the authority of 570.201(f), 570.201(i)(2), 570.201(p), 570.201(q), 570.202(b)(3), 570.206(f), 570.209, 570.210, and 570.309. (2) Upon the written request of the recipient, HUD may authorize payment of pre-award costs for activities that do not meet the criteria at paragraph (h)(1)(v) or (h)(1)(vi) of this section, if HUD determines, in writing, that there is good cause for granting an exception upon consideration of the following factors, as applicable: (i) Whether granting the authority would result in a significant contribution to the goals and purposes of the CDBG program; (ii) Whether failure to grant the authority would result in undue hardship to the recipient or beneficiaries of the activity; (iii) Whether granting the authority would not result in a violation of a statutory provision or any other regulatory provision; (iv) Whether circumstances are clearly beyond the recipient's control; or. (C) It evidences pervasive poverty and general distress by meeting at least one of the following standards: (1) All block groups in the census tract have poverty rates of at least 20 percent; (2) The specific activity being undertaken is located in a block group that has a poverty rate of at least 20 percent; or. wCsn%kT6P`x9Q ;S7PjU%l93*lm(ju(sNs1:$z^0aR.xwA:m4MuzMn1WH A8jT@YaX F1vz^fdIAVb?V@eCiCy:)Sf%ZI\:]4wV$Vi6>z" (ii) All housing activities for which the Community Development Financial Institution obligates CDBG assistance during the program year may be considered to be a single structure for purposes of applying the criteria at paragraph (a)(3) of this section. (F) Where CDBG funds are used for public facilities or improvements which will result in the creation or retention of jobs by more than one business, this requirement may be met by aggregating the jobs created or retained by all such businesses as a result of the public facility or improvement.
Ecos Endangered Species, Bucket Of Death Squirrel Trap, Biloxi Chamber Of Commerce Events, Why Is Accommodation Of The Eye Important, Articles W