Housing & Community Development

Community Development Block Grant (CDBG)

PURPOSE:
The Community Development Block Grant (CDBG) is authorized by Title I of the Housing and Community Development Act of 1974. It is a Federal Grant Program for the development of viable communities. The program is designed to provide decent housing, suitable living environment and expanded economic opportunities primarily to low and moderate income persons.

Application:
In 1993, HUD developed a single planning and application process for the administration of CDBG, ESG, and HOPWA funds. The City of Providence, Department of Planning & Development, through an annual notification process that commences every December, considers the funding of programs that address housing, economic development, public service, and continuum of care (homelessness, persons living with HIV/AIDS) and community needs for the program year.

The Department receives applications, evaluates and ranks them in accordance with the criteria established for the various program areas established in the Consolidated Plan and prepares guidance for the Mayor on the requests. From this information the Mayor prepares a CDBG budget. This budget is submitted to the City Council for their approval. The CDBG budget details the proposals recommended for funding, their ranking and a statement on how the proposals meet the priorities of the Consolidated Plan. No item shall be eligible for inclusion in the CDBG Budget unless a complete application has been submitted and the proposed use of the funding conforms to the Consolidated Plan. All major program amendments to the annual action plan shall be submitted to the City Council for approval in accordance with HUD regulations.

Tentative Timeline
December —Technical Assistance Workshop
Mid -January —Applications due
January-February 2006—Staff review and recommendations
March - May—Public Hearings/Public Comment Period
May 15 - Annual Action Plan Submitted to HUD

Use of Funds:
CDBG funds can be used to carry out a wide range of community development activities in the categories of acquisition, economic development, neighborhood investment strategies, public facility improvements, and public services. Activities must meet one of three National Objectives: 1. Benefit low to moderate income persons 2. Reduce Slum/Blight 3. Meet an urgent need. Activities must also be eligible in accordance with the federal regulations.

Program Regulations:
Hud Regulations (24 CFR Part 570).