Community Development Block Grants/State's program and Non-Entitlement Grants in Hawaii
The primary objective of this program is the development of viable urban communities by providing decent housing, a suitable living environment, and expanding economic opportunities, principally for persons of low- and moderate-income. Each activity funded must meet one of the program's National Objectives by: Benefiting low- and moderate-income families; aiding in the prevention or elimination of slums or blight; or meeting 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.
General information about this opportunity
Last Known Status
Agency: Department of Housing and Urban Development
Office: Office of Community Planning and Development
Type(s) of Assistance Offered
Housing and Community Development Act of 1974, Title I, Section 101-122, Public Law 93-383, 88 Stat. 633, 42 U.S.C 5301-5322.
Who is eligible to apply/benefit from this assistance?
Forty-nine State governments and the Commonwealth of Puerto Rico receive funds from HUD under this program. The state of Hawaii does not participate and HUD allocates the state's share of funds to the three Hawaii non-entitled counties. Funds are allocated to each state based on a statutory formula. States must distribute the funds to units of general local government in nonentitlement areas.
The principal beneficiaries of CDBG funds are low- and moderate- income persons. For non-metropolitan areas, low- and moderate- income is generally defined as 80 percent of the median income for non-metropolitan areas of the State or of the county, whichever is higher, adjusted for family size. For eligible localities in metropolitan areas, low- and moderate-income is generally defined as 80 percent of the median income for the metropolitan area, adjusted for family size.
Grantees must certify that they will comply with program requirements specified in 24 CFR Part 91. 2 CFR 200, Subpart E - Cost Principles applies to this program.
What is the process for applying and being award this assistance?
Preapplication coordination is not applicable. An environmental impact assessment is required for this program. This program is excluded from coverage under E.O. 12372.
2 CFR 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards applies to this program. 2 CFR Part 215 applies as implemented at 24 CFR Part 84 for the non-entitled grants in Hawaii and 24 CFR Part 85 also applies to this program. The State program is excluded from coverage under 24 CFR 85, however, the provisions set-forth in the fiscal requirements contained in 24 CFR 570.489 does applysome of the elements of 2 CFR 215. Each state and non-entitled Hawaii county must submit a Consolidated Plan, an annual action plan and certifications to HUD. The Consolidated Plan and annual action plan cover four major formula-distribution HUD community development programs, including CDBG. The annual action plan must contain the method by which the State will distribute its CDBG funds.
HUD will provide funds after the State or non-entitled Hawaii county submits its Consolidated Plan, annual action plan and Certifications.
Nov 15, 2014 to Aug 16, 2015 Consolidated Plans may be submitted between November 15 and August 16 of each fiscal year in which the grantee will administer funds.
Approval/Disapproval Decision Time
HUD will review plan submissions for completeness and consistency with the purposes of the Act, within 45 days of receipt from a grantee.
The procedure is described in regulations (24 CFR Part 570 Subpart I for states and 24 CFR Part 570 Subpart O for non-entitlement counties in Hawaii).
How are proposals selected?
How may assistance be used?
Thirty percent of funds available for distribution under each annual appropriation for the Community Development Block Grant (CDBG) program is allocated among the States and Puerto Rico (which is considered to be a state for the State CDBG program) for use in areas which are not a metropolitan city or part of an urban county (nonentitlement areas). All States except Hawaii have elected to administer these CDBG funds for areas that do not receive CDBG entitlement grants (14.218). HUD awards the formula grants to these States under the CDBG/State Program. In Hawaii, HUD awards the state's share of these funds to the three non-entitlement counties by formula. States must distribute CDBG funds to units of general local government (counties, towns, etc.) in nonentitlement areas. States develop their own programs and funding priorities. Units of general local government then carry out community development activities funded by the State. Eligible activities are directed toward neighborhood revitalization, economic development, or provision of improved community facilities and services. Specific activities that can be carried out with block grant funds include: Acquisition, rehabilitation or construction of certain public works facilities and improvements, such as streets, water and sewer facilities, neighborhood centers, recreation facilities, and other public works; demolition and clearance; rehabilitation of public and private buildings including housing; code enforcement; relocation payments and assistance; economic development; planning activities; certain public services with some restrictions; and administrative expenses. The projected use of funds must be developed to ensure that all activities will meet one of the three national objectives described under "OBJECTIVES". Communities receiving CDBG funds from a state may select subgrantees to carry out approved projects. Such subgrantees may include: Neighborhood-based nonprofit organizations; local development corporations; Small Business Investment Companies; or other nonprofit organizations serving the development needs of nonentitlement areas. Grant recipients may provide assistance to for-profit entities when the recipient determines that the provision of such assistance is appropriate to carry out an economic development project. Communities are restricted from constructing or rehabilitating public facilities for the general conduct of government and from making housing allowances or other income maintenance-type payments. Each State may use a limited portion of its grant, subject to a matching requirement, to administer the program. Each State may also use a limited portion of its grant, with no matching requirement, to provide technical assistance to local governments and nonprofit program recipients. At least seventy percent of the funds received must benefit low and moderate income persons.
What are the requirements after being awarded this opportunity?
Annual performance report covering all programs included in the Consolidated Plan as prescribed at 24 CFR 91.520. For Hawaii counties, SF-425 Federal Cash Transactions Report is required. Annual Performance and Evaluation Report details the state's performance in completing activities undertaken with each allocation of funds. Disbursement reports are a standard feature of the Integrated Disbursement and Information System used to access the grantee's line of credit. Program performance monitoring is conducted by field office staff.
In accordance with the provisions of 2 CFR 200, Subpart F - Audit Requirements, non-Federal entities that expend financial assistance of $750,000 or more in Federal awards will have a single or a program-specific audit conducted for that year. Non-Federal entities that expend less than $750,000 a year in Federal awards are exempt from Federal audit requirements for that year, except as noted in 2 CFR 200.503.
Records must demonstrate that the State or non-entitlement county in Hawaii has met the requirements of Title I of the Act.
Other Assistance Considerations
Formula and Matching Requirements
Statutory Formula: Title 24, Chapter V, Part 570, Subpart A, Public Law 93-383.
Matching Requirements: For state administration of the program, after an initial allowance of $100,000 with no match, states may take an additional allowance of up to 3% of the grant amount but must match such expenditures on a dollar for dollar basis. There is no matching requirement for the non-entitlement counties in Hawaii.
This program does not have MOE requirements.
Length and Time Phasing of Assistance
Assistance is provided to States and non-entitlement counties in Hawaii on an annual basis. Individual States may impose time limitations on the implementation of grants to recipients. Method of awarding/releasing assistance: by letter of credit.
Who do I contact about this opportunity?
Regional or Local Office
See Regional Agency Offices. Contact the appropriate HUD Field Office listed in Appendix IV of the print edition of this Catalog. Or on the Internet, see: http://www.hud.gov/local/index.cfm. Contact the Honolulu Field Office for the non-entitled Hawaii counties.
Eva C. Fontheim 451 Seventh St. S.W., Room 7184, Washington, District of Columbia 20410 Email: firstname.lastname@example.org
(Formula Grants) FY 14 $906,900,000; FY 15 est $886,531,491; and FY 16 est $886,531,491
Range and Average of Financial Assistance
State grant amounts are determined by formula. Of the 50 grants allocated to states under the State CDBG program in FY 2015, the average (mean) grant amount is $17,632,984. Grant amounts range from $1,923,531 to $59,833,115. These totals do not include Hawaii’s allocation awarded to its 3 non-entitled counties. Hawaii’s share of the 2015 allocation is $4,882,278.
Regulations, Guidelines and Literature
24 CFR Part 570, 24 CFR Part 91, 24 CFR Part 58.
Examples of Funded Projects