CDBGEntitlement Status

DiscussionSeptember 13, 2011

City Council Workshop

Received letter from Department of Housing and Urban Development providing City with option to pursue CDBG Entitlement Status

City must respond in writing no later than September 16

Must decide whether to:1) Pursue CDBG Entitlement Status, or2) Continue under Small Cities CDBG Program

Background

Federal Program that started in 1974 in order to provide funding for housing and community development.

The National Objectives of the Program are to:1) Benefit low- and moderate-income persons (LMI) 2) Prevent or eliminate slum or blight 3) Address urgent community development needs (Emergency)

The program, administered and funded by the Department of Housing and Urban Development, consists of two components:1) Entitlement - provides funds directly to urban areas2) Small Cities - provides funds to the states for distribution to rural

areas

CDBG Program in General

FFY 2011 - 22.6 Million (@30-35 Grants) Currently undergoing review by Governor for

FFY2012 Competitive Program (246 Eligible Communities) $750,000 Maximum Grant Award Two Categories: Regular and Economic Development The City currently has $750,000 grant in Regular

Category for Owner-Occupied Housing Rehabilitation Program

Small Cities CDBG Program

Annual Application Cycle City Eligible Every 3 Years for Grant Award Three Areas in Regular Category

Neighborhood Revitalization Primarily Infrastructure Funding Area Benefiting Must Be LMI Not really an area that Qualifies for LMI

Commercial Revitalization City Not Eligible (51% of Entire City Must be LMI)

Housing Rehabilitation Current Owner-Occupied Housing Rehabilitation Grant Housing Beneficiary Must Be LMI

Small Cities CDBG ProgramRegular Category

Open Application Cycle, Up to 2 Open ED Grants Infrastructure, Grants/Loans to Businesses Must Create at Least 22 Jobs, 51% Must be Offered

to LMI What if Business Doesn’t Create Jobs? Grant Paid

Back!

Small Cities CDBG ProgramEconomic Development Category

Based on FFY2011, Annual City Allocation may be $330,100

Funding for FFY2012 and Future is Uncertain Local Decision on Programs & Projects to Fund Must meet National Objectives

Area Must Qualify (51% Must be LMI) Very Difficult to Demonstrate in Palm Coast

Beneficiary Must Qualify (Must be LMI)

CDBG Entitlement Program

Example Project/Programs that Beneficiary Must be LMI Housing Related Activities

Acquisition Construction Rehabilitation

Public Services (Limited to 15% of Grant) Senior Services Handicapped Services Legal Services Youth Services Transportation Services

Economic Development Infrastructure Development Direct Financial Assistance to For-Profits Technical Assistance Microenterprise Assistance

CDBG Entitlement Program

If Entitlement Status is Pursued, Following Must Be Completed Analysis of Impediments Consolidation Action Plan Annual Action Plan

Staff would recommend existing program/projects that would meet National Objectives for CDBG funding Business Assistance Center Activities Afterschool and Summer Recreation Programs Current Owner-Occupied Housing Rehabilitation Program

CDBG Entitlement Program

Small Cities (Existing)

Entitlement

Type Competitive Non-Competitive

Legislative Climate Uncertain Uncertain

Grant Amount $750,000 (3 yrs. = @$750k)

$330,100 (3 yrs. = @ $1M)

Grant Administration Less More (Up to 20% Allowance)

Project/Program Funding Possibilities

Infrastructure No No

Economic Development

Limited Yes

Housing Rehabilitation

Yes Yes

Public Services No Limited

Policy Discussion(Choice, Not Both)