Improving CDBG Requirements
The Community Development Block Grant (CDBG) program began in 1974.
It is one of the longest running programs at the U.
S.
Housing and Urban Development Department (HUD).
The program provides grants to state and local governments for the purpose of funding the development of affordable housing, infrastructure and other needs.
Each jurisdiction that receives CDBG money has some freedom to determine how best to distribute the funding and structure its program.
In light of the current economic challenges faced by many states and cities, some are considering significant program changes.
Earlier this summer, for example, the Massachusetts Department of Housing and Community Development (DHCD) solicited public comments regarding proposed changes to its Community Development Block Grant program.
It received numerous suggestions, both at a public hearing and via written correspondence.
As a result, it recently announced that it will move forward with many of the proposed changes, and they will be effective starting in the 2012 Fiscal Year.
Among changes being considered by DHCD, is one to its Timely Expenditure rule.
If adopted, the new guideline would require FY 2012 CDBG applicants to provide financial documentation showing that 100 percent of grant funds awarded in or before FY 2009 have been spent, as well as at least 80 percent of grants received in FY 2010.
In addition, all procedural clearances required for FY 2011 grants must also have been completed.
For FY 2012, there are three types of funding available through the Massachusetts DHCD: Community Development, Mini-Entitlement Program, and Economic Development.
Though grants can be awarded to multiple entities working in the same community, the total dollar amount of Community Development Funds awarded is limited to $1.
35 million per community over the course to two years.
Within those three programs are five funding categories for single- and multi-community activities, and planning and design needs.
Maximum awards range from $700,000 to $1 million for development activities, and a minimum $20,000 award has been established for planning and design.
As Massachusetts considers best practices for effectively and efficiently managing its Community Development Block Grant program, it has the potential to become model for other state and local government that are also having to learn how to accomplish more with less.
Both the Senate and the House Appropriations Committees cut HUD's budget for FY 2012 by several billion dollars, which means funding will have to be shifted internally if programs like CDBG are to continue operating at current levels.
And even at current levels, most advocates agree that the need for affordable housing significantly outweighs available resources.
It is one of the longest running programs at the U.
S.
Housing and Urban Development Department (HUD).
The program provides grants to state and local governments for the purpose of funding the development of affordable housing, infrastructure and other needs.
Each jurisdiction that receives CDBG money has some freedom to determine how best to distribute the funding and structure its program.
In light of the current economic challenges faced by many states and cities, some are considering significant program changes.
Earlier this summer, for example, the Massachusetts Department of Housing and Community Development (DHCD) solicited public comments regarding proposed changes to its Community Development Block Grant program.
It received numerous suggestions, both at a public hearing and via written correspondence.
As a result, it recently announced that it will move forward with many of the proposed changes, and they will be effective starting in the 2012 Fiscal Year.
Among changes being considered by DHCD, is one to its Timely Expenditure rule.
If adopted, the new guideline would require FY 2012 CDBG applicants to provide financial documentation showing that 100 percent of grant funds awarded in or before FY 2009 have been spent, as well as at least 80 percent of grants received in FY 2010.
In addition, all procedural clearances required for FY 2011 grants must also have been completed.
For FY 2012, there are three types of funding available through the Massachusetts DHCD: Community Development, Mini-Entitlement Program, and Economic Development.
Though grants can be awarded to multiple entities working in the same community, the total dollar amount of Community Development Funds awarded is limited to $1.
35 million per community over the course to two years.
Within those three programs are five funding categories for single- and multi-community activities, and planning and design needs.
Maximum awards range from $700,000 to $1 million for development activities, and a minimum $20,000 award has been established for planning and design.
As Massachusetts considers best practices for effectively and efficiently managing its Community Development Block Grant program, it has the potential to become model for other state and local government that are also having to learn how to accomplish more with less.
Both the Senate and the House Appropriations Committees cut HUD's budget for FY 2012 by several billion dollars, which means funding will have to be shifted internally if programs like CDBG are to continue operating at current levels.
And even at current levels, most advocates agree that the need for affordable housing significantly outweighs available resources.
Source...