Community Development Block Grant
(Click on the following links for forms or more information)
- 2007 HUD Income Limits
- Block Grant Program (CDBG)
- Do's
- Don'ts
- 2007-2008 CDBG Application
The Community Development Block Grant Program (CDBG) provides formula grants to fund a wide range of activities to develop viable urban communities by providing decent housing and a suitable living environment, and by expanding economic opportunities. Activities are principally for low and moderate-income persons at or below 80% of the area median income.
Knox County receives an annual CDBG Entitlement Grant from the U.S. Department of Housing and Urban Development (HUD). Activities that receive CDBG funding must meet two criteria:
. Be eligible within the program regulations published in the Code of Federal Regulations as 24 CFR Part 570; and
. Meet one of three National Objectives:
(1) Provide a benefit to low and moderate income persons
L/M Income Area Benefit
- L/M Income Limited Clientele
- L/M Income Housing
- L/M Income Jobs
(2) Prevent or eliminate slum and blight
(3) Meet an urgent community need that threatens the health or welfare of residents.
The County offers several programs to meet community development needs including home rehabilitation, water and sewer installation, first-time homebuyer assistance, senior housing and on-going programs to combat homelessness.
For more detailed information contact the office of Knox County Community Development.
What can CDBG be used for?
All activities listed below must benefit low to moderate-income individuals/households.
- Housing rehabilitation
- can be loans or grants
- can be for homeowners or landlords
- can be used to detect and remove lead-based paint- vacant housing can be bought and fixed up - Housing construction (only if done by a “community-based development organization”).
- Grants or loans to neighborhood groups; and, technical assistance to build their capacity to carry out neighborhood revitalization or economic development.
- Public services
- For example, childcare, health care, transportation, extra police, etc.
- No more than 15% of CDBG can be used for services.
- The 15% is computed based on the total amount of the “entitlement” plus any “program income”.
(Program income is money such as loan repayments and land sales.)
- In the States and Small Cities program, the 15% cap applies to the State overall, not to the small city.
- Public services provided by “community-based development organizations” do not count toward the 15% cap IF
the services are designed to increase employment opportunities. - Construction or rehab of shelters for homeless people, battered spouses, etc.
- Making buildings accessible to handicapped people.
- Equipment needed to either administer an eligible activity or to deliver a service. (For example, a truck used by a neighborhood-based rehab program.)
- Public works, such as streets, sidewalks, and sewers. (Does not allow maintenance of public works.)
- Construction or rehab of parks and recreation facilities.
- Code enforcement, demolition, and relocation compensation for people displaced by CDBG.
- Rehab of commercial or industrial buildings.
- Loans or grants to businesses, including microenterprises.
- Training for specific jobs.
(General job training is also eligible, but then it’s a “public service”.) - Administration and planning for the jurisdiction’s overall program.
(No more than 20% can be used this way.)
What can’t CDBG be used for?
- General Government Buildings. CDBG can’t be used for buildings where general functions of government take place. For example, CDBG can’t be used to fix up City Hall.
- However, CDBG can be used to make general government buildings more accessible to people with disabilities.
- In addition, CDBG can be used for government buildings that have a special purpose and are located in lower income neighborhoods. HUD policy makes it clear that police stations, libraries, etc., that directly serve lower income neighborhoods are eligible.
- Equipment. CDBG can’t be used to buy equipment such as construction equipment, cars, trucks, and furniture. However, there are exceptions:
- CBDO’s can buy equipment
- “Special economic development” activities can buy equipment
- Furniture, vehicles, etc., can be brought if they are necessary to either carry out an “eligible: public service or administer CDBG-assisted activities.
- Buying fire trucks is eligible.
- Construction equipment can be leased if used with an otherwise eligible activity.
- Operating and Maintenance Expenses. CDBG can’t be used to repair, operate, or maintain public facilities or public works. For example, maintaining streets, fixing up parks, and repairing sewers.
- New Housing Construction. CDBG can’t be used to build new housing. Unless, CBDOs build the housing, housing is built as part of the Uniform Relocation Act, or CDBG is used to pay for a number of housing development support activities (buying property, clearance, site improvements).
- Income Payments. CDBG can’t be used to make income payments to people. HUD defines income payments as a series of subsistence grant payments to someone for things such as food, clothing, utilities, rent and mortgage. As always, CBDOs can use CDBG to make income payments.
- Religious Facilities. CDBG can’t be used for religious activities or given to primarily religious bodies. However, CBDG can be used to rehab buildings owned by primarily religious organizations if the buildings will be used for entirely non-religious purposes by a non-religious body
