Show All Answers

1. What is a Community Development Block Grant (CDBG)?

The Community Development Block Grant is a federally funded grant program administered by the U.S. Department of Housing and Urban Development (HUD), aimed to assist low to moderate-income communities in community development projects. Every year, the City of Odessa receives approximately $870,000 from HUD to fund high priority community Development Projects.

2. What type of programs and projects are eligible for Community Development Block Grant (CDBG) funds?

CDBG funds can be used for a wide range of activities such as housing rehabilitation, code enforcement, acquisition of real property, demolition, infrastructure and public facility improvements, economic development, and social services. The primary eligibility requirement for any such activity to be funded is that the project or program principally benefits low and moderate-income persons in designated census tracts. The U.S. Department of Housing and Urban Development (HUD) defines low and moderate income as a household that is at or below 80% of the median income for the area. These income guidelines are adjusted annually.

3. What is the City of Odessa's annual Community Development Block Grant (CDBG) Program Cycle?

1. The city receives notice from the Housing and Urban Development Department (HUD) announcing the City’s annual allocation of Community Development Block Grant (CDBG) funding amount.
2. The city issues public notices that CDBG funds are available and applications are being accepted.  The application submission deadline is the 3rd Monday in May.
3. The city issues public notices announcing Public Hearing dates, times and locations to provide citizen input on priority needs/projects for funding consideration.
4. Community Development staff reviews applications for completeness and eligibility/fundability. 
5. Eligible applications are presented to the City Council for project approvals and allocation of funds through the adoption of a resolution. (June)
6. Community Development staff prepares the city’s annual "Action Plan" and makes the draft available for 30-days of public review and comment.
7. The Action Plan is presented to the City Council for approval before submission to HUD for acceptance. (July - August)
8. Contracts between the subrecipient and the city are prepared and executed. (August - September))

4. What special regulations apply to the various types of projects that can be funded?

Public Facilities/Infrastructure Projects - Parks, sidewalks, community centers are all examples of eligible public facility projects. Eligibility requirements for park and sidewalk projects include: 

1. Low/Mod Service Area. The area to be served by the project (where people live who will use the facility) must have an overall low/mod population of at least 51%. 
2. Residential Area. The service area must be primarily residential in nature. 
3. Public Facilities are generally defined to be either publicly owned or owned by a non-profit and operated so as to be open to the general public during normal operating hours. 
4. Reasonable Fees. If fees are charged for the use of the facility they must be reasonable and not have the affect of preventing low/mod individuals from using the facility. 
5. Low/Mod Clientele. 51% or more of the people using the facility must be low/mod (documentation required) 
6. Program Income. Net profits from use of the facility are considered program income and must be reported and possibly returned to the City’s HUD CDBG account. 

Public Services (funding programs that benefit low/mod individuals) 

1. Supplanting other funds. HUD will not allow CDBG funds to be substituted for funds that were previously paid by the City or the State for that same program. For example, if CDBG funds are awarded to a project, any funds awarded to the same program should not be lower than the city’s funding during the previous year. New program/Quantifiable Increase. The non-profit has to show that funding is requested for either a new service (such as a new program the non-profit was adding) or for a quantifiable increase in the level of service (such as they are adding a new councilor because of the increase in the number of clients and are asking for more money to cover that salary) Funding Cap. HUD limits the funding of public service category projects to 15% of the annual allocation. Beneficiaries. 51% or more of the beneficiaries must be from a low/mod household. Housing Activities Income Eligibility. The family or person receiving direct assistance must provide extensive documentation to show that their annual income does not exceed the income limits. Lead Paint. For housing rehabilitation, each house built before 1978 must be tested for lead paint. The type of remediation required is based on the amount of CDBG funds used in the project. Davis Bacon Act. For rehabilitation projects, if more than 7 houses are included in the program, then the entire project must comply with Davis-Bacon Act requirements (federal wage rate/certified payroll compliance). Relocation Assistance. Tenants (renters) who must move out of a home because it is being sold/acquired in a transaction where CDBG funds are included (1st time homebuyer program, for example) may be eligible for relocation assistance under the Uniform Relocation Act (URA). Since funding is not available for this, our First Time Homebuyer program does not consider a house to be eligible if it is currently occupied by someone other than the purchaser or homeowner/seller. Voluntary relocation during renovation does not fall under the URA. Clearance Activities This category has been used by the City to fund the demolition of unsafe structures. Because substandard structures have a negative effect on surrounding properties, the National Objective usually used for these programs is the Prevention/Elimination of Slum or Blight on a spot basis. Vacant/unoccupied structures will be demolished. Documentation. The City must be able to objectively document the blighted condition of the property. Rehabilitation. Rehabilitation of buildings under this national objective is permitted, but only to the extent necessary to eliminate specific conditions detrimental to public health and safety. Program Administration Program administration costs include staff and related costs required for overall program management, coordination, monitoring, reporting, and evaluation. Funding Cap. HUD limits the funding of program administration costs to 20% of the annual allocation.