HomeMy WebLinkAboutCDBG ALLOCATION GUIDELINESINTEROFFICE MEMORANDUM
TO:
FROM:
SUBJECT:
DATE:
STEVE FITZGIBBONS, CITY MANAGER
DALE L. WATSON, DIRECTOR OF PLANNING
01/14/05
Attached are draft management and budget policy guidelines for "public service"
applicants for CDBG funding. The primary revision is a prioritization of the applicants
based on the services they are providing. Funding would be provided to the
organizations based on this priority. Preference would be given to organizations that are
providing services normally provided by a city or in support of services provided by a
city.
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CITY OF PORT ARTHUR
COIvlMUNITY DEVELOPMENT BLOCK GRANT
MANAGEMENT AND BUDGET POLICIES
The Community Development Block Grant Program provides annual grants on a formula basis to entitled cities
and counties to develop viable urban communities by providing decent housing and a suitable living
environment, and by expanding economic opportunities, principally for low and moderate-income persons.
NATURE OF PROGRAM
Community Development Block Grants are awarded to entitlement communities to carry out a wide range of
community development activities directed toward neighborhood revitalization, economic development, and the
provision of improved community facilities and services.
Entitlement communities develop their own programs and funding priorities. However, grantees must give
maximum feasible priority to activities that either benefit low- and moderate-income individuals and families,
or aid in the prevention or elimination of slums and blight. In addition, certain other activities are allowed to
address situations that pose a serious and immediate threat to the health or welfare of the community, especially
when other financial resources are not available to meet such needs.
BACKGROUND
The City of Port Arthur receives an annual allocation through the Depmhuent of Housing and Urban
Development under the Community Development Block Grant (CDBG) program. The Department of Housing
and Urban Development has placed restrictions upon the use of these funds: for example, they must be used
primarily to assist low to moderate-income people. The City of Port Arthur has historically used those funds to
improve housing conditions and public facilities, renovate streets and for public service activities.
Agencies that receive CDBG funding must be able to show direct and measurable benefits. There are activities
that are not eligible for funding, such as faith-based activities, as this would violate the principle of separation
of church and state.
POLICY STATEMENT
It is the policy of the City of Port Arthur that:
1. No more than fifieen percent (15%) of the Community Development Block Grant will be allocated
annually for public service activities as defined by the Department of Housing and Urban Development
regulations. Public Service activities are defined as those activities "including but not limited to those
(services) concerned with employment, crime prevention, child care, health, drug abuse, education,
energy conservation, welfare or recreational needs". Each Public Service activity must be either a new
service or a quantifiable increase in the level of an existing service. Funds will be directed to activities
that will primarily benefit low- and moderate-income residents of the city. CDBG funds will not be used
to maintain an existing level of a service, as conditioned by items 4 and 5 below, or be used to substitute
for other available known sources of funding.
2. Within the fifteen-percent limit, the City Council shall designate how much will be allocated to outside
agencies for eligible Public Service activities and how much will be retained for City Departments.
3. CDBG funds can be used to reimburse eligible operating expense for the specific activity or program
identified in the application, including costs for personnel, materials, supplies, tests, fees, rent utilities
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and equipment directly related to the delivery of the program or activity. Purchase of equipment is
subject to other federal restrictions.
4. Funding of operating expenses for Year 1 will not imply commitment for subsequent year's funding.
Requests for additional year's funding will be evaluated based upon Subrecipient's demonstrated
provision of service to low income residents resulting from prior CDBG funding, and compliance with
record keeping requirements.
5. City Council members will determine the number of public service activities or programs that will be
funded through CDBQ annually.
6. Priority. for funding will be to those activities showing capacity to provide quantifiable benefits to the
larger number of low-income residents for each dollar requested, relative to other applications.
7. As a condition of receiving funds, the Subrecipient will enter into a standard contract required by the
City of Port Arthur.
8. In addition to financial assistance, the City is committed to helping subrecipients:
Implement reporting procedures in compliance with the Department of Housing and Urban
Development requirements.
Identify sources of financial support other than CDBG, and provide other technical assistance as
appropriate.
9. Applications for funding must be accompanied by audited financial reports, if available, for the previous
fiscal year.
10. The primary purpose of the CDBG funds will be to pay operating expenses and not to build up or
maintain an agency's cash reserves.
11. If thc city terminates a subrccipient's funding agreement due to the agency's failure to comply with
contract terms or if a grantee chooses to terminate the contract for whatever reason, the affected agency
will be barred from applying for CDBG funds for one year from the date of contract termination. The
remaining balance of CDBG fm~ds will become available for reprogramming.
12. Any agency that is allocated CDBG funds should have an executable contract with the City of Port
Arthur no later than September 1st of the funding year. Ifa contract has not been executed by September
1s~ then, the agency will not be allowed to participate in the current's year funding process without the
permission of the City Council or City Manager. If permission is not granted, the CDBG fund allocation
will be reprogrammed to another eligible project.
13. Once a Subrecipient executes a CDBG contract, it must begin its program no later than seven weeks
after signing its CDBG contract. If the program is not operating in seven weeks, then the Subrecipient
must submit in writing to the Grants Management Division the reasons for the delay and when the
program will begin.
14. Once a Subrecipient, including City Department, has fulfilled the terms of its contract and a funding
balance exists, the balance of funds will become unobligated and must be reprogrammed by the City
Council.
REPROGRAMM1NG OF COMMUNITY DEVELOPMENT BLOCK GRANT FUNDS
Whenever a $5,000 or more balance exists in unobligated CDBG funds, the Grants Management Division will
meet with the City Council to discuss possible alternative CDBG projects.
COMMUNITY DEVELOPME3qT BLOCK GRANT INTERVIEW PROCESS
1. Everyone applying for CDBG funds, including City Departments will have to attend an interview
process that will be conducted by the City Council.
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2. Each interview will last ten (10) minutes.
3. Each applicant will be assigned an interview time.
If an applicant misses his interview time, then the City Council may approve rescheduling a new interView time.
PRIORITY WILL BE GIVEN TO THE FOLLOWING NON-CONSTRUCTION ACTIVITIES:
PRIORITY I: Activities normally conducted by a city, such as recreational and health services.
PRIORITY II: Activities in support of services normally provided by a city, such as neighborhood citizen
patrol groups.
PRIORITY III: Activities in support of education and training.
PRIORITY IV: Activities that provide for services to the homeless and to senior citizens.
PRIORITY V: Other
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