Community Development Block Grant
(CDBG)
Q: What is a Community
Development Block Grant (CDBG)?
A: Signed
into law on August 22, 1974,
the Community Development Block Grant program is a federal program
administered by the U.S. Department of Housing and Urban
Development (HUD). The CDBG program is a reliable funding source
for addressing the critical social, economic and environmental
problems facing the nation's cities.
The program develops viable
urban communities by funding cities so that they can develop
decent housing, suitable living environments and expanded economic
opportunities, principally for low-and moderate-income persons.
For cities large and small, urban
and rural, CDBG has been the driving force for housing
rehabilitation,
neighborhood
improvements and local economic development initiatives.
Q: How may CDBG funds be used?
A: Among other things, CDBG
funds have improved water and sewer systems, provided loans for
business development, supported services for lower income elderly
and children, as well as expanded homeownership opportunities and
home rehabilitation. CDBG funds have also been used for street and
parking lot improvements, bus shelters, building renovation,
homeless assistance programs, emergency shelters, Americans with
Disabilities Act (ADA) facility improvements and HIV/Aids housing.
Q: How does CDBG funding affect
my city?
A: The program provides annual
grants on a formula basis to entitled cities, urban counties and
states to develop viable urban communities by providing decent
housing and a suitable living environment, and by expanding
economic opportunities, principally for low-income and
moderate-income persons.
CDBG funds are often augmented
with various other resources to provide a greater impact on the
local housing and community development needs.
The CDBG program works largely
without fanfare or recognition to ensure decent affordable housing
for all, and to provide services to the most vulnerable in our
communities, to create jobs and expand business opportunities. The
CDBG program is an important tool in assisting local governments
in order to address the most serious challenges facing their
communities. The CDBG program has made a difference in the lives
of millions of people living in communities all across this
Nation.
Q: Who qualifies for CDBG
Funds?
A: The program does not provide
assistance directly to individual citizens, but local and state
governments administer the program and determine which local
projects receive funding.
The annual appropriation for CDBG
is split between states and local jurisdictions called
"entitlement communities". Entitlement communities are central
cities of Metropolitan Statistical Areas (MSA); other metropolitan
cities with populations of at least 50,000; and qualified urban
counties with populations of at least 200,000 (excluding the
population of entitled cities). States distribute the funds to
localities who do not qualify as entitlement communities.
HUD determines the amount of each
grant by a formula which uses several objective measures of
community needs, including the extent of poverty, population,
housing overcrowding, age of housing and population growth lag in
relationship to other metropolitan areas.
Q: How are the funds used?
A: Not less than 70% of the CDBG
funds must be used for activities that benefit low-income and
moderate-income persons. All activities must meet one of the
following national objectives for the program: benefit low-income
and moderate-income persons, prevention or elimination of slums or
blight, community development needs having a particular urgency
because existing conditions pose a serious and immediate threat to
the health or welfare of the community.
Q: How may citizens participate
in the program?
A: The government agency
receiving CDBG funds must develop and follow a detailed plan which
provides for, and encourages, citizen participation and which
emphasizes participation by persons of low-income or
moderate-income, particularly residents of predominantly
low-income and moderate-income neighborhoods, slum or blighted
areas and areas in which the grantee proposes to use CDBG funds.
Q: Is funding available to
agencies or businesses?
A: Non-profit and for profit
agencies may participate through inquiries as to the funding
process of each city. The City of Las Cruces accepts applications
annually for Public Services for non-profit agencies. The city
also requests proposals and/or bids for public works projects on a
continuing basis as funds are available.
Businesses may bid on construction
projects or services requested by the city government through
advertising. Economic Development funding may be available if the
government agency has addressed the issue in the consolidated plan
that is required by HUD.
Q: What is the process for
obtaining CDBG funds?
A: Public Agencies may obtain
applications for Public Services through the City of Las Cruces
during the annual application period (see Program Specialist
contact information below).
Applications are reviewed by
the Health and Human Services Advisory Committee, which are
appointed by City Councilors. The Committee recommends projects
to the City Council, which selects the projects to be funded based
on the City of Las Cruces Consolidated Plan.
Businesses may find requests
for bids or proposals in the newspaper or may contact the City
Purchasing Department for more information.
Public Works projects are
advertised in regional newspapers in the form of Request For
Proposals (RFP) or Request For Bid (RFB). All bids and proposals
are accepted by the City of Las Cruces, Purchasing Department.
Q: Who may I contact for more
information?
A: Agencies or businesses may
obtain more information by contacting:
Neighborhood Development Section
Community Development Department
City of Las Cruces
Phone: (575) 528-3022
Fax: (575) 528-3101
OR
Purchasing
Department
City of Las
Cruces
Phone: (575)
541-2526
Mailing
Address: PO Box 20000, Las Cruces, NM 88004
En Espaņol (Spanish):
(575) 528-3177 or 1.800.327.1857
Hearing impaired users may
call TTY at 1.800.659.8331
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