1. Harris County Community and Economic Development Department
Community Development Block Grant
(CDBG) General Workshop

2. Agenda Overview of HCCEDD Overview of CDBG – General
National Objectives
Eligible and Ineligible Activities
Recordkeeping & Monitoring
Questions & Wrap-up

3. Service Area

4. Service Area
The Service Area included unincorporated Harris County and its 15 cooperative cities.
Bellaire Seabrook
Deer Park Shoreacres
Galena Park South Houston
Humble Tomball
Jacinto City Waller
Katy Webster
LaPorte West University Place
Morgan’s Point
Houston, Baytown and Pasadena receive their own
entitlement funds and are not included
in the Harris County service area.
In addition to Target Areas, there are now Disadvantage Zones located in the Harris County Service Area. (Target Areas with 60% or greater of low-moderate income individuals)

5. How it Works

6. The Consolidated Plan Five-year plan that addresses: Social services;
Housing;
Social services;
Infrastructure; and
Community revitalization needs.
Specifies types of projects to be funded
Application for federal funds under HUD’s formula grant programs:
CDBG;
HOME / ADDI; and
ESG.
Basis for assessing performance

7. The Consolidated Plan aids decision makers in creating strategies to address the following.
Employment and employability
Affordable housing
Adequate streets
Water, sewage and drainage systems
Quality education and Workforce Development
Parks and green space
Community facilities
Quality health care
Crime awareness and public safety and
Safe, peaceful and productive neighborhoods for low- and moderate-income communities

8. Request for Proposals (RFP)
Solicitation and acceptance of proposals
According to federal and state procurement laws and standards
Applicants must:
Be a non-profit organization or governmental agency or entity;
Expend funds within a 12-month period;
Have sufficient working capital;
Meet one Consolidated Plan Objective;
Meet one National Objective;
Benefit eligible residents in HCCEDD’s HUD Service Area.
Used to address objectives identified in Harris County’s Consolidated Plan

9. Annual Action Plan (AAP)
Detailed description of the allocations of Harris County HUD entitlement dollars (CDBG, HOME, and ESG).
Discusses how resources generated by tax dollars will be utilized for the upcoming program year.

10. Agencies Receive Allocations
Contracts are developed between Harris County and agencies.
Funds are dispersed on a reimbursement basis.
Grants Management staff monitors all projects.

11. Consolidated Annual Performance & Evaluation Report (CAPER)
Describes progress.
Reports on and reviews county’s use of Entitlement funds.
Benchmark for projects to be funded.
Allows for self-assessment.

12. Community Development Block Grant
General

13. CDBG Overview
Local governments participate in one of these two programs.
Entitlement Program
Cities >50,000 in population
Urban counties >200,000
States and Small Cities Program
Cities <=50,000
States <=50,000

14. CDBG Overview
The amount of CDBG funds that local governments receive annually are determined by the higher of two formulas:
Data based on overcrowded housing, population, and poverty; or
Data based on age of housing, population growth lag, and poverty.*
* The regulations implementing the CDBG Program are found at 24 CFR Part 570.

15. a suitable living environment,
CDBG Overview
The Primary Objective of CDBG Program is:
The development of viable urban communities through the provision of the following, principally for low- and moderate-income (LMI) persons:
decent housing,
a suitable living environment,
and economic opportunity.

16. CDBG Overview Income Levels* % of MFI Amount 30% of Median 0-30%
$18,300
Very-Low Income
31-50%
$30,500
Low/Moderate Income
51-80%
$48,800
Source: U.S. Department of Housing and Urban Development, March, 2007
Median Family Income (MFI) in the Harris County area is $61,000 for a family of four.

17. National Objectives Each eligible activity must meet one of
three national objectives:
Aid in the prevention of slum and blight
Urgent Need
Benefit to low- and moderate-income
persons

18. National Objectives Aid in the Prevention of Slums and Blight
Prevention or elimination of slums and blighted conditions must either:
Eliminate slum and blight on an area basis;
Eliminate slum and blight on a spot basis; or
Be in an urban renewal area.

19. National Objectives Aid in the Prevention of Slums and Blight
Activities may qualify under Slum/ Blight National Objective (Area Basis) if:
The area meets the definition of slum, blighted, deteriorated, or deteriorating area under state or local law;
Substantial number of buildings or public improvements are in a state of deterioration;
Documentation is maintained regarding boundaries and conditions which qualified the area; and
Activities address one or more of the conditions which contributed to the deterioration.

20. National Objectives Urgent Need
Alleviates emergency conditions.
Existing conditions pose a serious and immediate threat to health or welfare;
Existing conditions occurred within past 18 months;
Recipient is unable to finance the activity on its own; and
Other sources of funding are not available.

21. National Objectives Benefit to Low- and Moderate-Income Persons
Area Benefit
Limited Clientele
Housing Activities
Job creation/retention

22. National Objectives Benefit to Low- and Moderate-Income Persons
Area Benefit – Activities must:
Benefit all residents in an area where at least 51% of the residents are LMI. (Examples: Water/Sewer; Libraries; Neighborhood/Community Centers; Parks, Streets and Sidewalks).
Be of a nature and location that it can be concluded that primary clients are LMI; or
Benefit a clientele presumed to be LMI; or
Require documentation on family size and income to show that at least 51% of the clientele are LMI; and
Have income eligibility requirements; continued

23. National Objectives Benefit to Low- and Moderate-Income Persons
Limited Clientele
Eligible Activities must:
Be of a nature and location that it can be concluded that primary clients are LMI; or
Benefit a clientele presumed to be LMI; or
Require documentation on family size and income to show that at least 51% of the clientele are LMI; and
Have income eligibility requirements; continued

24. National Objectives Benefit to Low- and Moderate-Income Persons
Limited Clientele Continued:
Serve a group primarily presumed to be LMI:
Abused children;
Battered spouses;
Elderly persons;
Severely disabled persons;
Homeless persons;
Illiterate adults;
Persons living with AIDS;
Migrant farm workers.

25. National Objectives Benefit to Low- and Moderate-Income Persons
Housing Activities
Provide or improve permanent residential structures to be occupied by LMI persons.
Note: At least 51% must be LMI occupied, if the structure contains more than one unit.

26. National Objectives Benefit to Low- and Moderate-Income Persons
Job creation or retention
Creation or retention of permanent jobs, at least 51% to be made available to or held by LMI persons.

27. Eligible Activities
The following activity types are eligible under the CDBG program:
Housing
Public Facilities and Improvements
Public Services
Economic Development
Other

28. Housing
Housing activities can be divided into the following categories:
Owner-occupied housing
Renter-occupied housing

29. Owner-Occupied Housing
Eligible owner-occupied housing activities include:
Homeowner rehabilitation;
Direct homeownership assistance.

30. Owner-Occupied Housing
Homeowner Rehabilitation
Eligible activities include:
Weatherization;
Energy efficiency;
Handicapped accessibility improvements;
Emergency repairs;
Lead-based paint testing and abatement.

31. Owner-Occupied Housing
Homeowner Rehabilitation (continued)
Labor and materials are eligible costs, as well as:
Replacement of principal fixtures and components of existing structures;
Energy efficiency improvements;
Water and sewer connections; and
Installation of security devices, including smoke detectors.

32. Owner-Occupied Housing
Direct Homeownership Assistance
for low-income households
Provide up to 50% of the required downpayment
Pay reasonable closing costs
Provide principal write-down assistance
Subsidize interest rates

33. Owner-Occupied Housing
Special Housing Activities
Only Community-Based Housing Organizations (CBDOs):
Construct housing, using CDBG funds; and
Sell the homes to only LMI homebuyers in conjunction with a neighborhood revitalization or community economic development project.

34. Owner-Occupied Housing
Ineligible CDBG Owner-Occupied Housing Activities:
Subsidizing or assisting the new construction of housing, unless carried out by a CBDO; or
Purchasing construction equipment.
(Leasing is allowable if the activity is eligible.)

35. Renter-Occupied Housing
Eligible renter-occupied housing activities:
Acquisition of property for an eligible rental housing project;
Rental housing rehabilitation and acquisition/rehab projects; and
New construction of rental housing by a CBDO is eligible, if the construction activity is part of neighborhood revitalization, community economic development project.

36. Renter-Occupied Housing
Ineligible renter-occupied housing activities:
Construction of new rental housing (except when carried out by a CBDO);
Assistance to rental properties in which less than 51% of the units will be occupied by LMI households;
Subsistence-type payments (income payments) for rent and utilities (except in emergency situations for up to three months).

37. Public Facilities & Improvements
Eligible public facilities and improvements include:
Infrastructure improvements (e.g., street improvements, water and sewer lines).
Neighborhood facilities (e.g., recreational facilities, parks, playgrounds).
Facilities* for persons with special needs (e.g., facilities for the homeless or battered spouses, nursing homes or group homes for the disabled).
* If the facility is owned by a nonprofit, it must be open to the public during normal working hours.

38. Public Facilities & Improvements
Ineligible public facilities and improvements activities:
Maintenance and repair of public facilities and improvements (e.g., filling potholes, repairing cracks in sidewalks, mowing grass at public recreation areas, replacing street light bulbs);
Operating costs associated with public facilities or improvements unless part of a CDBG-assisted public service activity;
Construction, maintenance or historic preservation of buildings used for the general conduct of government.

39. Harris County Service Area Residents.
Remember:
Projects must benefit
Harris County Service Area Residents.

40. Recordkeeping & Monitoring
Overview
General recordkeeping requirements
Access to records
Retention of records
Monitoring
Reporting requirements

41. General Recordkeeping Requirements
Records should be:
Accurate, complete, orderly; and
Maintained in order to:
Document all CDBG funded activities; and
Demonstrate compliance with all applicable program and other requirements.*
* According to U.S. Department of Housing and Urban Development Department (HUD) 24 CFR Part 570 and Part

42. General Recordkeeping Requirements
CDBG funded organizations must establish and maintain:
Administrative records
Financial Records, and
Project/case files.

43. Access to Records
Records are used to create audits, examinations, excerpts and transcripts. The following have access to records of CDBG funded organizations:
HCCEDD representatives;
HUD representatives;
Comptroller General’s Office of the United States;
Other authorized governmental agencies;
Citizens (24 CFR ).

44. Retention of Records
Retain records for periods of time after annual project activities have been completed to avoid findings.
Retain records for five years from the date of submission of the CAPER in which activity is reported for the last time.
For all organizations (per 24 CFR (b)(3), 24 CFR 85.42, and OMB Circular A-110, Attachment C)

45. Monitoring
The primary mission of monitoring is to ensure that organizations are:
In compliance with all regulations governing their administrative, financial, and programmatic operations; and
Achieving their performance objectives within the schedule and budget, as outlined in the Agreement.

46. Monitoring Five steps in a monitoring visit Notification letter
Entrance conference
Documentation, data acquisition and analysis
Exit conference
Monitoring letter

47. Reporting Requirements
Reporting requirements are specified by the Grantee (HCCEDD) in the Subrecipient Agreement*.
Programmatic and Financial Reimbursement Request Reports are due monthly.
Quarterly and Annual reports may also apply.
* 24 CFR (b)(2)

48. Questions and Answers