What is the CDBG Program?Since 1982, the State of Arizona has administered the CDBG Program.  The State CDBG Program Objective is to “further the development of viable urban and rural communities, by providing decent housing and a suitable living environment and expanding economic opportunities, principally for persons of low and moderate income” (CDBG Application Handbook).Funding Availability

Estimated amounts are:
(1)  Regional Account (RA):  $500,000
(2)  State Special Projects (SSP):  $300,000 per project
(3)  And a “Colonias” Set-Aside to be funded by RA and SSP Projects (CDBG App. Handbook, Sec. 4.6 Colonias).

 

Projects Funded in Past Years

Year Funded	Project Description	Amount
2002	Robert Damon Recreational Complex	$495,803
1999	Removal of Barriers	$300,000
1998	Senior Center Parking Lot	$47,142
1998	Park Improvements / Administration	$110,000
1997	Monte Carlo Street Improvements	$226,500
1997	Rio Rico Senior Center Ramada	$ 73,500
1995	Rio Rico Senior Center	$227,113

1. The activity must meet a two-part test and meet a National Objective; and
2. Each activity must result in a completed, stand alone project resulting in “benefit” (CDBG App. Handbook).

National ObjectivesEach proposed CDBG activity must meet one (and only one) of the following three National Objectives:

1. Low-Mod Benefit
2. Slum/Blight
3. Urgent Need

National Objective 1:  Low-Mod Benefit

The activity must benefit low and moderate income persons, but such activities CANNOT benefit moderate income persons to the exclusion of low income persons.  L/M activities fall into one of the following four categories:

1. Areawide Benefit
1. The activity is available to and meets the identified needs of low and moderate income persons residing in an area (the Service Area/SA);
2. Which is primarily residential (at least 60^ of the structures are residential); and
3. In which at least 51% of the residents are L/M
2. Limited Clientele Benefit
1. The activity benefits a specific target group identified in the CDBG regulations or a group of people of whom at least 51% are L/M; and
2. It cannot benefit all the residents of a Service Area
3. L/M Housing
1. The activity adds to or improves permanent, residential structures which will be occupied by L/M persons upon completion or which provides assistance to such persons to enable them to become homeowers; and
2. Beneficiaries are individually income qualified
3. Note:  Housing Certification required of all applicants proposing housing projects.
4. L/M Job Creation or Retention
1. The activity must create or retain permanent jobs, at least 51% of which are held by or will be made available to L/M persons.

National Objective 2:  Slum/Blight

The grant activity must aid in the prevention or elimination of slums or blight.  Activities justified as Slum/Blight cannot be increased by transferring funds from other activities in ongoing CDBG contracts.

 

National Objective 3:  Urgent Need

The grant activity meets other community development needs having a particular urgency which:

1. Poses a serious and immediate threat to the health or welfare of the community;
2. Which are of recent origin or recently became urgent; and
3. Where other financial resources are not available to meet such needs.  Activities justified as Urgent Need cannot be increased by transferring funds from other activities in ongoing CDBG contracts.

Determination of ProjectsIn assessing whether a proposed CDBG activity will comply with the areawide benefit, the applicant must:

1. Determine the unique Service Area (SA) for the proposed activity.  The SA consists of a specific geographic area where primary beneficiaries of the proposed activity reside; and
2. Determine that the proposed activity will be made available to all residents of the SA, regardless of income level.  For example:  issues such as technology connection, usage fees and physical accessibility need to be considered if they are essential to the proposed project activities.

Applicant/Sub-Recipient ResponsibilitiesApplicant:  Santa Cruz County serves as the applicant for all projects.

Sub-Recipient:  A sub-recipient is a non-profit entity with which an applicant has a contract allowing that entity to administer and/or implement CDBG funded activities.  An applicant can provide CDBG assistance to the sub-recipient in the form of a grant, loan or deferred payment loan (Sec. 2.5 CDBG App. Handbook).

Eligible Sub-Recipients:
1.  Non-profit organizations
2.  Neighborhood based non-profit
3.  Small business investment company
4.  Local development corporation
5.  Institution of higher education
6.  Community Development Financial Institution (CDFI)

Applicant and Sub-Recipient Responsibilities:
1.  Applicants are responsible for ensuring that CDBG funds are used by the Sub-Recipient in a manner compliant with CDBG Program requirements; and
2.  The Capacity of the Sub-Recipient will be assessed befor selecting such to administer and/or implement a CDBG funded activity (Sec. 2.5.1 CDBG App. Handbook).