HomeMy WebLinkAbout2022 CDBG Proposal Packet Fillable2022 CDBG PROPOSAL/7/20/21
2022
COUNTY OF HAWAIʻI
COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM PROPOSAL PACKET
TABLE OF CONTENTS
Page
INTRODUCTION................................................... 1
I. GENERAL INFORMATION FOR APPLICANTS ......................... 4
A. ELIGIBILITY OF THE APPLICANTS .......................... 4
B. ELIGIBLE COMMUNITY DEVELOPMENT PROJECTS ................ 4
Major Categories... .................................. 4
Determining Eligibility .............................. 5
C. INELIGIBLE COMMUNITY DEVELOPMENT PROJECTS .............. 5
D. FUNDING ALLOCATIONS .................................... 6
E. COMPLIANCE WITH APPLICABLE FEDERAL/STATE REGULATIONS ... 7
II. THE COUNTY SELECTION SYSTEM ............................... 13
A. THRESHOLD FACTORS ..................................... 13
1. Applicant’s Eligibility. ........................ 13
2. Project Eligibility. ............................ 13
3. National Objectives of the U.S. Department of
Housing and Urban Development. ................ 13
4. County General Plan. ............................ 14
5. Consolidated Plan. 14
6. Project Schedule. ............................... 16
7. Relocation Plan. ................................ 16
8. Environmental Considerations. ................... 16
9. Site Selection. ................................. 16
10. Project Funding. ................................ 17
B. PRIORITY FACTORS ...................................... 17
Project Evaluation .................................. 18
Points Assignment ................................... 19
Project Funding & Budget ............................ 22
Applicant Evaluation ................................ 23
C. FINAL SELECTION ....................................... 25
1. Ranking. ........................................ 25
III.PROPOSAL REQUIREMENTS..................................... 26
A. GENERAL ............................................... 26
B. SUBMISSION DATES ...................................... 26
C. PROPOSAL REQUIREMENTS ................................. 26
2022 CDBG PROPOSAL/7/20/21 1
APPENDIX
A. HUD Income Limits
B. CDBG Application Schedule
C. Eligible Activities, Entities & Ineligible
Activities 24 CFR 570.200 – 570.205 & 570.207
D. Criteria for National Objectives and Public Benefit
Standards 24 CFR 570.208 & 570.209
E. CDBG Program – Other Federal Requirements
F. Proposal
2022 CDBG PROPOSAL/7/20/21 1
INTRODUCTION
The purpose of this proposal packet is to provide information
and guidance to the applicant who is considering applying for
the U.S. Department of Housing and Urban Development’s (HUD)
Community Development Block Grant (CDBG) program, through the
County of Hawaiʻi Office of Housing and Community Development
(OHCD).
The CDBG program provides grants and loans to units of general
local government and eligible private non-profit entities to
meet housing and community development needs. The primary
objective of the program is the development of viable
communities, including decent housing and a suitable living
environment and expanding economic opportunities, PRINCIPALLY
FOR PERSONS OF LOW AND MODERATE INCOME. Under the CDBG program,
applicants may select one of the three income definitions for a
low and moderate (L/M) income person. (See Appendix A for HUD
income limits and definitions). The CDBG program’s overall
objective is achieved through a program in which funds are
granted or loaned for activities which will benefit low- and
moderate-income families or aid in the prevention or elimination
of slums or blight. The projected use of funds may also include
activities which are designed to meet other community
development needs having particular urgency because existing
conditions pose a serious and immediate threat to the health or
welfare of the community where other financial resources are not
available to meet such needs. Each program or project must have
a direct impact on the applicant’s identified need, as well as
meet at least one of the national objectives described.
In order to fairly rate and rank the projects, the OHCD has
developed the County Selection System. The system is intended
to ensure that the projects submitted to HUD are eligible for
funds and can be implemented in a timely manner as well as to
avoid the problems and mistakes the OHCD has experienced with
past projects.
As a prerequisite to receive federal funding all applicants will
be required to have a Dun and Bradstreet Data Universal
Numbering System (DUNS) number and be actively registered with
current information in the Central Contractor Registration (CCR)
prior to applying for CDBG funding. The applicant will have to
submit proof that they have a DUNS number and are actively
registered in the CCR system with their project proposal packet.
2022 CDBG PROPOSAL/7/20/21 2
For the purpose of preparing the Action Plan and its project
recommendation, all decisions as to timeliness, eligibility, and
adequacy of the proposal, ranking and rating will be made by the
OHCD. The OHCD will submit its 2022 Action Plan with its
recommended projects to the Hawai’i County Council for its
action to approve the Mayor to submit the Action Plan to the
U.S. Department of Housing and Urban Development.
Please read all the enclosed program material before you prepare
the proposal. In order to be considered for CDBG funds, all
eligible applicants will be required to submit a complete
proposal that satisfies the threshold factors established by HUD
and the County before the OHCD will rank and rate the proposal.
However, since the demand for grants far exceed the available
funds, the County Selection System is designed to ensure that
the projects are fairly and equitably reviewed and rated. This
selection system establishes a specific range of points for
various elements of the project; the OHCD will rate and rank the
projects accordingly. To be evaluated fairly, the applicant
must provide appropriate, quantifiable information in a manner
that will enable the OHCD to score the project on each rating
elements. To be considered for CDBG funding an eligible project
proposal must receive a minimum of 50% of the total points to be
considered for ranking. If time permits, an interview and
project site inspection with eligible applicants will be
conducted, to clarify any information presented in the project
proposal, prior to final recommendation.
This proposal packet has been prepared to assist the applicant
by explaining the review system and providing information and
guidance on how to prepare the proposal.
The proposal packet provides the following information:
Explanation of how needs, benefit and performance judgments
and the selection system assessments will be made.
Description of the documentation applicants must submit to
substantiate the data, qualifications and other necessary
requirements.
Description of the review and rating process that will be
used.
Additional Federal Regulations applicable to applicants
receiving CDBG funding.
2022 CDBG PROPOSAL/7/20/21 3
IMPORTANT NOTICE:
The time frames established in the proposal process are firm.
At the close of the proposal submittal period, no further
information will be accepted by the OHCD, although clarification
of information will be allowed or additional information may be
requested as required to comply with the County’s Consolidated
Plan, as amended. It is, therefore, important that your
proposal is complete, factual and contains the required
supporting data. If the proposal is incomplete, the OHCD will
not review the proposal.
All original bounded (PLEASE NO SPIRAL BINDING) project proposal
and two (2) copies must be received and time stamped no later
than 4:30 p.m., November 22, 2021, at the:
Hilo Office of Housing and Community Development
1990 Kinoʻole Street, Suite 102
Hilo, Hawaiʻi 96720
Phone No. (808)961-8379
or
Kona Office of Housing and Community Development
West Hawaiʻi Civic Center
74-5044 Ane Keohokalole Highway
Kailua-Kona, Hawaiʻi 96740
Phone No. (808)323-4305
Proposals submitted after the date and time stamp deadline or
insufficient copies of the proposal will not be accepted and
therefore not rated for funding. Project Proposals delivered
and/or submitted by e-mail or fax will not be accepted.
2022 CDBG PROPOSAL/7/20/21 4
I. GENERAL INFORMATION FOR APPLICANTS
A. ELIGIBILITY OF THE APPLICANTS
In general, government agencies, private non-profit
entities, and Community Based Development Organizations
(CBDO) are eligible to utilize CDBG funds.
Private entities organized for profit may be eligible under
certain circumstances, including some rehabilitation and
economic development activities. The applicant should
consult the Federal Register, 24 CFR Subpart C 570.200 –
570.205. See Appendix C for a list of the eligible
applicants.
As a general rule, CDBG assistance may not be used for
religious activities or provided to primarily religious
entities. Religious organizations may be eligible to
utilize CDBG funds under rules and restrictions as
specified in 24 CFR 570.200(j), Appendix C.
If there are any questions on the eligibility of any
applicant, please call the OHCD at (808)961-8379.
B. ELIGIBLE COMMUNITY DEVELOPMENT PROJECTS
The applicant should consult the Federal Register, 24 CFR
Subpart C 570.200 – 570.205 (Appendix C), for a list of the
eligible activities.
Major Categories: In general, the following categories
contain the major types of projects
which are eligible for funding under
the CDBG Program:
----------------------------------------------------------------
PROJECTS EXAMPLE
----------------------------------------------------------------
Acquisition or disposition for community development of
of real property deteriorated or undeveloped
property, preservation of historic
sites or conservation activities.
Public facilities for water and sewer improvements,
street improvements, centers for
senior citizens, recreation
facilities or neighborhood
facilities.
2022 CDBG PROPOSAL/7/20/21 5
Rehabilitation and for rehabilitation of residential
Preservation or commercial structures,
modernization of public housing,
code enforcement or historic
preservation.
Economic development Acquisition of real property, site
improvements or grants and loans
to private entities for the
purposes of economic development.
NOTE: THIS LIST IS PROVIDED SIMPLY TO SHOW EXAMPLES OF THE
TYPES OF PROJECTS THAT MAY BE ELIGIBLE FOR CDBG FUNDS.
IT IS IN NO WAY INTENDED TO BE INCLUSIVE. APPLICANTS
SHOULD CONSULT THE FEDERAL REGISTER APPENDIX C, 24 CFR
570.200 – 570.205 FOR GUIDANCE ON ELIGIBLE ACTIVITIES.
Determining Eligibility:
A project may be clearly eligible, or it may be subject to
special requirements or qualifications. If there are
special requirements, such as ties to other activities, the
proposal must demonstrate how the proposed project will
meet the special considerations.
If there are any questions about the eligibility of your
proposed project, call the OHCD for information.
C. INELIGIBLE COMMUNITY DEVELOPMENT PROJECTS
The general rule is that any activity not authorized under
the provisions of Section 570.200 – 570.205 is ineligible
to be assisted with CDBG funds.
The following is a brief list of activities that may not be
assisted with CDBG funds. This list is in no way intended
to be inclusive. Applicants should consult the Federal
Register, 24 CFR Section 570.207 (Appendix C) for a
comprehensive list and guidance in determining the
eligibility of other activities associated with housing and
community development.
1. Buildings or portions thereof, used for the general
conduct of government cannot be assisted with CDBG
funds.
Examples: City halls; County administrative buildings;
State Capitol or office buildings;
2022 CDBG PROPOSAL/7/20/21 6
legislative, judicial or general
administrative affairs of government.
2. General government expenses, unless authorized in OMB
Circular A-87.
Examples: Bad debts, contributions and donations,
entertainment, fines and penalties,
legislative expenses.
3. Political activities cannot be financed with CDBG
funds:
Examples: Candidate forums, voter transportation or
registration or the financing of facilities
or equipment for political purposes.
4. Purchasing of equipment; with exceptions for projects
that qualify under economic development and public
service.
Examples: Construction, furnishing and personal
property.
5. Operating and maintenance expenses. Exceptions to
this rule are operating and maintenance expenses
associated with public service activities.
Examples: Repairing, operating or maintaining public
facilities, improvements and services.
6. New housing construction.
Examples: New permanent residential structures.
7. Income payments for housing.
Examples: Income maintenance, housing allowances and
mortgage subsidies.
D. FUNDING ALLOCATIONS
The CDBG funds are allocated to the counties of Kauai, Maui
and Hawaiʻi on a formula basis. The formula, established
by HUD, is based on the County’s population, the extent of
poverty and the extent of housing overcrowding. However,
HUD may reduce the County’s allocated amount if the County
is not utilizing the grant amount effectively and
efficiently and not complying with the project schedules or
not complying with other program requirements.
2022 CDBG PROPOSAL/7/20/21 7
The County’s expenditure performance affects the allocation
of CDBG funds; thus, great care will be taken to ensure
that the projects selected by the County for the
application increases its chances of receiving the maximum
funding allocation for future grants.
Based on the previous CDBG allocations, the County
estimates that the 2022 allocation will be approximately
$2,600,000.
E. COMPLIANCE WITH APPLICABLE FEDERAL/STATE REGULATIONS
Recipients and sub-recipients selected to receive CDBG
funds for eligible projects will be required, if
applicable, to certify, provide documentation and assure
that it will comply with the following regulations,
policies, guidelines and requirements with respect to the
acceptance and use of federal funds.
1. The project will be conducted and administered in
compliance with:
(a) Title VI of the Civil Rights Act of 1964 (Public
Law 88-352, 42 U.S.C. 2000d et seq.) and
implementing regulations issued at 24 CFR Part 1;
which states that no person may be excluded from
participation in, denied the benefits of or
subjected to discrimination under any program or
activity receiving federal financial assistance
on the basis of race, color or national origin.
(b) The Fair Housing Act (42 U.S.C. 3601-20), as
amended, and implementing regulations issued at
24 CFR Part 100; by prohibiting acts of
discrimination in the sale or rental of housing,
the financing of housing or the provision of
brokerage services against any person on the
basis of race, color, religion, sex, national
origin, handicap or familial status.
(c) Section 109 of the Housing and Community
Development Act of 1974, as amended, and the
regulations issued pursuant thereto at 24 CFR
570.602; which requires that no person be
excluded from participation in, denied the
benefits of or be subjected to discrimination
under any program or activity funded under the
CDBG program on the basis of race, color,
religion, national origin or sex.
2022 CDBG PROPOSAL/7/20/21 8
(d) Section 3 of the Housing and Urban Development
Act of 1968 (12 U.S.C. 1701u), as amended; which
ensures that employment and other economic
opportunities generated by HUD assistance or HUD
assisted projects covered by Section 3 shall, to
the greatest extent feasible, be directed to low-
and very low-income persons, particularly persons
who are recipients of HUD assistance.
(e) Executive Order 11246, as amended by Executive
Orders 11375 and 12086, and implementing
regulations issued at 41 CFR Chapter 60, as set
forth in 24 CFR 570.607; which is applicable to
contracts in excess of $10,000, which prohibits
discrimination in the employment on the basis of
race, color, national origin, religion or sex.
(f) Executive Order 11063, as amended by Executive
Order 12259, and implementing regulations at 24
CFR Part 107; which prohibits discrimination
against individuals on the basis of race, color,
religion, sex or national origin in the sale,
rental leasing or other disposition of
residential property or in the use or occupancy
of housing assisted with federal funds.
(g) The Rehabilitation Act of 1973 (P. L. 93-112) and
implementing regulations issued at 24 CFR Part 8;
which discrimination in federally assisted
programs on the basis of handicap and imposes
requirements to ensure that qualified individuals
with handicaps have access to programs and
activities that receive federal funds.
(h) The Age Discrimination Act of 1975 (P. L. 94-135)
and implementing regulations issued at 24 CFR
Part 146; which prohibits age discrimination in
programs receiving federal financial assistance.
(i) The labor standards requirements as set forth in
24 CFR 570.603 and HUD regulations issued to
implement such requirements; which require
compliance with the Federal Davis-Bacon Act and
related Acts for all construction contracts in
excess of $2,000. Applicants will be required to
obtain the applicable federal wage determination,
review, approve and submit certified payrolls
that validates that laborers and mechanics
working on the project are paid the
unconditionally and not less than once a week in
2022 CDBG PROPOSAL/7/20/21 9
accordance with the projects applicable federal
wage determination.
(j) The flood insurance purchase requirements of
Section 102(a) of the Flood Disaster Protection
Act of 1973 (42 U.S.C. 40001 et seq.) as set
forth in 24 CFR 570.605; federal law requiring
the purchase of flood insurance for all federally
assisted projects located in a floodplain as well
as the compliance with the eight-step decision
making process during the environmental review
for compliance with Executive Order 11988.
(k) The regulations, policies, guidelines and
requirements of 2 CFR Part 200, “Uniform
Administrative Requirements, Cost Principles, and
Audit Requirements” for Federal Awards, as they
relate to the acceptance and use of federal funds
under this federally-assisted program; which
requires recipients of federal funds establish a
written procurement procedure that at a minimum
avoids purchasing unnecessary items, provides
analysis for the most economical and practical
procurement of goods and services and states a
clear and accurate description of the
requirements for material, product or services
procured.
(l) Assistance under this part shall not be used
directly or indirectly to employ, award contracts
to or otherwise engage the service of or fund any
contractor or sub-recipient during any period of
debarment, suspension or placement in ineligible
status under the provisions of 24 CFR Part 24;
(m) The Architectural Barriers Act of 1968, as
amended, (42 U.S.C. 4151-4157) which requires
that certain federally-funded buildings or
facilities be designed, constructed or altered to
ensure accessibility to and use by, physically
disabled persons.
2. It will comply with the acquisition and relocation
requirements of the Uniform Relocation Assistance and
Real Property Acquisition Policies Act of 1970 as
required under 24 CFR 570.606(a) and Federal
implementing regulations; the requirements in 24
CFR 570.606(b) governing the residential anti-
displacement and relocation assistance plan under
Section 104(d) of the Act; the relocation requirements
2022 CDBG PROPOSAL/7/20/21 10
of 24 CFR 570.606(c) governing displacement subject to
Section 104(k) of the Act; and the relocation
requirements of 24 CFR 570.606(d) governing optional
relocation assistance under Section 105(a)(ii) of the
Act;
3. It will certify that no member, officer or employee or
its designees or agents, no member of the governing
body of the locality in which the program is situated,
and no other public official of such locality or
localities who exercises any functions or
responsibilities with respect to the program during
his/her tenure or for one year thereafter, shall have
any interest, direct or indirect, in any contract or
subcontract, or the proceeds thereof, for work to be
performed in connection with the program assisted
under the grant, and that it shall incorporate, or
cause to be incorporated, in all such contracts or
subcontracts a provision prohibiting such interest
pursuant to the purposes of this certification, as set
forth in 24 CFR 570.611, Conflict of Interest.
4. It will give the County, HUD and the Comptroller
General or any authorized representatives access to
and the right to examine all records, books, papers or
documents related to the grant.
5. Its notification, inspection, testing and abatement
procedures concerning lead-based paint will comply
with 24 CFR 570.608; all facilities constructed prior
to 1978 which are occupied by families with children
under seven years of age and which are proposed for
rehabilitation shall be inspected for defective lead
paint surfaces. Facilities found to contain lead-
based paint abatement procedures;
6. It will not attempt to recover any capital costs of
public improvements assisted in whole or in part with
CDBG funds by assessing any amount against properties
owned and occupied by persons of low and moderate
income, including any fee charged or assessment made
as a condition of obtaining access to such public
improvements, unless:
(a) CDBG funds received are used to pay the
proportion of such fee or assessment that relates
to the capital costs of such public improvements
that are financed from revenue sources other than
under Title I of the Act; or
2022 CDBG PROPOSAL/7/20/21 11
(b) For purposes of assessing any amount against
properties owned and occupied by persons of
moderate income, the grantee certifies to the
Secretary that it lacks sufficient CDBG funds to
comply with the requirements of subparagraph (a)
above.
7. No federal-appropriated funds have been paid or will
be paid, by or on behalf of it, to any person for
influencing or attempting to influence an officer or
employee of any agency, a member of Congress, an
officer or employee of Congress, or an employee of a
member of Congress in connection with the awarding of
any federal contract, the making of any federal grant,
the making of any federal loan, the entering into of
any cooperative agreement and the extension,
continuation, renewal, amendment or modification of
any federal contract, grant, loan or cooperative
agreement;
8. As a condition for receiving federal funds, recipients
are required to certify that they will provide drug-
free workplaces in accordance with the Drug-Free
Workplace Act of 1988;
9. Will comply with the National Environmental Policy Act
of 1969 and other authorities as specified in 24 CFR
Part 58. Such provisions are to include, but not be
limited to, Historic Properties, Flood Plain and
Wetland Protection, Coastal Zone Management,
Endangered Species, Air Quality, Farmlands Protection
Policy Act and Environmental Justice. All projects
will be required to have a completed environmental
review prior to the expenditure of CDBG funds.
Applicants should assess the time to conduct the
appropriate type of environmental review within their
project schedule;
10. As a prerequisite to entering into an agreement for
$25,000 or more of CDBG funds, applicants will be
required to submit a tax clearance from the State
Director of Taxation and the Internal Revenue Service
to state the effect that all tax returns due have been
filed, and all state and federal taxes, interest and
penalties levied or accrued have been paid;
11. It will comply with 24 CFR 570.613, Eligibility
Restrictions for Certain Resident Aliens;
2022 CDBG PROPOSAL/7/20/21 12
12. It will comply with 24 CFR 570.614, Architectural
Barriers Act and the Americans with Disabilities Act
of 1968 (42 U.S.C. 4151-4157) requiring certain
Federal and Federally funded buildings and other
facilities to be designed, constructed or altered in
accordance with standards that insure accessibility
to, and use by, physically disabled people. A
building or facility designed, constructed or altered
with funds allocated or reallocated under this part
after December 11, 1995, and that meets the definition
of “residential structure” as defined in 24 CFR 40.2
or the definition of “building” as defined in 24 CFR
101-19.602(a) is subject to the requirements of the
Fair Housing Act and Architectural Barriers Act of
1968 and shall comply with the Uniform Federal
Accessibility Standards;
13. It will comply with the American with Disabilities Act
(ADA) which provides comprehensive civil rights to
individuals with disabilities in areas of employment,
public accommodations, state and local government
services and telecommunications.
2022 CDBG PROPOSAL/7/20/21 13
II. THE COUNTY SELECTION SYSTEM
The County Selection System is designated to help select those
projects having the greatest need and which most effectively
addresses that need.
In order to be considered for funding, the project must meet
certain minimum requirements established by HUD and the OHCD.
These are identified as “Threshold Factors.” If all the
threshold factors are met, the project will be rated on the
basis of “Priority Factors,” including the National/Consolidated
Plan priorities, the project impact, the project funding, the
applicant’s capabilities, past performance in block grant
management and ability to meet and comply with federal overlay
statutes.
A. THRESHOLD FACTORS
A proposal must address and meet certain minimum
requirements before the OHCD will begin to rate the
project. If your proposal does not address or meet all
these threshold factors, the OHCD will not rank and rate
your project proposal. The threshold requirements are
listed below:
1. Applicant’s Eligibility:
The applicant must be eligible with respect to 24 CFR
570.200 – 570.205 (See Appendix C).
2. Project Eligibility:
The project must be eligible with respect to 24 CFR
570.200 – 570.205 (See Appendix C).
3. National Objectives of the U.S. Department of Housing
and Urban Development:
Each project must be consistent with the primary
objective and at least one of the following national
objectives of HUD:
Primary Objective:
The primary objective of the Community Development
Block Grant program is the development of viable
communities, including decent housing and a suitable
living environment and expanding economic
opportunities, principally for persons of low and
moderate income.
2022 CDBG PROPOSAL/7/20/21 14
National Objectives:
The project must comply with 24 CFR 570.208 and 24 CFR
570.209 for Economic Development Project’s (See
Appendix D).
(a) Activities benefiting low- and moderate-income
persons.
(b) Activities which aid in the prevention or
elimination of slums or blight.
(c) Activities designed to meet community development
needs having a particular urgency.
4. County General Plan:
The County General Plan provides the broad framework
for all activities and expenditures with Hawaiʻi
County. As such, all projects must show that they are
consistent with the General Plan in order to be
considered by the OHCD for block grant funds.
5. Consolidated Plan:
The Consolidated Plan contains the County of Hawaiʻi’s
priorities and objectives for HUD programs. As such,
all projects must show that they are consistent with
the Consolidated Plan’s priorities in order to be
considered by the OHCD for CDBG funds.
Projects requesting CDBG funding will need to address
at least one of those priorities stated in the
Community Development Priorities Section of the
County’s five-year 2020-2024 Consolidated Plan for
utilizing HUD’s CDBG program funds.
The County’s Consolidated Plan’s priorities will be
used to allocate CDBG funds in accordance with project
eligibility requirements and program rules. Higher
points will be awarded to project proposals that
address high priority activities.
The following are the County’s CP Priorities:
HIGH PRIORITIES:
• Housing: Housing for households earning less
than 80% of median income [i.e. rental,
homeownership, special needs, homeless and
activities which will produce new housing
2022 CDBG PROPOSAL/7/20/21 15
(i.e. water, streets, environmental activities,
planning, etc.)]
• Public Health and Safety: Activities that
protect the health and safety of the residents in
Hawaiʻi County. (i.e. fire, police, environment,
etc.)
• Federal Mandates: Activities to meet legal
obligations or federal mandates. (i.e. ADA,
cesspool conversion)
• Public Facilities: Childcare, youth, and/or
senior centers; facilities for the disabled;
homeless facilities; health facilities;
neighborhood facilities; parks & recreation
facilities; and/or infrastructure
• Disaster Relief: Activities to address
designated Disaster Relief Areas (i.e.
Infrastructure, Economic Development, Health
Facilities)
• Infrastructure: (other than housing related)
Water/sewer/street improvements; solid waste
disposal; and/or flood drainage improvements.
• Public Services: Senior, disabled, youth,
childcare, transportation, substance abuse,
employment, health, lead hazards, crime,
including activities that prevent, prepare for,
address and/or respond to disaster related events
such as flooding, lava flow, hurricane, tsunami,
infectious diseases, etc.
• Economic Development: Activities which create
jobs for low- and moderate-income persons.
LOW PRIORITIES:
• Public Facilities: Parking facilities and non-
residential historic preservation.
• Infrastructure: Sidewalks.
2022 CDBG PROPOSAL/7/20/21 16
6. Project Schedule:
In order to comply and meet the CDBG Program
requirements, all activities funded with CDBG funds
shall be expended and completed within a twelve - (12)
month period. This period begins from July 1, 2022
and ends on June 30, 2023.
Submitted project schedules will be reviewed based on
OHCD’s experience with past and similar projects. As
determined by the OHCD, improbable or problematic
schedules that will not meet the one (1) year
expenditure deadline will not satisfy this threshold.
Projects with lengthy schedules should consider being
phased or implemented on a smaller scale.
As a note, projects that exceed the expenditure
deadline may and will lose funds to other on-going
projects.
7. Relocation Plan:
If individuals or businesses will be relocated in
order to carry out the proposed project, it is
required that the applicant describe why displacement
is necessary and submit a Relocation Plan that
complies with 24 CFR 570.606, Uniform Relocation Act
as contained in Appendix E. If there is no approved
Relocation/Displacement Plan, the proposed project
will not be rated and ranked.
8. Environmental Considerations:
All projects utilizing CDBG funds are required by CDBG
program rules and regulations to be reviewed for the
appropriate federal level of environmental compliance.
The type of environmental compliance is a significant
milestone in the project schedule and will ultimately
affect the progress of the project. Projects
requiring Environmental Impact Statements (EIS) or an
Environmental Assessment expecting to have numerous
environmental concerns will not be rated and ranked.
9. Site Selection:
In order to implement the project in a timely manner,
it is vital that the project site be identified and
controlled by the applicant. Projects requiring
changes in zoning and/or if it involves site
2022 CDBG PROPOSAL/7/20/21 17
acquisition with CDBG funds must submit a timeline
identifying the steps and their process to comply with
the Uniform Relocation Assistance and Real Property
Acquisition Policies Act of 1970, as amended.
10. Project Funding:
Applicants will need to state and identify whether
there are other sources of funds (i.e., County, State,
private donations, etc.). Documentation to verify
that these funds are secured and committed are
required to be submitted.
B. PRIORITY FACTORS
If the threshold requirements are met, the project will be
rated and awarded points on the elements listed in the
chart below.
PROJECT EVALUATION MAXIMUM
POINTS
Project Element
Extent and seriousness of the
identifiable needs . . . . . . . . . . . 100
Results to be achieved . . . . . . . . . . 100
Consolidated Plan Priorities . . . . . . . 100
Environmental considerations . . . . . . . 100
Site selection standards . . . . . . . . . 100
Additional actions needed . . . . . . . . 50
Sub-total . . . . . . . . . . . . . . . . . . . . 550
Project Funding & Budget
Funding Impact . . . . . . . . . . . . . . 100
Budget Impact . . . . . . . . . . . . . . 100
Sub-total . . . . . . . . . . . . . . . . . . . . 200
Applicant Evaluation
Compliance with Federal Overlay
Statutes . . . . . . . . . . . . . . . . 50
Project/Program Management . . . . . . . . 100
Past Performance . . . . . . . . . . . . . 100
Sub-total . . . . . . . . . . . . . . . . . . . . 250
TOTAL . . . . . . . . . . . . . . . . . . . . . . . . 1,000
2022 CDBG PROPOSAL/7/20/21 18
Project Evaluation
The project evaluation element, which represents a
significant portion of the total number of points each
project can receive, is intended to ensure that the best
projects are considered for funding. Six components have
been identified and will be considered in the rating of
this element. These components are:
1. Extent and Seriousness of the Identified Needs:
Applicants should clearly describe the problem, its
extent and seriousness of the identified needs.
2. Results to be Achieved:
Applicants should explain what will actually be
accomplished as an outcome of undertaking this
project. Applicants should describe who will benefit
and how and to what extent the proposed project will
address their needs. The kind of benefit which the
proposal provides may make a difference in judging and
comparing the adequacy of the proposal in meeting the
identified needs.
3. Consolidated Plan Priorities:
The CDBG program is moving towards a performance-based
funding. Based on community input and current data,
the County established its high, medium and low
priorities for the CDBG program. Applicants should
clearly describe how its proposed project will comply
and ultimately accomplish a priority(ies) of the
County’s 2015-2019 Consolidated Plan. Higher points
will be awarded to projects that address high priority
activities.
4. Environmental Considerations:
A federal environmental review will be required for
all projects selected for funding. Consequently,
information relating to environmental concerns at the
selection stage can have a significant impact on the
proposal. The extent to which the applicant has
considered and acted upon potential environmental
concerns may be important. Some examples are:
relocation of activities from a flood plain, the
effect of increased traffic in a neighborhood
resulting from a funded activity, historic sites,
hazardous material, etc.
2022 CDBG PROPOSAL/7/20/21 19
5. Site Selection Standards:
Applicants proposing to acquire land for housing, or
any other eligible activity should address the site
selection standards and the efforts it will take to
meet them. See Exhibit 8 of the proposal for site
selection standards.
6. Additional Actions Needed:
Evidence should be provided where necessary to
indicate that other resources or activities needed to
ensure a complete project will be available. If such
support is not documented, or if the need is evident
but not addressed, the impact of the proposal may be
diminished.
The first five components will have a maximum score of 100
points each followed by additional actions of 50 points
maximum, for a total possible score of 550 points for these
elements. To further ensure that the selected projects
address the most significant community needs, the sum of
the component scores will be multiplied by a “Need Factor”
to determine the total project evaluation score.
The Need Factor will be calculated by dividing the score of
the need component by the maximum number of points possible
(100).
Need Component Score
Need Factor = --------------------------------
Maximum Possible Score (100)
TOTAL PROJECT EVALUATION SCORE = Sum of Components Scores x
Need Factor
Points Assignment
Points will be assigned for each component based on the
following criteria:
1. Extent and Seriousness of the Identified Needs (Need
Component):
100 pts. a. Clear need is described which is major and
current and the need is more crucial than
others.
75 pts. b. Need is clearly described and is serious.
50 pts. c. Need is described and is fairly serious.
2022 CDBG PROPOSAL/7/20/21 20
The need does not appear to be as crucial as
others being considered in the selection
process.
25 pts. d. Need is described but not major or
pronounced.
0 pts. e. No clear need is described, or need is not
major or pronounced.
2. Results to be Achieved:
100 pts. a. The project outcome would resolve the
problem completely, other actions needed to
support the project have been committed and
are clearly stated in the proposal.
75 pts. b. The project outcome would have a major
impact on the need but would not completely
resolve the problem.
50 pts. c. The project outcome would have some impact
on the need but not as much as that of other
projects.
25 pts. d. The project outcome does not clearly address
the need. The project appears to be of
general community benefit and would only
minimally serve low and moderate income
persons.
0 pts. e. Only a small portion of the described need
would be addressed. The community has made
no apparent effort to solve the problem
through local and other sources.
3. Consolidated Plan Priorities:
100 pts. a. The project will address and complete a high
priority and goal of the Community
Development priorities within the County’s
Consolidated Plan.
75 pts. b. The project meets a high priority but will
only partially complete the goal of the
Community Development priorities within the
County’s Consolidated Plan.
50 pts. c. The project will address a high priority but
will not accomplish the goal of the within
the County’s Consolidated Plan.
25 pts. d. The project will address and complete a low
priority and goal of the Community
Development priorities within the County’s
Consolidated Plan.
0 pts. e. The project does not address a priority and
goal of the Community Development priorities
within the County’s Consolidated Plan.
2022 CDBG PROPOSAL/7/20/21 21
Note: The OHCD acknowledges that economic
development proposals may have a lesser
percentage of low- and moderate-income benefit.
In these cases, less benefit will not necessarily
preclude a project from receiving the maximum
score.
4. Environmental Considerations:
100 pts. a. All environmental requirements have been
completed and there are no environmental
problems.
75 pts. b. Environmental problems have been identified;
however, they appear to be fully resolvable.
50 pts. c. The project appears to have slight problems
with respect to environmental concerns.
25 pts. d. The project appears to have moderate
problems with respect to environmental
concerns.
0 pts. e. The project appears to have extensive
problems with respect to environmental
concerns.
5. Site Selection Standards:
100 pts. a. There is no identified site selection
problems.
75 pts. b. There may be some site selection problems;
however, they appear to be fully resolvable.
50 pts. c. The project appears to have some problems
with respect to site selection.
25 pts. d. The project appears to have a moderate
amount of problems with respect to site
selection.
0 pts. e. The project appears to have extensive
problems with respect to site selection.
6. Additional Actions Needed:
50 pts. a. No further action is needed. The project
fully resolves the identified problem.
40 pts. b. Some additional action may be needed to
fully resolve the problem.
30 pts. c. Moderate action is still needed to resolve
the identified problem.
20 pts. d. Extensive action is still needed to fully
resolve the identified problem.
0 pts. e. The project does not address the identified
problem.
2022 CDBG PROPOSAL/7/20/21 22
Project Funding & Budget
The project funding and budget elements are intended to ensure
that the proposed project can be completed and that the program
funds are effectively used and secured. It is to the
applicant’s benefit that their project budget demonstrates that
CDBG funds will be encumbered and utilized prior to the one-year
expenditure deadline. The scoring system is also intended to
encourage the use of resources and funds over and above the CDBG
funds applied for in undertaking a project. The components to
be examined include:
1. Need for CDBG funds.
2. Sufficiency of resources to complete the project.
3. Effective and timely expenditure of CDBG funds.
4. Accurate cost estimates.
Points to be awarded on project funding are:
Funding Impact . . . . . . . . . . . . 100 pts.
Budget Impact . . . . . . . . . . . . 100 pts.
The following general criteria will be used in measuring impact:
1. Funding impact:
100 pts. a. The applicant clearly documents the need for
CDBG funds and all sources of funds are
secured and committed to complete the
project.
75 pts. b. The applicant appears to need CDBG funds to
complete the project and other sources of
funds have been identified and firm
commitments have been received.
50 pts. c. CDBG funds may not be sufficient to complete
the project but other resources have been
identified and no commitments have been
received.
25 pts. d. The CDBG funds would have little impact to
complete the project and other resources
have not been identified or secured.
0 pts. e. No other funds have been identified and
committed to complete the project.
2. Budget impact:
100 pts. a. The project costs are clearly documented and
are accurate.
2022 CDBG PROPOSAL/7/20/21 23
75 pts. b. The project costs appears to be accurate but
not well documented.
50 pts. c. The accuracy of the project costs are
questionable and not well documented.
25 pts. d. The project costs are inaccurate and are not
documented.
0 pts. e. The project costs were not submitted and not
documented.
Applicant Evaluation
The applicant evaluation element is intended to ensure that
the applicant has the necessary qualifications and
expertise to carry out the proposed project. To be awarded
a grant, the applicant must have the capacity to undertake,
complete and administer the project in compliance with the
CDBG program rules in a timely and efficient manner. In
addition, applicants who have received CDBG funds in the
past will be evaluated on the basis of their past
performance.
The components to be examined include:
1. Compliance with Federal Overlay Statutes:
Applicants are required to indicate whether their
activities will necessitate compliance with federal
overlay statutes as described in Appendix E and the
applicant should describe its understanding and
procedures for complying with these federal statutes.
2. Project/Program Management Capabilities:
The project management component is designed to
evaluate the applicant’s capacity to implement the
project. If an on-going program activity will result
from this project (i.e., construction of a building
for operation as an elderly day-care center, etc.),
the program management section will be evaluated to
determine if the applicant has the capacity to
implement the program activity as well as the project.
3. Past Performance:
The performance component involves an examination of
the applicant’s previous record in carrying out the
CDBG project. Criteria to be examined include:
a. Applicant’s rate of progress in completing
community development activities.
2022 CDBG PROPOSAL/7/20/21 24
b. Applicant’s rate of expenditure and obligation of
community development funds.
c. Applicant’s compliance with applicable laws and
regulations.
d. Applicant’s track record for responding to the
OHCD in a timely manner.
If the applicant has not received CDBG funding or
other federal funding in the past, it will be rated
solely on its Project Management Capabilities to
complete the project in the one-year time frame and
use of other funding types.
Points will be assigned for each component based on
the following criteria:
1. Compliance with Federal Overlay Statutes:
50 pts. a. The applicant has fully addressed all
applicable overlay statutes and describes
its procedures for compliance.
40 pts. b. The applicant has addressed most of the
applicable statutes and describes its
procedures for compliance, which appear
reasonable and fully achievable.
30 pts. c. The applicant has addressed most of the
applicable statutes and describes its
procedures for compliance but there appears
to have slight problems with respect to
overlay statute compliance.
20 pts. d. The applicant has addressed some of the
applicable statutes and describes its
procedures for compliance but there appears
to have moderate problems with respect to
overlay statute compliance.
0 pts. e. The applicant did not address the applicable
statutes and the project appears to have
extensive problems with respect to overlay
statute compliance.
2. Project/Program Management:
100 pts. a. The applicant clearly documents the
necessary qualifications and experience to
carry out the project.
75 pts. b. The applicant appears to have the necessary
qualifications and experience to carry out
the project, but it is not well documented.
50 pts. c. The applicant appears to have most of the
2022 CDBG PROPOSAL/7/20/21 25
necessary qualifications and experience to
carry out the project.
25 pts. d. The applicant appears to have some of the
necessary qualifications and experience to
carry out the project.
0 pts. e. The applicant does not appear to have the
necessary qualifications or experience.
3.Past Performance:
100 pts. a. The applicant has implemented past projects
on a timely basis.
75 pts. b. The applicant had some problems in
implementing the past projects, but the
problems were fully resolvable.
50 pts. c. The applicant had problems in implementing
past projects.
25 pts. d. The applicant had problems in implementing
past projects.
C.FINAL SELECTION
1. Ranking:
The points received on each of the elements will be
added and the projects ranked accordingly. A project
proposal is required to receive a minimum of 50% of
the total points to be considered for ranking. An
interview/and or site inspection with each eligible
applicant may be conducted, to clarify any information
prior to the final project review, rating and
recommendation. The OHCD will submit its 2022 Action
Plan with its recommended projects to the Hawai i
County Housing Agency/Council for Mayor’s approval to
submit the Action Plan to HUD, based on this ranking
system.
In cases of a tie in the number of points a project
receives, the following method will be used:
(a)The project which has the higher “Extent and
Seriousness of the Identified Needs” evaluation
score will be selected.
(b)If the projects meet the same “Extent and
Seriousness of the Identified Needs”, the
proposal which has the higher “Need for CDBG
Funds” evaluation score will be elected.
2022 CDBG PROPOSAL/7/20/21 26
III. PROPOSAL REQUIREMENTS
A. GENERAL
The information required in the proposal will be used by
the OHCD to make a recommendation to the Hawaiʻi County
Council for final funding decisions. Appendix F contains a
copy of the proposal form.
NOTE: Please call Brian Ishimoto at (808)961-8379 if you
would like the proposal form on a CD (Office 365).
B. SUBMISSION DATES
Original project proposal and two (2) copies for (NO SPIRAL
BINDING) 2022 CDBG program funds should be bounded to
secure all documents and must be submitted and time stamped
to the OHCD Hilo or Kona office by November 22, 2021, no
later than 4:30 p.m. PROPOSALS RECEIVED AND TIME STAMPED
AFTER THE DATE AND TIME DEADLINE, PROPOSALS NOT ACCOMPANIED
WITH THE APPROPRIATE TWO (2) COPIES AND INCOMPLETE
PROPOSALS WILL BE REJECTED. Project Proposals delivered
and/or submitted by e-mail or fax will NOT be accepted.
All Project Proposals must be received and timestamped by
the OHCD by 4:30pm November 22, 2021.
Only data submitted by the deadline will be considered in
the selection process. The OHCD may request additional
data which will be required to be submitted as promulgated
by the CDBG Program rules to comply with the Consolidated
Plan.
For your information, Appendix B contains the CDBG proposal
(Action Plan) schedule. Additional data submitted after
the proposal due date and not requested by the OHCD will be
returned.
C. PROPOSAL REQUIREMENTS
The proposal and its exhibits in Appendix F contain
specific instructions for completing each section.
Applicants should check and verify their proposal
requirements as contained in the Instructions and Checklist
form.
2022 CDBG PROPOSAL/7/20/21 27
HUD INCOME DEFINITIONS AND LIMITS
Under the CDBG program, applicants must select and consistently
utilize one of the three definitions of income in determining a
low- and moderate-income household.
1. Annual income as defined under Section 8 Housing Assistance
Payments Program income limits as established by HUD. Low-
and moderate-income household, or lower income household
means a household whose annual income does not exceed 80%
of the median family income for the County of Hawaiʻi.
Very low income is defined as 50% of the median income.
Very, very low income is defined as 30% of the median
income.
INCOME LIMITS FOR 2021
(To be used with the HUD-approved survey)
Low & Moderate Very Low
Family Size Income Limit Income Limit
1 47,950 30,000
2 54,800 34,250
3 61,650 38,550
4 68,500 42,800
5 74,000 46,250
6 79,500 49,650
7 84,950 53,100
8 90,450 56,500
Effective date: April 1, 2021
Fiscal 2021 Median Family Income: $78,800
NOTE: HUD income limits are updated annually. If you are
unsure on how to apply these income limits, contact the OHCD for
advice and especially how to document compliance with the
appropriate quantifiable data to support this national
objective.
Elderly persons are defined as members of a one-or two-person
household containing a person over 62 years of age.
2022 CDBG PROPOSAL/7/20/21 28
2. Annual Income as reported under the Census long-form for
the most recent available decennial Census. This
definition includes:
a) Wages, salaries, tips, commission, etc.;
b) Self-employment income;
c) Interest, dividends, net rental income or
income from estates or trust;
d) Farm self-employment income;
e) Social security;
f) Supplemental security income or other public
assistance or public welfare programs;
g) Retirement, survivor or disability pensions;
and
h) Any other sources of income received
regularly including veteran’s payments,
unemployment compensation and/or alimony.
3. Adjusted gross income as defined for purposes of reporting
under Internal Revenue Service (IRS) Form 1040 for
individual federal annual income tax purposes.
2022 CDBG PROPOSAL/7/20/21 30
Subpart C — Eligible Activities
§ 570.200 General policies.
§ 570.201 Basic eligible activities.
§ 570.202 Eligible rehabilitation and preservation activities.
§ 570.203 Special economic development activities.
§ 570.204 Special activities by Community-Based Development
Organizations (CBDOs).
§ 570.205 Eligible planning, urban environmental design and policy-
planning management-capacity building activities.
§ 570.206 Program administrative costs.
§ 570.207 Ineligible activities.
§ 570.208 Criteria for national objectives.
§ 570.209 Guidelines for evaluating and selecting economic development
projects.
§ 570.210 Prohibition on use of assistance for employment relocation
activities.
§570.200 General policies.
(a) Determination of eligibility. An activity may be assisted in whole
or in part with CDBG funds only if all of the following requirements
are met:
(1) Compliance with section 105 of the Act. Each activity must meet
the eligibility requirements of section 105 of the Act as further
defined in this subpart.
(2) Compliance with national objectives. Grant recipients under the
Entitlement and HUD-administered Small Cities programs and recipients
of insular area funds under section 106 of the Act must certify that
their projected use of funds has been developed so as to give maximum
feasible priority to activities which will carry out one of the
national objectives of benefit to low- and moderate-income families or
aid in the prevention or elimination of slums or blight. The projected
use of funds may also include activities that the recipient certifies
are designed to meet other community development needs having a
particular urgency because existing conditions pose a serious and
immediate threat to the health or welfare of the community where other
financial resources are not available to meet such needs. Consistent
with the foregoing, each recipient under the Entitlement or HUD-
administered Small Cities programs, and each recipient of insular area
funds under section 106 of the Act must ensure and maintain evidence
that each of its activities assisted with CDBG funds meets one of the
three national objectives as contained in its certification. Criteria
for determining whether an activity addresses one or more of these
objectives are found in §570.208.
(3) Compliance with the primary objective. The primary objective of
the Act is described in section 101(c) of the Act. Consistent with
this objective, entitlement recipients, non-entitlement CDBG grantees
in Hawaiʻi, and recipients of insular area funds under section 106 of
the Act must ensure that, over a period of time specified in their
certification not to exceed three years, not less than 70 percent of
the aggregate of CDBG fund expenditures shall be for activities
2022 CDBG PROPOSAL/7/20/21 31
meeting the criteria under §570.208(a) or under §570.208(d)(5) or (6)
for benefiting low- and moderate-income persons. For grants under
section 107 of the Act, insular area recipients must meet this
requirement for each separate grant. See §570.420(d)(3) for additional
discussion of the primary objective requirement for insular areas
funded under section 106 of the Act. The requirements for the HUD-
administered Small Cities program in New York are at §570.420(d)(2).
In determining the percentage of funds expended for such activities:
(i) Cost of administration and planning eligible under §570.205 and
§570.206 will be assumed to benefit low- and moderate-income persons
in the same proportion as the remainder of the CDBG funds and,
accordingly shall be excluded from the calculation;
(ii) Funds deducted by HUD for repayment of urban renewal temporary
loans pursuant to §570.802(b) shall be excluded;
(iii) Funds expended for the repayment of loans guaranteed under the
provisions of subpart M of this part (including repayment of the
portion of a loan used to pay any issuance, servicing, underwriting,
or other costs as may be incurred under §570.705(g)) shall also be
excluded;
(iv) Funds expended for the acquisition, new construction or
rehabilitation of property for housing that qualifies under
§570.208(a)(3) shall be counted for this purpose but shall be limited
to an amount determined by multiplying the total cost (including CDBG
and non-CDBG costs) of the acquisition, construction or rehabilitation
by the percent of units in such housing to be occupied by low and
moderate income persons.
(v) Funds expended for any other activities qualifying under
§570.208(a) shall be counted for this purpose in their entirety.
(4) Compliance with environmental review procedures. The environmental
review procedures set forth at 24 CFR part 58 must be completed for
each activity (or project as defined in 24 CFR part 58), as
applicable.
(5) Cost principles. Costs incurred, whether charged on a direct or an
indirect basis, must be in conformance with 2 CFR part 200, subpart E.
All items of cost listed in 2 CFR part 200, subpart E, that require
prior Federal agency approval are allowable without prior approval of
HUD to the extent they comply with the general policies and principles
stated in 2 CFR part 200, subpart E and are otherwise eligible under
this subpart C, except for the following:
(i) Depreciation methods for fixed assets shall not be changed without
the approval of the Federal cognizant agency.
(ii) Fines penalties, damages, and other settlements are unallowable
costs to the CDBG program.
2022 CDBG PROPOSAL/7/20/21 32
(iii) Costs of housing (e.g., depreciation, maintenance, utilities,
furnishings, rent), housing allowances and personal living expenses
(goods or services for personal use) regardless of whether reported as
taxable income to the employees (2 CFR 200.445);
(iv) Organization costs (2 CFR 200.455); and
(v) Pre-award costs are limited to those authorized under paragraph
(h) of this section.
(b) Special policies governing facilities. The following special
policies apply to:
(1) Facilities containing both eligible and ineligible uses. A public
facility otherwise eligible for assistance under the CDBG program may
be provided with CDBG funds even if it is part of a multiple use
building containing ineligible uses, if:
(i) The facility which is otherwise eligible and proposed for
assistance will occupy a designated and discrete area within the
larger facility; and
(ii) The recipient can determine the costs attributable to the
facility proposed for assistance as separate and distinct from the
overall costs of the multiple use building and/or facility.
Allowable costs are limited to those attributable to the eligible
portion of the building or facility.
(2) Fees for use of facilities. Reasonable fees may be charged for the
use of the facilities assisted with CDBG funds, but charges such as
excessive membership fees, which will have the effect of precluding
low- and moderate-income persons from using the facilities, are not
permitted.
(c) Special assessments under the CDBG program. The following policies
relate to special assessments under the CDBG program:
(1) Definition of special assessment. The term “special assessment”
means the recovery of the capital costs of a public improvement, such
as streets, water or sewer lines, curbs, and gutters, through a fee or
charge levied or filed as a lien against a parcel of real estate as a
direct result of benefit derived from the installation of a public
improvement, or a one-time charge made as a condition of access to a
public improvement. This term does not relate to taxes, or the
establishment of the value of real estate for the purpose of levying
real estate, property, or ad valorem taxes, and does not include
periodic charges based on the use of a public improvement, such as
water or sewer user charges, even if such charges include the recovery
of all or some portion of the capital costs of the public improvement.
(2) Special assessments to recover capital costs. Where CDBG funds are
used to pay all or part of the cost of a public improvement, special
assessments may be imposed as follows:
2022 CDBG PROPOSAL/7/20/21 33
(i) Special assessments to recover the CDBG funds may be made only
against properties owned and occupied by persons not of low and
moderate income. Such assessments constitute program income.
(ii) Special assessments to recover the non-CDBG portion may be made
provided that CDBG funds are used to pay the special assessment in
behalf of all properties owned and occupied by low and moderate income
persons; except that CDBG funds need not be used to pay the special
assessments in behalf of properties owned and occupied by moderate
income persons if the grant recipient certifies that it does not have
sufficient CDBG funds to pay the assessments in behalf of all of the
low and moderate income owner-occupant persons. Funds collected
through such special assessments are not program income.
(3) Public improvements not initially assisted with CDBG funds. The
payment of special assessments with CDBG funds constitutes CDBG
assistance to the public improvement. Therefore, CDBG funds may be
used to pay special assessments provided:
(i) The installation of the public improvements was carried out in
compliance with requirements applicable to activities assisted under
this part including environmental, citizen participation and Davis-
Bacon requirements;
(ii) The installation of the public improvement meets a criterion for
national objectives in §570.208(a)(1), (b), or (c); and
(iii) The requirements of §570.200(c)(2)(ii) are met.
(d) Consultant activities. Consulting services are eligible for
assistance under this part for professional assistance in program
planning, development of community development objectives, and other
general professional guidance relating to program execution. The use
of consultants is governed by the following:
(1) Employer-employee type of relationship. No person providing
consultant services in an employer-employee type of relationship shall
receive more than a reasonable rate of compensation for personal
services paid with CDBG funds. In no event, however, shall such
compensation exceed the equivalent of the daily rate paid for Level IV
of the Executive Schedule. Such services shall be evidenced by written
agreements between the parties which detail the responsibilities,
standards, and compensation.
(2) Independent contractor relationship. Consultant services provided
under an independent contractor relationship are governed by the
procurement requirements in 2 CFR part 200, subpart D, and are not
subject to the compensation limitation of Level IV of the Executive
Schedule.
(e) Recipient determinations required as a condition of eligibility.
In several instances under this subpart, the eligibility of an
activity depends on a special local determination. Recipients shall
maintain documentation of all such determinations. A written
2022 CDBG PROPOSAL/7/20/21 34
determination is required for any activity carried out under the
authority of §§570.201(f), 570.201(i)(2), 570.201(p), 570.201(q),
570.202(b)(3), 570.206(f), 570.209, 570.210, and 570.309.
(f) Means of carrying out eligible activities. (1) Activities eligible
under this subpart, other than those authorized under §570.204(a), may
be undertaken, subject to local law:
(i) By the recipient through:
(A) Its employees, or
(B) Procurement contracts governed by the requirements of 2 CFR part
200, subpart D; or
(ii) Through loans or grants under agreements with subrecipients, as
defined at §570.500(c); or
(iii) By one or more public agencies, including existing local public
agencies, that are designated by the chief executive officer of the
recipient.
(2) Activities made eligible under §570.204(a) may only be undertaken
by entities specified in that section.
(g) Limitation on planning and administrative costs—(1) Origin year
grant expenditure test. For origin year 2015 grants and subsequent
grants, no more than 20 percent of any origin year grant shall be
expended for planning and program administrative costs, as defined in
§§570.205 and 570.206, respectively. Expenditures of program income
for planning and program administrative costs are excluded from this
calculation.
(2) Program year obligation test. For all grants and recipients
subject to subpart D, the amount of CDBG funds obligated during each
program year for planning plus administrative costs, as defined in
§§570.205 and 570.206, respectively, shall be limited to an amount no
greater than 20 percent of the sum of the grant made for that program
year (if any) plus the program income received by the recipient and
its subrecipients (if any) during that program year. For origin year
2015 grants and subsequent grants, recipients must apply this test
consistent with paragraph (g)(1) of this section.
(3) Funds from a grant of any origin year may be used to pay planning
and program administrative costs associated with any grant of any
origin year.
(h) Reimbursement for pre-award costs. The effective date of the grant
agreement is the program year start date or the date that the
consolidated plan is received by HUD, whichever is later. For a
Section 108 loan guarantee, the effective date of the grant agreement
is the date of HUD execution of the grant agreement amendment for the
particular loan guarantee commitment.
2022 CDBG PROPOSAL/7/20/21 35
(1) Prior to the effective date of the grant agreement, a recipient
may incur costs or may authorize a subrecipient to incur costs, and
then after the effective date of the grant agreement pay for those
costs using its CDBG funds, provided that:
(i) The activity for which the costs are being incurred is included,
prior to the costs being incurred, in a consolidated plan action plan,
an amended consolidated plan action plan, or an application under
subpart M of this part, except that a new entitlement grantee
preparing to receive its first allocation of CDBG funds may incur
costs necessary to develop its consolidated plan and undertake other
administrative actions necessary to receive its first grant, prior to
the costs being included in its consolidated plan;
(ii) Citizens are advised of the extent to which these pre-award costs
will affect future grants;
(iii) The costs and activities funded are in compliance with the
requirements of this part and with the Environmental Review Procedures
stated in 24 CFR part 58;
(iv) The activity for which payment is being made complies with the
statutory and regulatory provisions in effect at the time the costs
are paid for with CDBG funds;
(v) CDBG payment will be made during a time no longer than the next
two program years following the effective date of the grant agreement
or amendment in which the activity is first included; and
(vi) The total amount of pre-award costs to be paid during any program
year pursuant to this provision is no more than the greater of 25
percent of the amount of the grant made for that year or $300,000.
(2) Upon the written request of the recipient, HUD may authorize
payment of pre-award costs for activities that do not meet the
criteria at paragraph (h)(1)(v) or (h)(1)(vi) of this section, if HUD
determines, in writing, that there is good cause for granting an
exception upon consideration of the following factors, as applicable:
(i) Whether granting the authority would result in a significant
contribution to the goals and purposes of the CDBG program;
(ii) Whether failure to grant the authority would result in undue
hardship to the recipient or beneficiaries of the activity;
(iii) Whether granting the authority would not result in a violation
of a statutory provision or any other regulatory provision;
(iv) Whether circumstances are clearly beyond the recipient's control;
or
(v) Any other relevant considerations.
2022 CDBG PROPOSAL/7/20/21 36
(i) Urban Development Action Grant. Grant assistance may be provided
with Urban Development Action Grant funds, subject to the provisions
of subpart G, for:
(1) Activities eligible for assistance under this subpart; and
(2) Notwithstanding the provisions of §570.207, such other activities
as the Secretary may determine to be consistent with the purposes of
the Urban Development Action Grant program.
(j) Equal participation of faith-based organizations. The HUD program
requirements in §5.109 of this title apply to the CDBG program,
including the requirements regarding disposition and change in use of
real property by a faith-based organization.
(k) Any unexpended CDBG origin year grant funds in the United States
Treasury account on September 30 of the fifth Federal fiscal year
after the end of the origin year grant's period of availability for
obligation by HUD will be canceled. HUD may require an earlier
expenditure and draw down deadline under a grant agreement.
[53 FR 34439, Sept. 6, 1988, as amended at 54 FR 47031, Nov. 8, 1989;
57 FR 27119, June 17, 1992; 60 FR 1943, Jan. 5, 1995; 60 FR 17445,
Apr. 6, 1995; 60 FR 56910, Nov. 9, 1995; 61 FR 11476, Mar. 20, 1996;
61 FR 18674, Apr. 29, 1996; 65 FR 70215, Nov. 21, 2000; 68 FR 56404,
Sept. 30, 2003; 69 FR 32778, June 10, 2004; 70 FR 76369, Dec. 23,
2005; 72 FR 46370, Aug. 17, 2007; 80 FR 67633, Nov. 3, 2015; 80 FR
69870, Nov. 12, 2015; 80 FR 75936, Dec. 7, 2015; 81 FR 19418, Apr. 4,
2016]
§570.201 Basic eligible activities.
CDBG funds may be used for the following activities:
(a) Acquisition. Acquisition in whole or in part by the recipient, or
other public or private nonprofit entity, by purchase, long-term
lease, donation, or otherwise, of real property (including air rights,
water rights, rights-of-way, easements, and other interests therein)
for any public purpose, subject to the limitations of §570.207.
(b) Disposition. Disposition, through sale, lease, donation, or
otherwise, of any real property acquired with CDBG funds or its
retention for public purposes, including reasonable costs of
temporarily managing such property or property acquired under urban
renewal, provided that the proceeds from any such disposition shall be
program income subject to the requirements set forth in §570.504.
(c) Public facilities and improvements. Acquisition, construction,
reconstruction, rehabilitation or installation of public facilities
and improvements, except as provided in §570.207(a), carried out by
the recipient or other public or private nonprofit entities. (However,
activities under this paragraph may be directed to the removal of
material and architectural barriers that restrict the mobility and
accessibility of elderly or severely disabled persons to public
2022 CDBG PROPOSAL/7/20/21 37
facilities and improvements, including those provided for in
§570.207(a)(1).) In undertaking such activities, design features and
improvements which promote energy efficiency may be included. Such
activities may also include the execution of architectural design
features, and similar treatments intended to enhance the aesthetic
quality of facilities and improvements receiving CDBG assistance, such
as decorative pavements, railings, sculptures, pools of water and
fountains, and other works of art. Facilities designed for use in
providing shelter for persons having special needs are considered
public facilities and not subject to the prohibition of new housing
construction described in §570.207(b)(3). Such facilities include
shelters for the homeless; convalescent homes; hospitals, nursing
homes; battered spouse shelters; halfway houses for run-away children,
drug offenders or parolees; group homes for mentally retarded persons
and temporary housing for disaster victims. In certain cases,
nonprofit entities and subrecipients including those specified in
§570.204 may acquire title to public facilities. When such facilities
are owned by nonprofit entities or subrecipients, they shall be
operated so as to be open for use by the general public during all
normal hours of operation. Public facilities and improvements eligible
for assistance under this paragraph are subject to the policies in
§570.200(b).
(d) Clearance and remediation activities. Clearance, demolition, and
removal of buildings and improvements, including movement of
structures to other sites and remediation of known or suspected
environmental contamination. Demolition of HUD-assisted or HUD-owned
housing units may be undertaken only with the prior approval of HUD.
Remediation may include project-specific environmental assessment
costs not otherwise eligible under §570.205.
(e) Public services. Provision of public services (including labor,
supplies, and materials) including but not limited to those concerned
with employment, crime prevention, child care, health, drug abuse,
education, fair housing counseling, energy conservation, welfare (but
excluding the provision of income payments identified under
§570.207(b)(4)), homebuyer down payment assistance, or recreational
needs. To be eligible for CDBG assistance, a public service must be
either a new service or a quantifiable increase in the level of an
existing service above that which has been provided by or on behalf of
the unit of general local government (through funds raised by the unit
or received by the unit from the State in which it is located) in the
12 calendar months before the submission of the action plan. (An
exception to this requirement may be made if HUD determines that any
decrease in the level of a service was the result of events not within
the control of the unit of general local government.) The amount of
CDBG funds used for public services shall not exceed paragraphs (e)
(1) or (2) of this section, as applicable:
(1) The amount of CDBG funds used for public services shall not exceed
15 percent of each grant, except that for entitlement grants made
under subpart D of this part, nonentitlement CDBG grants in Hawaiʻi,
and for recipients of insular area funds under section 106 of the Act,
the amount shall not exceed 15 percent of the grant plus 15 percent of
program income, as defined in §570.500(a). For entitlement grants
2022 CDBG PROPOSAL/7/20/21 38
under subpart D of this part, nonentitlement CDBG grants in Hawaiʻi,
and for recipients of insular area funds under section 106 of the Act,
compliance is based on limiting the amount of CDBG funds obligated for
public service activities in each program year to an amount no greater
than 15 percent of the entitlement grant made for that program year
plus 15 percent of the program income received during the grantee's
immediately preceding program year.
(2) A recipient which obligated more CDBG funds for public services
than 15 percent of its grant funded from origin year 1982 or 1983
appropriations (excluding program income and any assistance received
under Public Law 98-8), may obligate more CDBG funds than allowable
under paragraph (e)(1) of this section, so long as the total amount
obligated in any program year does not exceed:
(i) For an entitlement grantee, 15% of the program income it received
during the preceding program year; plus
(ii) A portion of the grant received for the program year which is the
highest of the following amounts:
(A) The amount determined by applying the percentage of the grant it
obligated for public services in the 1982 program year against the
grant for its current program year;
(B) The amount determined by applying the percentage of the grant it
obligated for public services in the 1983 program year against the
grant for its current program year;
(C) The amount of funds it obligated for public services in the 1982
program year; or,
(D) The amount of funds it obligated for public services in the 1983
program year.
(f) Interim assistance. (1) The following activities may be undertaken
on an interim basis in areas exhibiting objectively determinable signs
of physical deterioration where the recipient has determined that
immediate action is necessary to arrest the deterioration and that
permanent improvements will be carried out as soon as practicable:
(i) The repairing of streets, sidewalks, parks, playgrounds, publicly
owned utilities, and public buildings; and
(ii) The execution of special garbage, trash, and debris removal,
including neighborhood cleanup campaigns, but not the regular curbside
collection of garbage or trash in an area.
(2) In order to alleviate emergency conditions threatening the public
health and safety in areas where the chief executive officer of the
recipient determines that such an emergency condition exists and
requires immediate resolution, CDBG funds may be used for:
2022 CDBG PROPOSAL/7/20/21 39
(i) The activities specified in paragraph (f)(1) of this section,
except for the repair of parks and playgrounds;
(ii) The clearance of streets, including snow removal and similar
activities, and
(iii) The improvement of private properties.
(3) All activities authorized under paragraph (f)(2) of this section
are limited to the extent necessary to alleviate emergency conditions.
(g) Payment of non-Federal share. Payment of the non-Federal share
required in connection with a Federal grant-in-aid program undertaken
as part of CDBG activities, provided, that such payment shall be
limited to activities otherwise eligible and in compliance with
applicable requirements under this subpart.
(h) Urban renewal completion. Payment of the cost of completing an
urban renewal project funded under title I of the Housing Act of 1949
as amended. Further information regarding the eligibility of such
costs is set forth in §570.801.
(i) Relocation. Relocation payments and other assistance for
permanently and temporarily relocated individuals families,
businesses, nonprofit organizations, and farm operations where the
assistance is (1) required under the provisions of §570.606 (b) or
(c); or (2) determined by the grantee to be appropriate under the
provisions of §570.606(d).
(j) Loss of rental income. Payments to housing owners for losses of
rental income incurred in holding, for temporary periods, housing
units to be used for the relocation of individuals and families
displaced by program activities assisted under this part.
(k) Housing services. Housing services, as provided in section
105(a)(21) of the Act (42 U.S.C. 5305(a)(21)).
(l) Privately owned utilities. CDBG funds may be used to acquire,
construct, reconstruct, rehabilitate, or install the distribution
lines and facilities of privately owned utilities, including the
placing underground of new or existing distribution facilities and
lines.
(m) Construction of housing. CDBG funds may be used for the
construction of housing assisted under section 17 of the United States
Housing Act of 1937.
(n) Homeownership assistance. CDBG funds may be used to provide direct
homeownership assistance to low- or moderate-income households in
accordance with section 105(a) of the Act.
(o)(1) The provision of assistance either through the recipient
directly or through public and private organizations, agencies, and
2022 CDBG PROPOSAL/7/20/21 40
other subrecipients (including nonprofit and for-profit subrecipients)
to facilitate economic development by:
(i) Providing credit, including, but not limited to, grants, loans,
loan guarantees, and other forms of financial support, for the
establishment, stabilization, and expansion of microenterprises;
(ii) Providing technical assistance, advice, and business support
services to owners of microenterprises and persons developing
microenterprises; and
(iii) Providing general support, including, but not limited to, peer
support programs, counseling, childcare, transportation, and other
similar services, to owners of microenterprises and persons developing
microenterprises.
(2) Services provided this paragraph (o) shall not be subject to the
restrictions on public services contained in paragraph (e) of this
section.
(3) For purposes of this paragraph (o), “persons developing
microenterprises” means such persons who have expressed interest and
who are, or after an initial screening process are expected to be,
actively working toward developing businesses, each of which is
expected to be a microenterprise at the time it is formed.
(4) Assistance under this paragraph (o) may also include training,
technical assistance, or other support services to increase the
capacity of the recipient or subrecipient to carry out the activities
under this paragraph (o).
(p) Technical assistance. Provision of technical assistance to public
or nonprofit entities to increase the capacity of such entities to
carry out eligible neighborhood revitalization or economic development
activities. (The recipient must determine, prior to the provision of
the assistance, that the activity for which it is attempting to build
capacity would be eligible for assistance under this subpart C, and
that the national objective claimed by the grantee for this assistance
can reasonably be expected to be met once the entity has received the
technical assistance and undertakes the activity.) Capacity building
for private or public entities (including grantees) for other purposes
may be eligible under §570.205.
(q) Assistance to institutions of higher education. Provision of
assistance by the recipient to institutions of higher education when
the grantee determines that such an institution has demonstrated a
capacity to carry out eligible activities under this subpart C.
[53 FR 34439, Sept. 6, 1988, as amended at 53 FR 31239, Aug. 17, 1988;
55 FR 29308, July 18, 1990; 57 FR 27119, June 17, 1992; 60 FR 1943,
Jan. 5, 1995; 60 FR 56911, Nov. 9, 1995; 61 FR 18674, Apr. 29, 1996;
65 FR 70215, Nov. 21, 2000; 67 FR 47213, July 17, 2002; 71 FR 30034,
May 24, 2006; 80 FR 69870, Nov. 12, 2015]
2022 CDBG PROPOSAL/7/20/21 41
§570.202 Eligible rehabilitation and preservation activities.
(a) Types of buildings and improvements eligible for rehabilitation
assistance. CDBG funds may be used to finance the rehabilitation of:
(1) Privately owned buildings and improvements for residential
purposes; improvements to a single-family residential property which
is also used as a place of business, which are required in order to
operate the business, need not be considered to be rehabilitation of a
commercial or industrial building, if the improvements also provide
general benefit to the residential occupants of the building;
(2) Low-income public housing and other publicly owned residential
buildings and improvements;
(3) Publicly or privately owned commercial or industrial buildings,
except that the rehabilitation of such buildings owned by a private
for-profit business is limited to improvement to the exterior of the
building, abatement of asbestos hazards, lead-based paint hazard
evaluation and reduction, and the correction of code violations;
(4) Nonprofit-owned nonresidential buildings and improvements not
eligible under §570.201(c); and
(5) Manufactured housing when such housing constitutes part of the
community's permanent housing stock.
(b) Types of assistance. CDBG funds may be used to finance the
following types of rehabilitation activities, and related costs,
either singly, or in combination, through the use of grants, loans,
loan guarantees, interest supplements, or other means for buildings
and improvements described in paragraph (a) of this section, except
that rehabilitation of commercial or industrial buildings is limited
as described in paragraph (a)(3) of this section.
(1) Assistance to private individuals and entities, including profit
making and nonprofit organizations, to acquire for the purpose of
rehabilitation, and to rehabilitate properties, for use or resale for
residential purposes;
(2) Labor, materials, and other costs of rehabilitation of properties,
including repair directed toward an accumulation of deferred
maintenance, replacement of principal fixtures and components of
existing structures, installation of security devices, including smoke
detectors and dead bolt locks, and renovation through alterations,
additions to, or enhancement of existing structures and improvements,
abatement of asbestos hazards (and other contaminants) in buildings
and improvements that may be undertaken singly, or in combination;
(3) Loans for refinancing existing indebtedness secured by a property
being rehabilitated with CDBG funds if such financing is determined by
the recipient to be necessary or appropriate to achieve the locality's
community development objectives;
2022 CDBG PROPOSAL/7/20/21 42
(4) Improvements to increase the efficient use of energy in structures
through such means as installation of storm windows and doors, siding,
wall and attic insulation, and conversion, modification, or
replacement of heating and cooling equipment, including the use of
solar energy equipment;
(5) Improvements to increase the efficient use of water through such
means as water savings faucets and shower heads and repair of water
leaks;
(6) Connection of residential structures to water distribution lines
or local sewer collection lines;
(7) For rehabilitation carried out with CDBG funds, costs of:
(i) Initial homeowner warranty premiums;
(ii) Hazard insurance premiums, except where assistance is provided in
the form of a grant; and
(iii) Flood insurance premiums for properties covered by the Flood
Disaster Protection Act of 1973, pursuant to §570.605.
(8) Costs of acquiring tools to be lent to owners, tenants, and others
who will use such tools to carry out rehabilitation;
(9) Rehabilitation services, such as rehabilitation counseling, energy
auditing, preparation of work specifications, loan processing,
inspections, and other services related to assisting owners, tenants,
contractors, and other entities, participating or seeking to
participate in rehabilitation activities authorized under this
section, under section 312 of the Housing Act of 1964, as amended,
under section 810 of the Act, or under section 17 of the United States
Housing Act of 1937;
(10) Assistance for the rehabilitation of housing under section 17 of
the United States Housing Act of 1937; and
(11) Improvements designed to remove material and architectural
barriers that restrict the mobility and accessibility of elderly or
severely disabled persons to buildings and improvements eligible for
assistance under paragraph (a) of this section.
(c) Code enforcement. Costs incurred for inspection for code
violations and enforcement of codes (e.g., salaries and related
expenses of code enforcement inspectors and legal proceedings, but not
including the cost of correcting the violations) in deteriorating or
deteriorated areas when such enforcement together with public or
private improvements, rehabilitation, or services to be provided may
be expected to arrest the decline of the area.
(d) Historic preservation. CDBG funds may be used for the
rehabilitation, preservation or restoration of historic properties,
whether publicly or privately owned. Historic properties are those
2022 CDBG PROPOSAL/7/20/21 43
sites or structures that are either listed in or eligible to be listed
in the National Register of Historic Places, listed in a State or
local inventory of historic places, or designated as a State or local
landmark or historic district by appropriate law or ordinance.
Historic preservation, however, is not authorized for buildings for
the general conduct of government.
(e) Renovation of closed buildings. CDBG funds may be used to renovate
closed buildings, such as closed school buildings, for use as an
eligible public facility or to rehabilitate such buildings for
housing.
(f) Lead-based paint activities. Lead-based paint activities pursuant
to §570.608.
[53 FR 34439, Sept. 6, 1988; 53 FR 41330, Oct. 21, 1988, as amended at
60 FR 1944, Jan. 5, 1995; 60 FR 56911, Nov. 9, 1995; 64 FR 50225,
Sept. 15, 1999; 71 FR 30035, May 24, 2006]
§570.203 Special economic development activities.
A recipient may use CDBG funds for special economic development
activities in addition to other activities authorized in this subpart
that may be carried out as part of an economic development project.
Guidelines for selecting activities to assist under this paragraph are
provided at §570.209. The recipient must ensure that the appropriate
level of public benefit will be derived pursuant to those guidelines
before obligating funds under this authority. Special activities
authorized under this section do not include assistance for the
construction of new housing. Activities eligible under this section
may include costs associated with project-specific assessment or
remediation of known or suspected environmental contamination. Special
economic development activities include:
(a) The acquisition, construction, reconstruction, rehabilitation or
installation of commercial or industrial buildings, structures, and
other real property equipment and improvements, including railroad
spurs or similar extensions. Such activities may be carried out by the
recipient or public or private nonprofit subrecipients.
(b) The provision of assistance to a private for-profit business,
including, but not limited to, grants, loans, loan guarantees,
interest supplements, technical assistance, and other forms of
support, for any activity where the assistance is appropriate to carry
out an economic development project, excluding those described as
ineligible in §570.207(a). In selecting businesses to assist under
this authority, the recipient shall minimize, to the extent
practicable, displacement of existing businesses and jobs in
neighborhoods.
(c) Economic development services in connection with activities
eligible under this section, including, but not limited to, outreach
efforts to market available forms of assistance; screening of
applicants; reviewing and underwriting applications for assistance;
2022 CDBG PROPOSAL/7/20/21 44
preparation of all necessary agreements; management of assisted
activities; and the screening, referral, and placement of applicants
for employment opportunities generated by CDBG-eligible economic
development activities, including the costs of providing necessary
training for persons filling those positions.
[53 FR 34439, Sept. 6, 1988, as amended at 60 FR 1944, Jan. 5, 1995;
71 FR 30035, May 24, 2006]
§570.204 Special activities by Community-Based Development
Organizations (CBDOs).
(a) Eligible activities. The recipient may provide CDBG funds as
grants or loans to any CBDO qualified under this section to carry out
a neighborhood revitalization, community economic development, or
energy conservation project. The funded project activities may include
those listed as eligible under this subpart, and, except as described
in paragraph (b) of this section, activities not otherwise listed as
eligible under this subpart. For purposes of qualifying as a project
under paragraphs (a)(1), (a)(2), and (a)(3) of this section, the
funded activity or activities may be considered either alone or in
concert with other project activities either being carried out or for
which funding has been committed. For purposes of this section:
(1) Neighborhood revitalization project includes activities of
sufficient size and scope to have an impact on the decline of a
geographic location within the jurisdiction of a unit of general local
government (but not the entire jurisdiction) designated in
comprehensive plans, ordinances, or other local documents as a
neighborhood, village, or similar geographical designation; or the
entire jurisdiction of a unit of general local government which is
under 25,000 population;
(2) Community economic development project includes activities that
increase economic opportunity, principally for persons of low- and
moderate-income, or that stimulate or retain businesses or permanent
jobs, including projects that include one or more such activities that
are clearly needed to address a lack of affordable housing accessible
to existing or planned jobs and those activities specified at 24 CFR
91.1(a)(1)(iii); activities under this paragraph may include costs
associated with project-specific assessment or remediation of known or
suspected environmental contamination;
(3) Energy conservation project includes activities that address
energy conservation, principally for the benefit of the residents of
the recipient's jurisdiction; and
(4) To carry out a project means that the CBDO undertakes the funded
activities directly or through contract with an entity other than the
grantee, or through the provision of financial assistance for
activities in which it retains a direct and controlling involvement
and responsibilities.
2022 CDBG PROPOSAL/7/20/21 45
(b) Ineligible activities. Notwithstanding that CBDOs may carry out
activities that are not otherwise eligible under this subpart, this
section does not authorize:
(1) Carrying out an activity described as ineligible in §570.207(a);
(2) Carrying out public services that do not meet the requirements of
§570.201(e), except that:
(i) Services carried out under this section that are specifically
designed to increase economic opportunities through job training and
placement and other employment support services, including, but not
limited to, peer support programs, counseling, childcare,
transportation, and other similar services; and
(ii) Services of any type carried out under this section pursuant to a
strategy approved by HUD under the provisions of 24 CFR 91.215(e)
shall not be subject to the limitations in §570.201(e)(1) or (2), as
applicable;
(3) Providing assistance to activities that would otherwise be
eligible under §570.203 that do not meet the requirements of §570.209;
or
(4) Carrying out an activity that would otherwise be eligible under
§570.205 or §570.206, but that would result in the recipient's
exceeding the spending limitation in §570.200(g).
(c) Eligible CBDOs. (1) A CBDO qualifying under this section is an
organization which has the following characteristics:
(i) Is an association or corporation organized under State or local
law to engage in community development activities (which may include
housing and economic development activities) primarily within an
identified geographic area of operation within the jurisdiction of the
recipient, or in the case of an urban county, the jurisdiction of the
county; and
(ii) Has as its primary purpose the improvement of the physical,
economic or social environment of its geographic area of operation by
addressing one or more critical problems of the area, with particular
attention to the needs of persons of low and moderate income; and
(iii) May be either non-profit or for-profit, provided any monetary
profits to its shareholders or members must be only incidental to its
operations; and
(iv) Maintains at least 51 percent of its governing body's membership
for low- and moderate-income residents of its geographic area of
operation, owners or senior officers of private establishments and
other institutions located in and serving its geographic area of
operation, or representatives of low- and moderate-income neighborhood
organizations located in its geographic area of operation; and
2022 CDBG PROPOSAL/7/20/21 46
(v) Is not an agency or instrumentality of the recipient and does not
permit more than one-third of the membership of its governing body to
be appointed by, or to consist of, elected or other public officials
or employees or officials of an ineligible entity (even though such
persons may be otherwise qualified under paragraph (c)(1)(iv) of this
section); and
(vi) Except as otherwise authorized in paragraph (c)(1)(v) of this
section, requires the members of its governing body to be nominated
and approved by the general membership of the organization, or by its
permanent governing body; and
(vii) Is not subject to requirements under which its assets revert to
the recipient upon dissolution; and
(viii) Is free to contract for goods and services from vendors of its
own choosing.
(2) A CBDO that does not meet the criteria in paragraph (c)(1) of this
section may also qualify as an eligible entity under this section if
it meets one of the following requirements:
(i) Is an entity organized pursuant to section 301(d) of the Small
Business Investment Act of 1958 (15 U.S.C. 681(d)), including those
which are profit making; or
(ii) Is an SBA approved Section 501 State Development Company or
Section 502 Local Development Company, or an SBA Certified Section 503
Company under the Small Business Investment Act of 1958, as amended;
or
(iii) Is a Community Housing Development Organization (CHDO) under 24
CFR 92.2, designated as a CHDO by the HOME Investment Partnerships
program participating jurisdiction, with a geographic area of
operation of no more than one neighborhood, and has received HOME
funds under 24 CFR 92.300 or is expected to receive HOME funds as
described in and documented in accordance with 24 CFR 92.300(e).
(3) A CBDO that does not qualify under paragraph (c)(1) or (2) of this
section may also be determined to qualify as an eligible entity under
this section if the recipient demonstrates to the satisfaction of HUD,
through the provision of information regarding the organization's
charter and by-laws, that the organization is sufficiently similar in
purpose, function, and scope to those entities qualifying under
paragraph (c)(1) or (2) of this section.
[60 FR 1944, Jan. 5, 1995, as amended at 71 FR 30035, May 24, 2006]
§570.205 Eligible planning, urban environmental design and policy-
planning-management-capacity building activities.
(a) Planning activities which consist of all costs of data gathering,
studies, analysis, and preparation of plans and the identification of
actions that will implement such plans, including, but not limited to:
2022 CDBG PROPOSAL/7/20/21 47
(1) Comprehensive plans;
(2) Community development plans;
(3) Functional plans, in areas such as:
(i) Housing, including the development of a consolidated plan;
(ii) Land use and urban environmental design;
(iii) Economic development;
(iv) Open space and recreation;
(v) Energy use and conservation;
(vi) Floodplain and wetlands management in accordance with the
requirements of Executive Orders 11988 and 11990;
(vii) Transportation;
(viii) Utilities; and
(ix) Historic preservation.
(4) Other plans and studies such as:
(i) Small area and neighborhood plans;
(ii) Capital improvements programs;
(iii) Individual project plans (but excluding engineering and design
costs related to a specific activity which are eligible as part of the
cost of such activity under §§570.201-570.204);
(iv) The reasonable costs of general environmental, urban
environmental design and historic preservation studies; and general
environmental assessment- and remediation-oriented planning related to
properties with known or suspected environmental contamination.
However, costs necessary to comply with 24 CFR part 58, including
project specific environmental assessments and clearances for
activities eligible for assistance under this part, are eligible as
part of the cost of such activities under §§570.201-570.204. Costs for
such specific assessments and clearances may also be incurred under
this paragraph but would then be considered planning costs for the
purposes of §570.200(g);
(v) Strategies and action programs to implement plans, including the
development of codes, ordinances and regulations;
(vi) Support of clearinghouse functions, such as those specified in
Executive Order 12372; and
2022 CDBG PROPOSAL/7/20/21 48
(vii) Assessment of Fair Housing.
(viii) Developing an inventory of properties with known or suspected
environmental contamination.
(5) [Reserved]
(6) Policy—planning—management—capacity building activities which will
enable the recipient to:
(1) Determine its needs;
(2) Set long-term goals and short-term objectives, including those
related to urban environmental design;
(3) Devise programs and activities to meet these goals and objectives;
(4) Evaluate the progress of such programs and activities in
accomplishing these goals and objectives; and
(5) Carry out management, coordination and monitoring of activities
necessary for effective planning implementation but excluding the
costs necessary to implement such plans.
[53 FR 34439, Sept. 6, 1988, as amended at 56 FR 56127, Oct. 31, 1991;
60 FR 1915, Jan. 5, 1995; 71 FR 30035, May 24, 2006; 80 FR 42366, July
16, 2015]
§570.206 Program administrative costs.
Payment of reasonable program administrative costs and carrying
charges related to the planning and execution of community development
activities assisted in whole or in part with funds provided under this
part and, where applicable, housing activities (described in paragraph
(g) of this section) covered in the recipient's housing assistance
plan. This does not include staff and overhead costs directly related
to carrying out activities eligible under §570.201 through §570.204,
since those costs are eligible as part of such activities.
(a) General management, oversight and coordination. Reasonable costs
of overall program management, coordination, monitoring, and
evaluation. Such costs include, but are not necessarily limited to,
necessary expenditures for the following:
(1) Salaries, wages, and related costs of the recipient's staff, the
staff of local public agencies, or other staff engaged in program
administration. In charging costs to this category the recipient may
either include the entire salary, wages, and related costs allocable
to the program of each person whose primary responsibilities with
regard to the program involve program administration assignments, or
the pro rata share of the salary, wages, and related costs of each
person whose job includes any program administration assignments. The
recipient may use only one of these methods during the program year.
Program administration includes the following types of assignments:
2022 CDBG PROPOSAL/7/20/21 49
(i) Providing local officials and citizens with information about the
program;
(ii) Preparing program budgets and schedules, and amendments thereto;
(iii) Developing systems for assuring compliance with program
requirements;
(iv) Developing interagency agreements and agreements with
subrecipients and contractors to carry out program activities;
(v) Monitoring program activities for progress and compliance with
program requirements;
(vi) Preparing reports and other documents related to the program for
submission to HUD;
(vii) Coordinating the resolution of audit and monitoring findings;
(viii) Evaluating program results against stated objectives; and
(ix) Managing or supervising persons whose primary responsibilities
with regard to the program include such assignments as those described
in paragraph (a)(1)(i) through (viii) of this section.
(2) Travel costs incurred for official business in carrying out the
program;
(3) Administrative services performed under third party contracts or
agreements, including such services as general legal services,
accounting services, and audit services; and
(4) Other costs for goods and services required for administration of
the program, including such goods and services as rental or purchase
of equipment, insurance, utilities, office supplies, and rental and
maintenance (but not purchase) of office space.
(b) Public information. The provisions of information and other
resources to residents and citizen organizations participating in the
planning, implementation, or assessment of activities being assisted
with CDBG funds.
(c) Fair housing activities. Provision of fair housing services
designed to further the fair housing objectives of the Fair Housing
Act (42 U.S.C. 3601-20) by making all persons, without regard to race,
color, religion, sex, national origin, familial status or handicap,
aware of the range of housing opportunities available to them; other
fair housing enforcement, education, and outreach activities; and
other activities designed to further the housing objective of avoiding
undue concentrations of assisted persons in areas containing a high
proportion of low and moderate income persons.
(d) [Reserved]
2022 CDBG PROPOSAL/7/20/21 50
(e) Indirect costs. Indirect costs may be charged to the CDBG program
under a cost allocation plan prepared in accordance with 2 CFR part
200, subpart E.
(f) Submission of applications for federal programs. Preparation of
documents required for submission to HUD to receive funds under the
CDBG and UDAG programs. In addition, CDBG funds may be used to prepare
applications for other Federal programs where the recipient determines
that such activities are necessary or appropriate to achieve its
community development objectives.
(g) Administrative expenses to facilitate housing. CDBG funds may be
used for necessary administrative expenses in planning or obtaining
financing for housing as follows: for entitlement recipients,
assistance authorized by this paragraph is limited to units which are
identified in the recipient's HUD approved housing assistance plan;
for HUD-administered small cities recipients, assistance authorized by
the paragraph is limited to facilitating the purchase or occupancy of
existing units which are to be occupied by low and moderate income
households, or the construction of rental or owner units where at
least 20 percent of the units in each project will be occupied at
affordable rents/costs by low and moderate income persons. Examples of
eligible actions are as follows:
(1) The cost of conducting preliminary surveys and analysis of market
needs;
(2) Site and utility plans, narrative descriptions of the proposed
construction, preliminary cost estimates, urban design documentation,
and “sketch drawings,” but excluding architectural, engineering, and
other details ordinarily required for construction purposes, such as
structural, electrical, plumbing, and mechanical details;
(3) Reasonable costs associated with development of applications for
mortgage and insured loan commitments, including commitment fees, and
of applications and proposals under the Section 8 Housing Assistance
Payments Program pursuant to 24 CFR parts 880-883;
(4) Fees associated with processing of applications for mortgage or
insured loan commitments under programs including those administered
by HUD, Farmers Home Administration (FmHA), Federal National Mortgage
Association (FNMA), and the Government National Mortgage Association
(GNMA);
(5) The cost of issuance and administration of mortgage revenue bonds
used to finance the acquisition, rehabilitation or construction of
housing, but excluding costs associated with the payment or guarantee
of the principal or interest on such bonds; and
(6) Special outreach activities which result in greater landlord
participation in Section 8 Housing Assistance Payments Program-
Existing Housing or similar programs for low and moderate income
persons.
2022 CDBG PROPOSAL/7/20/21 51
(h) Section 17 of the United States Housing Act of 1937. Reasonable
costs equivalent to those described in paragraphs (a), (b), (e) and
(f) of this section for overall program management of the Rental
Rehabilitation and Housing Development programs authorized under
section 17 of the United States Housing Act of 1937, whether or not
such activities are otherwise assisted with funds provided under this
part.
(i) Whether or not such activities are otherwise assisted by funds
provided under this part, reasonable costs equivalent to those
described in paragraphs (a), (b), (e), and (f) of this section for
overall program management of:
(1) A Federally designated Empowerment Zone or Enterprise Community;
and
(2) The HOME program under title II of the Cranston-Gonzalez National
Affordable Housing Act (42 U.S.C. 12701 note).
[53 FR 34439, Sept. 6, 1988; 53 FR 41330, Oct. 21, 1988, as amended at
54 FR 37411, Sept. 8, 1989; 60 FR 56912, Nov. 9, 1995; 69 FR 32778,
June 10, 2004; 80 FR 69870, Nov. 12, 2015; 80 FR 75937, Dec. 7, 2015]
§570.207 Ineligible activities.
The general rule is that any activity that is not authorized under the
provisions of §§570.201-570.206 is ineligible to be assisted with CDBG
funds. This section identifies specific activities that are ineligible
and provides guidance in determining the eligibility of other
activities frequently associated with housing and community
development.
(a) The following activities may not be assisted with CDBG funds:
(1) Buildings or portions thereof, used for the general conduct of
government as defined at §570.3(d) cannot be assisted with CDBG funds.
This does not include, however, the removal of architectural barriers
under §570.201(c) involving any such building. Also, where acquisition
of real property includes an existing improvement which is to be used
in the provision of a building for the general conduct of government,
the portion of the acquisition cost attributable to the land is
eligible, provided such acquisition meets a national objective
described in §570.208.
(2) General government expenses. Except as otherwise specifically
authorized in this subpart or under 2 CFR part 200, subpart E,
expenses required to carry out the regular responsibilities of the
unit of general local government are not eligible for assistance under
this part.
(3) Political activities. CDBG funds shall not be used to finance the
use of facilities or equipment for political purposes or to engage in
other partisan political activities, such as candidate forums, voter
transportation, or voter registration. However, a facility originally
2022 CDBG PROPOSAL/7/20/21 52
assisted with CDBG funds may be used on an incidental basis to hold
political meetings, candidate forums, or voter registration campaigns,
provided that all parties and organizations have access to the
facility on an equal basis, and are assessed equal rent or use
charges, if any.
(b) The following activities may not be assisted with CDBG funds
unless authorized under provisions of §570.203 or as otherwise
specifically noted herein or when carried out by an entity under the
provisions of §570.204.
(1) Purchase of equipment. The purchase of equipment with CDBG funds
is generally ineligible.
(i) Construction equipment. The purchase of construction equipment is
ineligible, but compensation for the use of such equipment through
leasing or depreciation pursuant to 2 CFR part 200, subpart E, as
applicable for an otherwise eligible activity is an eligible use of
CDBG funds. However, the purchase of construction equipment for use as
part of a solid waste disposal facility is eligible under §570.201(c).
(ii) Fire protection equipment. Fire protection equipment is
considered for this purpose to be an integral part of a public
facility and thus, purchase of such equipment would be eligible under
§570.201(c).
(iii) Furnishings and personal property. The purchase of equipment,
fixtures, motor vehicles, furnishings, or other personal property not
an integral structural fixture is generally ineligible. CDBG funds may
be used, however, to purchase or to pay depreciation in accordance
with 2 CFR part 200, subpart E, for such items when necessary for use
by a recipient or its subrecipients in the administration of
activities assisted with CDBG funds, or when eligible as firefighting
equipment, or when such items constitute all or part of a public
service pursuant to §570.201(e).
(2) Operating and maintenance expenses. The general rule is that any
expense associated with repairing, operating or maintaining public
facilities, improvements and services is ineligible. Specific
exceptions to this general rule are operating and maintenance expenses
associated with public service activities, interim assistance, and
office space for program staff employed in carrying out the CDBG
program. For example, the use of CDBG funds to pay the allocable costs
of operating and maintaining a facility used in providing a public
service would be eligible under §570.201(e), even if no other costs of
providing such a service are assisted with such funds. Examples of
ineligible operating and maintenance expenses are:
(i) Maintenance and repair of publicly owned streets, parks,
playgrounds, water and sewer facilities, neighborhood facilities,
senior centers, centers for persons with a disabilities, parking and
other public facilities and improvements. Examples of maintenance and
repair activities for which CDBG funds may not be used include the
filling of potholes in streets, repairing of cracks in sidewalks, the
2022 CDBG PROPOSAL/7/20/21 53
mowing of recreational areas, and the replacement of expended street
light bulbs; and
(ii) Payment of salaries for staff, utility costs and similar expenses
necessary for the operation of public works and facilities.
(3) New housing construction. For the purpose of this paragraph,
activities in support of the development of low or moderate income
housing including clearance, site assemblage, provision of site
improvements and provision of public improvements and certain housing
pre-construction costs set forth in §570.206(g), are not considered as
activities to subsidize or assist new residential construction. CDBG
funds may not be used for the construction of new permanent
residential structures or for any program to subsidize or assist such
new construction, except:
(i) As provided under the last resort housing provisions set forth in
24 CFR part 42;
(ii) As authorized under §570.201(m) or (n);
(iii) When carried out by an entity pursuant to §570.204(a);
(4) Income payments. The general rule is that CDBG funds may not be
used for income payments. For purposes of the CDBG program, “income
payments” means a series of subsistence-type grant payments made to an
individual or family for items such as food, clothing, housing (rent
or mortgage), or utilities, but excludes emergency grant payments made
over a period of up to three consecutive months to the provider of
such items or services on behalf of an individual or family.
[53 FR 34439, Sept. 6, 1988; 53 FR 41330, Oct. 21, 1988, as amended at
60 FR 1945, Jan. 5, 1995; 60 FR 56912, Nov. 9, 1995; 65 FR 70215, Nov.
21, 2000; 80 FR 75937, Dec. 7, 2015]
2022 CDBG PROPOSAL/7/20/21 54
§570.208 Criteria for National Objectives.
The following criteria shall be used to determine whether a CDBG-
assisted activity complies with one or more of the national objectives
as required under §570.200(a)(2):
(a) Activities benefiting low- and moderate-income persons. Activities
meeting the criteria in paragraph (a) (1), (2), (3), or (4) of this
section as applicable, will be considered to benefit low- and
moderate-income persons unless there is substantial evidence to the
contrary. In assessing any such evidence, the full range of direct
effects of the assisted activity will be considered. (The recipient
shall appropriately ensure that activities that meet these criteria do
not benefit moderate income persons to the exclusion of low-income
persons.)
(1) Area benefit activities. (i) An activity, the benefits of which
are available to all the residents in a particular area, where at
least 51 percent of the residents are low- and moderate-income
persons. Such an area need not be coterminous with census tracts or
other officially recognized boundaries but must be the entire area
served by the activity. An activity that serves an area that is not
primarily residential in character shall not qualify under this
criterion.
(ii) For metropolitan cities and urban counties, an activity that
would otherwise qualify under §570.208(a)(1)(i), except that the area
served contains less than 51 percent low- and moderate-income
residents, will also be considered to meet the objective of benefiting
low- and moderate-income persons where the proportion of such persons
in the area is within the highest quartile of all areas in the
recipient's jurisdiction in terms of the degree of concentration of
such persons. This exception is inapplicable to non-entitlement CDBG
grants in Hawaiʻi. In applying this exception, HUD will determine the
lowest proportion a recipient may use to qualify an area for this
purpose, as follows:
(A) All census block groups in the recipient's jurisdiction shall be
rank ordered from the block group of highest proportion of low- and
moderate-income persons to the block group with the lowest. For urban
counties, the rank ordering shall cover the entire area constituting
the urban county and shall not be done separately for each
participating unit of general local government.
(B) In any case where the total number of a recipient's block groups
does not divide evenly by four, the block group which would be
fractionally divided between the highest and second quartiles shall be
considered to be part of the highest quartile.
(C) The proportion of low- and moderate-income persons in the last
census block group in the highest quartile shall be identified. Any
service area located within the recipient's jurisdiction and having a
proportion of low- and moderate-income persons at or above this level
shall be considered to be within the highest quartile.
2022 CDBG PROPOSAL/7/20/21 55
(D) If block group data are not available for the entire jurisdiction,
other data acceptable to the Secretary may be used in the above
calculations.
(iii) An activity to develop, establish, and operate for up to two
years after the establishment of, a uniform emergency telephone number
system serving an area having less than the percentage of low- and
moderate-income residents required under paragraph (a)(1)(i) of this
section or (as applicable) paragraph (a)(1)(ii) of this section,
provided the recipient obtains prior HUD approval. To obtain such
approval, the recipient must:
(A) Demonstrate that the system will contribute significantly to the
safety of the residents of the area. The request for approval must
include a list of the emergency services that will participate in the
emergency telephone number system;
(B) Submit information that serves as a basis for HUD to determine
whether at least 51 percent of the use of the system will be by low-
and moderate-income persons. As available, the recipient must provide
information that identifies the total number of calls actually
received over the preceding 12-month period for each of the emergency
services to be covered by the emergency telephone number system and
relates those calls to the geographic segment (expressed as nearly as
possible in terms of census tracts, block numbering areas, block
groups, or combinations thereof that are contained within the segment)
of the service area from which the calls were generated. In analyzing
this data to meet the requirements of this section, HUD will assume
that the distribution of income among the callers generally reflects
the income characteristics of the general population residing in the
same geographic area where the callers reside. If HUD can conclude
that the users have primarily consisted of low- and moderate-income
persons, no further submission is needed by the recipient. If a
recipient plans to make other submissions for this purpose, it may
request that HUD review its planned methodology before expending the
effort to acquire the information it expects to use to make its case;
(C) Demonstrate that other Federal funds received by the recipient are
insufficient or unavailable for a uniform emergency telephone number
system. For this purpose, the recipient must submit a statement
explaining whether the lack of funds is due to the insufficiency of
the amount of the available funds, restrictions on the use of such
funds, or the prior commitment of funds by the recipient for other
purposes; and
(D) Demonstrate that the percentage of the total costs of the system
paid for by CDBG funds does not exceed the percentage of low- and
moderate-income persons in the service area of the system. For this
purpose, the recipient must include a description of the boundaries of
the service area of the emergency telephone number system, the census
divisions that fall within the boundaries of the service area (census
tracts or block numbering areas), the total number of persons and the
total number of low- and moderate-income persons within each census
division, the percentage of low- and moderate-income persons within
the service area, and the total cost of the system.
2022 CDBG PROPOSAL/7/20/21 56
(iv) An activity for which the assistance to a public improvement that
provides benefits to all the residents of an area is limited to paying
special assessments (as defined in §570.200(c)) levied against
residential properties owned and occupied by persons of low and
moderate income.
(v) For purposes of determining qualification under this criterion,
activities of the same type that serve different areas will be
considered separately on the basis of their individual service area.
(vi) In determining whether there is a sufficiently large percentage
of low- and moderate-income persons residing in the area served by an
activity to qualify under paragraph (a)(1) (i), (ii), or (vii) of this
section, the most recently available decennial census information must
be used to the fullest extent feasible, together with the section 8
income limits that would have applied at the time the income
information was collected by the Census Bureau. Recipients that
believe that the census data does not reflect current relative income
levels in an area, or where census boundaries do not coincide
sufficiently well with the service area of an activity, may conduct
(or have conducted) a current survey of the residents of the area to
determine the percent of such persons that are low and moderate
income. HUD will accept information obtained through such surveys, to
be used in lieu of the decennial census data, where it determines that
the survey was conducted in such a manner that the results meet
standards of statistical reliability that are comparable to that of
the decennial census data for areas of similar size. Where there is
substantial evidence that provides a clear basis to believe that the
use of the decennial census data would substantially overstate the
proportion of persons residing there that are low and moderate income,
HUD may require that the recipient rebut such evidence in order to
demonstrate compliance with section 105(c)(2) of the Act.
(vii) Activities meeting the requirements of paragraph (d)(5)(i) of
this section may be considered to qualify under this paragraph,
provided that the area covered by the strategy is either a Federally-
designated Empowerment Zone or Enterprise Community or primarily
residential and contains a percentage of low- and moderate-income
residents that is no less than the percentage computed by HUD pursuant
to paragraph (a)(1)(ii) of this section or 70 percent, whichever is
less, but in no event less than 51 percent. Activities meeting the
requirements of paragraph (d)(6)(i) of this section may also be
considered to qualify under paragraph (a)(1) of this section.
(2) Limited clientele activities. (i) An activity which benefits a
limited clientele, at least 51 percent of whom are low- or moderate-
income persons. (The following kinds of activities may not qualify
under paragraph (a)(2) of this section: activities, the benefits of
which are available to all the residents of an area; activities
involving the acquisition, construction or rehabilitation of property
for housing; or activities where the benefit to low- and moderate-
income persons to be considered is the creation or retention of jobs,
except as provided in paragraph (a)(2)(iv) of this section.) To
qualify under paragraph (a)(2) of this section, the activity must meet
one of the following tests:
2022 CDBG PROPOSAL/7/20/21 57
(A) Benefit a clientele who are generally presumed to be principally
low- and moderate-income persons. Activities that exclusively serve a
group of persons in any one or a combination of the following
categories may be presumed to benefit persons, 51 percent of whom are
low- and moderate-income: abused children, battered spouses, elderly
persons, adults meeting the Bureau of the Census' Current Population
Reports definition of “severely disabled,” homeless persons,
illiterate adults, persons living with AIDS, and migrant farm workers;
or
(B) Require information on family size and income so that it is
evident that at least 51 percent of the clientele are persons whose
family income does not exceed the low- and moderate-income limit; or
(C) Have income eligibility requirements which limit the activity
exclusively to low- and moderate-income persons; or
(D) Be of such nature and be in such location that it may be concluded
that the activity's clientele will primarily be low- and moderate-
income persons.
(ii) An activity that serves to remove material or architectural
barriers to the mobility or accessibility of elderly persons or of
adults meeting the Bureau of the Census' Current Population Reports
definition of “severely disabled” will be presumed to qualify under
this criterion if it is restricted, to the extent practicable, to the
removal of such barriers by assisting:
(A) The reconstruction of a public facility or improvement, or portion
thereof, that does not qualify under paragraph (a)(1) of this section;
(B) The rehabilitation of a privately owned nonresidential building or
improvement that does not qualify under paragraph (a)(1) or (4) of
this section; or
(C) The rehabilitation of the common areas of a residential structure
that contains more than one dwelling unit and that does not qualify
under paragraph (a)(3) of this section.
(iii) A microenterprise assistance activity carried out in accordance
with the provisions of §570.201(o) with respect to those owners of
microenterprises and persons developing microenterprises assisted
under the activity during each program year who are low- and moderate-
income persons. For purposes of this paragraph, persons determined to
be low and moderate income may be presumed to continue to qualify as
such for up to a three-year period.
(iv) An activity designed to provide job training and placement and/or
other employment support services, including, but not limited to, peer
support programs, counseling, child care, transportation, and other
similar services, in which the percentage of low- and moderate-income
persons assisted is less than 51 percent may qualify under this
paragraph in the following limited circumstance:
2022 CDBG PROPOSAL/7/20/21 58
(A) In such cases where such training or provision of supportive
services assists business(es), the only use of CDBG assistance for the
project is to provide the job training and/or supportive services; and
(B) The proportion of the total cost of the project borne by CDBG
funds is no greater than the proportion of the total number of persons
assisted who are low or moderate income.
(3) Housing activities. An eligible activity carried out for the
purpose of providing or improving permanent residential structures
which, upon completion, will be occupied by low- and moderate-income
households. This would include, but not necessarily be limited to, the
acquisition or rehabilitation of property by the recipient, a
subrecipient, a developer, an individual homebuyer, or an individual
homeowner; conversion of nonresidential structures; and new housing
construction. If the structure contains two dwelling units, at least
one must be so occupied, and if the structure contains more than two
dwelling units, at least 51 percent of the units must be so occupied.
Where two or more rental buildings being assisted are or will be
located on the same or contiguous properties, and the buildings will
be under common ownership and management, the grouped buildings may be
considered for this purpose as a single structure. Where housing
activities being assisted meet the requirements of paragraph §570.208
(d)(5)(ii) or (d)(6)(ii) of this section, all such housing may also be
considered for this purpose as a single structure. For rental housing,
occupancy by low- and moderate-income households must be at affordable
rents to qualify under this criterion. The recipient shall adopt and
make public its standards for determining “affordable rents” for this
purpose. The following shall also qualify under this criterion:
(i) When less than 51 percent of the units in a structure will be
occupied by low- and moderate-income households, CDBG assistance may
be provided in the following limited circumstances:
(A) The assistance is for an eligible activity to reduce the
development cost of the new construction of a multifamily, non-elderly
rental housing project;
(B) Not less than 20 percent of the units will be occupied by low- and
moderate-income households at affordable rents; and
(C) The proportion of the total cost of developing the project to be
borne by CDBG funds is no greater than the proportion of units in the
project that will be occupied by low- and moderate-income households.
(ii) When CDBG funds are used to assist rehabilitation eligible under
§570.202(b)(9) or (10) in direct support of the recipient's Rental
Rehabilitation program authorized under 24 CFR part 511, such funds
shall be considered to benefit low and moderate income persons where
not less than 51 percent of the units assisted, or to be assisted, by
the recipient's Rental Rehabilitation program overall are for low and
moderate income persons.
2022 CDBG PROPOSAL/7/20/21 59
(iii) When CDBG funds are used for housing services eligible under
§570.201(k), such funds shall be considered to benefit low- and
moderate-income persons if the housing units for which the services
are provided are HOME-assisted and the requirements at 24 CFR 92.252
or 92.254 are met.
(4) Job creation or retention activities. An activity designed to
create or retain permanent jobs where at least 51 percent of the jobs,
computed on a full-time equivalent basis, involve the employment of
low- and moderate-income persons. To qualify under this paragraph, the
activity must meet the following criteria:
(i) For an activity that creates jobs, the recipient must document
that at least 51 percent of the jobs will be held by, or will be
available to, low- and moderate-income persons.
(ii) For an activity that retains jobs, the recipient must document
that the jobs would actually be lost without the CDBG assistance and
that either or both of the following conditions apply with respect to
at least 51 percent of the jobs at the time the CDBG assistance is
provided:
(A) The job is known to be held by a low- or moderate-income person;
or
(B) The job can reasonably be expected to turn over within the
following two years and that steps will be taken to ensure that it
will be filled by, or made available to, a low- or moderate-income
person upon turnover.
(iii) Jobs that are not held or filled by a low- or moderate-income
person may be considered to be available to low- and moderate-income
persons for these purposes only if:
(A) Special skills that can only be acquired with substantial training
or work experience or education beyond high school are not a
prerequisite to fill such jobs, or the business agrees to hire
unqualified persons and provide training; and
(B) The recipient and the assisted business take actions to ensure
that low- and moderate-income persons receive first consideration for
filling such jobs.
(iv) For purposes of determining whether a job is held by or made
available to a low- or moderate-income person, the person may be
presumed to be a low- or moderate-income person if:
(A) He/she resides within a census tract (or block numbering area)
that either:
(1) Meets the requirements of paragraph (a)(4)(v) of this section; or
(2) Has at least 70 percent of its residents who are low- and
moderate-income persons; or
2022 CDBG PROPOSAL/7/20/21 60
(B) The assisted business is located within a census tract (or block
numbering area) that meets the requirements of paragraph (a)(4)(v) of
this section and the job under consideration is to be located within
that census tract.
(v) A census tract (or block numbering area) qualifies for the
presumptions permitted under paragraphs (a)(4)(iv)(A)(1) and (B) of
this section if it is either part of a Federally-designated
Empowerment Zone or Enterprise Community or meets the following
criteria:
(A) It has a poverty rate of at least 20 percent as determined by the
most recently available decennial census information;
(B) It does not include any portion of a central business district, as
this term is used in the most recent Census of Retail Trade, unless
the tract has a poverty rate of at least 30 percent as determined by
the most recently available decennial census information; and
(C) It evidences pervasive poverty and general distress by meeting at
least one of the following standards:
(1) All block groups in the census tract have poverty rates of at
least 20 percent;
(2) The specific activity being undertaken is located in a block group
that has a poverty rate of at least 20 percent; or
(3) Upon the written request of the recipient, HUD determines that the
census tract exhibits other objectively determinable signs of general
distress such as high incidence of crime, narcotics use, homelessness,
abandoned housing, and deteriorated infrastructure or substantial
population decline.
(vi) As a general rule, each assisted business shall be considered to
be a separate activity for purposes of determining whether the
activity qualifies under this paragraph, except:
(A) In certain cases such as where CDBG funds are used to acquire,
develop or improve a real property (e.g., a business incubator or an
industrial park) the requirement may be met by measuring jobs in the
aggregate for all the businesses which locate on the property,
provided such businesses are not otherwise assisted by CDBG funds.
(B) Where CDBG funds are used to pay for the staff and overhead costs
of an entity making loans to businesses exclusively from non-CDBG
funds, this requirement may be met by aggregating the jobs created by
all of the businesses receiving loans during each program year.
(C) Where CDBG funds are used by a recipient or subrecipient to
provide technical assistance to businesses, this requirement may be
met by aggregating the jobs created or retained by all of the
businesses receiving technical assistance during each program year.
2022 CDBG PROPOSAL/7/20/21 61
(D) Where CDBG funds are used for activities meeting the criteria
listed at §570.209(b)(2)(v), this requirement may be met by
aggregating the jobs created or retained by all businesses for which
CDBG assistance is obligated for such activities during the program
year, except as provided at paragraph (d)(7) of this section.
(E) Where CDBG funds are used by a Community Development Financial
Institution to carry out activities for the purpose of creating or
retaining jobs, this requirement may be met by aggregating the jobs
created or retained by all businesses for which CDBG assistance is
obligated for such activities during the program year, except as
provided at paragraph (d)(7) of this section.
(F) Where CDBG funds are used for public facilities or improvements
which will result in the creation or retention of jobs by more than
one business, this requirement may be met by aggregating the jobs
created or retained by all such businesses as a result of the public
facility or improvement.
(1) Where the public facility or improvement is undertaken principally
for the benefit of one or more particular businesses, but where other
businesses might also benefit from the assisted activity, the
requirement may be met by aggregating only the jobs created or
retained by those businesses for which the facility/improvement is
principally undertaken, provided that the cost (in CDBG funds) for the
facility/improvement is less than $10,000 per permanent full-time
equivalent job to be created or retained by those businesses.
(2) In any case where the cost per job to be created or retained (as
determined under paragraph (a)(4)(vi)(F)(1) of this section) is
$10,000 or more, the requirement must be met by aggregating the jobs
created or retained as a result of the public facility or improvement
by all businesses in the service area of the facility/improvement.
This aggregation must include businesses which, as a result of the
public facility/improvement, locate or expand in the service area of
the facility/improvement between the date the recipient identifies the
activity in its action plan under part 91 of this title and the date
one year after the physical completion of the facility/improvement. In
addition, the assisted activity must comply with the public benefit
standards at §570.209(b).
(b) Activities which aid in the prevention or elimination of slums or
blight. Activities meeting one or more of the following criteria, in
the absence of substantial evidence to the contrary, will be
considered to aid in the prevention or elimination of slums or blight:
(1) Activities to address slums or blight on an area basis. An
activity will be considered to address prevention or elimination of
slums or blight in an area if:
(i) The area, delineated by the recipient, meets a definition of a
slum, blighted, deteriorated or deteriorating area under State or
local law;
2022 CDBG PROPOSAL/7/20/21 62
(ii) The area also meets the conditions in either paragraph (A) or
(B):
(A) At least 25 percent of properties throughout the area experience
one or more of the following conditions:
(1) Physical deterioration of buildings or improvements;
(2) Abandonment of properties;
(3) Chronic high occupancy turnover rates or chronic high vacancy
rates in commercial or industrial buildings;
(4) Significant declines in property values or abnormally low property
values relative to other areas in the community; or
(5) Known or suspected environmental contamination.
(B) The public improvements throughout the area are in a general state
of deterioration.
(iii) Documentation is to be maintained by the recipient on the
boundaries of the area and the conditions and standards used that
qualified the area at the time of its designation. The recipient shall
establish definitions of the conditions listed at
§570.208(b)(1)(ii)(A) and maintain records to substantiate how the
area met the slums or blighted criteria. The designation of an area as
slum or blighted under this section is required to be redetermined
every 10 years for continued qualification. Documentation must be
retained pursuant to the recordkeeping requirements contained at
§570.506 (b)(8)(ii).
(iv) The assisted activity addresses one or more of the conditions
which contributed to the deterioration of the area. Rehabilitation of
residential buildings carried out in an area meeting the above
requirements will be considered to address the area's deterioration
only where each such building rehabilitated is considered substandard
under local definition before rehabilitation, and all deficiencies
making a building substandard have been eliminated if less critical
work on the building is undertaken. At a minimum, the local definition
for this purpose must be such that buildings that it would render
substandard would also fail to meet the housing quality standards for
the Section 8 Housing Assistance Payments Program-Existing Housing (24
CFR 882.109).
(2) Activities to address slums or blight on a spot basis. The
following activities may be undertaken on a spot basis to eliminate
specific conditions of blight, physical decay, or environmental
contamination that are not located in a slum or blighted area:
acquisition; clearance; relocation; historic preservation; remediation
of environmentally contaminated properties; or rehabilitation of
buildings or improvements. However, rehabilitation must be limited to
eliminating those conditions that are detrimental to public health and
safety. If acquisition or relocation is undertaken, it must be a
2022 CDBG PROPOSAL/7/20/21 63
precursor to another eligible activity (funded with CDBG or other
resources) that directly eliminates the specific conditions of blight
or physical decay, or environmental contamination.
(3) Activities to address slums or blight in an urban renewal area. An
activity will be considered to address prevention or elimination of
slums or blight in an urban renewal area if the activity is:
(i) Located within an urban renewal project area or Neighborhood
Development Program (NDP) action area; i.e., an area in which funded
activities were authorized under an urban renewal Loan and Grant
Agreement or an annual NDP Funding Agreement, pursuant to title I of
the Housing Act of 1949; and
(ii) Necessary to complete the urban renewal plan, as then in effect,
including initial land redevelopment permitted by the plan.
NOTE: Despite the restrictions in (b) (1) and (2) of this section, any
rehabilitation activity which benefits low and moderate income persons
pursuant to paragraph (a)(3) of this section can be undertaken without
regard to the area in which it is located or the extent or nature of
rehabilitation assisted.
(c) Activities designed to meet community development needs having a
particular urgency. In the absence of substantial evidence to the
contrary, an activity will be considered to address this objective if
the recipient certifies that the activity is designed to alleviate
existing conditions which pose a serious and immediate threat to the
health or welfare of the community which are of recent origin or which
recently became urgent, that the recipient is unable to finance the
activity on its own, and that other sources of funding are not
available. A condition will generally be considered to be of recent
origin if it developed or became critical within 18 months preceding
the certification by the recipient.
(d) Additional criteria. (1) Where the assisted activity is
acquisition of real property, a preliminary determination of whether
the activity addresses a national objective may be based on the
planned use of the property after acquisition. A final determination
shall be based on the actual use of the property, excluding any short-
term, temporary use. Where the acquisition is for the purpose of
clearance which will eliminate specific conditions of blight or
physical decay, the clearance activity shall be considered the actual
use of the property. However, any subsequent use or disposition of the
cleared property shall be treated as a “change of use” under §570.505.
(2) Where the assisted activity is relocation assistance that the
recipient is required to provide, such relocation assistance shall be
considered to address the same national objective as is addressed by
the displacing activity. Where the relocation assistance is voluntary
on the part of the grantee the recipient may qualify the assistance
either on the basis of the national objective addressed by the
displacing activity or on the basis that the recipients of the
relocation assistance are low and moderate income persons.
2022 CDBG PROPOSAL/7/20/21 64
(3) In any case where the activity undertaken for the purpose of
creating or retaining jobs is a public improvement and the area served
is primarily residential, the activity must meet the requirements of
paragraph (a)(1) of this section as well as those of paragraph (a)(4)
of this section in order to qualify as benefiting low and moderate
income persons.
(4) CDBG funds expended for planning and administrative costs under
§570.205 and §570.206 will be considered to address the national
objectives.
(5) Where the grantee has elected to prepare an area revitalization
strategy pursuant to the authority of §91.215(e) of this title and HUD
has approved the strategy, the grantee may also elect the following
options:
(i) Activities undertaken pursuant to the strategy for the purpose of
creating or retaining jobs may, at the option of the grantee, be
considered to meet the requirements of this paragraph under the
criteria at paragraph (a)(1)(vii) of this section in lieu of the
criteria at paragraph (a)(4) of this section; and
(ii) All housing activities in the area for which, pursuant to the
strategy, CDBG assistance is obligated during the program year may be
considered to be a single structure for purposes of applying the
criteria at paragraph (a)(3) of this section.
(6) Where CDBG-assisted activities are carried out by a Community
Development Financial Institution whose charter limits its investment
area to a primarily residential area consisting of at least 51 percent
low- and moderate-income persons, the grantee may also elect the
following options:
(i) Activities carried out by the Community Development Financial
Institution for the purpose of creating or retaining jobs may, at the
option of the grantee, be considered to meet the requirements of this
paragraph under the criteria at paragraph (a)(1)(vii) of this section
in lieu of the criteria at paragraph (a)(4) of this section; and
(ii) All housing activities for which the Community Development
Financial Institution obligates CDBG assistance during the program
year may be considered to be a single structure for purposes of
applying the criteria at paragraph (a)(3) of this section.
(7) Where an activity meeting the criteria at §570.209(b)(2)(v) may
also meet the requirements of either paragraph (d)(5)(i) or (d)(6)(i)
of this section, the grantee may elect to qualify the activity under
either the area benefit criteria at paragraph (a)(1)(vii) of this
section or the job aggregation criteria at paragraph (a)(4)(vi)(D) of
this section, but not both. Where an activity may meet the job
aggregation criteria at both paragraphs (a)(4)(vi)(D) and (E) of this
section, the grantee may elect to qualify the activity under either
criterion, but not both.
2022 CDBG PROPOSAL/7/20/21 65
[53 FR 34439, Sept. 6, 1988; 53 FR 41330, Oct. 21, 1988, as amended at
60 FR 1945, Jan. 5, 1995; 60 FR 17445, Apr. 6, 1995; 60 FR 56912, Nov.
9, 1995; 61 FR 18674, Apr. 29, 1996; 71 FR 30035, May 24, 2006; 72 FR
46370, Aug. 17, 2007]
§570.209 Guidelines for evaluating and selecting economic
development projects.
The following guidelines are provided to assist the recipient to
evaluate and select activities to be carried out for economic
development purposes. Specifically, these guidelines are applicable to
activities that are eligible for CDBG assistance under §570.203. These
guidelines also apply to activities carried out under the authority of
§570.204 that would otherwise be eligible under §570.203, were it not
for the involvement of a Community-Based Development Organization
(CBDO). (This would include activities where a CBDO makes loans to
for-profit businesses.) These guidelines are composed of two
components: guidelines for evaluating project costs and financial
requirements; and standards for evaluating public benefit. The
standards for evaluating public benefit are mandatory, but the
guidelines for evaluating projects costs and financial requirements
are not.
(a) Guidelines and objectives for evaluating project costs and
financial requirements. HUD has developed guidelines that are designed
to provide the recipient with a framework for financially underwriting
and selecting CDBG-assisted economic development projects which are
financially viable and will make the most effective use of the CDBG
funds. These guidelines, also referred to as the underwriting
guidelines, are published as appendix A to this part. The use of the
underwriting guidelines published by HUD is not mandatory. However,
grantees electing not to use these guidelines would be expected to
conduct basic financial underwriting prior to the provision of CDBG
financial assistance to a for-profit business. Where appropriate,
HUD's underwriting guidelines recognize that different levels of
review are appropriate to take into account differences in the size
and scope of a proposed project, and in the case of a microenterprise
or other small business to take into account the differences in the
capacity and level of sophistication among businesses of differing
sizes. Recipients are encouraged, when they develop their own programs
and underwriting criteria, to also take these factors into account.
The objectives of the underwriting guidelines are to ensure:
(1) That project costs are reasonable;
(2) That all sources of project financing are committed;
(3) That to the extent practicable, CDBG funds are not substituted for
non-Federal financial support;
(4) That the project is financially feasible;
(5) That to the extent practicable, the return on the owner's equity
investment will not be unreasonably high; and
2022 CDBG PROPOSAL/7/20/21 66
(6) That to the extent practicable, CDBG funds are disbursed on a pro
rata basis with other finances provided to the project.
(b) Standards for evaluating public benefit. The grantee is
responsible for making sure that at least a minimum level of public
benefit is obtained from the expenditure of CDBG funds under the
categories of eligibility governed by these guidelines. The standards
set forth below identify the types of public benefit that will be
recognized for this purpose and the minimum level of each that must be
obtained for the amount of CDBG funds used. Unlike the guidelines for
project costs and financial requirements covered under paragraph (a)
of this section, the use of the standards for public benefit is
mandatory. Certain public facilities and improvements eligible under
§570.201(c) of the regulations, which are undertaken for economic
development purposes, are also subject to these standards, as
specified in §570.208(a)(4)(vi)(F)(2).
(1) Standards for activities in the aggregate. Activities covered by
these guidelines must, in the aggregate, either:
(i) Create or retain at least one full-time equivalent, permanent job
per $35,000 of CDBG funds used; or
(ii) Provide goods or services to residents of an area, such that the
number of low- and moderate-income persons residing in the areas
served by the assisted businesses amounts to at least one low- and
moderate-income person per $350 of CDBG funds used.
(2) Applying the aggregate standards. (i) A metropolitan city, an
urban county, a non-entitlement CDBG grantee in Hawaiʻi, or an Insular
Area shall apply the aggregate standards under paragraph (b)(1) of
this section to all applicable activities for which CDBG funds are
first obligated within each single CDBG program year, without regard
to the source year of the funds used for the activities. For Insular
Areas, the preceding sentence applies to grants received in program
years after Fiscal Year 2004. A grantee under the HUD-administered
Small Cities Program, or Insular Areas CDBG grants prior to Fiscal
Year 2005, shall apply the aggregate standards under paragraph (b)(1)
of this section to all funds obligated for applicable activities from
a given grant; program income obligated for applicable activities
will, for these purposes, be aggregated with the most recent open
grant. For any time period in which a community has no open HUD-
administered or Insular Areas grants, the aggregate standards shall be
applied to all applicable activities for which program income is
obligated during that period.
(ii) The grantee shall apply the aggregate standards to the number of
jobs to be created/retained, or to the number of persons residing in
the area served (as applicable), as determined at the time funds are
obligated to activities.
(iii) Where an activity is expected both to create or retain jobs and
to provide goods or services to residents of an area, the grantee may
elect to count the activity under either the jobs standard or the area
residents standard, but not both.
2022 CDBG PROPOSAL/7/20/21 67
(iv) Where CDBG assistance for an activity is limited to job training
and placement and/or other employment support services, the jobs
assisted with CDBG funds shall be considered to be created or retained
jobs for the purposes of applying the aggregate standards.
(v) Any activity subject to these guidelines which meets one or more
of the following criteria may, at the grantee's option, be excluded
from the aggregate standards described in paragraph (b)(1) of this
section:
(A) Provides jobs exclusively for unemployed persons or participants
in one or more of the following programs:
(1) Jobs Training Partnership Act (JTPA);
(2) Jobs Opportunities for Basic Skills (JOBS); or
(3) Aid to Families with Dependent Children (AFDC);
(B) Provides jobs predominantly for residents of Public and Indian
Housing units;
(C) Provides jobs predominantly for homeless persons;
(D) Provides jobs predominantly for low-skilled, low- and moderate-
income persons, where the business agrees to provide clear
opportunities for promotion and economic advancement, such as through
the provision of training;
(E) Provides jobs predominantly for persons residing within a census
tract (or block numbering area) that has at least 20 percent of its
residents who are in poverty;
(F) Provides assistance to business(es) that operate(s) within a
census tract (or block numbering area) that has at least 20 percent of
its residents who are in poverty;
(G) Stabilizes or revitalizes a neighborhood that has at least 70
percent of its residents who are low- and moderate-income;
(H) Provides assistance to a Community Development Financial
Institution that serve an area that is predominantly low- and
moderate-income persons;
(I) Provides assistance to a Community-Based Development Organization
serving a neighborhood that has at least 70 percent of its residents
who are low- and moderate-income;
(J) Provides employment opportunities that are an integral component
of a project designed to promote spatial deconcentration of low- and
moderate-income and minority persons;
(K) With prior HUD approval, provides substantial benefit to low-
income persons through other innovative approaches;
2022 CDBG PROPOSAL/7/20/21 68
(L) Provides services to the residents of an area pursuant to a
strategy approved by HUD under the provisions of §91.215(e) of this
title;
(M) Creates or retains jobs through businesses assisted in an area
pursuant to a strategy approved by HUD under the provisions of
§91.215(e) of this title.
(N) Directly involves the economic development or redevelopment of
environmentally contaminated properties.
(3) Standards for individual activities. Any activity subject to these
guidelines which falls into one or more of the following categories
will be considered by HUD to provide insufficient public benefit, and
therefore may under no circumstances be assisted with CDBG funds:
(i) The amount of CDBG assistance exceeds either of the following, as
applicable:
(A) $50,000 per full-time equivalent, permanent job created or
retained; or
(B) $1,000 per low- and moderate-income person to which goods or
services are provided by the activity.
(ii) The activity consists of or includes any of the following:
(A) General promotion of the community as a whole (as opposed to the
promotion of specific areas and programs);
(B) Assistance to professional sports teams;
(C) Assistance to privately-owned recreational facilities that serve a
predominantly higher-income clientele, where the recreational benefit
to users or members clearly outweighs employment or other benefits to
low- and moderate-income persons;
(D) Acquisition of land for which the specific proposed use has not
yet been identified; and
(E) Assistance to a for-profit business while that business or any
other business owned by the same person(s) or entity(ies) is the
subject of unresolved findings of noncompliance relating to previous
CDBG assistance provided by the recipient.
(4) Applying the individual activity standards. (i) Where an activity
is expected both to create or retain jobs and to provide goods or
services to residents of an area, it will be disqualified only if the
amount of CDBG assistance exceeds both of the amounts in paragraph
(b)(3)(i) of this section.
(ii) The individual activity standards in paragraph (b)(3)(i) of this
section shall be applied to the number of jobs to be created or
retained, or to the number of persons residing in the area served (as
2022 CDBG PROPOSAL/7/20/21 69
applicable), as determined at the time funds are obligated to
activities.
(iii) Where CDBG assistance for an activity is limited to job training
and placement and/or other employment support services, the jobs
assisted with CDBG funds shall be considered to be created or retained
jobs for the purposes of applying the individual activity standards in
paragraph (b)(3)(i) of this section.
(c) Amendments to economic development projects after review
determinations. If, after the grantee enters into a contract to
provide assistance to a project, the scope or financial elements of
the project change to the extent that a significant contract amendment
is appropriate, the project should be reevaluated under these and the
recipient's guidelines. (This would include, for example, situations
where the business requests a change in the amount or terms of
assistance being provided, or an extension to the loan payment period
required in the contract.) If a reevaluation of the project indicates
that the financial elements and public benefit to be derived have also
substantially changed, then the recipient should make appropriate
adjustments in the amount, type, terms or conditions of CDBG
assistance which has been offered, to reflect the impact of the
substantial change. (For example, if a change in the project elements
results in a substantial reduction of the total project costs, it may
be appropriate for the recipient to reduce the amount of total CDBG
assistance.) If the amount of CDBG assistance provided to the project
is increased, the amended project must still comply with the public
benefit standards under paragraph (b) of this section.
(d) Documentation. The grantee must maintain sufficient records to
demonstrate the level of public benefit, based on the above standards,
that is actually achieved upon completion of the CDBG-assisted
economic development activity(ies) and how that compares to the level
of such benefit anticipated when the CDBG assistance was obligated. If
the grantee's actual results show a pattern of substantial variation
from anticipated results, the grantee is expected to take all actions
reasonably within its control to improve the accuracy of its
projections. If the actual results demonstrate that the recipient has
failed the public benefit standards, HUD may require the recipient to
meet more stringent standards in future years as appropriate.
[60 FR 1947, Jan. 5, 1995, as amended at 60 FR 17445, Apr. 6, 1995; 71
FR 30035, May 24, 2006; 72 FR 12535, Mar. 15, 2007; 72 FR 46370, Aug.
17, 2007]
§570.210 Prohibition on use of assistance for employment relocation
activities.
(a) Prohibition. CDBG funds may not be used to directly assist a
business, including a business expansion, in the relocation of a
plant, facility, or operation from one LMA to another LMA if the
relocation is likely to result in a significant loss of jobs in the
LMA from which the relocation occurs.
2022 CDBG PROPOSAL/7/20/21 70
(b) Definitions. The following definitions apply to this section:
(1) Directly assist. Directly assist means the provision of CDBG funds
for activities pursuant to:
(i) §570.203(b); or
(ii) §§570.201(a)-(d), 570.201(l), 570.203(a), or §570.204 when the
grantee, subrecipient, or, in the case of an activity carried out
pursuant to §570.204, a Community Based Development Organization
(CDBO) enters into an agreement with a business to undertake one or
more of these activities as a condition of the business relocating a
facility, plant, or operation to the grantee's LMA. Provision of
public facilities and indirect assistance that will provide benefit to
multiple businesses does not fall under the definition of “directly
assist,” unless it includes the provision of infrastructure to aid a
specific business that is the subject of an agreement with the
specific assisted business.
(2) Labor market area (LMA). For metropolitan areas, an LMA is an area
defined as such by the BLS. An LMA is an economically integrated
geographic area within which individuals can live and find employment
within a reasonable distance or can readily change employment without
changing their place of residence. In addition, LMAs are
nonoverlapping and geographically exhaustive. For metropolitan areas,
grantees must use employment data, as defined by the BLS, for the LMA
in which the affected business is currently located and from which
current jobs may be lost. For non-metropolitan areas, an LMA is either
an area defined by the BLS as an LMA, or a state may choose to combine
non-metropolitan LMAs. States are required to define or reaffirm prior
definitions of their LMAs on an annual basis and retain records to
substantiate such areas prior to any business relocation that would be
impacted by this rule. Metropolitan LMAs cannot be combined, nor can a
non-metropolitan LMA be combined with a metropolitan LMA. For the HUD-
administered Small Cities Program, each of the three participating
counties in Hawaiʻi will be considered to be its own LMA. Recipients
of Fiscal Year 1999 Small Cities Program funding in New York will
follow the requirements for State CDBG recipients.
(3) Operation. A business operation includes, but is not limited to,
any equipment, employment opportunity, production capacity or product
line of the business.
(4) Significant loss of jobs. (i) A loss of jobs is significant if:
The number of jobs to be lost in the LMA in which the affected
business is currently located is equal to or greater than one-tenth of
one percent of the total number of persons in the labor force of that
LMA; or in all cases, a loss of 500 or more jobs. Notwithstanding the
aforementioned, a loss of 25 jobs or fewer does not constitute a
significant loss of jobs.
(ii) A job is considered to be lost due to the provision of CDBG
assistance if the job is relocated within three years of the provision
of assistance to the business; or the time period within which jobs
2022 CDBG PROPOSAL/7/20/21 71
are to be created as specified by the agreement between the business
and the recipient if it is longer than three years.
(c) Written agreement. Before directly assisting a business with CDBG
funds, the recipient, subrecipient, or a CDBO (in the case of an
activity carried out pursuant to §570.204) shall sign a written
agreement with the assisted business. The written agreement shall
include:
(1) Statement. A statement from the assisted business as to whether
the assisted activity will result in the relocation of any industrial
or commercial plant, facility, or operation from one LMA to another,
and, if so, the number of jobs that will be relocated from each LMA;
(2) Required information. If the assistance will not result in a
relocation covered by this section, a certification from the assisted
business that neither it, nor any of its subsidiaries, has plans to
relocate jobs at the time the agreement is signed that would result in
a significant job loss as defined in this rule; and
(3) Reimbursement of assistance. The agreement shall provide for
reimbursement of any assistance provided to, or expended on behalf of,
the business in the event that assistance results in a relocation
prohibited under this section.
(d) Assistance not covered by this section. This section does not
apply to:
(1) Relocation assistance. Relocation assistance required by the
Uniform Assistance and Real Property Acquisition Policies Act of 1970,
(URA) (42 U.S.C. 4601-4655);
(2) Microenterprises. Assistance to microenterprises as defined by
Section 102(a)(22) of the Housing and Community Development Act of
1974; and
(3) Arms-length transactions. Assistance to a business that purchases
business equipment, inventory, or other physical assets in an arms-
length transaction, including the assets of an existing business,
provided that the purchase does not result in the relocation of the
sellers' business operation (including customer base or list,
goodwill, product lines, or trade names) from one LMA to another LMA
and does not produce a significant loss of jobs in the LMA from which
the relocation occurs.
2022 CDBG PROPOSAL/7/20/21 72
PUBLIC BENEFIT STANDARDS
Introduction The CDBG authorizing statute requires that activities
qualifying under particular categories of eligibility
must meet standards of public benefit established by
HUD in regulations. Specifically, it requires that an
activity carried out under the category of Special
Economic Development (§ 570.203), or one which could
be carried out under that category but is instead
carried out under the category of Special Activities
by CBDOs (§ 570.204), must meet the standards of
public benefit set forth in § 570.209(b). By
regulation, HUD has also included under this
requirement, under certain circumstances, a public
improvement activity that qualifies under the L/M
Income Jobs subcategory of the L/M Income Benefit
national objective. (The situation in which such a
Jobs activity must meet public benefit standards is
described in Chapter 3 under the discussion of the L/M
Income Jobs criteria.)
Background It should be noted from the outset that the public
benefit requirement has, in effect, taken the place of
the previously required “appropriate” determination
for CDBG financial assistance to a for-profit
business. While public benefit had long been required
to be considered, the “appropriate” determination
previously focused on financial underwriting of the
assistance. Statutory changes were made that had the
effect of removing this focus and replacing it with
one of ensuring that the amount of public benefit to
be derived from this type of activity (and some others
as well) will be appropriate given the amount of CDBG
assistance being provided to the activity. This
statutory change required HUD to publish guidelines
for performing a financial analysis of these economic
development activities, but it also specifies that HUD
may not find an activity ineligible for failure to
meet them. HUD has published these underwriting
guidelines as an appendix to the regulations in an
attempt to make it clear that they are not required to
be used.
Despite the fact that the HUD-published underwriting
guidelines are not mandatory, a grantee is still
expected to perform a due diligence assessment of any
assistance it provides to a for-profit business as a
means of ensuring that public funds are not wasted and
that the expected economic benefit will flow from the
project and help to meet a CDBG national objective.
2022 CDBG PROPOSAL/7/20/21 73
As required by the statute, HUD has also established
standards for public benefit, and they are contained
in the regulations at § 570.209(b). Unlike the
underwriting guidelines, the public benefit guidelines
(or standards) are required to be used for the
activities mentioned in the introductory paragraph to
this Appendix.
It should be noted that the requirement for meeting
the public benefit standards is a basic eligibility
issue and should not be confused with the requirements
concerning meeting a national objective. This caveat
is provided in recognition of the fact that the same
factors (jobs and area served) are involved in the
criteria for both requirements. While the same
factors come into play, they are used differently.
For example, for public benefit purposes, compliance
involves the total number of jobs created or retained
without regard to how many (if any) benefit L/M income
persons. In contrast, the use of jobs for meeting a
national objective is determined by the percentage of
the created or retained jobs that benefit L/M income
persons, and only incidentally involves the total
number of such jobs. The determination of compliance
with the L/M Income Jobs national objective is based
on the jobs that are actually created or retained and
who actually benefits from those jobs. The focus for
determining compliance for public benefit purposes
lies in the number of jobs expected to be created or
retained.
Similarly, for the area benefit factor, compliance
with national objectives is based on the percent of
L/M income residents served, while public benefit is
determined based on the number of L/M income persons
served.
It should also be noted that an activity that is
subject to the public benefit standards does not have
to use the same factor for meeting that standard as it
does for meeting national objective requirements. For
example, assistance to a grocery store serving a L/M
income neighborhood that also retains some jobs may
qualify as meeting the national objective based on the
area served while the grantee may choose to qualify it
under the public benefit standards based on the
retained jobs.
The fact that an activity qualifies for national
objective purposes under one of the Slum/Blight
subcategories or even under the Urgent Need category
does not affect its need to separately meet the public
benefit standards.
2022 CDBG PROPOSAL/7/20/21 74
The Standards In developing the public benefit standards, HUD
attempted to make them unambiguous, reasonable, and
fitting within the context of the rest of the program.
Accordingly, while there are many aspects that could
be considered to constitute a public benefit resulting
from these activities, only two have been adopted for
the standards: jobs and the provision of goods or
services.
As formulated, the public benefit standards are to be
applied to the activities funded under the relevant
categories both on an individual activity basis and on
all such activities in the aggregate. Thus, the
standards fall into those two basic categories, each
of which is described below:
Individual Activity Standards
The following individual activity standards apply to
any activity subject to these standards:
• For an activity that creates or retains jobs, the
use of CDBG funds cannot exceed $50,000 per full-
time equivalent job; or
• For an activity that provides goods or services
to residents of an area, the amount of CDBG funds
provided for the activity cannot exceed $1,000
per L/M person served.
The effect of these dollar limits is that, if an
activity could both create or retain jobs AND provide
goods or services to persons, it must fail both dollar
standards to be precluded on the basis of these
individual activity standards (and thus ineligible to
be carried out using CDBG funds).
HUD also determined that there are certain kinds of
economic development activities that by their nature
fail to provide sufficient public benefit. They are:
• An activity in which the grantee promotes the
community as a whole (as opposed to promotion of
specific areas and programs);
• Assistance to a professional sports team;
• Assistance to privately-owned recreational
facilities that serve a predominantly higher-
income clientele, where the recreational benefit
to be derived by users or members clearly
outweighs the employment or other benefits to L/M
income persons;
2022 CDBG PROPOSAL/7/20/21 75
• Acquisition of land for which the specific
proposed use has not yet been identified; and
• Assistance to a for-profit business while that
business or any other business owned by the same
person(s) or entity(ies) is the subject of
unresolved findings of noncompliance relating to
previous CDBG assistance provided to the
business.
Therefore, any activity subject to the public benefit
standards that falls into any of the above
descriptions may not be assisted with CDBG funds
regardless of any other aspect of the activity.
Aggregate Standards
Activities that are subject to the public benefit
standards and pass the individual activity tests
outlined above also must generally, in the aggregate,
either:
• Create or retain at least one full-time
equivalent, permanent job per $35,000 of CDBG
funds used for all such activities; or
• Provide goods or services to residents of an
area, such that the number of L/M income persons
residing in the area served by the assisted
businesses amounts to at least one L/M income
person per $350 of CDBG funds used for all such
activities.
As with the individual standards, if the activity can
both create or retain jobs AND provide goods or
services to residents of an area, the grantee may
elect to apply either of the above aggregate standards
to the activity. However, only one standard shall be
used for each such activity. That is, if the grantee
elects to use the area standard, any jobs created or
retained by the activity are not to be counted for
purposes of applying that aggregate standard.
Applying the Aggregate Standard
In applying the aggregate standard, grantees are to
aggregate the dollars and resultant jobs, or L/M
income persons served (as applicable) based on the
following:
• Entitlement grantees shall apply the standards to
all applicable activities for which CDBG funds
are first obligated within each single CDBG
program year, without regard to the source year
of the funds used for the activity; and
2022 CDBG PROPOSAL/7/20/21 76
• Grantees under the HUD-administered Small Cities
or Insular Areas CDBG programs shall apply the
aggregate standards to all funds obligated for
applicable activities from a given grant.
Obligations made using program income, if any,
are to be aggregated with the most recent open
grant. For any time period in which a community
has no open grant under the HUD-administered
Small Cities or Insular Areas programs, the
aggregate standards shall be applied to all
applicable activities for which program income is
obligated during the period starting with the
closeout of the most recent such grant and ending
with the date the next such grant is received by
the grantee.
Excludable Activities
Certain activities that would otherwise be subject to
the aggregate public benefit standards may be excluded
from the aggregate calculations under the authority of
§ 570.209(b)(2)(v). Such activities are those which
have been determined by HUD to serve important
national interests. The activities must still pass
the individual activity tests. Activities that
qualify for this optional exclusion from the aggregate
calculations are those that:
• Provide jobs exclusively for unemployed persons
or participants in one or more of the following
programs:
o JTPA
o JOBS; or
o AFDC.
• Provide jobs predominantly for residents of
Public and Indian Housing units;
• Provide jobs predominantly for homeless persons;
• Provide jobs predominantly for low-skilled, L/M
income persons, where the business agrees to
provide clear opportunities for promotion and
economic advancement to such persons who are
hired, such as through provision of training;
• Provide jobs predominantly for persons residing
within a census tract (or BNA) that has at least
20% of its residents who are in poverty;
2022 CDBG PROPOSAL/7/20/21 77
• Provide assistance to business(es) that
operate(s) within a census tract (or BNA) that
has at least 20% of its residents who are in
poverty;
• Stabilize or revitalize a neighborhood that has
at least 70% of its residents who are L/M income
persons;
• Provide assistance to a CDFI that serves an area
that is predominantly L/M income persons;
• Provide assistance to a CBDO serving a
neighborhood that has at least 70% of its
residents who are L/M income persons;
• Provide employment opportunities that are an
integral component of a project designed to
promote spatial deconcentration of L/M income and
minority persons;
• With prior HUD approval, provide substantial
benefit to L/M income persons through other
innovative approaches;
• Provide services to the residents of an area
pursuant to a Neighborhood Revitalization
Strategy approved by HUD (see Appendix E); or
• Create or retain jobs through businesses assisted
in an area pursuant to a Neighborhood
Revitalization Strategy approved by HUD (see
Appendix E).
Note that the above-listed activity types may be excluded
at the grantee’s option. This means, of course, that they
do not have to be excluded. While a grantee might choose
to exclude such activities in order to minimize the
recordkeeping requirements of complying with the aggregate
public benefit standards, there is at least one good reason
why the grantee would want to have one or more of them
included. That reason is that the public benefit (jobs or
goods/services per dollar) might be such that the grantee
would want to include the activity in order to make the
overall aggregate calculation more favorable. For example,
if the grantee runs its economic development program in a
way that stays very close to the aggregate standard (e.g.,
$35,000 per job), it may want to include an activity that
provides jobs at a much lower CDBG cost per job, even if
that activity falls into one of the above-described
categories and the grantee had the option of excluding it.
2022 CDBG PROPOSAL/7/20/21 78
General Ground Rules
Both the individual and aggregate standards are to be
applied based on the number of jobs to be created or
retained or to the number of persons residing in the area
served (as applicable), as determined at the time the funds
are obligated to the activities. This is because there is
always the possibility that an economic development
activity might not proceed as planned, and for the purpose
of this particular requirement, a grantee should generally
only be held to the conditions that prevailed at the time
it provided the assistance. Nevertheless, grantees are
required to keep records that show how it performed against
the public benefit standards based on actual jobs and L/M
income persons served. Where the actual results attained
by a grantee consistently fall substantially below what it
expected, the grantee is expected to make adjustments in
how it conducts its front end assessments for complying
with the public benefit standards for future activities,
and HUD may require that the grantee meet more stringent
standards in the future, as appropriate.
Where the CDBG assistance for an activity is limited to job
training and placement and/or other employment support
services under § 570.203, the jobs assisted with CDBG funds
shall be considered to be created or retained jobs for the
purposes of applying both the individual and aggregate
standards.
Tips Although the aggregate standards may sound very difficult
to keep track of, one way to minimize additional
recordkeeping burdens is for a grantee to operate its CDBG
economic development program in a way which ensures that no
assistance will be provided for an individual activity that
exceeds the aggregate standard. For example, while the
individual standard based on jobs created/retained is
$50,000 per job, if the grantee makes sure that no
individual activity is funded that would exceed $35,000 per
job (which is the aggregate standard), the result becomes
an amount of assistance that does not exceed $35,000 per
job in the aggregate. Since studies on the use of CDBG for
economic development in the past have indicated that the
average assistance per job created or retained is, on
average, less than $10,000 per job, it seems likely that
few grantees would have difficulty operating their
activities based on an individual activity limitation of
$35,000, which would ensure their compliance with the
aggregate standard without any additional recordkeeping.
2022 CDBG PROPOSAL/7/20/21 79
Subpart K – Other Program Requirements
§ 570.600 General.
§ 570.601 Public Law 88-352 and Public Law 90-284; affirmatively
furthering fair housing; Executive Order 11063.
§ 570.602 Section 109 of the Act.
§ 570.603 Labor standards.
§ 570.604 Environmental standards.
§ 570.605 National Flood Insurance Program.
§ 570.606 Displacement, relocation, acquisition, and replacement of
housing.
§ 570.607 Employment and contracting opportunities.
§ 570.608 Lead-based paint.
§ 570.609 Use of debarred, suspended or ineligible contractors or
subrecipients.
§ 570.610 Uniform administrative requirements and cost principles.
§ 570.611 Conflict of interest.
§ 570.612 Executive Order 12372.
§ 570.613 Eligibility restrictions for certain resident aliens.
§ 570.614 Architectural Barriers Act and Americans with Disabilities
Act
Subpart K—Other Program Requirements
SOURCE: 53 FR 34456, Sept. 6, 1988, unless otherwise noted.
§570.600 General.
(a) This subpart K enumerates laws that the Secretary will treat as
applicable to grants made under section 106 of the Act, other than
grants to states made pursuant to section 106(d) of the Act, for
purposes of the Secretary's determinations under section 104(e)(1) of
the Act, including statutes expressly made applicable by the Act and
certain other statutes and Executive Orders for which the Secretary
has enforcement responsibility. This subpart K applies to grants made
under the Insular Areas Program in §570.405 and §570.440 with the
exception of §570.612. The absence of mention herein of any other
statute for which the Secretary does not have direct enforcement
responsibility is not intended to be taken as an indication that, in
the Secretary's opinion, such statute or Executive Order is not
applicable to activities assisted under the Act. For laws that the
2022 CDBG PROPOSAL/7/20/21 80
Secretary will treat as applicable to grants made to states under
section 106(d) of the Act for purposes of the determination required
to be made by the Secretary pursuant to section 104(e)(2) of the Act,
see §570.487.
(b) This subpart also sets forth certain additional program
requirements which the Secretary has determined to be applicable to
grants provided under the Act as a matter of administrative
discretion.
(c) In addition to grants made pursuant to section 106(b) and
106(d)(2)(B) of the Act (subparts D and F, respectively), the
requirements of this subpart K are applicable to grants made pursuant
to sections 107 and 119 of the Act (subparts E and G, respectively),
and to loans guaranteed pursuant to subpart M.
[53 FR 34456, Sept. 6, 1988, as amended at 61 FR 11477, Mar. 20, 1996;
72 FR 12536, Mar. 15, 2007]
§570.601 Public Law 88-352 and Public Law 90-284; affirmatively
furthering fair housing; Executive Order 11063.
(a) The following requirements apply according to sections 104(b) and
107 of the Act:
(1) Public Law 88-352, which is title VI of the Civil Rights Act of
1964 (42 U.S.C. 2000d et seq.) and implementing regulations in 24 CFR
part 1.
(2) Public Law 90-284, which is the Fair Housing Act (42 U.S.C. 3601-
3620). In accordance with the Fair Housing Act, the Secretary requires
that grantees administer all programs and activities related to
housing and urban development in a manner to affirmatively further the
policies of the Fair Housing Act. Furthermore, in accordance with
section 104(b)(2) of the Act, for each community receiving a grant
under subpart D of this part, the certification that the grantee will
affirmatively further fair housing shall specifically require the
grantee to take meaningful actions to further the goals identified in
the grantee's AFH conducted in accordance with the requirements of 24
CFR 5.150 through 5.180 and take no action that is materially
inconsistent with its obligation to affirmatively further fair
housing.
(b) Executive Order 11063, as amended by Executive Order 12259 (3 CFR,
1959-1963 Comp., p. 652; 3 CFR, 1980 Comp., p. 307) (Equal Opportunity
in Housing), and implementing regulations in 24 CFR part 107, also
apply.
[61 FR 11477, Mar. 20, 1996, as amended at 80 FR 42368, July 16, 2015]
§570.602 Section 109 of the Act.
Section 109 of the Act requires that no person in the United States
shall on the grounds of race, color, national origin, religion, or sex
2022 CDBG PROPOSAL/7/20/21 81
be excluded from participation in, be denied the benefits of, or be
subjected to discrimination under any program or activity receiving
Federal financial assistance made available pursuant to the Act.
Section 109 also directs that the prohibitions against discrimination
on the basis of age under the Age Discrimination Act and the
prohibitions against discrimination on the basis of disability under
Section 504 shall apply to programs or activities receiving Federal
financial assistance under Title I programs. The policies and
procedures necessary to ensure enforcement of section 109 are codified
in 24 CFR part 6.
[64 FR 3802, Jan. 25, 1999]
§570.603 Labor standards.
(a) Section 110(a) of the Act contains labor standards that apply to
nonvolunteer labor financed in whole or in part with assistance
received under the Act. In accordance with section 110(a) of the Act,
the Contract Work Hours and Safety Standards Act (40 U.S.C. 327 et
seq.) also applies. However, these requirements apply to the
rehabilitation of residential property only if such property contains
not less than 8 units.
(b) The regulations in 24 CFR part 70 apply to the use of volunteers.
[61 FR 11477, Mar. 20, 1996]
§570.604 Environmental standards.
For purposes of section 104(g) of the Act, the regulations in 24 CFR
part 58 specify the other provisions of law which further the purposes
of the National Environmental Policy Act of 1969, and the procedures
by which grantees must fulfill their environmental responsibilities.
In certain cases, grantees assume these environmental review, decision
making, and action responsibilities by execution of grant agreements
with the Secretary.
[61 FR 11477, Mar. 20, 1996]
§570.605 National Flood Insurance Program.
Notwithstanding the date of HUD approval of the recipient's
application (or, in the case of grants made under subpart D of this
part or HUD-administered small cities recipients in Hawaiʻi, the date
of submission of the grantee's consolidated plan, in accordance with
24 CFR part 91), section 202(a) of the Flood Disaster Protection Act
of 1973 (42 U.S.C. 4106) and the regulations in 44 CFR parts 59
through 79 apply to funds provided under this part 570.
[61 FR 11477, Mar. 20, 1996]
2022 CDBG PROPOSAL/7/20/21 82
§570.606 Displacement, relocation, acquisition, and replacement of
housing.
(a) General policy for minimizing displacement. Consistent with the
other goals and objectives of this part, grantees (or States or state
recipients, as applicable) shall assure that they have taken all
reasonable steps to minimize the displacement of persons (families,
individuals, businesses, nonprofit organizations, and farms) as a
result of activities assisted under this part.
(b) Relocation assistance for displaced persons at URA levels. (1) A
displaced person shall be provided with relocation assistance at the
levels described in, and in accordance with the requirements of 49 CFR
part 24, which contains the government-wide regulations implementing
the Uniform Relocation Assistance and Real Property Acquisition
Policies Act of 1970 (URA) (42 U.S.C. 4601-4655).
(2) Displaced person. (i) For purposes of paragraph (b) of this
section, the term “displaced person” means any person (family,
individual, business, nonprofit organization, or farm) that moves from
real property, or moves his or her personal property from real
property, permanently and involuntarily, as a direct result of
rehabilitation, demolition, or acquisition for an activity assisted
under this part. A permanent, involuntary move for an assisted
activity includes a permanent move from real property that is made:
(A) After notice by the grantee (or the state recipient, if
applicable) to move permanently from the property, if the move occurs
after the initial official submission to HUD (or the State, as
applicable) for grant, loan, or loan guarantee funds under this part
that are later provided or granted.
(B) After notice by the property owner to move permanently from the
property, if the move occurs after the date of the submission of a
request for financial assistance by the property owner (or person in
control of the site) that is later approved for the requested
activity.
(C) Before the date described in paragraph (b)(2)(i)(A) or (B) of this
section, if either HUD or the grantee (or State, as applicable)
determines that the displacement directly resulted from acquisition,
rehabilitation, or demolition for the requested activity.
(D) After the “initiation of negotiations” if the person is the
tenant-occupant of a dwelling unit and any one of the following three
situations occurs:
(1) The tenant has not been provided with a reasonable opportunity to
lease and occupy a suitable decent, safe, and sanitary dwelling in the
same building/complex upon the completion of the project, including a
monthly rent that does not exceed the greater of the tenant's monthly
rent and estimated average utility costs before the initiation of
negotiations or 30 percent of the household's average monthly gross
income; or
2022 CDBG PROPOSAL/7/20/21 83
(2) The tenant is required to relocate temporarily for the activity
but the tenant is not offered payment for all reasonable out-of-pocket
expenses incurred in connection with the temporary relocation,
including the cost of moving to and from the temporary location and
any increased housing costs, or other conditions of the temporary
relocation are not reasonable; and the tenant does not return to the
building/complex; or
(3) The tenant is required to move to another unit in the
building/complex but is not offered reimbursement for all reasonable
out-of-pocket expenses incurred in connection with the move.
(ii) Notwithstanding the provisions of paragraph (b)(2)(i) of this
section, the term “displaced person-” does not include:
(A) A person who is evicted for cause based upon serious or repeated
violations of material terms of the lease or occupancy agreement. To
exclude a person on this basis, the grantee (or State or state
recipient, as applicable) must determine that the eviction was not
undertaken for the purpose of evading the obligation to provide
relocation assistance under this section;
(B) A person who moves into the property after the date of the notice
described in paragraph (b)(2)(i)(A) or (B) of this section, but who
received a written notice of the expected displacement before
occupancy.
(C) A person who is not displaced as described in 49 CFR 24.2(g)(2).
(D) A person who the grantee (or State, as applicable) determines is
not displaced as a direct result of the acquisition, rehabilitation,
or demolition for an assisted activity. To exclude a person on this
basis, HUD must concur in that determination.
(iii) A grantee (or State or state recipient, as applicable) may, at
any time, request HUD to determine whether a person is a displaced
person under this section.
(3) Initiation of negotiations. For purposes of determining the type
of replacement housing assistance to be provided under paragraph (b)
of this section, if the displacement is the direct result of privately
undertaken rehabilitation, demolition, or acquisition of real
property, the term “initiation of negotiations” means the execution of
the grant or loan agreement between the grantee (or State or state
recipient, as applicable) and the person owning or controlling the
real property.
(c) Residential antidisplacement and relocation assistance plan. The
grantee shall comply with the requirements of 24 CFR part 42, subpart
B.
(d) Optional relocation assistance. Under section 105(a)(11) of the
Act, the grantee may provide (or the State may permit the state
recipient to provide, as applicable) relocation payments and other
2022 CDBG PROPOSAL/7/20/21 84
relocation assistance to persons displaced by activities that are not
subject to paragraph (b) or (c) of this section. The grantee may also
provide (or the State may also permit the state recipient to provide,
as applicable) relocation assistance to persons receiving assistance
under paragraphs (b) or (c) of this section at levels in excess of
those required by these paragraphs. Unless such assistance is provided
under State or local law, the grantee (or state recipient, as
applicable) shall provide such assistance only upon the basis of a
written determination that the assistance is appropriate (see, e.g.,
24 CFR 570.201(i), as applicable). The grantee (or state recipient, as
applicable) must adopt a written policy available to the public that
describes the relocation assistance that the grantee (or state
recipient, as applicable) has elected to provide and that provides for
equal relocation assistance within each class of displaced persons.
(e) Acquisition of real property. The acquisition of real property for
an assisted activity is subject to 49 CFR part 24, subpart B.
(f) Appeals. If a person disagrees with the determination of the
grantee (or the state recipient, as applicable) concerning the
person's eligibility for, or the amount of, a relocation payment under
this section, the person may file a written appeal of that
determination with the grantee (or state recipient, as applicable).
The appeal procedures to be followed are described in 49 CFR 24.10. In
addition, a low- or moderate-income household that has been displaced
from a dwelling may file a written request for review of the grantee's
decision to the HUD Field Office. For purposes of the State CDBG
program, a low- or moderate-income household may file a written
request for review of the state recipient's decision with the State.
(g) Responsibility of grantee or State. (1) The grantee (or State, if
applicable) is responsible for ensuring compliance with the
requirements of this section, notwithstanding any third party's
contractual obligation to the grantee to comply with the provisions of
this section. For purposes of the State CDBG program, the State shall
require state recipients to certify that they will comply with the
requirements of this section.
(2) The cost of assistance required under this section may be paid
from local public funds, funds provided under this part, or funds
available from other sources.
(3) The grantee (or State and state recipient, as applicable) must
maintain records in sufficient detail to demonstrate compliance with
the provisions of this section.
(Approved by the Office of Management and Budget under OMB control
number 2506-0102)
[61 FR 11477, Mar. 20, 1996, as amended at 61 FR 51760, Oct. 3, 1996]
2022 CDBG PROPOSAL/7/20/21 85
§570.607 Employment and contracting opportunities.
To the extent that they are otherwise applicable, grantees shall
comply with:
(a) Executive Order 11246, as amended by Executive Orders 11375,
11478, 12086, and 12107 (3 CFR 1964-1965 Comp. p. 339; 3 CFR, 1966-
1970 Comp., p. 684; 3 CFR, 1966-1970., p. 803; 3 CFR, 1978 Comp., p.
230; 3 CFR, 1978 Comp., p. 264 (Equal Employment Opportunity), and
Executive Order 13279 (Equal Protection of the Laws for Faith-Based
and Community Organizations), 67 FR 77141, 3 CFR, 2002 Comp., p. 258;
and the implementing regulations at 41 CFR chapter 60; and
(b) Section 3 of the Housing and Urban Development Act of 1968 (12
U.S.C. 1701u) and implementing regulations at 24 CFR part 135.
[68 FR 56405, Sept. 30, 2003]
§570.608 Lead-based paint.
The Lead-Based Paint Poisoning Prevention Act (42 U.S.C. 4821-4846),
the Residential Lead-Based Paint Hazard Reduction Act of 1992 (42
U.S.C. 4851-4856), and implementing regulations at part 35, subparts
A, B, J, K, and R of this part apply to activities under this program.
[64 FR 50226, Sept. 15, 1999]
§570.609 Use of debarred, suspended or ineligible contractors or
subrecipients.
The requirements set forth in 24 CFR part 5 apply to this program.
[61 FR 5209, Feb. 9, 1996]
§570.610 Uniform administrative requirements, cost principles, and
audit requirements for Federal awards.
The recipient, its agencies or instrumentalities, and subrecipients
shall comply with 2 CFR part 200, “Uniform Administrative
Requirements, Cost Principles, and Audit Requirements for Federal
Awards”, as set forth at §570.502.
[80 FR 75938, Dec. 7, 2015]
§570.611 Conflict of interest.
(a) Applicability. (1) In the procurement of supplies, equipment,
construction, and services by recipients and by subrecipients, the
conflict of interest provisions in 2 CFR 200.317 and 200.318 shall
apply.
(2) In all cases not governed by 2 CFR 200.317 and 200.318, the
provisions of this section shall apply. Such cases include the
2022 CDBG PROPOSAL/7/20/21 86
acquisition and disposition of real property and the provision of
assistance by the recipient or by its subrecipients to individuals,
businesses, and other private entities under eligible activities that
authorize such assistance (e.g., rehabilitation, preservation, and
other improvements of private properties or facilities pursuant to
§570.202; or grants, loans, and other assistance to businesses,
individuals, and other private entities pursuant to §570.203, 570.204,
570.455, or 570.703(i)).
(b) Conflicts prohibited. The general rule is that no persons
described in paragraph (c) of this section who exercise or have
exercised any functions or responsibilities with respect to CDBG
activities assisted under this part, or who are in a position to
participate in a decision making process or gain inside information
with regard to such activities, may obtain a financial interest or
benefit from a CDBG-assisted activity, or have a financial interest in
any contract, subcontract, or agreement with respect to a CDBG-
assisted activity, or with respect to the proceeds of the CDBG-
assisted activity, either for themselves or those with whom they have
business or immediate family ties, during their tenure or for one year
thereafter. For the UDAG program, the above restrictions shall apply
to all activities that are a part of the UDAG project and shall cover
any such financial interest or benefit during, or at any time after,
such person's tenure.
(c) Persons covered. The conflict of interest provisions of paragraph
(b) of this section apply to any person who is an employee, agent,
consultant, officer, or elected official or appointed official of the
recipient, or of any designated public agencies, or of subrecipients
that are receiving funds under this part.
(d) Exceptions. Upon the written request of the recipient, HUD may
grant an exception to the provisions of paragraph (b) of this section
on a case-by-case basis when it has satisfactorily met the threshold
requirements of (d)(1) of this section, taking into account the
cumulative effects of paragraph (d)(2) of this section.
(1) Threshold requirements. HUD will consider an exception only after
the recipient has provided the following documentation:
(i) A disclosure of the nature of the conflict, accompanied by an
assurance that there has been public disclosure of the conflict and a
description of how the public disclosure was made; and
(ii) An opinion of the recipient's attorney that the interest for
which the exception is sought would not violate State or local law.
(2) Factors to be considered for exceptions. In determining whether to
grant a requested exception after the recipient has satisfactorily met
the requirements of paragraph (d)(1) of this section, HUD shall
conclude that such an exception will serve to further the purposes of
the Act and the effective and efficient administration of the
recipient's program or project, taking into account the cumulative
effect of the following factors, as applicable:
2022 CDBG PROPOSAL/7/20/21 87
(i) Whether the exception would provide a significant cost benefit or
an essential degree of expertise to the program or project that would
otherwise not be available;
(ii) Whether an opportunity was provided for open competitive bidding
or negotiation;
(iii) Whether the person affected is a member of a group or class of
low- or moderate-income persons intended to be the beneficiaries of
the assisted activity, and the exception will permit such person to
receive generally the same interests or benefits as are being made
available or provided to the group or class;
(iv) Whether the affected person has withdrawn from his or her
functions or responsibilities, or the decision making process with
respect to the specific assisted activity in question;
(v) Whether the interest or benefit was present before the affected
person was in a position as described in paragraph (b) of this
section;
(vi) Whether undue hardship will result either to the recipient or the
person affected when weighed against the public interest served by
avoiding the prohibited conflict; and
(vii) Any other relevant considerations.
[60 FR 56916, Nov. 9, 1995, as amended at 80 FR 75938, Dec. 7, 2015]
§570.612 Executive Order 12372.
(a) General. Executive Order 12372, Intergovernmental Review of
Federal Programs, and the Department's implementing regulations at 24
CFR part 52, allow each State to establish its own process for review
and comment on proposed Federal financial assistance programs.
(b) Applicability. Executive Order 12372 applies to the CDBG
Entitlement program and the UDAG program. The Executive Order applies
to all activities proposed to be assisted under UDAG, but it applies
to the Entitlement program only where a grantee proposes to use funds
for the planning or construction (reconstruction or installation) of
water or sewer facilities. Such facilities include storm sewers as
well as all sanitary sewers, but do not include water and sewer lines
connecting a structure to the lines in the public right-of-way or
easement. It is the responsibility of the grantee to initiate the
Executive Order review process if it proposes to use its CDBG or UDAG
funds for activities subject to review.
§570.613 Eligibility restrictions for certain resident aliens.
(a) Restriction. Certain newly legalized aliens, as described in 24
CFR part 49, are not eligible to apply for benefits under covered
activities funded by the programs listed in paragraph (e) of this
section. “Benefits” under this section means financial assistance,
2022 CDBG PROPOSAL/7/20/21 88
public services, jobs and access to new or rehabilitated housing and
other facilities made available under covered activities funded by
programs listed in paragraph (e) of this section. “Benefits” do not
include relocation services and payments to which displacees are
entitled by law.
(b) Covered activities. “Covered activities” under this section means
activities meeting the requirements of §570.208(a) that either:
(1) Have income eligibility requirements limiting the benefits
exclusively to low and moderate income persons; or
(2) Are targeted geographically or otherwise to primarily benefit low
and moderate income persons (excluding activities serving the public
at large, such as sewers, roads, sidewalks, and parks), and that
provide benefits to persons on the basis of an application.
(c) Limitation on coverage. The restrictions under this section apply
only to applicants for new benefits not being received by covered
resident aliens as of the effective date of this section.
(d) Compliance. Compliance can be accomplished by obtaining
certification as provided in 24 CFR 49.20.
(e) Programs affected. (1) The Community Development Block Grant
program for small cities, administered under subpart F of part 570 of
this title until closeout of the recipient's grant.
(2) The Community Development Block Grant program for entitlement
grants, administered under subpart D of part 570 of this title.
(3) The Community Development Block Grant program for States,
administered under subpart I of part 570 of this title until closeout
of the unit of general local government's grant by the State.
(4) The Urban Development Action Grants program administered under
subpart G of part 570 of this title until closeout of the recipient's
grant.
[55 FR 18494, May 2, 1990]
§570.614 Architectural Barriers Act and the Americans with
Disabilities Act.
(a) The Architectural Barriers Act of 1968 (42 U.S.C. 4151-4157)
requires certain Federal and Federally funded buildings and other
facilities to be designed, constructed, or altered in accordance with
standards that ensure accessibility to, and use by, physically
handicapped people. A building or facility designed, constructed, or
altered with funds allocated or reallocated under this part after
December 11, 1995, and that meets the definition of “residential
structure” as defined in 24 CFR 40.2 or the definition of “building”
as defined in 41 CFR 101-19.602(a) is subject to the requirements of
the Architectural Barriers Act of 1968 (42 U.S.C. 4151-4157) and shall
2022 CDBG PROPOSAL/7/20/21 89
comply with the Uniform Federal Accessibility Standards (appendix A to
24 CFR part 40 for residential structures, and appendix A to 41 CFR
part 101-19, subpart 101-19.6, for general type buildings).
(b) The Americans with Disabilities Act (42 U.S.C. 12131; 47 U.S.C.
155, 201, 218 and 225) (ADA) provides comprehensive civil rights to
individuals with disabilities in the areas of employment, public
accommodations, State and local government services, and
telecommunications. It further provides that discrimination includes a
failure to design and construct facilities for first occupancy no
later than January 26, 1993, that are readily accessible to and usable
by individuals with disabilities. Further, the ADA requires the
removal of architectural barriers and communication barriers that are
structural in nature in existing facilities, where such removal is
readily achievable—that is, easily accomplishable and able to be
carried out without much difficulty or expense.
[60 FR 56917, Nov. 9, 1995]
2022 CDBG PROPOSAL/7/20/21 90
INSTRUCTIONS/CHECKLIST
This checklist will aid applicant in submitting all the appropriate
forms required for a complete project proposal. Please complete the
checklist by placing a checkmark next to each item and attach Exhibits
1 to 17 along with required forms and documents as requested for each
exhibit in a bounded format.
Exhibits should be typewritten, or computer generated. Narratives
should be straightforward and limited to facts, solutions to problems
and proposed plans of action. Limit responses to no more than two (2)
pages.
All proposals should be bound to secure your document (NO SPIRAL
BINDING), labeled as original and copies and signed with original
authorizing signature. Incomplete proposals or those presented in a
different format may be rejected.
___ 1. Letter of transmittal
___ 2. General Information Proposal Form
Answer all questions. If a question does not apply, mark
it N/A (not applicable).
___ 3. Exhibit 1 – Project Information
___ Form
___ Narrative
___ 4. Exhibit 2 – National Objectives
___ Form
___ Benefit to low and moderate income
___ Slum and blight
___ Community development needs
___ Documentation
___ 5. Exhibit 3 – County General Plan
___ Narrative
___ 6. Exhibit 4 – Project Schedule
___ Schedule
___ 7. Exhibit 5 – Consolidated Plan Priorities
___ Narrative
___ 8. Exhibit 6 – Displacement and Relocation
___ Narrative
___ Plan
___ 9. Exhibit 7 – Environmental
___ Form
___ Narrative
2022 CDBG PROPOSAL/7/20/21 91
___ 10. Exhibit 8 – Site Selection Standards Information
___ Form
___ Narrative
___ 11. Exhibit 9 – Budget and Funding
___ Form
___ Narrative
___ 12. Exhibit 10 – Need for CDBG Funds
___ Narrative
___ 13. Exhibit 11 – Outcomes/Number of Beneficiaries/Nature of the
Benefit
___ Form
___ Narrative
___ 14. Exhibit 12 – Additional Actions
___ Narrative
___ 15. Exhibit 13 – Compliance with Federal Overlay Statutes
___ Form
___ Narrative
___ 16. Exhibit 14 – Project Management
___ Narrative
___ Organization Chart
___ 17. Exhibit 15 – Past Performance
___ Narrative
___ 18. Exhibit 16 – Application Information
___ Documentation
___ Articles of Incorporation
___ By-laws
___ IRS Exemption under Section 501(c)
___ List of Current Board of Directors
___ Most Current Financial Audit
___ Board of Director Composition
___ Duns and Bradstreet and Central Contractor
Registration Documentation
___ CBDO Form
___ 19. Exhibit 17 – Certification and Authorization
___ Form
___ Resolution authorizing filing and submittal
2022 CDBG PROPOSAL/7/20/21 92
___ 20. Submit the original signed bound proposal (NO SPIRAL
BINDING) and two (2) copies to:
Office of Housing and Community Development
1990 Kino`ole Street, Suite 102
Hilo, Hawaiʻi 96720
Phone No. (808)961-82379
Or
Kona Office of Housing and Community Development
West Hawaiʻi Civic Center
74-5044 Ane Keohokalole Highway
Kailua-Kona, Hawaiʻi 96740
Phone No. (808)323-4300
Project Proposals delivered and/or submitted by e-mail
or fax will not be accepted. All project proposals
must be received and time stamp by the OHCD by
4:30p.m.on November 22, 2021.
Any Proposal submitted after the date and not
time stamp by deadline date or insufficient
copies of the proposal will not be accepted.
Project Proposal Deadline: November 22, 2021,
@ 4:30 p.m.
2022 CDBG PROPOSAL/7/20/21 93
PROPOSAL FORM
COUNTY OF HAWAIʻI
COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM
OFFICE OF HOUSING AND COMMUNITY DEVELOPMENT (OHCD)
1990 Kino`ole Street, Suite 102, Hilo, Hawaiʻi 96720
Phone: (808)961-8379
I. GENERAL INFORMATION
A. PROJECT INFORMATION
Project Name: _____________________________________________
Amount of CDBG Funds Requested: ___________________________
Project Address: ________________________________________
________________________________________
________________________________________
Census Tract: ___________________ TMK: _______________
Volcanic Zone: ___________________
B. INFORMATION ON THE APPLICANT
Name of Applicant: ________________________________________
Address: __________________________________________________
Mailing Address: __________________________________________
Phone Number: _____________________________________________
Fax Number: ______________________________________________
Cell Number: ______________________________________________
Contact Person and Title: _________________________________
Email: ____________________________________________________
C. TYPE OF ORGANIZATION (CHECK ONE)
___ 1. Public agency (governmental agency)
___ 2. Private Non-Profit (must be duly organized to
undertake community development activities on a not-
for-profit basis.)
Type [ ] 501(c)(3) [ ] Other (describe): _____
___ 3. A Community-Based Development Organization, a
private for profit or non-profit organization
organized under State or local law as described in
570.204(c)(2)(3) undertake community development
activities (which may include housing and economic
development activities). §§ 570.203 and 570.204(a)
and (b).
___ 4. Private for profit organization undertaking
Special Economic Development Activities
§§ 570.203(a) and (b).
[ ] Individual [ ] Partnership [ ] Corporation
Except for “Government Agency” all applicants are required to
submit certified copies of the following documents.
* Article of Incorporation
* By-Laws
* IRS Tax Exemption Letter
* DUNS and CCR Registration Form
2022 CDBG PROPOSAL/7/20/21 94
EXHIBIT 1
PROJECT INFORMATION
THRESHOLD FACTOR-REQUIRED TO BE ADDRESSED
1. Activity Category
Check or indicate in the narrative the activity category that most
approximately describes your proposed use of CDBG funds. More than
one category may be indicated. Please refer to Appendix C, Eligible
Activities, Entities and Ineligible Activities, 24 CFR 570.200 –
570.205 & 570.207 to verify project eligibility and to determine the
special requirement.
___ 570.201(a) Acquisition of real property
___ 570.201(b) Disposition
___ 570.201(c) Public facilities & improvements
___ 570.201(d) Clearance activities
___ 570.201(e) Public services (New or Increase in service)
___ 570.201(f) Interim assistance
___ 570.201(g) Payment of non-federal share
___ 570.201(h) Urban Renewal Completion
___ 570.201(i) Relocation
___ 570.201(j) Loss of rental income
___ 570.201(k) Housing services
___ 570.201(l) Privately owned utilities
___ 570.201(m) Construction of housing
___ 570.201(n) Homeownership assistance
___ 570.201(o) Micro enterprise assistance
___ 570.201(p) Technical assistance
___ 570.201(q) Assistance to institutions of higher education
___ 570.202(a) Eligible rehabilitation and preservation
activities
___ 570.202(c) Code Enforcement
___ 570.202(d) Historic Preservation
___ 570.202(e) Renovation of closed buildings
___ 570.202(f) Lead-based paint hazard evaluation and reduction
___ 570.203 Special economic development
___ 570.204 Special activities by Community-Based Development
Organizations (CBDO)
___ 570.205 Planning and policy capacity building activities
2. Summary of the Project: In narrative form, please describe your
proposed project and the proposed outcomes. Attach all
appropriate information that will explain and clarify the
specifics of the project. For example, this section should
include a project map to show the project location(s) of facility
or service area; quantify the activity (i.e., lineal feet of
waterlines; number of rooms to rehabilitate, number of persons to
be served). In addition, if the activity is real property
acquisition, construction or rehabilitation, explain what is
being acquired, ownership of the property and specify the
2022 CDBG PROPOSAL/7/20/21 95
property improvements. If applicable, discuss whether the
project could be implemented at a lower level or smaller scale
with or without the CDBG award.
Based on the 24 CFR 570.200 – 570.205 & 570.207 – Appendix C,
regarding eligible and ineligible activities, state how the
project will comply with the special provisions or requirements
of each eligible activity. For example, under Public Service
570.201(e), the regulations state that the activity must be
either a new service or a quantifiable increase in the level of a
service. Therefore, the applicant should indicate if the service
is new or document and justify that the activity is a
quantifiable increase in the level of service.
3. County Facilities and Priorities: It is required that applicants
with project proposals that contain an activity that falls within
the various County Department’s realm of jurisdiction such as
community/senior centers and facilities, parks, waterlines,
economic development activities, housing, emergency fire and
rescue vehicles, police or fire stations, sewer lines, etc.,
should contact and meet with the appropriate County Departments
(i.e., Parks and Recreation, Department of Water Supply, Office
of Aging, Fire, Police, Research and Development, Public Works,
etc.) to discuss your proposed project.
Read Important Note:
The appropriate County departments will/need to either submit the
applications on behalf of your project, sign as a co-applicant or
provide a signed letter of recommendation submitted with the
original project proposal stating that the project meets the
Department’s priorities and objectives.
Please note: The OHCD will not recommend funds for projects that
have not met this condition.
2022 CDBG PROPOSAL/7/20/21 96
EXHIBIT 2
NATIONAL OBJECTIVES
THRESHOLD FACTOR-REQUIRED TO BE ADDRESSED
1. The proposed project is required to meet one of the following
National Objectives:
a) Benefit to low- and moderate-income persons;
b) Aid in the prevention or elimination of slums or
blight;
c) Community development needs having a particular
urgency.
Please determine which national objective is appropriate for your
project and complete the appropriate forms and submit the
indicated documentation.
2. In meeting the Low- and Moderate-Income Persons National
Objective, please check below which income definition will be
used to determine a low- and moderate-income household. Please
refer to Appendix A, HUD Income Limits, for income definitions.
___ Annual income as defined under Section 8 Housing Assistance
Program.
___ Annual income under the Census long-form.
___ Adjusted gross income as defined under the Internal Revenue
Service Form 1040.
3. Please describe how your organization will ensure the
project will meet the selected CDBG National Objective and
eligibility requirements of benefitting low- and moderate- income
persons/households. (Please attach all low and moderate income
documentation forms for review and compliance verification)
2022 CDBG PROPOSAL/7/20/21 97
BENEFIT TO LOW AND MODERATE INCOME PERSONS
Benefit to low and moderate income (L/M) persons or families under 24
CFR 570.208 (see Appendix C). Check or indicate the category that
most appropriately describes the National Objective to be achieved and
submit the necessary documentation.
___ Area benefit activity. Your activity meets the identified needs
of L/M income persons residing in an area where at least 51% of
the residents are L/M income persons.
Reference: 570.208(a)(1)
1. Identify and specifically describe the projects service
area by geographic boundaries, site map or street by street
narrative delineating the area served by the project. The
area shall include census tracts and block groups;
2. Identify and submit documentation/statistics of the income
characteristics of families and unrelated individuals in
the service area. (Indicate whether the information is
from an approved HUD survey or current census data; please
contact the OHCD for required documentation to be
included); and
3. If the percent of L/M persons in the service area is less
than 51%, data showing that the area qualifies under the
exception criteria set forth at 24 CFR 570.208(a)(1)(ii).
___ Limited clientele activity. Your activity benefits a specific
group of people (rather than all the residents in a particular
area), at least 51% of whom are L/M persons.
Reference: 570.208(a)(2)
1. Show documentation that the facility or service will be
designed for the particular needs of or used exclusively by
senior citizens, adults meeting the Bureau of the Census’
Current Population Reports definition of “severely
disabled,” persons living with AIDS, battered spouse,
abused children, the homeless, illiterate adults or migrant
farm workers; or
2. Provide documentation showing the size and annual income of
the family of each person receiving the benefit or indicate
how this information will be documented and collected.
3. Please indicate which above method your calculations are
derived from and submit documentation to support your
calculations for the following:
a) Total number of persons to benefit from
the proposed project . . . . . . . . . . ___
b) Total number of L/M persons benefiting
from the proposed project.
(See Appendix A for the income limits). ___
2022 CDBG PROPOSAL/7/20/21 98
c) Percentage of L/M persons benefiting
from the proposed project.
[Divide b by c] . . . . . . . . . . . . ___
Disabled persons are considered to be of low- and moderate income
in the absence of substantial evidence to the contrary. Disabled
persons are so defined if they have physical impairments which
(1) are expected to be long, continued and indefinite duration;
(2) substantially impedes the persons abilities to live
independently; (3) are of such a nature that such abilities
could be improved by providing more suitable working conditions.
___ Low and moderate housing activities. Describe how your activity
adds or improves permanent, residential structures which will be
occupied by L/M income households upon completion. The housing
can be either owner or renter occupied units in either one family
or multi-family structures. Reference: 570.208(a)(3). Please
answer the following and submit documentation that supports and
verifies income eligibility.
1. Provide a copy of a draft or final written agreement with
each landlord or developer who will be receiving CDBG
assistance indicating the total number of dwelling units in
each multi-family structure assisted and the number of
those units which will be occupied by low and moderate
income households after assistance;
2. The total cost of the activity, including both CDBG and
non-CDBG funds;
3. For each unit occupied by L/M households, the size and
income of the households or indicate how the information
will be documented and collected;
4. For each property acquired on which there are no
structures, evidence of commitments ensuring that the
criteria in 570.208(a)(3) will be met when the structures
are built;
5. For any homebuyer assistance activity qualifying under
570.201(e), 570.201(n) or 570.204, identification of the
applicable eligibility paragraph and evidence that the
activity meets the eligibility criteria for that provision;
for any such activity qualifying under 570.208(a), the size
and income of each homebuyer’s household; and
6. For a 570.201(k) housing services activity, identification
of the HOME project(s) or assistance that the housing
services activity supports, and evidence that project(s) or
assistance meet the HOME program income targeting
requirements at 24 CFR 92.252 or 92.254.
7. If your proposed project will involve housing-related
activities, please estimate and indicate below the number
2022 CDBG PROPOSAL/7/20/21 99
and type of families that will benefit from CDBG
assistance.
Number of households assisted TOTAL CDBG
At or below 30% of median income _____ _____
Very low income 31-50% of median _____ _____
income
Moderate income 51-80% of median
income _____ _____
Middle income 81-95% of median
income _____ _____
Only for rental housing Project:
8. The rent charged (or to be charged) after assistance for
each dwelling unit in each structure assisted; and
9. Such information as necessary to ensure the affordability
of units occupied (or to be occupied) by L/M households
pursuant to criteria established and made public by the
recipient.
___ Low- and moderate-income jobs. Describe how your activity will
create or retain permanent full-time jobs, where at least 51%
will be taken by L/M persons or considered to be available to L/M
persons. Reference: 570.208(a)(4).
1. Where the applicant chooses to document that at least 51%
of the jobs will be available to L/M persons, documentation
for each assisted business shall include:
a) A copy of a draft or final written agreement
containing:
(i) A commitment by the business that it will make at
least 51% of the jobs available to L/M persons
and will provide training for any of those jobs
requiring special skills or education;
(ii) A listing by job title of the permanent jobs to
be created indicating which jobs will be
available to L/M persons, which jobs require
special skills or education and which jobs are
part-time, if any; and
(iii) A description of actions to be taken by the
recipient and business to ensure that L/M persons
receive first consideration for those jobs; and
2022 CDBG PROPOSAL/7/20/21 100
(b) A listing by job title of the permanent jobs to be
filled, and which jobs of those will be available to
L/M persons, and a description of how first
considerations will be given to such persons for those
jobs. The description shall include the hiring
process to be used; which L/M persons will be
interviewed for a particular job; and which L/M
persons will be hired.
2. Where the recipient chooses to document that at least 51%
of the jobs will be held by L/M persons, documentation for
each assisted business shall include:
a) A copy of a draft written agreement containing:
(i) A commitment by the business that at least 51% of
the jobs, on a full-time equivalent basis, will
be held by L/M persons;
(ii) A listing by job title of the permanent jobs to
be created, identifying which are part-time, if
any;
(iii) A listing by job title of the permanent jobs to
be filled and which jobs will be initially held
by L/M persons; and
(iv) For each such L/M person hired, the size and
annual income of the person’s family prior to the
person being hired for the job or how this
information will be documented and collected.
3. For each activity determined to benefit L/M persons based
on the retention of jobs:
a) Evidence that in the absence of CDBG assistance jobs
will be lost;
b) For each business assisted, a listing by job title of
permanent jobs to be retained, indicating which of
those jobs will be part-time and (where it is known)
which will be held by L/M persons at the time the CDBG
assistance is provided. Where applicable,
identification of any of the retained jobs (other than
those known to be held by L/M persons) which are
projected to become available to L/M persons through
job turnover within two years of the time CDBG
assistance is provided. Information upon which the
job turnover projections will be based shall also be
included in the record;
c) For each retained job claimed to be held by a L/M
person, information on the size and annual income of
the person’s family or indicate how this information
will be documented and collected;
2022 CDBG PROPOSAL/7/20/21 101
d) For jobs claimed to be available to L/M persons based
on job turnover, a description covering the items
required for “available to” jobs in paragraph (b)(5)
of this section; and
e) Where jobs were claimed to be available to L/M persons
through turnover, a listing of each job will be turned
over to date, indicating which of those jobs will be
taken by, or available to, L/M persons. For jobs made
available, a description of how first consideration
will be given to such persons for those jobs shall
also be included in the record.
4. For eligible economic development activities, under either
24 CFR 570.203 or 570.204, the following public benefit
standards are required to be adhered to, to ensure a
minimum level of public benefit is obtained when using CDBG
funds. The applicant should submit written documentation
demonstrating its project compliance with the public
benefit standards. There are two public benefit standards:
Standards for Individual Activities and Aggregate
Standards. Refer to Appendix D, Criteria for National
Objectives, 24 CFR 570.209, and Public Benefit Standards
for guidance in evaluating and selecting economic
development projects.
a) Standards for Individual’s Activities:
(i) For an activity that creates or retains jobs, the
use of CDBG funds cannot exceed $50,000 per full-
time equivalent job; or
(ii) For an activity that provides goods or services
to residents of an area, the amount of CDBG funds
provided for the activity cannot exceed $1,000
per L/M person served.
b) Aggregate Standards:
(i) Create or retain at least one full-time
equivalent, permanent job per $35,000 of CDBG
funds used; or
(ii) Provide goods and services to an area where the
number of L/M persons served by the assisted
business amounts to at least one L/M person per
$350 of CDBG funds used.
c) Certain activities can be excluded from the aggregate
standards. Refer to Appendix D, Public Benefit
Standards, for guidance in submitting your written
documentation.
2022 CDBG PROPOSAL/7/20/21 102
5. In addition to the public benefit standards, the OHCD will
also review all economic development projects for its
financial viability. The following underwriting objectives
will be utilized and should be addressed in your submitted
project proposal.
a) Are project costs reasonable;
b) All sources of project financing are committed;
c) CDBG funds are not a substitute for non-federal
financial support;
d) Is the project financially feasible;
e) The return on the owner’s equity investment will not
be unreasonably high; and
f) CDBG funds are disbursed on a pro rata basis with
other finances provided to the project.
g) Estimate the total number of persons or households to
be served. Calculate the public benefit by dividing
the total funding by total number of persons served.
2022 CDBG PROPOSAL/7/20/21 103
Aid in the Prevention or Elimination of Slums and Blight
___ For each activity determined to aid in the prevention or
elimination of slums or blight in a slum or blighted area:
1) The boundaries of the area; and
2) A description of the conditions which qualified the
area at the time of its designation in sufficient
detail to demonstrate how the area met the criteria in
§ 570.208(b)(1).
___ For each residential rehabilitation activity determined to
aid in the prevention or elimination of slums or blight in
a slum or blighted area:
1) Describe how the area meets the local or state
definition of “substandard”; there must be a
substantial number of deteriorated buildings based on
area documentation;
2) A pre-rehabilitation inspection report describing the
deficiencies in each structure to be rehabilitated;
and
3) Details and scope of CDBG assisted rehabilitation, by
structure.
___ For each activity determined to aid in the prevention or
elimination of slums or blight based on the elimination of
specific conditions of blight or physical decay not located
in a slum or blighted area:
1) A description of the specific condition of blight or
physical decay treated; and
2) For rehabilitation carried out under this category, a
description of the specific conditions detrimental to
public health and safety, which were identified, and
the details and scope of the CDBG assisted
rehabilitation by structure.
2022 CDBG PROPOSAL/7/20/21 104
Community Development Needs Having a Particular Urgency
NOTE: Projects under this objective must be certified by the
County through the Office of Housing and Community
Development (OHCD) prior to submitting the proposal.
Particular urgency conditions are existing conditions that
pose a serious and immediate threat to the health or
welfare of the community and other financial resources are
not available to meet such needs. Existing conditions must
have occurred within the last 18 months prior to the
proposal.
1. If you are claiming this National Objective, please submit
the following information, two (2) weeks prior to the
proposal deadline.
a) Documentation concerning the nature and degree of
seriousness of the condition requiring assistance;
b) Information on the timing of the development of the
serious condition; and
c) Evidence confirming that other financial resources to
alleviate the need was not available.
d) Copy of a declaration by the Mayor of the County of
Hawaiʻi that states an emergency exists which the
proposed project is designed to alleviate.
2022 CDBG PROPOSAL/7/20/21 105
EXHIBIT 3
COUNTY GENERAL PLAN
THRESHOLD FACTOR-REQUIRED TO BE ADDRESSED
The proposed project must address and comply with at least one of the
following elements of the County General Plan.
1. Below are subjects listed in the County General Plan. Please
indicate which items are applicable and briefly describe how the
proposed project complies with the goals, policies and courses of
action of the County General Plan. (The County’s General Plan is
available for review at the County Planning Department or at
www.planning.hawaiicounty.gov.)
___ Housing ___ Land Use
___ Economic ___ Natural Resources
& Shoreline
___ Public Utilities ___ Recreation
___ Public Facilities ___ Transportation
___ Historic Sites
2. Describe known public and private projects that address a similar
need in your area and explain how this project differs from each
of the others.
2022 CDBG PROPOSAL/7/20/21 106
EXHIBIT 4
PROJECT SCHEDULE
THRESHOLD FACTOR-REQUIRED TO BE ADDRESSED
The applicant must be able to expend the CDBG funds in a timely
manner. In order to comply and meet the federal requirements, all
activities funded with the CDBG funds shall be expended and completed
within a twelve (12) month period. This period begins from July 1,
2022 and ends on June 30, 2023. Project funds unencumbered beyond the
twelve-month period may and will be reprogrammed to other projects.
1. Please accurately describe what the CDBG funds will be spent on,
the date you expect this expenditure to occur and who will
perform these tasks within the twelve-month period.
2. Please provide the OHCD with a detailed schedule of the proposed
project’s monthly activities and drawdown of CDBG funds.
Indicate the milestones (i.e., design, bid, construction,
advertisement for positions, order equipment, zoning changes,
acquisition process, etc.) and anticipated start and completion
dates of each milestone.
Example:
Milestones
Objectives/Tasks
Start
Date
Completed
Date
Projected
Expenditure
Performed
By
Environmental
Review
Procurement Policy
Project Design
Bid/Advertisement
Contract
Construction
2022 CDBG PROPOSAL/7/20/21 107
EXHIBIT 5
CONSOLIDATED PLAN PRIORITIES
THRESHOLD FACTOR-REQUIRED TO BE ADDRESSED
The proposed project must address and comply with the County
priorities as contained in the County’s current approved 2020-2024
Consolidated Plan (CP). Briefly describe which priority(ies) your
proposed project complies with and describe how your project’s outcome
will address the priority(ies).
The County’s CP Priorities will be used to allocate CDBG funds in
accordance with project eligibility requirements and program rules.
(Higher points will be awarded to project proposals that address high
priority activities in accordance with the County’s Request for
Project Proposal System.)
The following are the County’s CP Priorities:
HIGH PRIORITIES:
• Housing: Housing for households earning less than 80% of median
income [i.e. rental, homeownership, special needs, homeless and
activities which will produce new housing (i.e. water, streets,
environmental activities, planning, etc.)]
• Public Health and Safety: Activities that protect the health and
safety of the residents in Hawaiʻi County. (i.e. fire, police,
environment, etc.)
• Federal Mandates: Activities to meet legal obligations or federal
mandates. (i.e. ADA, cesspool conversion)
• Public Facilities: Childcare, youth, and/or senior centers;
facilities for the disabled; homeless facilities; health
facilities; neighborhood facilities; and/or parks & recreation
facilities.
• Infrastructure: (other than housing related)
Water/sewer/street improvements; solid waste disposal; and/or
flood drainage improvements.
• Public Services: Senior, persons with a disability, youth,
childcare, transportation, substance abuse, employment, health,
lead hazards, crime, including activities that prevent, prepare
for address and/or respond to disaster related events such as
flooding, lava flow, hurricane, tsunami, infectious diseases,
etc.
• Disaster Relief: Activities to address designated Disaster Relief
Areas (i.e. Infrastructure, Economic Development, Health
Facilities)
2022 CDBG PROPOSAL/7/20/21 108
• Economic Development: Activities which create jobs for low- and
moderate-income persons.
LOW PRIORITIES:
• Public Facilities: Parking facilities and non-residential
historic preservation.
• Infrastructure: Sidewalks
2022 CDBG PROPOSAL/7/20/21 109
EXHIBIT 6
DISPLACEMENT/RELOCATION/ACQUISITION
THRESHOLD FACTOR-REQUIRED TO BE ADDRESSED
1. If your project will entail permanent or temporary displacement
or relocation of families and businesses:
a. Your project will be required to comply and meet the
relocation requirements of the uniform Relocation
Assistance and Real Property Acquisition Policies Act of
1970, as amended, under 49 CFR Part 24 and as required
under Section 104(d) of the Housing and Community
Development Act of 1974, as amended. Contact the OHCD for
a copy of these federal regulations.
b. Please submit a copy of a draft or final relocation plan
that describe in detail your procedures to minimize
involuntary relocation, the availability of comparable
replacement units within the project area and how and with
what source these activities will be funded as required
under the Uniform Relocation Assistance and Real Property
Acquisition Policies Act of 1970.
c. Should your project be selected for funding, documentation
indicating compliance with the Uniform Relocation
Assistance and Real Property Acquisition Policies Act of
1970, as amended, will be required to be submitted.
2. If your project will involve the acquisition of real property,
the property is subject to the Uniform Relocation Act and its
requirements of 49 CFR Part 24. Contact the OHCD for a copy of
these federal regulations.
a. Explain the procedures that will be undertaken to acquire
the proposed site and when the acquisition process will
begin and be completed.
b. Please submit documentation on the value of the property to
be acquired and explain how the value was determined.
c. Should your project be selected for funding, documentation
indicating compliance with the Uniform Relocation Act and
its requirements of 49 CFR Part 24 will be required to be
submitted.
2022 CDBG PROPOSAL/7/20/21 110
EXHIBIT 7
ENVIRONMENTAL
THRESHOLD FACTOR-REQUIRED TO BE ADDRESSED
(100 maximum points)
A federal environmental review that complies with 24 CFR Part 58 –
Environmental Review Procedures for Entities assuming HUD
Environmental Responsibilities is required if your proposal is
accepted to be funded. However, information relating to environmental
concerns at the selection stage can have a significant impact on your
proposal.
The extent to which an applicant has considered and acted upon
potential environmental concerns is important. Therefore, indicate
which of the following environmental concerns are applicable to your
project by checking “yes” or “no”. In addition, provide and submit
information and documentation, if any, on environmental concerns.
Explain if your proposed project has a completed final Environmental
Assessment (EA) that complies with 24 CFR Part 58 and whether any
permits or clearances related to the aforementioned environmental
concerns have been obtained. Projects having completed a state and
federal environmental assessment will rate higher in the selection
process.
Important Note Please Read: Non-submittal of documentation to
substantiate compliance with environmental statutes or failure to
address environmental matters that will possibly affect timely project
implementation will result in a lower score or a non-passing Threshold
Factor rating, thus making the project ineligible to receive CDBG
funding.
Yes No
The project will affect a property that is ___ ___
50 years or older and therefore eligible or
designated as a historic site on the State
or National Registers of Historic Places.
(If yes, submit photographs of the property,
the affected areas and correspondences with State
Historic Preservation Office on compliance
requirements)
Year Facility/Building Originally Built ___
The project site is located within a flood ___ ___
plain and requires flood insurance and
compliance with flood plain management
decision making (8-step) process.
(If yes, submit copy of flood insurance certificate)
The project site is located within a wetland ___ ___
which requires consistency review from the
U.S. Dept. of Army Corp. of Engineers.
(If yes, submit compliance documentation)
2022 CDBG PROPOSAL/7/20/21 111
Yes No
The project site will increase density in ___ ___
volcanic hazard zone 1 and/or 2.
The project will require a major Shoreline ___ ___
Management Permit (SMA). (If yes, submit
a copy of the application)
Will the project be in a previously ___ _________
Designated Formally Used Defense Site.
___
Has the project site received clearance ___ ___
for unexploded ordnance (UXO). ___
(Please submit compliance documentation)
The project has received an SMA approval. ___ ___
(If yes, submit compliance documentation)
The project will affect endangered species ___ ___
and their critical habitats.
Is your project located on a site currently or ___ ___
previously exposed/contaminated by hazardous
material? If yes, has an Appropriate Inquire
been initiated or a Phase One Study been
conducted on the project site? Please attach
the report and findings to your proposal. If the
possibility exists of hazardous material, what
action is being proposed to identify and remove
this material and will this affect the project
schedule and project implementation?
Will your proposed project trigger compliance ___ ___
with Chapter 343 of the Hawaiʻi Revised Statutes?
(Environmental Impact Statement) (If yes, provide
documentation that Chapter 343/State Environmental
Requirements has been met or completed)
Are there any known environmental issues with ___ ___
the site?
Airport clear zone ___ ___
Known prior industrial use ___ ___
Sole source Aquifer, Air Quality, ___ ___
Wild and Scenic Rivers, Farmland
Protection
Other known environmental concerns ___ ___
Are there any neighborhood factors which ___ ___
negatively impact the site?
Crime, drugs, other safety concerns ___ ___
Traffic, noise, other environmental factors ___ ___
Incompatible non-residential uses nearby ___ ___
2022 CDBG PROPOSAL/7/20/21 112
If any answer to the above questions is “yes,” then:
Yes No
Has a final Federal Environmental ___ ___
Assessment (EA) under 24 CFR Part 58 been
completed for the Project? If yes, submit
a copy of the EA and a copy of the Finding
of No Significant Impact (FONSI).
Have any of the permits or clearances ___ ___
related to the aforementioned environmental
concerns been obtained? If yes, submit
copies of approval or compliance.
If “no,” identify and describe any actions taken ___ ___
toward obtaining these permits and/or clearances.
2022 CDBG PROPOSAL/7/20/21 113
EXHIBIT 8
SITE SELECTION STANDARDS INFORMATION
THRESHOLD FACTOR-REQUIRED TO BE ADDRESSED
(100 maximum points)
1. Are you in control of the project site? If not, where are you in
obtaining site control and when do you anticipate having site
control? (Please provide a lease or agreement indicating Site
Control)
2. Is the community aware of the proposed project? ___ Yes ___ No
If yes, describe the process of how the community was informed
and the community’s position to the proposed project? If no, do
you anticipate opposition? Please describe and explain plan of
action to resolve these issues.
3 Identify the legal owner of the property, all existing
facilities, existing county zone, and land area. (Provide
necessary documentation to substantiate the submitted
information)
4. If applicable, indicate if any of the following conditions apply
to the infrastructure servicing the project site by checking the
appropriate category.
Not
Yes No Applicable
Road access to the site is adequate. ___ ___ ___
Sewer capacity is adequate. ___ ___ ___
Electrical service is adequate. ___ ___ ___
Water service is adequate. ___ ___ ___
5. If any answer to the above questions is “no,” describe and
document any actions being taken to resolve any potential
problems associated with the particular infrastructure
deficiency.
6. Attach location map(s). Include schematics and/or preliminary
drawings, if available.
7. Will you have to obtain changes to, or exemptions from, the
following land use designations and code requirements in order to
carry out your project? Indicate by checking “yes” or “no” for
each item.
Yes No Yes No
State Land Use District ___ ___ Building Code ___ ___
Boundary
General Plan Designation ___ ___ Zoning Code ___ ___
2022 CDBG PROPOSAL/7/20/21 114
Development Plan ___ ___ Housing Code ___ ___
Designation
Subdivision Code ___ ___ Other _________ ___ ___
Requirements
8. If any answer to the above questions is “yes,” identify the kinds
of changes, which are required as well as any actions taken
toward obtaining the necessary clearances.
9. Will your project involve rehabilitation of a facility prior to
1978? If yes, your facility will need to be tested for lead base
paint and abatement. (Submit the test results and plan to
remediate and abate the lead hazard areas).
10. Please describe all building(s) to be rehabilitated or renovated
utilizing CDBG funds. Include initial building constructed
dates, permit dates and occupancy completion dates.
11. Is there a likely presence of hazardous material:
Yes No
Lead based paint ___ ___
Asbestos ___ ___
Unexploded Ordinances ___ ___
Other __________________ ___ ___
If yes, submit test results and the plan to remediate and abate
these identified hazards.
12. If the project site does not have the appropriate
infrastructure/utility services, describe and document any
actions being taken to resolve any potential problems associated
with the particular infrastructure deficiency. Describe the
improvements required and the estimated costs.
13. If the project site is or will be on leasehold property, provide
details on the steps taken or will be taken to secure the project
site. Submit a copy of the lease. If the lease is not available
at this time, describe the terms of the lease, the duration,
etc., and what steps have been taken to secure the lease.
Important Note:
The U.S. Dept. of Housing and Urban Development (HUD) prohibits
the use of HUD funds for physical development involving new
construction, resale, refinancing, acquisition, conversion of
non-residential uses to residential uses, and major and minor
rehabilitation in HUD non-participation areas identified as
Volcanic Hazard Zones 1 and 2. Please utilize USGS Survey Map to
verify if your project is not located in these zones and contact
the OHCD for additional information.
2022 CDBG PROPOSAL/7/20/21 115
In addition, HUD also has a policy that all property proposed for
use in HUD programs be free of hazardous material, contamination,
toxic chemicals and gases and radioactive substance, where a
hazard could affect the health and safety of occupants or
conflict with the intended utilization of the property. HUD
relies on a State or Federal environmental remediation regulatory
oversight agency site closure letter, called a “No Further
Action” remedial letter to document NEPA compliance on the safety
of a property for its intended use.
2022 CDBG PROPOSAL/7/20/21 116
EXHIBIT 9
BUDGET AND FUNDING
THRESHOLD FACTOR-REQUIRED TO BE ADDRESSED
(Budget 100 maximum points)
(Funding 100 maximum points)
1. State the total amount of CDBG funds being requested and the
activities being funded with CDBG funds.
2. Provide a detailed budget that includes other sources of funds of
the proposed project and its activities as shown in the example
below.
3. Identify who did the estimates and discuss how these estimates
are current and realistic. Provide documentation to support
estimates. (Quotes, proposals, etc.)
4. If other sources of funds will be used (i.e., County, State,
private donations, etc.), state the amount, the source, the date
of expected availability and expiration and submit documentation
(letters) to verify that these funds are secured.
5. Explain your organization’s ability to access other funds and the
overall attempts to obtain additional resources if necessary.
6. If you are requesting a loan, identify repayment source, terms
and describe and justify your proposed terms. If your project
will generate project income, state the projected amount and the
expected date to receive this program income. All project income
should be included and incorporated into the budget along with
other funding sources.
Be sure your submitted budget identifies specifically what the CDBG
funds and other sources of funds will be used for.
1. Type of funding assistance requested: (check one)
Grant ___ Loan ___ Other ___
NOTE: If project is funded, letters of commitment from all
sources of funding must be submitted.
Example:
Milestones Total Cost CDBG Other
funds
Status
Environmental Review
Procurement Policy
Project Design
Bid/Advertisement
Contract
Construction
TOTAL
2022 CDBG PROPOSAL/7/20/21 117
EXHIBIT 10
NEED FOR CDBG FUNDS
(100 maximum points)
1. State and describe the problem/need you are trying to address.
Be clear and specific in identifying who it affects, why it is a
problem, what the causes are and how the project will benefit
low- and moderate-income persons. Use current data, trends,
studies and testimony in analyzing the problem/need as it relates
to the outcome you are trying to accomplish.
2. Explain the seriousness and why CDBG funds are necessary to
address this problem/need. Describe why the proposed project
cannot occur without the CDBG award. Fully describe the
activities in the project which will address the problem,
including all appropriate quantifiable information.
3. Will the project need CDBG funds in the future? [ ] Yes [ ] No
If yes, (1) how much? (2) When will the funds be needed? (3) Why
is continued funding needed? (4) How will your project continue
after CDBG funding has ended?
2022 CDBG PROPOSAL/7/20/21 118
EXHIBIT 11
OUTCOMES/NUMBER OF BENEFICIARIES (100 maximum points)
1. Submit a completed logic model that includes the following
information:
a. List the County’s Consolidated Plan’s priority your project
is proposing to accomplish. (See Exhibit 5)
b. State your problem/need that provides the rationale for the
proposed service or activity.
c. List all activities or services to address the problem
statement or need.
d. List outputs that the project will accomplish during the
project time period or activity completion. This output
should be the actual results that are measurable in terms
of evaluating the project’s performance.
e. Quantify the project outcome(s) with respect to how project
will affect and benefit persons of low and moderate income,
aid in prevention or elimination of slums or blight and/or
community development needs having a particular urgency.
2. Select one of the CDBG programs outcome objectives and
measurements listed below. Explain how the proposed project will
accomplish the program objective for low- and moderate-income
person or households.
a. Suitable Living objectives:
(This objective is for projects that are designed to
benefit communities, families, or individuals by addressing
issues in there living environment)
___ Enhanced Suitable Living Environment through New/Improved
Affordability;
___ Enhanced Suitable Living Environment through New/Improved
Accessibility;
___ Enhanced Suitable Living Environment through New/Improved
Sustainability;
b. Decent Housing objectives:
(This objective is for projects that focus on housing activities)
___ Created Decent Housing with New/Improved Affordability;
___ Created Decent Housing with New/Improved Accessibility;
___ Created Decent Housing with New/Improved Sustainability;
c. Economic Opportunity objectives:
(This objective is for project activities that relate to
economic development, commercial revitalization or job creation)
___ Provided Economic Opportunity through New/Improved
Affordability;
___ Provided Economic Opportunity through New/Improved
Accessibility;
___ Provided Economic Opportunity through New/Improved
Sustainability;
2022 CDBG PROPOSAL/7/20/21 119
3. Please describe and enumerate the number of household or persons that
will benefit from the activities of the proposed project in terms of
income, age, employment, status, communities/neighborhood, etc.
HOUSEHOLD PERSONS
Family _____ _____
Elderly _____ _____
Persons with Disabilities _____ _____
Severely Mentally Ill _____ _____
Other:___________________ _____ _____
TOTALS _____ _____
4. Out of the total number of beneficiaries, indicate the total
number of female head-of-household beneficiaries for the proposed
project. (Submit documentation to verify the statistics.)
Female Head of Households _____
5. Out of the total number of beneficiaries, indicate the total
number of minority households who will benefit from the proposed
project. (Submit documentation to verify the statistics.)
_____ White _____American Indian/Alaskan Native
_____ Hispanic _____Black, African American
_____ Hawaiian/Part-Hawaiian_____Native Hawaiian/Other Pacific Islander
_____ Asian _____American Indian/Alaskan Native & White
_____ Asian & White _____Black/African American & White
_____Other Multi-Racial
6. Submit documentation to verify the above statistics.
(i.e., census data)
2022 CDBG PROPOSAL/7/20/21 120
COMMUNITY DEVELOPMENT BLOCK GRANT
LOGIC MODEL
PROJECT NAME:
CONSOLIDATED
PLAN PRIORITY
PROBLEM
STATEMENT/
NEED
FUNDING
SOURCE AND
AMOUNT
ACTIVITIES OR SERVICES OUTPUTYEAR OUTPUT OUTCOMES/
RESULTS
2020
2021
2022
2023
2024
TOTAL
2020
2021
2022
2023
2024
TOTAL
2020
2021
2022
2023
2024
TOTAL
2020
2021
2022
2023
2024
TOTAL
2022 CDBG PROPOSAL/7/20/21 121
EXHIBIT 12
ADDITIONAL ACTIONS
(50 maximum points)
If the project does not fully address the identified need, describe
further actions that may be appropriate or necessary to resolve the
problem. Supporting information and documentation should be provided.
Describe and provide documentation, where necessary, to indicate what
other resources or activities are needed to ensure a complete program
will be available. If such support is not documented, or if the need
is evident but not addressed, the outcome of the proposal may be
diminished. Discuss the magnitude and duration of the problem and its
outcome on the target population and the community-at-large. Give
detail and documentation to show community outreach or support for
your project.
2022 CDBG PROPOSAL/7/20/21 122
EXHIBIT 13
COMPLIANCE WITH FEDERAL OVERLAY STATUTES
(50 maximum points)
Below is a list of federal overlay statutes that may apply to
your particular project. Please review the statutes and if you
check yes to any of the following, please describe your
procedures on a separate sheet of paper for complying with the
following federal rules. Refer to Appendix E and page 81,
Compliance with Applicable Federal/State Regulations, for a brief
description of the rules.
Please note: Should your project be selected for funding, the
OHCD will request additional information and documentation to
show compliance. Failure to comply with the applicable statutes
will be reasons for non-compliance and termination of any
agreement to utilize the CDBG funds and which will be required to
be recaptured.
COMPLIANCE REQUIRED YES NO
a. Equal Employment Opportunity ___ ___
b. Fair Housing ___ ___
c. Section 504 of the Rehab Act ___ ___
d. Section 3 ___ ___
e. Section 109 ___ ___
f. Environmental Review ___ ___
g. Displacement/Relocation/Acquisition ___ ___
h. Federal Labor Standards (Davis-Bacon) ___ ___
i. Lead-based Paint ___ ___
j. Conflict of Interest ___ ___
k. Debarred and Suspension ___ ___
l. Flood Insurance ___ ___
m. 2 CFR Part 200, Uniform Administrative ___ ___
Requirements and Cost Principals
n. 2 CFR Part 200, Subpart F, Audit Requirements ___ ___
for federal funds in excess of $750,000
o. Drug-free Workplace ___ ___
p. Minority/Women Business Enterprise ___ ___
q. Anti-lobbying Provisions ___ ___
2022 CDBG PROPOSAL/7/20/21 123
EXHIBIT 14
PROJECT MANAGEMENT
(100 maximum points)
1. Name of agency or person who will manage, coordinate and
implement the proposed project:
_________________________________________________________________
_________________________________________________________________
2. Address: ______________________________________________________
______________________________________________________
3. Contact person and staff primarily responsible to oversee and
implement project:
_________________________________________________________________
4. Phone and fax numbers:
_________________________________________________________________
5. Years in business or operations. ________________________________
6. Describe your organization’s management ability. Describe the
mission, management structure and staffing of your organization.
Provide a detailed description of your organization’s experience
and ability in implementing and managing projects. Provide an
organizational chart showing the staffing and lines of authority
for the key personnel to be used in the project.
7. Explain any past or current experience with federal or state
award or loan programs.
8. Describe the accounting/record keeping system used by your
organization (i.e., manual, computer software, etc.). Indicate
whether it complies with Federal Regulations 2 CFR 200 governing
cost principles, financial management and audit requirements for
federal awards.
9. Give a brief job description of the overall duties of the staff
assigned or management team assigned to manage the program during
each phase, a description of related experience and how the
project will be implemented and structured. If staff has not
been hired, provide a job description for each vacant position.
If a third party (consultants) will be involved in management,
describe their roles in implementing the project.
2022 CDBG PROPOSAL/7/20/21 124
EXHIBIT 15
PAST PERFORMANCE
(100 maximum points)
Indicate if you received other CDBG grants or other Federal, State,
local or private financial assistance in the past. If yes, briefly
describe the program and project(s) and include:
1. Project Title
________________________________________________________________
2. Project Amount
________________________________________________________________
3. Project Status
________________________________________________________________
4. Project achievement and if there were any problems encountered.
________________________________________________________________
5. Explain any delays encountered and the reasons for the delays.
________________________________________________________________
________________________________________________________________
________________________________________________________________
6. Identify any federal audit finding(s) from your previous federal
audit and explain the status of the finding(s). Also, explain
what your organization is doing to eliminate or reconcile the
finding(s).
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
2022 CDBG PROPOSAL/7/20/21 125
EXHIBIT 16
APPLICANT INFORMATION
THRESHOLD FACTOR-REQUIRED TO BE ADDRESSED
In order to receive CDBG grants or loans, the applicant must be
an eligible entity under HUD regulations, Section 570.204 (see
Appendix C). For all non-government agencies, applicants are
required to have a Dun and Bradstreet Data Universal
Numbering System (DUNS) number and be actively registered
with current information in the Central Contractor
Registration (CCR) prior to applying for CDBG funds. The
following documents must be attached to this exhibit.
_____ Articles of Incorporation
_____ By-Laws
_____ IRS Exemption under Section 501(c)
_____ List of current Board of Directors and evidence
that the board members are volunteers
_____ Duns and Bradstreet and Central Contractor
Registration Documentation
_____ Most current financial and program audit
_____ Board of Director composition
_____ FOR CBDO’S ONLY: CBDO Eligibility Form which is
attached to this exhibit.
2022 CDBG PROPOSAL/7/20/21 126
COMMUNITY BASED DEVELOPMENT ORGANIZATIONS (CBDO’s)
(Optional only for CBDO Entities)
ELIGIBILITY FORM
CBDO Eligibility
An applicant must meet the following criteria in order to qualify as a
CBDO and receive CDBG funds. Check the appropriate “yes” or “no”
blank for each item. Documentation is required to be submitted.
Yes No
___ ___ Is an association or corporation organized under
state or local laws to engage in community
activities. (Attach copy of Articles of
Incorporation).
___ ___ Has, as its primary purpose, the improvement of
the physical, economic or social environment of
its geographic area of operation by addressing
one or more critical problems of the area for
persons of L/M.
___ ___ Either be a non-profit or for profit, provided
any monetary profits is only incidental to its
operations and not inuring to the benefit of any
member, founder, contributor or individual.
___ ___ Has a tax exemption ruling from the Internal
Revenue Service under Section 501(c) of the
Internal Revenue Code of 1986. (Attach copy of
ruling from IRS).
___ ___ Maintains at least 51 percent (51%) of its
governing body’s membership for L/M residents of
its geographic area of operation.
___ ___ Has a primary purpose or capacity to carry out
neighborhood revitalization, community economic
development or energy conservation project that
address one or more critical needs of persons of
L/M.
___ ___ Is not a public body (including the County of
Hawaiʻi) or an instrumentality of a public body
and does not permit more than 1/3 of its
governing body to be appointed by, or to consist
of, elected or other public officials or
employees of an ineligible entity. (Attach copy
of organization’s by-laws or charter which shall
include provisions prohibiting conflict of
interest by its governing board, officers,
employees and agents).
2022 CDBG PROPOSAL/7/20/21 127
___ ___ Requires that members of its governing body be
nominated and approved by the general membership
of organizational. (Attach a current list of
Board of Director’s including address, telephone
number, term of office and occupation).
___ ___ Has standards of financial accountability that
conforms to OMB Circular No. A-110 (Rev.)
“Standards for Financial Management Systems.”
(Attach current financial audit report).
___ ___ Is not subject to requirements under which its
assets revert to the recipient upon dissolution.
___ ___ Is free to contract for goods and services from
vendors of its own choosing.
___ ___ Is an entity organized pursuant to Section 301(d)
of the Small Business Investment Act of 1958.
___ ___ Is an SBA approved Section 501 State Development
Company or Section 502 Local Development Company,
or an SBA Certified Section 503 Company under the
Small Business Investment Act of 1958, as
amended.
___ ___ Is a Community Housing Development Organization
(CHDO), under 24 CFR 92.2, Designated as a CHDO
by the HOME Investment Partnership program.
2022 CDBG PROPOSAL/7/20/21 128
EXHIBIT 17
CERTIFICATION AND AUTHORIZATION
THRESHOLD FACTOR-REQUIRED TO BE ADDRESSED
1. To the best of my knowledge, the statements in this proposal are
true and correct. (Proposal is not complete without an
authorized signature)
2. I hereby authorize the Office of Housing and Community
Development to obtain further information and to verify any
statements made as it deems necessary.
3. The applicant will comply with and certify all CDBG program
regulations, policies, guidelines and requirements as set forth
in this application.
4. The applicant certifies that they have read and understand that
compliance with all aspects of Exhibit 13 (Compliance with
Federal Overlay Statutes), is required if the project is
selected.
5. The applicant assures the county that it will provide sufficient
funds to cover any cost overrun to complete the project and where
required by its by-laws, the Board of Directors have duly passed
a resolution authorizing its authorized official to file this
application and provide further information to the County.
6. I certify that the applicant has the legal authority to apply for
Federal assistance, and the institutional, managerial and
financial capability (including funds sufficient to pay the non-
Federal share of project cost) to ensure proper planning,
management, and completion of the project described in this
application.
7. I certify that the applicant will initiate and complete the work
within the applicable time frame after receipt of approval of the
awarding agency.
8. I certify that the applicant will give the County and the
Comptroller General of the United States, through any authorized
representative, access to and the right to examine all records,
books, papers, or documents related to the award; and will
establish a proper accounting system in accordance with generally
accepted accounting standards or agency directives.
9. I certify that the applicant will comply with the conflict of
interest provisions at 2CFR 200.112 and 24 CFR Part 570.611
related to the establishment of safeguards to prohibit employees
from using their positions for a purpose that constitutes or
presents the appearance of personal or organizational conflict or
interest, or personal gain.
2022 CDBG PROPOSAL/7/20/21 129
10. I certify that the applicant will comply with 2 CFR Part 200,
“Uniform Administrative Requirements, Cost Principles, and Audit
Requirements for Federal Awards,” implementing guidance formerly
found in Office of Management and Budget (“OMB”) circulars A-110,
A-112, and A-133.
11. I certify that the applicant will maintain all reports and
records required to be maintained in accordance with other
applicable laws and regulations set forth in Subpart K of 24 CFR
Part 570.
12. I certify that the applicant will cause to be performed the
required financial and compliance audits in accordance with 2 CFR
Part 200, Subpart F, Audit Requirements.
13. I certify that the applicant will comply with all Federal
statutes, related amendments, and implementing regulations
relating to nondiscrimination, fair housing and equal opportunity
including, but not limited to: (a) Title VI of the Civil Rights
Act of 1964, as amended; (b) Fair Housing Act; (c) Equal
Opportunity in Housing (Executive Order 11063, as amended by
Executive Order 12259); (d) Section 109 of Title I of the Housing
and Community Development Act of 1974, as amended; (e) Age
Discrimination Act of 1975, as amended; (f) any other
nondiscrimination provisions in the specific statute under which
application for Federal assistance is being made; and (g) the
requirements of any other nondiscrimination statute which may
apply.
14. I certify that the applicant will comply with all Federal
statutes, related amendments, and implementing regulations
relating to handicapped accessibility including, but not limited
to: (a) Architectural Barriers Act of 1968, as amended; and (b)
Americans with Disabilities Act; Section 504 of the
Rehabilitation Act of 1973.
15. I certify that the applicant will comply with all Federal
statues, related amendments, and implementing regulations
relating to employment and contracting including, but not limited
to: (a) Equal Employment Opportunity, Executive Order 11246, as
amended; and (b) Section 3 of the Housing and Urban Development
Act of 1968.
16. I certify that the applicant will comply, if applicable, with
flood insurance requirements of Section 202 of the Flood Disaster
Protection Act of 1973.
17. I certify that the applicant will comply, as applicable, with the
provisions of the (a) Davis-Bacon Act; (b) the Contract Work
Hours and Safety Standards Act; (c) the Copeland (Anti-Kickback)
Act; and (d) Fair Labor Standards Act of 1938, as amended
regarding labor standards for federally assisted construction
subagreements.
2022 CDBG PROPOSAL/7/20/21 130
18. I certify that the applicant will comply with the requirements
found at 24 CFR Part 5 regarding debarred, suspended and
ineligible contractors and subrecipients.
19. I certify that the applicant will comply, or has already
complied, with the requirements of the Uniform Relocation
Assistance Act, Section 104(d) which provide for fair and
equitable treatment of persons displaced or whose property is
acquired as a result of Federal or federally assisted programs.
20. I certify that the applicant will comply with environmental
standard which may be prescribed pursuant to the following: (a)
institution of environmental quality control measures under the
National Environment Policy Act of 1969 and Executive Order (EO)
11514; (b) notification of violating facilities pursuant to EO
11738; (c) protection of wetlands pursuant to EO 11990; (d)
evaluation of flood hazards in floodplains in accordance with
EO11988; (e) assurance of project consistency with the approved
State management program developed under the Coastal Zone
Management Act of 1972; (f) conformity of Federal actions to
State (Clear Air) Implementation Plans under Section 176(c) of
the Clear Air Act of 1955, as amended; (g) protection of
underground sources of drinking water under the Safe Drinking
Water act of 1975, as amended; and (h) protection of endangered
species under the Endangered Species Act of 1973, as amended.
21. I certify that the applicant will assist the awarding agency in
assuring compliance with Section 106 of the National Historic
Preservation Act of 1968, EO 11593 (identification and protection
of historic properties), and the Archaeological and Historic
Preservation Act of 1974.
22. I certify that the applicant will comply with the Lead-Based
Paint Poisoning Prevention Act which prohibits the use of lead-
based paint in construction or rehabilitation of residence
structures.
23. I certify that the applicant will comply, as applicable, with the
provisions of the Hatch Act which limit the political activities
of employees whose principal employment activities are funded in
whole or in part with Federal funds.
24. I certify that the applicant will comply with all applicable
requirements of all other Federal laws, executive orders,
regulations and policies governing this program. In cases where
County, State, and/or Federal laws, rules and regulations address
certain issues, the most stringent ruling shall apply.
2022 CDBG PROPOSAL/7/20/21 131
25. I certify that I am authorized on behalf of _____________________
(name of applicant) to submit this proposal; to carry out the
proposed project/activity pursuant to its charter and by-laws;
and comply with the standards for private non-profit entities
established by HUD and the County of Hawaiʻi. (Please submit
resolution authorizing filing and submittal).
____________________________________________ ________________________
Signature of Authorized Certifying Official Title
____________________________________ _______________________________
Applicant Organization Date Submitted