Community Development Block Grant - Recovery
On February 17, 2009, the President of the United States signed Title XII of the American Recovery and Reinvestment Act of 2009 (ARRA) into law. ARRA appropriates 1 billion in supplemental funds for the Community Development Block Grant (CDBG) Program. The grant program under Title XII is commonly referred to as the Community Development Block Grant – Recovery (CDBG-R). The Agency responsible for the implementation of the program is the United States Department of Housing and Urban Development (HUD).
The funds have been allocated according to the current CDBG grant formula. Under the formula used, the City will receive or $357,396 in CDBG-R funds (approximately 27 percent of its 2008-2009 CDBG allocation).
Funding available under the Recovery Act has clear purposes – to stimulate the economy. HUD requires that Cities carefully evaluate proposed projects for consistency with the goals of the Recovery Act, especially the above-cited purpose. To this extent, HUD strongly urged Cities to use CDBG-R funds for hard development costs associated with infrastructure activities that provide basic services to residents or activities that promote energy efficiency and conservation through rehabilitation or retrofitting of existing buildings. While the full range of CDBG activities is available to Cities, the Department strongly suggested that Cities incorporate consideration of the public perception of the intent of the Recovery Act in identifying and selecting projects for CDBG-R funding.
The CDBG-R Grant is a supplemental appropriation. As such, HUD treated the City’s use of its CDBG-R grant to be a substantial amendment to its current approved consolidated plan and 2008-2009 Action Plan. HUD waived the consolidated plan regulations to the extent necessary to adjust the reporting requirements for the use of CDBG-R funds to comply with the Recovery Act. The application/substantial amendment was due to HUD by June 5, 2009.
In an effort to assist Cities in meeting the submission deadline, HUD is waiving the requirement that the City follow its citizen participation plan for this substantial amendment. HUD is shortening the minimum time for citizen comments to 7 calendar days and requiring the substantial amendment materials to be posted on the City’s official website as the materials are developed, published, and submitted to HUD.
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