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CHAPTER 1: INTRODUCTION, DEFINITIONS AND GENERAL INSTRUCTIONS

1-1. Purpose. This Handbook provides instructions for CDBG

entitlement communities to complete the annual GPR

using forms HUD-4949.1 through 4949.6.

The GPR is designed to provide information on how a

grantee actually used its entitlement funds during its

most recently completed program year by providing a

concise description of each activity for which funds

were budgeted and expended during the reporting period,

as well as providing information on activity

accomplishments. The GPR is also used by grantees to

inform citizens on the use of CDBG funds during the

program year. The CDBG regulations require that copies

of the GPR be made available to citizens in time to

comment prior to submission to HUD. Finally, the

information provided in the GPR is compiled by HUD and

used in its Annual Report to Congress.

1-2. Background. The GPR is required by the Housing and

Community Development Act of 1974, as amended. In

carrying out its statutory responsibility to review the

grantee\'s performance, HUD relies heavily on the GPR to

provide information on how individual CDBG-assisted

activities are eligible and meet a national objective,

as well as whether expenditures meet certain other

statutory requirements.

1-3. Appendices. This Handbook contains eight appendices.

Each of the first six appendices contain instructions

for completing one of the GPR forms together with an

example of a completed form. Grantees should carefully

review the examples because they provide important

additional guidance on how to present the required

information, especially with regard to the Activity

Summary forms, HUD-4949.2 and 4949.2a. Appendix 7

contains a completeness checklist. Grantees should use

this checklist to ensure that each form has been

properly completed and that the information provided is

arithmetically correct and internally consistent from

form to form. Appendix 8 contains a copy of each of

the GPR forms.

1-4. Narratives/Attachments. There are six instances when

additional information is to be submitted on

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CDBG-assisted activities. Instructions for preparing each

of these narratives/attachments are included in the

appendices. The additional information is required

when the grantee indicates:

a\. That the use of CDBG funds: (1) did not meet the

community development program objectives as

specified in the grantee\'s final statement for the

program year covered by this report; (2) were not

used exclusively for one of the three national

objectives; or (3) was such that the grantee did

not or will not comply with the overall benefit

certification (see page 1-1).

b\. That an activity involves the acquisition,

rehabilitation, or demolition of occupied real

property (see page 2-14 and exhibit 2e).

c\. That there were activities where jobs were made

available to, but not taken by, low/mod persons

(see page 2-24 and exhibit 2f).

d\. That personal records are not maintained for an

activity which serves a clientele that does not

fall within one of the categories of limited

clientele low and moderate income (low/mod)

presumption (see page 2-27 and exhibit 2g).

e\. That there is program income to revolving funds;

program income from float funded activities;

income from the sale of real property; other loan

repayments; prior period adjustments; loans

outstanding; loans deferred or written off;

parcels of CDBG-acquired property available for

sale; or lump sum drawdown agreements (see pages

3-8 and 3-9, and exhibit 3b).

f\. That rehabilitation projects/units were completed

during the reporting period (see page 5-6 and

exhibit 5b).

1-5. General Instructions

a\. Headings. The following information is to be

provided on each GPR form:

Name of Grantee: Enter the grantee\'s name as

shown on the approved Grant Agreement (form HUD-7082)

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for the program year this report covers.

Grant Number: Enter the grant number assigned by

HUD to the Community Development Block Grant for

the program year this report covers.

Period Covered: Enter the first and last day of

the CDBG program year this report covers.

Page numbering: Number the pages for the entire

GPR in sequential order commencing with the GPR

Cover Sheet, form HUD-4949.1, as page one of \_\_\_\_

(indicate total number of pages in report).

b\. Census Tract and Block Grout Data. Information on

census tracts/block groups is required for all

low/mod area benefit activities and for the

Displacement Summary form. Use the following

procedure to enter census tract/block group data:

for census tracts, report the basic census tract

number up to four digits and the two-digit suffix

(if appropriate). If the service area contains

less than a complete census tract, following the

census tract designation, enter \"BG\" to indicate

the block group number(s) in the service area.

For example, an activity with a service area in

block groups 1,3, and 7 of census tract 1103.01

would be shown as 1103.01 BG 1,3,7; and census

tract 1221.04, census block groups 1,2,3,4,5, and

6, would be shown as 1221.04 BG 1-6. In those

communities where census tract/block group data is

not provided by the Census Bureau, enter the block

numbering area data by denoting \"BNA.\"

c\. Definitions. The following terms are defined as

indicated below for purposes of this report:

\(1\) Low and Moderate Income. Information on

low- and moderate-income households/persons is

required in a number of places in the GPR.

The grantee should identify persons or

households which are included in these groups

using the definitions for \"low- and moderate-income

household,\" \"low- and moderate-income

person,\" \"low-income household,\" or

\"low-income person\" as established in 24 CFR

570.3, Definitions.

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\(2\) Racial and Ethnic Groups. The Activity

Summary and Displacement forms require

information on participation in the CDBG

program by racial and ethnic groups. Below

are the definitions of the basic racial and

ethnic groups used in this GPR. Grantees

should use the category that most closely

reflects an individual\'s recognition in

his/her community for purposes of reporting

on a person of mixed racial and/or ethnic

origins.

White, Not Hispanic Origin. A person having

origins in any of the original peoples of

Europe, North Africa, or the Middle East, but

not of Hispanic origin.

Black, Not Hispanic Origin. A person having

origins in any of the black racial groups of

Africa, but not of Hispanic origin.

Hispanic. A person of Mexican, Puerto Rican,

Cuban, Central or South American or other

Spanish culture or origin, regardless of

race.

Asian and Pacific Islander. A person having

origins in any of the original peoples of the

Far East, Southeast Asia, the Indian

subcontinent, or the Pacific Islands.

American Indian or Alaskan Native Origin. A

person having origins in any of the original

peoples of North America, and who maintains

cultural identification through tribal

affiliations or community recognition.

\(3\) Subrecipient: A public or private nonprofit

agency, authority, or organization, or an

entity described in 24 CFR 570.204(c)

receiving CDBG funds from the grantee or a

subrecipient to undertake activities eligible

for such assistance under 24 CFR 570 Subpart

C. The term includes a public agency

designated by a metropolitan city or urban

county to receive a loan guarantee under

Subpart M, but does not include contractors

or direct beneficiaries receiving financial

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assistance for property rehabilitation or

economic development projects. (See page

2-18)

\(4\) CDBG Funds. All available CDBG resources

including funds received in the form of

grants under 24 CFR 570 Subparts D or F,

loans guaranteed under Subpart M, urban

renewal surplus grant funds under Subpart N,

program income defined in 570.500(a), and

grant funds returned to the program account

or line-of-credit. (See page 2-24)

\(5\) Budgeted: The total amount of CDBG resources

allocated to an activity as of the last day

of the reporting period. (This is not to

include funds expended for the activity in

prior years.) The amount budgeted on the

last day of the reporting period should be no

less than the amount of CDBG funds expected

to be expended to complete the activity.

Also, for activities reported as completed or

canceled this report period, the amount

budgeted cannot exceed the amount expended

for the activity. (See page 2-25)

\(6\) Expenditures: Actual cash disbursements,

indirect expenses incurred, and net increases

(or decreases) in amounts owed by the grantee

for goods and other property received, for

services performed by employees, contractors,

subrecipients, subcontractors, or other

payees, and other amounts becoming owed for

which no current services or performance are

required, such as annuities, insurance

claims, and other benefit payments. This

definition is to be applied by both the

grantee and subrecipients. (See page 2-25)

\(7\) Obligated funds: Funds which the grantee or

subrecipient has committed by placing orders,

awarding contracts or grants, receiving goods

or services, or completing similar

transactions that require payment in the

future. (See page 2-15)

\(8\) Unliquidated obligations: Amount of orders

placed, contracts and grants awarded, goods

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and services received and similar

transactions for which an expenditure has

been accrued but not yet paid as of the end

of the reporting period. (See page 2-28)

\(9\) Revolving fund: A separate fund (with a set

of accounts that are independent of other

program accounts) established by the grantee

or a subrecipient for the purpose of carrying

out specific activities that, in turn,

generate payments to the fund for reuse in

carrying out the same type of activity. (See

page 3-2)

\(10\) Multi-Unit Residential Structure. Each

assisted structure containing two or more

residential units is a multi-unit residential

structure and shall be reported as a separate

activity for all purposes in the GPR.

\(11\) Housing activity delivery costs: Costs of

staff and related expenses, other than

program administration costs, incurred for

the acquisition, rehabilitation, conversion,

reconstruction or construction of property

for housing. (See page 2-7)

\(12\) Displaced person: Any household, business,

farm, or nonprofit organization that moves

from real property, permanently, as a direct

result of rehabilitation, demolition, or

acquisition for any CDBG-assisted activity.

(See page 6-1)

1-6. Recordkeeping Requirements. Individual records for

each CDBG-assisted activity must be retained for a

period of three years commencing with the date of

submission of the GPR in which the specific activity is

reported for the final time.

The records on any activity for which there is a

finding that is unresolved at the end of the three-year

period just described shall be retained until

resolution of the finding and any issue(s) that arise

from the finding.

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