# Presentation: 370690

## CITIZEN PARTICIPATION PLAN

- Sets forth the policies and procedures to be used for citizen participation

## MUST PROVIDE AND ENCOURAGECITIZEN PARTICIPATION

- During the development of the consolidated plan
- Regarding substantial amendments
- To review performance reports

## CON PLAN DEVELOPMENT

- Describe how & when citizens will be informed of:

## CON PLAN DEVELOPMENT 

- Amount of assistance expected to be received
- Range of activities
- Plans to minimize displacement (even if no displacement is expected)

## CON PLAN DEVELOPMENT 

-     How citizens will be given opportunity to examine proposed Con Plan -
-     including where copies may be examined and obtained

## CON PLAN DEVELOPMENT

- At least one public hearing during the development process
- Description of how notice of that hearing will be provided

## CON PLAN DEVELOPMENT 

- Public comment period
- Not less than 30 days, prior to adopting the final consolidated plan

## CON PLAN DEVELOPMENT 

- Comments:
- Written or orally at public hearing will be considered
- Summary of comments attached to final con plan

## AMENDMENTS

- Specify criteria to be used to determine what constitutes a substantial amendment
- How citizens will be given opportunity to comment with comment period and summary

## PERFORMANCE REPORTS

- Reasonable notice for review and comment
- Comment period prior to submission is not less than 15 days

## PUBLIC HEARINGS

- Citizen participation plan must:
- State how / when notice is given
- Describe how needs of non-English speaking will be met

## PUBLIC HEARINGS

-   Citizen participation plan must:
- Provide hearings at convenient times and locations, with accommodations for persons with disabilities AND describe how this will be done

## MEETINGS AND RECORD AVAILABILITY / ACCESS

- Citizen participation plan must provide reasonable and timely access to local meetings
- Consolidated Plans, substantial amendments, and performance reports must be available to public

## TECHNICAL ASSISTANCE

- Citizen participation plan must
- describe how technical
- assistance will be provided to
- appropriate groups that
- request assistance to develop
- proposals

## COMPLAINTS

- Written description of
- how complaints regarding:
- Consolidated plans
- Substantial amendments
- Performance reports

## CONSULTATION

-  _Public _
- _Agencies_
- Govt. Depts.
- Health Dept.
- Public Housing
- Community Action

- _Private_
- _Agencies_
- Advocates of
-    special needs
- Senior citizen
-    organizations
- Faith-Based

## Slide 17

**Notes:**
24 CFR 91 - The consolidated Plan guidelines have evolved, primarily from statutory requirements regarding the Compreehnsive Housing Affordaibility Strategy.

Give the variety of HUD entitlement funding programs and particularly the flexibility of CDBG, the Consolidated Plan guidelines attempt to incorporate a community’s housing and non-housing needs into one comprehensive document.  Since the last five year plan, HUD is also hoping that each community will incorporate more information on non-CPD resources into the document.
While the One Year Action Plan  serves as the annual application for funding, the Consolidated Plan serves as the overall application document as well as a resource to identify what particular needs of each community will be addressed by the funds.
At this point, I would like to stress that although the regulations specify required elements of the plan, its actual structure and presentation are also up to the local community.  If at all possible, the Plan should be easily understandable to anyone from the community, linking information on community needs to existing resources and proposed programs.  Although there might be repetition across the different requirements listed, that does NOT mean there has to be the same repetition in the document itself.

## Consolidated Plan & Strategy

***an application for federal funds under HUD’s formula grant programs...***

***a strategy to be followed in carrying out HUD programs...***

***and an action plan that provides a basis for assessing performance***

***Consolidated****** ******Plan & Strategy***

## conditions and needs

***conditions and needs***

- Identify existing** **
**$ $ $ *****resources*** **$ $ $ **

- Identify   ***g  a  p  s***   between resources and needs

- Identify
***local priorities****** ***
- for CPD Funding

**Notes:**
Although there are many specific requirements for the content of the plan, the entire document can characterized as having four elements:
1) a community-wide profile and needs assessment
2) a directory of existing resources and activities to address these needs
3) explanation of the gaps left after these resources have been applied
4) a prioritization of these needs - a local determination of which of the different eligible activities are most vital to the viability of the community as a whole and to lower income neighborhoods in particular.

## Consultation with service organizations
Consultation with government agencies
Participation of residents of lower income neighborhoods

- Consultation with service organizations
- Consultation with government agencies
- Participation of residents of lower income neighborhoods

**C O N T E N T**

**Notes:**
As I mentioned earlier, the Consolidated Plan regulations have specific requirements for both the process and content.

Again, in terms of consultation and citizen participation, HUD makes no minimum requirements of activities, but will assess whether activities have represent reasonable efforts to meet the objectives of each requirement.

Given the large number of requirements, it is easy to see these as additional bureaucratic red tape.  However, these requirements are included to increase the quality of the plan and help ensure the relevance of the plan to the community.

Content - this presentation will focus primarily on the first three sections. 

## CPS DEVELOPMENT AND REVIEW

**Local community consultation and citizen participation process**

**Public Hearing:**
**Identification of Needs and Priorities**

**Minimum 30-Day Public Comment Period on Proposed CPS**

**Review and Action on Comments received on Proposed CPS**

**Submission of Final CPS and Public Comments to  HUD 45 days before  Start of Program Year**

**Notes:**
Although HUD allows each community to design a Citizen Participation Process which whill work best in its community, there are some basic overall requirements for developing a Consolidated Plan.  

At minimum, each plan should be the product of consultation with local governments, service providers and residents of lower income neighborhoods.

The proposed plan must be made available to the public and each grantee should provide reasonable opportunities for the public to comment on the plan, holding a public hearing for that purpose.

## CONSULTATION WITH SERVICE ORGANIZATIONS

- 24 CFR 91.001(a)
-    Public and private organizations that provide assisted housing, health services, and social services for:

*** ******children***
*** ******elderly persons***
*** ******persons with disabilities***
*** ******persons with HIV/AIDS and their families***
*** ******homeless persons***

**Notes:**
There are many different types of eligible activities, but in addition to consultation to local government, consultation process focuses on providers of housing, health and social services.  
In many instances, however, social services providers can also provide information on the need for facilities designed to meet the needs of the same populations.

## HOUSING AND HOMELESS NEEDS ASSESSMENT

- Analysis of housing needs by _household type_ :
- Housing cost burden
- Overcrowding
- Substandard housing
- Analysis of housing needs of _renters by income categories_
- Determination if 10% _higher rate of any housing needs experienced by racial or ethnic group_ compared to entire population

**Notes:**
Of course, these are the CHAS requirements.  

Again, easy to see this as an excercise in the generation of numbers for the sake of numbers.  But like distribution of community development needs across activity type and geographic area in the Consolidated Plan overall, this section is designed to identify what populations and subpopulations have the greatest need so the grantee can design programs to meet the most pressing needs affecting the community.

Instead of just focusing on these needs overall, however, the 2020 software allows the grantee to examine the distribution of the different housing needs by geographic area.

## Analysis of the nature and extent of homelessness
Analysis of facility needs of homeless:
Emergency Shelters
Transitional Shelters
Permanent Supportive Housing
Permanent Housing
Analysis of supportive service needs of homeless
Estimated homeless subpopulations

- Analysis of _facility needs_ of homeless:
- Emergency Shelters
- Transitional Shelters
- Permanent Supportive Housing
- Permanent Housing
- Analysis of _supportive service needs_ of homeless
- Estimated homeless _subpopulations_

**HOUSING AND HOMELESS NEEDS ASSESSMENT**

**Notes:**
A gap analysis is specifically required in the homeless section, but also serves as a useful model for all the different community development needs.

## HOUSING MARKET ANALYSIS

**Supply, demand, condition and cost of housing stock** with detail on housing available for persons with disabilities, persons with HIV/AIDS, lower income areas and areas of minority concentration
**Number and condition of public and assisted housing**, targeting of units, and whether assisted units are expected to be lost
**Inventory of facilities and services for the homeless and persons in need of supportive housing**
**Barriers to affordable housing**

## s t r a t e g i c   p l a n

- RENTER AND OWNER HOUSING NEEDS

*Homeless Facilities and Services*

- PUBLIC FACILITIES

***public services***

- INFRASTRUCTURE

***Economic Development***

- PLANNING AND OTHER NEEDS

## S T R A T E G I C   D A T A

- CENSUS, HMDA, REALTOR’S ASSOC.

*Homeless Providers*

- PARKS & REC. DEP.

***public service agencies***

- PUBLIC WORKS / ENGINEERING

***Chamber of Commerce / ED Dept.***

- PLANNING DEPT. / NBHD GROUPS

## priority levels

**High - Activity will be funded**
**Medium - Funded if monies available**
**Low - No funding, but letter of support**
**No Need - No funding or letter**

## required elements ofthe  strategic plan

- GEOGRAPHIC DISTRIBUTION ACROSS PRIORITY NEEDS
- BASIS FOR ASSIGNING       PRIORITY LEVELS
- OBSTACLES TO MEETING UNDERSERVED NEEDS
- USE OF EXPECTED FUNDS
- MEASURES FOR PROPOSED ACCOMPLISHMENTS

## other consolidated plan requirements 

- Reduction Plan for Lead-Based Paint Hazards
- Poverty Reduction and Affordable Housing Strategies
- Organizational Capacity and Coordination Assessment for Delivery of Community Development Activities
- Public - Private Partnerships
- Public Housing Resident Management and Homeownership Initiatives

## neighborhood revitalization strategy

- Residents, business owners, non-profits and community groups from a qualified, lower income residential area may seek HUD approval for a NRS after assessing economic needs and developing a revitalization and economic empowerment strategy for their area.  Benefits of an NRS can include:
-  Job Creation/Retention Qualified as Area Benefit Activity
-  Aggregation of Assistance to Housing in Area
-  Exemption of ED Public Benefit Standards for Area
-  Exemption of Public Services in Area from 15% Cap

## ACTION PLAN ELEMENTS

**STANDARD FORM 424; **
**BUDGET AND RESOURCES: **
-  Federal resources.
-  Other non-Federal public sources
-  Other private resources
-  Program Income
-  Float Funds
**ACTIVITIES TO BE UNDERTAKEN. **
**GEOGRAPHIC DISTRIBUTION**
**HOMELESS AND OTHER SPECIAL NEEDS ACTIVITIES. **

**ACTIONS TO ADDRESS OBSTACLES TO:**
- meeting underserved needs,
- foster and maintain affordable housing,
- remove barriers to affordable housing,
- evaluate and reduce lead-based paint hazards,
- reduce the number of poverty level families,
- develop institutional structure, and
- enhance coordination between public and private providers

## Slide 33

## Slide 34

## Notice 03-09: Performance Measures

***GOALS: Proposed****** ******solutions to problems identified***
***Preserve existing housing stock***

***INPUTS: Resources dedicated or consumed by the program/project***
***Money, Staff, Contractors, Equipment***

***ACTIVITIES: What the program does with the inputs to fulfill its mission***
***Screen applicants, prepare specifications, underwrite loans, progress inspections***

***OUTPUTS: The direct products of projects/activities***
***# of homeowners assisted,    # of homes rehabilitated***

***OUTCOMES: Benefits that result from the program***
***Increased percent of housing units in standard condition***

## CONSOLIDATED PLAN WEBSITEwww.hud.gov/offices/cpd/about/conplan/index.

**Links to Census and CHAS data**
**Links to local housing costs and maps**
**Link to other local con plans**
**Download Guidelines and certifications**
**Link to the CPII site**

## FAIR HOUSING PLANNING IN YOUR COMMUNITY

- Presenter: Pamela D.Walsh
- Director, Program Standards Division
- Office of Fair Housing and Equal Opportunity

**Notes:**
My presentation is entitled “Fair Housing Planning in Your Community.

## Fair Housing Planning   in Your Community	

- “Ensure Equal Opportunity and Access to Housing” means:
**-- Reducing Housing Discrimination**
**-- Promote public awareness of fair housing laws**
**-- Improving the accessibility of housing to   persons with disabilities**

**Notes:**
This morning I plan to discuss Housing Planning, what it is and how it has been a crucial part of HUD’s goal to  “Ensure Equal Opportunity and Access to Housing.”   I’ll show how Fair Housing Planning is a comprehensive strategy for reducing housing discrimination.  I’ll follow with a discussion on the objectives of  Fair Housing Planning, what it takes to conduct and implement a complete Analysis of Impediments to Fair Housing Choice, and comply with the Certification to Affirmatively Further Fair Housing or AFFH.

## Fair Housing Planning in Your Community

- Fair Housing Planning - A Comprehensive Strategy to ”Ensure Equal Opportunity and Access to Housing”
- FH Planning contributes to “Ensure Equal Opportunity and Access to Housing”
**    **

**Notes:**
One of HUD’s strategic goals is to Ensure Equal Opportunity and Access to Housing.  What do we mean to “Ensure Equal Opportunity and Access to Housing?”  What does HUD hope to accomplish through this Goal and how is it accomplished?  First and foremost, Ensure Equal Opportunity and Access to Housing means enforcement of the Fir Housing Act and other civil rights laws, conducting education and outreach on the FH Act, and working with housing partners to create housing opportunities for minority families and persons with disabilities.  

## Fair Housing Planning in Your Community

- Fair Housing Planning is part of the Consolidated Plan
- Section 808 (e) (5) of the FH Act...
- 	“The Secretary shall administer the programs and activities relating to housing and urban development in a manner to affirmatively further the policies of the Act.”

**Notes:**
Fair Housing Planning is one of many methods that HUD uses to ensure equal opportunity and access to housing through HUD’s programs.  It is a method of administering Section 808(e)(5) of the Fair Housing Act.  It was initiated in 1995 as part of CPD’s Consolidated Planning process as a way of integrating fair housing into it. 

## FAIR HOUSING PLANNING GUIDE

- More information is available in the Fair Housing Planning Guide, Volume I, that is available through the following website:
- 	http://www.hud.gov/fhe/fhplan.html

## FAIR HOUSING PLANNING IN YOUR COMMUNITY	

- Objectives of Affirmatively Furthering Fair Housing
**Eliminate housing discrimination**
**Promote fair housing choice**
**Provide opportunity for racially and ethnically inclusive occupancy patterns**
**Promote accessibility for persons with disabilities**

**Notes:**
Now that you know the statutory basis of the requirement to affirmatively further fair housing through HUD programs, what does the Department want to achieve through it?  First it wants to eliminate housing discrimination.  Secondly, it wants to promote fair housing choice, i.e., the right of all persons regardless of race, color, religion, sex, national origin, familial status and disability to  have the same housing choices and opportunities.  Third, HUD wants to provide opportunities for minority families and persons with disabilities to live where they choose.  

## Fair Housing Planning in Your Community

-   What is Fair Housing Choice?
-   The ability of persons regardless of race, color, religion, sex, disability, familial status or national origin to have available to them the same housing choices.

**Notes:**
What does the term “fair housing choice” mean?  The Fair Housing Planning Guide, which is the source document on Fair Housing Planning, defines Fair Housing Choice as follows:

The ability of persons regardless of race, color, religion, sex, disability, familial status or national origin to have available to them the same housing choices.

## Fair Housing Planning in Your Community - AFFH Certification 

- Conducting an Analysis of Impediments to Fair Housing Choice
- Taking Actions to Address the Impediments Identified in the AI
- Maintaining Records; Sources:24 CFR 91.225(a) [Localities]; 91.325(a)[States];91.425[Consortia].

**Notes:**
What do we mean by AFFH and what are the requirement to AFFH.  The Consolidated Plan Regulations (24 CFR 91) contains a certification that requires all recipients to affirmatively further fair housing.  This certification has been implemented since 1995 and under the certification all recipients must conduct an analysis of impediments to fair housing choice (AI), take actions to address the impediments identified in the AI and maintain records pertaining to the AI and its implementation.  

## Fair Housing Planning in Your Community - What is an AI?

- Comprehensive Review of:
**Laws, Regulations and Administrative Procedures Affecting the:**
**Location****	**
**Availability**
**Accessibility of Housing**
**Assessment of Conditions Affecting Fair Housing Choice**

**Notes:**
What is an Analysis of Impediments to Fair Housing Choice?  The AI is a comprehensive review of  laws, regulations and administrative procedures affecting the location, availability and accessibility of housing, as well as an assessment of conditions affecting fair housing choice for all persons.  

## What Do We Mean By Impediments to Fair Housing Choice?

-    Any actions, omissions or decisions taken because of race, color, religion, sex, national origin, disability or familial status that _restrict _housing choice or the availability of housing choice.
-    (Source:  Fair Housing Planning Guide, Volume 1, Page 2-17)

**Notes:**
-Of all the words in the title the word “Impediments” is the key word.  The regulation requires you to identify impediments or barriers to fair housing choice.  The Fair Housing Planning Guide defines an impediment as (Any Actions, omissions or decisions taken because of race, color, religion, sex, national origin, disability or familial status that RESTRICTS housing choice or the availability of housing choice.)  Examples of impediments to fair housing choice include:  

## Fair Housing Planning - Examples of Impediments

- Racial segregations/steering
- Lack of Affordable Housing/Financing
- Lack of support for facilities serving persons with disabilities
- Lack of local fair housing enforcement, focus, or support
- Lack of financial support for fair housing enforcement and education and outreach activities

## Fair Housing Planning - Examples of  Impediments

- Zoning barriers to affordable housing
- Intolerance toward minorities moving into non-minority neighborhoods. [NIMBYISM; Hate and Violence Crimes]

## Examples of Actions to Address Impediments

- Provide Cultural Sensitive training -- Ensure Safety of Families Moving to Non-traditional Neighborhoods
- Enact/Enforce Substantially Equivalent Laws
- Provide Financial Support for Fair Housing Enforcement
- Equalize Conditions Between Minority/Non-minority Areas through HUD funds

**Notes:**
The second leg of the certification requires grantees to take actions to address the impediments identified in the analysis .  Although the regulation does not explicitly require that the actions relate substantively to the impediments, HUD has during its technical assistance stressed the importance of having the affirmative steps relate directly to the impediments.  For example, if a jurisdiction found that the lack of a substantially equivalent fair housing ordinance was an impediment, the appropriate action would be to enact such an ordinance.  Some actions include:

## Fair Housing PlanningExamples of Actions

- Promote homeownership through Housing Counseling
- Remove barriers to affordable housing
- Conduct and promote fair housing testing
- Conduct and promote fair housing education and outreach

## FAIR HOUSING PLANNINGEXAMPLES OF ACTIONS, CONT.

- Translate crucial information into different languages to better serve the limited English proficient population
- Create a FH coordinator within your organization

## FAIR HOUSING PLANNINGEXAMPLES OF ACTIONS, CONT.

- Partner with local Fair Housing Initiatives Program (FHIP) organizations and Fair Housing Assistance Program (FHAP) organizations

## Fair Housing Planning - Maintaining Records

- Supporting documentation should include:
**The AI**
**Actions undertaken to address any identified impediments**
**Records such as transcripts of public hearings and citizen comments**
**Progress reports on implementation**

**Notes:**
The third leg of the certification is the maintenance of records for public and HUD inspection. Examples include:

## FAIR HOUSING PLANNING - HUD’S ROLE

- Technical Assistance
- Review of AI at many points in Consolidated Plan Life Cycle
**Annual Plan or Five-Year Consolidated Plan**
**Comprehensive Annual Performance and Evaluation Report**
**Consultation with Local/State Officials**
**Monitoring Visit**

**Notes:**
What is HUD’s role in FH Planning.  HUD has since 1995 conducted intensive and extensive technical assistance to industry groups and recipients.  HUD may review the AI at many points in the Consolidated Plan life cycle.  For example:
Annual Plan or Five-Year Consolidated Plan
Comprehensive Annual Performance and Evaluation Report
Consultation with Local/State Officials
Monitoring Visit

## Fair Housing Planning – Recipients Evaluation

- The AI
- The milestones and timetables
- The fair housing actions
- (Source:  Fair Housing Planning Guide, Part 1, Page 2-24)

**Notes:**
FH Planning should be evaluated as a whole.  HUD expects recipients to carry out effective FH actions over a long period of time.  Therefore, recipients should be carefully evaluate the results of:
The AI
The milestones and timetables
The fair housing actions
With this information, recipients will be in best possible position to evaluate their FH performance.

## Fair Housing Planning - HUD Evaluation

- SUBSTANTIALLY INCOMPLETE
**Impediments plainly inconsistent w/generally available facts and data**
**Incomplete where facts/data indicate the presence of an impediment not identified in the AI**
**(Source:  Fair Housing Planning Guide, **
**   ****Part 1, Page 2-24)**

**Notes:**
The year-end review is most crucial, since HUD can request submission of the full AI and other documentation.  What is an incomplete AI?  The Fair Housing Planning Guide states two reasons for concluding that an AI was substantially incomplete (impediments plainly inconsistent with generally available facts and data; incomplete where facts/data indicate the presence of an impediment not identified in the AI).

## Fair Housing Planning - HUD Evaluation (Cont.)

- ACTIONS PLAINLY INAPPROPRIATE
**-- Examples: **
**	****Fair housing poster contest addresses lending discrimination**
**	****Citizen participation notices in English only when****	****25% of the population is limited English proficient**
**	****	****  **
**(Source:  Fair Housing Planning Guide, **
**    ****Part 1, Page 2-24)**

**Notes:**
Inappropriate actions include:

## Fair Housing Planning - HUD Evaluation (Cont.)

- Provide notice and opportunity for comment
- Working with the jurisdiction on actions to:
**make the AI complete**
**overcome the effects of the identified impediments**
- Include a timetable for accomplishing the actions

**Notes:**
HUD is required to provide notice and opportunity to comment on any findings connected with the AI.  HUD also works with the jurisdiction on actions to make the AI complete or overcome the effects of impediments to fair housing choice, taking into the consideration the fact that, in many cases, the existence of the impediments to fair housing choice may in certain instances be beyond the control of the recipient.

## FAIR HOUSING PLANNING CONCLUSION

- Training and Technical Assistance
- Target date for new AIs

**Notes:**
Today’s presentation is a quick snapshot of FH Planning.  FHEO has 44 local field offices.  Please contact the one serving your jurisdiction and request additional training or technical assistance.  Our FH partners, the FHIPs and FHAPs are also resources that you may use.

As new recipients, you may not have completed an AI in FY 2004.   However, you should note on your Consolidated Plan when the AI will be conducted and completed.  For the FY 2005 funding cycle, HUD expects that you have completed an AI when you sign your certification to AFFH.

## CDBG DESIGN CATEGORIES

- CDBG Characteristics
- Local Considerations
- CDBG Management Issues

## Community Development Block Grant (CDBG) ProgramEligible Activities

## “6 Steps”  Determining Whether CDBG Can Assist an Activity

## Step One

**Is the activity included within the list of eligible activities in the CDBG regulations?**
**Reference: ****§570. ****201 – 570.206 **

## Step Two

**Is the activity included in one of the categories of explicitly ineligible activities?**
**Reference: §570.207**

## Step Three

**Does the activity meet the criteria of at least one of the national objectives of the CDBG program?**
**Reference: §570.208**

## Step Four

- Ensure that the grantee remains in compliance with its certification that at least 70% of its CDBG expenditures over a 1, 2, or 3 year period will be for activities benefiting low/mod-income persons.
- Reference: §570.200 (a) (3)

## Step Five

**Do the proposed costs for the activity appear necessary and reasonable and would those costs conform to requirements of applicable OMB Circulars?**
**Reference: §570.502 and Parts 84 & 85**

## Step Six

**Have the environmental review and clearance procedures been completed for the project of which the activity is a part?**
**Reference: 24 CFR Part 58**

## ACQUISITION – 570.201(a)

**Includes air rights, water rights, rights of way, and easements.**** **
**Purchase, long-term lease (at least 15 years), or donation.**
**Carried out by the grantee or a public or private nonprofit organization.**** **

## CLEARANCE – 570.201(d)

- Clearance, demolition, and removal of buildings and improvements.
- Physical removal and treatment of contaminants.
- Includes the movement of structures to other sites.

## REHABILITATION – 570.202

**Types of buildings that may be assisted:**
**	****. residential buildings**
**	****. public or privately owned commercial or industrial buildings with limitations **
**	****. non-profit owned, nonresidential buildings not public facilities**
**	****.  manufactured housing that is part of permanent housing stock.**

## REHABILITATION – 570.202 Code Enforcement

- Pay Salaries of Enforcement   Personnel
- Legal enforcement proceedings
- In Deteriorated Area
- Must arrest the decline

## DISPOSITION – 570.201(b)

- Real property acquired with CDBG may be disposed of by sale, lease, donation, or otherwise.
- Reasonable costs of temporarily managing the property are allowed.
- Proceeds are program income.

## PUBLIC FACILITIES & IMPROVEMENTS – 570.201(c)

- Acquisition, construction, reconstruction, rehabilitation, or installation.  Examples:
**Day Care Centers**
**Libraries**
**Street Improvements**
**Improvement of parks and playgrounds**

## PUBLIC SERVICES – 570.201(e)

**Wide range of services, including but not limited to:**
- Employment
- Crime prevention
- Child care
- Health
- Education

## PUBLIC SERVICES – cont.

- To qualify, an activity must be either a new service or a quantifiable increase in the level of an existing service.
- Funds expended cannot exceed 15% of the grant plus 15% of last year’s program income.

## HOMEOWNERSHIP ASSISTANCE –570.201(n)

**Pay 50% of the downpayment**
**All reasonable closing costs**
**Pay the mortgage insurance premium**
**subsidizing interest rates and mortgage principal**
**Finance the cost of acquiring property already occupied by the household**
**Limited to low and moderate income households.**

## ASSISTANCE TO MICROENTERPRISES – 570.201(o)

- A business with five or fewer employees, including the owner.
- Facilitate the establishment, stabilization, and expansion of microenterprises.
- Technical assistance, advice and business support services.
- General support services such as child care and transportation.

## Special Economic Development Activities

- Commercial or industrial buildings or improvements carried out by the grantee or nonprofit subrecipient.

## Special Economic Development ActivitiesCon’t.

- Assistance to a for-profit business to carry out an economic development project.
- Related economic development services.Reference: §570.203

## Public Benefit Standards

- Apply to activities individually and in the aggregate.
- Measured either based on jobs created/retained, or providing goods and services to low-mod residents of an area.

## New Construction

- Not generally eligible; allowed only in certain circumstances.
**Reference: §570.207(b)(3)**

## New Construction

- Most common - “Special Activities by Community-Based Development Organizations (CBDOs).”
**Reference: §570.204**
-  Also allow various “support” activities.

## Planning Activities - §570.205

**Eligible planning, urban environmental design and policy-planning-management-capacity building activities.**

## Program Administrative Costs - §570.206

**Program Administrative Costs –eligible costs include general management, oversight and coordination; public information; fair housing costs; administrative expenses to facilitate housing.**

## Eligibility Summary

**Wide range of eligible activities, but there are limits. (570.201 –570.206)**
**General Rule -- If it’s not part of a listed category, it’s not eligible.**
**Some activities are explicitly ineligible. (570.207) **

## National Objectives Segment

## NATIONAL OBJECTIVES

**NATIONAL OBJECTIVES**

**Where are the National Objective regs. found? **** **
**	**24 CFR §570.208

## Important Web Sites

- Code of Federal Regulations – CDBG Program @ 24 CFR 570
- CDBG Regulations –www.hud.gov/offices/cpd/communitydevelopment/rulesandregs/index.cfm

## Important Web Sites

- Guide to National Objectives and Eligible Activities for Entitlement Communities – www.hud.gov/offices/cpd/communitydevelopment/library/deskguid.cfm

## What are the three National Objectives?

**Principally benefit low/mod income persons**** **
**Prevent or eliminate slums and blight **** **
**Meet an urgent community development need having a particular urgency...**

## Urgent Need 

**...**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 need.

## Urgent Need

- Existing conditions are recent or recently became urgent (within the last 18 months)

## INCOME LIMITS

- CDBG Moderate Income** - Section 8 low income limits = at or below 80% of median income. **
- CDBG Low Income** - Section 8 very low income limits = at or below 50% of median income.**
- CDBG Extremely Low Income** - Section 8 extremely low income limits = at or below 30% of median income.**

## FAMILY

- All persons living together who are related by birth, marriage or adoption.
** **

## HOUSEHOLD

- All persons living together in a housing unit.  This could be a single family, one person living alone, two or more families living together, or any other group of related or unrelated persons who share living arrangements.
** **

## AREA BENEFIT – 570.208(a)(1)

- To qualify, the grantee must determine that the activity is:
- Available to all residents of the service area, where at least 51% are Low/Mod
- Located in a primarily residential area, and
- Located in a defined service area

## AREA BENEFIT (cont.)

**DETERMINING SERVICE AREA**
- Nature of the activity
- Location of the activity
- Accessibility
- Availability of comparable activities

## AREA BENEFIT (cont.)

*EXCEPTION CRITERIA*
- Grantee qualifies when fewer than one quarter of the block groups in its jurisdiction contains 51% or more low and moderate income persons.
- Referred to as the Upper Quartile exception criteria.

## LIMITED CLIENTELE – 570.208(a)(2)

- Limited clientele activities must meet one of four tests:
**1.****	****Benefits a clientele who are generally presumed to be principally low and moderate income**

## LIMITED CLIENTELE – 570.208(a)(2)

-  **abused children**
** ****elderly persons**
** ****battered spouses**
** ****homeless persons**
** ****illiterate adults**
**adults meeting the Census ****definition of severely disabled**
**persons with AIDS **
**migrant farm workers**

## LIMITED CLIENTELE – cont.

**2.  51% of participants are low and moderate income persons.**
**3.****	****Participation limited to low and moderate income persons.**
**Nature and location indicate activities will primarily benefit low and moderate income persons.**

## LIMITED CLIENTELE – cont.

**5.  Owners and persons developing microenterprises who are low and moderate income can qualify under this category for up to 3 years. **

## HOUSING – 570.208(a)(3)

- To meet the low and moderate income housing national objective, the following apply:

## One-unit structure – occupied by low/mod income household 
Two-unit structure - 1 unit must be occupied by a low/mod income household 
Three-plus-unit structure - 51% of units must be occupied by low/mod income households

**Two-unit structure - 1 unit must be occupied by a low/mod income household**** **
**Three-plus-unit structure - 51% of units must be occupied by low/mod income households**

## HOUSING (cont.)

- Rents in CDBG assisted housing units must be affordable to low and moderate income households.  If not, the assisted units do not meet the low and moderate income housing national objective criteria.

## JOBS – 570.208(a)(4)

- In order to meet the low and moderate income National Objective under JOBS, activities must:
**	**

## JOBS – 570.208(a)(4)

**	**1.	Create _or_ retain permanent jobs,
**	****	****	****	****    ****AND**
- 	2.	 51% of the jobs created/retained must be made available to _or_ held by low- and moderate- income persons
**Jobs counted on full time equivalent (FTE) basis (using 40 hour week).**

## Slums and Blight

**Slum or Blighted Areas**
**Spot Blight**
**Urban Renewal Completion**

## Slum/Blight Area - §570.208(b)(1)

**Area must be designated by the grantee as a slum/blighted area and**
- Meet a definition of slum, blight, deteriorated or deteriorating under State or local law, and

## Slum/Blight Area - §570.208(b)(1)

- Have a substantial number of buildings or public improvements in a state of deterioration.

## Slum/Blight Area - §570.208(b)(1)

**Maintain documentation on area boundaries and conditions which qualified the area at the time it was designated.**
**Assisted activity must address one or more of the conditions which contributed to the areas’ deterioration.**

## Slum/Blight Area - §570.208(b)(1)

**Residential rehab considered to meet this criterion if: **
**Each building is considered substandard under local definition; and**
**Deficiencies making building substandard** **are corrected** **before less critical work is done.**

## Spot Blight - §570.208(b)(2)

**Activities located outside a designated slum/blight area.**
**Only certain activities can qualify.**

## Spot Blight - §570.208(b)(2)

**Building rehab is limited to extent necessary to eliminate specific conditions detrimental to public health and safety.**

## Slum Blight/Urban Renewal - §570.208(b)(3)

**Activities must be in a Federal Urban Renewal (UR) or Neighborhood Development Program action area**
**Activities must be necessary to complete an Urban Renewal Plan**
**Not commonly used**
**	**

## SUBRECIPIENT DEFINED

- Reg. cite §570.500(c)
- Public or private nonprofit organization/ agency receiving CDBG funds from grantee for eligible activities

**Notes:**
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Describe what a sub is and is not

## SUBRECIPIENT DEFINED Cont.

**A for-profit agency assisting microenterprises may be a subrecipient**
**Institutions of higher learning may be subrecipients**

**Notes:**
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Describe what a sub is and is not

## SUBRECIPIENT DEFINED Cont.

**CBDOs not automatically subrecipients**
**Contractors not subrecipients**

**Notes:**
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Describe what a sub is and is not

## SUBRECIPIENT AGREEMENTS Cont.

- What are the required elements of the subrecipient agreement?

**Notes:**
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## SUBRECIPIENT AGREEMENTS Cont.

**Statement of work -work to be performed, scheduled, & a budget in sufficient detail to monitor**** **
**Records to be maintained and reports to be submitted**

**Notes:**
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Briefly go over content of agreement

## SUBRECIPIENT AGREEMENTS Cont.

**Program income - what’s to be remitted back to recipient AND what may be revolved**** **
**Uniform administrative & other federal requirements per §570.502 + §570 Subpart K**

**Notes:**
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Briefly go over content of agreement

## SUBRECIPIENT AGREEMENTS Cont.

**Suspension/termination & reversion of assets**** **

**Notes:**
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## CBDOs v. SUBRECIPIENTS

- A CBDO is not automatically a subrecipient; a grantee must decide how to treat the organization

**Notes:**
Pages in Book:
Explain that:
grantee has an option to make or not make the CBDO a sub
Benefit of not being a sub is release from those 

## CBDOs v. SUBRECIPIENTS Cont.

- Implications:
**Program income**
**Written agreement requirements**
**Uniform administrative requirements, incl. reversion of assets**

**Notes:**
Pages in Book:
Explain that:
grantee has an option to make or not make the CBDO a sub
Benefit of not being a sub is release from those 

## CDBG & IDIS

## TWO TOPICS

- Availability of Resources
- Importance of Reporting Accomplishments

## THE 10 MOST IMPORTANT THINGS YOU NEED TO KNOW ABOUT 

**IDIS**

## 10.  A plethora of resources are available to assist you in performing functions in IDIS.

## 9.  Join the IDIS User Group by e-mailing:

- amoffitt@HDsoftware.net

## 8.  Use the IDIS Matrix Code Definitions at:

- www.hud.gov/offices/cpd/systems/idis/pdf/refmanual/ref_man_b.pdf		  AND

## The Matrix Code/National Objective Code Table at:

- www.hud.gov/offices/cpd/systems/idis/resources/cdbg_xref.cfm

## 7.  Read Guidance for Reporting IDIS Accomplishments at:

- www.hud.gov/offices/cpd/communitydevelopment/cleanup/guidance/index.cfm

## TELLS HOW TO:

- Report information on IDIS screens
- When and how often to Report accomplishments

## TELLS HOW TO:

- Avoid double counting activities
- Select accomplishment codes

## Accomplishment         Types:

- 01 People
- 04 Households
- 08 Businesses

## Accomplishment Types:

- 09 Organizations
- 10 Housing Units
- 11 Public Facilities
- 13 Jobs

## 6.  Use the IDIS Reference Manual at:

- www.hud.gov/offices/cpd/systems/idis/resources/reference_manual.cfm

## 5.  Contact your CPD Field Office representative.

## 4.  Contact the IDIS Technical Assistance Unit (TAU) at:

- 1-800-273-2573

## 3.  HUD is required to collect accurate and timely accomplishment information.

## Government Performance and Results Act of 1993 (GPRA) 
Office of Management and Budget directives  
Program legislation and regulations

- Office of Management and Budget directives
- Program legislation and regulations

## 2.  Most annual reporting requirements are met by the data you enter into IDIS.

## Activity Summary Report (PR03), and 
Financial Summary Report (PR26) explained at: 
	www.hud.gov/offices/cpd/systems/idis/pdf/explnfinsum.pdf

- Financial Summary Report (PR26) explained at:
- 	www.hud.gov/offices/cpd/systems/idis/pdf/explnfinsum.pdf

## 1.  Information on the results and benefits of CDBG-assisted activities validate the success of your program in fulfilling its mission to... 

## assist low- and moderate-income persons.

## Grantee Expenditures:

-   www.hud.gov/offices/cpd/communitydevelopment/budget/disbursementreports/index.cfm

##    www.hud.gov/offices/cpd/communitydevelopment/library/accomplishments/index.cfm

- Grantee Accomplishments:

## CDBG grantees continue to improve the quality of data in IDIS through our Data Cleanup Initiative at:   

- www.hud.gov/offices/cpd/communitydevelopment/cleanup/index.cfm

## CDBG & IDISTHE END

## WHICH HARDWARE/ SOFTWARE

- ‘www.hud.gov/offices/cpd/systems/idis/start/index/cfm

## ‘www.hud.gov/offices/cpd/systems/idis/start/access/firewall_ports.cfm

- COMMUNICATING WITH IDIS

## USER IDs

- Two User IDs required
- ‘www.hud.gov/offices/cpd/systems/idis/start/index/cfm

## IDIS ASSISTANCE

- IDIS Technical Assistance Unit
- (800)273-2573
- 8 AM – 5 PM Eastern Time

## RECORD KEEPING

- WHY record keeping is important
- WHAT kinds of records need to be maintained
- HOW can you best handle record keeping responsibilities

## HUD AND COMPLIANCE

- HUD must ensure grantees use CDBG funds in compliance with program rules
- HUD determines whether grantees use CDBG funds in furtherance of their Consolidated Plan priority goals and objectives

## FIRST STEP TO COMPLIANCE

- First step to compliance is KNOWLEDGE
- Compliance tests are “open book tests”
- Seek compliance direction in _specific_ regulations

## WHY YOU NEED RECORDS 	

- _First_, to facilitate HUD monitoring
- 570.900(b)(3) – A recipient’s failure to maintain records in the prescribed manner may result in a_ _finding that the recipient has failed to meet the applicable requirement to which the record pertains.

## WHY YOU NEED RECORDS

- _Second_, to keep local officials informed
- Local officials want to know what the community is getting out of the CDBG Program
- Outputs and Outcomes

## WHY YOU NEED RECORDS

- _Third_, to report to local citizens & stakeholders _and_ HUD in the CAPER
- Records are essential to show _progress_ in meeting Consolidated Plan goals & objectives _and_ in implementing your CDBG Program

## WHAT KINDS OF RECORDS?

-    TEN Broad Categories of Records
-    1.   Records showing progress in         meeting Consolidated Plan priority goals and objectives
-    2.   Financial records

## WHAT KINDS OF RECORDS

- 3.  Records of CDBG accomplishments (outputs) –  how many jobs, etc.
- 4.  Records on CDBG beneficiaries       (incomes data on persons and      households)

## WHAT KINDS OF RECORDS

- 5.  Additional records for Eligibility,National Objectives, and Overall Benefit
- 6.  Records of compliance with    Environmental Review      Requirements (24 CFR Part 58)

## WHAT KINDS OF RECORDS

- 7.  Records pertinent to flexibilities in regulations – neighborhood revitalization strategy areas
- 8.  Records of compliance with      Other Federal Requirements      (like equal opportunity rules)

## WHAT KINDS OF RECORDS

- 9.  Records of compliance with	   general responsibilities (like  citizen participation rules)
- 10.  Records on OUTCOMES –       benefit to community as a       whole

## HOW TO DO THE JOB

- The _first_ step to compliance is _knowledge_
- _What_ specific records do grantees need to maintain?
- _Where_ do grantees look?

## WHERE DO GRANTEES LOOK?

- CDBG regulations – section 570.506 (“Records to be maintained”)
- Elsewhere in CDBG and Consolidated Plan regulations  (requirement = records)

## WHERE DO GRANTEES LOOK?

- Your Consolidated Plan – what are your goals and objectives?
- Your Certifications – what did you commit to do?  (for example, affirmatively further fair housing)

## WHERE DO GRANTEES LOOK?

- Reporting requirements (91.520 and other direction)
- IDIS screens
- HUD Field Office – CPD Rep

## AFTER KNOWLEDGE, WHAT?

- Second step to compliance – TRAINING
- Third step to compliance – SYSTEMS & PROCEDURES
- Remember - you are not alone!

## FINANCIAL MANAGEMENT OF THE CDBG PROGRAM

## GOVERNMENT WIDE REQUIREMENTS

- Financial management of the CDBG program is based on government wide requirements:
- Uniform administrative requirements (aka the “Common Rules”)
- OMB Circulars

## APPLICATION OF REQUIREMENTS TO ENTITLEMENT PROGRAM

- Government wide requirements are applied to CDBG entitlement recipients/subrecipients at 24 CFR §570.502 (but with lots of exceptions)

## CATEGORIES OF RECIPIENTS/ SUBRECIPIENTS

- Requirements vary according to nature of recipient/subrecipient:
- Governmental entities
- Educational institutions
- Other private, non-profit entities

## Uniform Administrative Requirements 

- Implemented in HUD title of CFR:
**States, Local Governments, and Indian Tribes (24 CFR Part 85)**
**Institutions of Higher Education, Hospitals, and Other Non-profit Organizations (24 CFR Part 84)**

## OMB Circulars

- Cost principles
**A-87 (Recipients/subrecipients that are governmental entities)**
**A-21 (subrecipients that are educational institutions)**
**A-122 (non-governmental subrecipients) **
- Audits
**A-133 (Audits of States, Local Governments, and Non-Profit Organizations)**

## Uniform Administrative Requirements

## Standards for Financial Management System

- Standards for recipients/subrecipients that are governmental entities are specified at 24 CFR §85.20
- Comparable standards for recipients/subrecipients that are private, non-profit organizations are specified at 24 CFR §84.21)

## Financial reporting – 

- Accurate, current, and complete disclosure of the assisted activities

## (2)  Accounting Records

- Must adequately identify the source and application of funds

## (3)  Internal Control

- Effective control and accountability must be maintained for all grant and sub-grant cash, real and personal property, and other assets.

## (4) Budget Control	

- Intended to maintain integrity of budget process
- Actual expenditures must be compared with budgeted amounts
- Financial information must be related to performance or productivity data (when required by grant agreements)

## (5)  Allowable Costs

- Three sets of cost principles:
**OMB Circular A-87 for recipients and subrecipients that are governmental entities **
**OMB Circular A-21 for subrecipients that are educational institutions**
**OMB Circular A-122 for non-governmental subrecipients**

## (6) Source Documentation

- Accounting records must be supported by source documents; examples are:
**Canceled checks**
**Paid bills**
**Payrolls**
**Time and attendance records**
**Contracts**

## (7) Cash Management

- Procedures to minimize the time elapsed between withdrawal of grant funds from the Federal Treasury and disbursement of those funds in payment of activity related costs

## PAYMENT

- Payment requirements for governmental entities are specified at 24 CFR §85.21
- Payment requirements for subrecipients that are not governmental entities are specified at 24 CFR §84.22

## PAYMENT (cont.)

- CDBG recipients are paid on an advance basis via IDIS
- Depositories – _not_ required to be Federally insured (although a good idea)
- Separate bank accounts _not_ required
- Bank accounts for subrecipients required to be interest bearing (with certain exceptions)

## PROCUREMENT

- Procurement requirements for governments are at 24 CFR 85.36
- Procurement requirements for non-profits are at 24 CFR 84.40 – 84.48

## PROCUREMENT (cont.)

- Procurement methods for governmental entities:
- Small Purchases (simplified acquisition procedures)
- Sealed Bids (formal advertising, use of IFB’s)
- Competitive Proposals (use of RFP’s)
- Non-competitive Proposals

## PROCUREMENT (cont.)

- Procurement methods for non-governmental entities less prescriptive
- “Section 3” requirements should be taken into account in procurement process
- Cost plus percentage-of-cost pricing not allowed

## Other Uniform Administrative Requirements

- Notable administrative requirements are:
- Section 85.32/84.34  Equipment
- Section 85.33/84.35  Supplies

## PROGRAM INCOME

- What is CDBG Program Income?

**Notes:**
Pages in Book:
Discuss the examples of program income
Note that program income is still subject to the CDBG requirements (it is not washed)

## PROGRAM INCOME

- What is CDBG Program Income?
- Gross income received by a grantee or subgrantee that is directly generated, in whole or in part, by use of CDBG funds; examples are:
**Proceeds from sale or lease of property purchased/improved with CDBG**
**Proceeds from lease of equipment purchased with CDBG**
**Gross income from use/rental of real or personal property acquired, constructed, improved (less costs incidental to generation of income)**

**Notes:**
Pages in Book:
Discuss the examples of program income
Note that program income is still subject to the CDBG requirements (it is not washed)

## PROGRAM INCOME cont.

- What is program income (cont.)
**Payments of principal & interest on CDBG loans**
**Proceeds from the sale of loans or obligations secured by loans made with CDBG**
**Interest earned on program income pending its disposition**
**Funds collected through special assessments on properties not owned/occupied by LMI persons**

## PROGRAM INCOME cont.

- When _isn’t_ it program income?
**Income in a single year not exceeding $25,000**
**Income generated by some Section 108 activities**
**Proceeds of subrecipient fundraising**
**Funds collected through special assessment**
**Subrecipients’ proceeds from disposition of property five years or more after grant close-out.**
**	****	****	****	****	****	****	****cont.**

**Notes:**
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## PROGRAM INCOME cont.

- When _isn’t_ it program income? (cont.)
**Interest earned on grant advances - that must be remitted to the U.S. Treasury, including:**
**interest earned from initial investment of a grant advance**
**interest earned on activities later determined to be ineligible or not meet a national objective**
**interest earned on funds reimbursed to the program account before it has been used for an eligible activity.**

**Notes:**
Pages in Book:
Just go over what does not count

## PROGRAM INCOME cont.

-      In a CDBG revolving loan program, when does a subrecipient have to return program income to the grantee and when may it request additional CDBG funds from the grantee?
- 1.	Whenever the subrecipient agreement stipulates it or at the end of the on-going relationship with the recipient.
- 2.	Any  program income on hand in a revolving fund must be substantially disbursed before additional cash withdrawals can be made for the same activity.

**Notes:**
Pages in Book:
Just go over what does not count

## RETURN OF PROGRAM INCOME

- Reg. cite §570.504(b)(2)(iii)
- Under what circumstances and when must a grantee return program income to its CDBG line of credit?
**Excess must be returned to grantee’s line of credit**
**Any program income amounts not in revolving funds in excess of 1/12 of the most recent grant must be remitted to HUD.**

**Notes:**
Pages in Book:
Note that this is not as bad as it seems
Money is not lost it just goes to their line of credit
They simply lose the interest on that money -- Federal govt gets it instead
If they are following rules about use of program income it will not be a problem in most years for most grantees

## HOW TO CALCULATE EXCESS INCOME

- (1) Determine aggregate amount of program income held by grantee and subrecipients
- (2) Subtract immediate cash needs, revolving fund loan balances, lump sum drawdown balances, and cash used as security for Section 108
- (3) Anything in excess of 1/12 of recent entitlement must be remitted

**Notes:**
Pages in Book:
Walk through key components of the calculation noting that you will also do a sample calc to follow

## SAMPLE CALCULATION

**Program income at end of PY:****	****	**** $450,000**
**Immediate cash needs****	****	****	**** $  20,000**
**Revolving loan fund balance****	****	**** $180,000**
**Lump sum draw down     ****	****	****      -0-**
**Cash held for 108**				      **-0-****	****	**
**Annual CDBG entitlement:****	****         $1,920,000**
**Amount to be remitted  ****	****	****	****	****?**
**Balance retained:**

**Notes:**
Pages in Book;
Go through the calc
If time permits, do another calc where the grantee does not have a revolving loan fund.
In that instance, $230,000 would be remaining
Since this exceeds $160,000, they would need to remit $70,000 to line of credit ($230,000 - $160,000)

## SAMPLE CALCULATION

**Program income:****	****	****	****	****  ****	****    $450,000**
**Less:**
**    ****Immediate cash needs****	****	****	****   ($  20,000)**
**    ****Revolving loan fund balance****	****	****   ($180,000)**
**    ****Lump sum draw down     ****	****	****              ****	****   ($0)**
**    ****Cash held for 108****	****	****	****	****    _____**_**($0)**_
**Balance:****	****	****	****	****	****	****  $   250,000**
**Annual CDBG entitlement:****	****	****	****  $1,920,000**
**1/12 annual entitlement ****	****	****	****	****  $   160,000**
**Amount to be remitted ($250,000-$160,000)   $     90,000**
**Amount retained:****	****    $160,000 + $200,000 =    $   360,000**** **

**Notes:**
Pages in Book;
Go through the calc
If time permits, do another calc where the grantee does not have a revolving loan fund.
In that instance, $230,000 would be remaining
Since this exceeds $160,000, they would need to remit $70,000 to line of credit ($230,000 - $160,000)

## OMB Circular A-133 Audit Requirements

-    Recipients/subrecipients expending $500,000 or more in a Program Year must have a single or program specific audit

## HOW THE CDBG FORMULA WORKS 

## HOW THE CDBG FORMULA WORKS

- CDBG funds are allocated in accordance with Section 106(a)(3) of the Housing and Community Development Act of 1974, as amended, which provides that grants will be based on a formula approach.
-  The formula(s) are “share” formula(s), meaning a grantee’s allocation will decrease or increase to the extent that its share of all metropolitan areas changes.

## HOW THE CDBG FORMULA WORKS

**Q:****	****How many formulas does CDBG use to calculate the grant amount for each CDBG entitlement recipient?**

## ANSWER2 

## FORMULA A

**Formula A is based on shares of population (weighted at 25%), poverty (weighted at 50%), and overcrowded housing (weighted at 25%).  **

## FORMULA B

**Formula B is based on shares of poverty (weighted at 30%), age of housing (weighted at 50%), and growth lag* (weighted at 20%).**