Compilation of Rules and Regulations of the State of Georgia › Department 110 - RULES OF GEORGIA DEPARTMENT OF COMMUNITY AFFAIRS › Chapter 110-8 - OFFICE OF GRANT ADMINISTRATION › Subject 110-8-1 - COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM › Rule 110-8-1-.03 - Scope and Purpose

Current through Rules and Regulations filed through June 27, 2024
(1) The Georgia Community Development Block
				Grant (CDBG) program provides grants to eligible units of general purpose local
				government to undertake community development activities eligible under the
				Housing and Community Development Act of 1974, as amended.
(2) The objective of the Georgia CDBG program
				is to improve living conditions and economic opportunities in Georgia's cities
				and counties, principally for persons of low and moderate income. Consistent
				with this primary objective, not less than 70% of the CDBG funds received each
				fiscal year shall be used for the support of activities that benefit persons of
				low and moderate income. To be funded, maximum feasible priority must be given
				to activities which benefit low and moderate income families, or aid in the
				prevention or elimination of slums or blight, or which meet urgent community
				needs.
(3) Recognizing that the
				needs of communities vary widely, the Georgia CDBG program is divided into five
				separate components:
(a) The Regular Annual
				Competition,
(b) The Immediate
				Threat and Danger Grant Program,
(c) The Employment Incentive
				Program,
(d) The CDBG Section 108
				Loan Guarantee Program and
(e) The
				Georgia Redevelopment Fund.
(a)
				Applications under the regular annual competition must be for either a single
				activity or a multi-activity grant:
1. Single
				activity grant applications must be structured to address problems within one
				of the following three areas:
(a) housing,
(b) public facilities, or
(c) economic
				development.
2.
				Multi-activity grant applications must involve two or more activities which
				address identified community development needs in a comprehensive manner. This
				funding component requires an applicant to address problems within more than
				one of the areas listed above.
(b) Immediate Threat and Danger applications
				must address an event or situation which has a particular urgency and
				uniqueness which adversely affects or impacts a community and its citizens and
				where other financial resources are not available to meet such needs.
(c) Employment Incentive Program
				applications must address community development needs which provide for the
				creation and/or retention of jobs, or job training principally for persons of
				low and moderate income.
(d) The
				Redevelopment Fund applications should generally be targeted to projects that
				will leverage private sector investments in blighted downtown commercial and
				industrial areas. Projects that meet HUD's "slum and blight" national objective
				and will result in employment opportunities for low and moderate-income persons
				are encouraged.
(e) The CDBG
				Section 108 Loan Guarantee Program is an economic and community
				development-financing tool authorized under Section 108 of Title I of the
				Housing and Community Development Act of 1974, as amended. The program is a
				method of assisting nonentitlement local governments with certain unique and
				large-scale economic development projects that cannot proceed without the loan
				guarantee. In order to be eligible a project must meet all applicable CDBG
				requirements and result in significant employment and/or benefit for low and
				moderate income persons. Projects that are eligible for financing under
				existing federal, state, regional or local programs will generally not be
				considered for guarantee assistance unless the programs would fail to fully
				meet a project's needs.
Unlike the traditional CDBG or EIP Program, the Section 108
				  Program does not operate through assistance from the Department of Community
				  Affairs (DCA). Rather, funds are raised through DCA's "Pledge of Grants" to the
				  U.S. Department of Housing and Urban Development (HUD) in order to obtain a
				  federal guarantee of notes issued by the local government. The federally
				  guaranteed notes are sold into private markets through public offerings
				  conducted by HUD. By approving the project, a State pledges its future CDBG
				  funds as the ultimate repayment source should a Section 108 loan default. The
				  State's participation in the Section 108 program does not involve a pledge of
				  Georgia's full faith and credit nor does it commit any funding to the local
				  government. HUD makes the ultimate approval or denial of the federal
				  guarantee.