TITLE
The Mayor and City Council shall hear public comment regarding the use of Community Development Block Grant (CDBG) funds and State Special Projects (SSP) funds beginning October 1, 2013. SSP is competitive; whereas, CDBG is a set amount provided to the community and allocated based on Central Arizona Association of Government Regional Council Method of Distribution. Both grants are submitted to the Arizona Department of Housing and are awarded based on eligibility and funding availability.
AGENDA ITEM DESCRIPTION
Community Development Block Grant (CDBG) funds are utilized to address housing and community development needs. The CDBG Program is a flexible program that provides communities with resources to address a wide range of unique community development needs.
The State Special Projects (SSP) is a competitive grant, is a component of the Community Development Block Grant Program, and is meant to only address needs to low/moderate income citizens. All other CDBG requirements apply.
Crucial to the CDBG/SSP Process is the involvement of local citizens and elected officials. In fact, to participate in the program and receive funds, a community must be able to document that citizens and officials have been given the opportunity to discuss community needs and suggest possible CDBG/SSP programs. Ultimately, the decision on which CDBG/SSP program will be submitted rests with the elected officials in a community.
SSP Projects:
1. Can benefit the community as a whole; low/moderate income neighborhood or a target group
2. Must be "shovel ready" when the application is submitted. This means design and engineering must be completed if a construction project is chosen.
3. Must be able to be completed within 18-24 months.
Since 1982 the Arizona Department of Housing (ADOH) has been responsible to the United States Department of Housing and Urban Development for administering the small cities CDBG program in Arizona with the exception of Maricopa and Pima Counties and the cities of Yuma and Flagstaff. The State of Arizona has a partnership with the regional Councils of Governments (COG) to provide technical and administrative assistance. ADOH has delegated to each COG the responsibility to recommend an annual method of distribution within its region, thereby enabling local units of government to guide the distribution of resources.
Project eligibility has two components:
1. The project must meet a National Objective, and
2. The project must fall into a category explicitly authorized by the CDBG statute as an eligible activity.
National Objectives: Each activity for CDBG or SSP must meet one and only one of the following three objectives:
1. Low/Moderate Income Benefit (Activity must benefit low and moderate income persons defined as those earning no more than 80% of the HUD area median income.
2. Slum/Blight: Must aid in the prevention of elimination of slums or blight.
3. Urgent Need: Meets other community development block grant needs having a particular urgency which poses a serious and immediate threat to the welfare of the community, which is recent or became urgent when other financial resources are not available to meet such needs.
This item will be presented by Grants Manager Mary Witkofski.
STAFF RECOMMENDATION
Staff recommends the Mayor and City Council shall hear public comment regarding the use of Community Block Grant (CDBG) funds and State Special Projects (SSP) funds beginning October 1, 2013. SSP is competitive; whereas, CDBG is a set amount provided to the community and allocated based on Central Arizona Association of Government Regional Council Method of Distribution. Both grants are submitted to the Arizona Department of Housing and are awarded based on eligibility and funding availability.