Program Guidelines
Overview: Working in Partnership with Local Governments to Build a Brighter Future
The Community Development Block Grant (CDBG) Program is a federally funded program authorized by Title I of the Housing and Community Development Act of 1974. The Office of Community Renewal is New York State's administrative agency for the CDBG Program. The CDBG Program provides grants to smaller communities in order to: ensure decent, affordable housing for all; provide services to the most vulnerable in our communities; create jobs and expand business opportunities for implementing a variety of community and economic development activities directed toward neighborhood revitalization and economic development; and to provide improved community facilities and services.
The New York CDBG Program provides community development grants to towns, villages, and cities with a population under 50,000 and counties with an unincorporated population under 200,000. The CDBG Program provides smaller communities with the opportunity to make local decisions concerning community development without duly increasing the local tax burden of their citizens. Please visit our Eligible Communities page to see if your community is currently eligible for New York CDBG funding.
Under the CDBG Program, approximately $50 million of funding is available annually to eligible communities within New York State. As part of a historic initiative to transform New York State's model for economic development and job creation, on September 2, 2011, Governor Cuomo and Homes and Community Renewal (HCR) announced the creation of a NYS Consolidated Funding Application (CFA). Marking a fundamental shift in how economic development resources are allocated, the CFA will serve as a more efficient and effective tool to streamline and expedite the State's efforts to generate sustainable economic growth and employment opportunities across the state.
In addition to HCR, eight other state agencies and authorities have pooled together resources to be made available through the CFA. HCR has dedicated up to $169 million in resources to affordable housing and community revitalization projects through the CFA. NYS CDBG funding is included in those resources.
Towns, villages, and cities are eligible to receive up to $400,000 for Housing and Public Facilities, and up to $600,000 for Public Infrastructure (water/sewer only) projects. County applicants can receive up to $750,000 for Housing, Public Facilities, and Public Infrastructure projects. Applicants applying jointly for assistance with Public Infrastructure (water/sewer only) projects may receive up to $900,000. For Economic Development grants, the maximum award is $750,000. Community Planning grants are a maximum of $25,000.
Applicants of the CDBG program must ensure that 70% of all activities funded under the program primarily benefit low-and moderate-income households-- those with incomes at or below 80% of the area median income established by the U.S. Department of Housing and Urban Development (HUD). Each CDBG-funded activity must also meet one of the national objectives: benefiting low- and moderate-income households; aiding in the prevention or elimination of slums or blight; or meeting community development needs having a particular urgency.
Communities wishing to apply for CDBG funds are encouraged to attend one of the Office of Community Renewal's Application Workshops held annually across the New York State, in the fall. Communities are also encouraged to contact the Office of Community Renewal as early as possible to discuss the viability of potential projects, as well as to review successful applications from prior rounds of competition.
Objectives of the Community Development Block Grant (CDBG) Program
As set forth in the Federal Housing and Community Development Act, the Primary Objective of the CDBG program is, "the development of viable urban communities by providing decent housing and a suitable living environment and expanding economic opportunities, principally for persons of low and moderate income." Under the Act, CDBG funds are intended for the support of community development activities that are directed toward the following specific objectives:
The elimination of slums and blight and the prevention of blighting influences and the deterioration of property and neighborhood and community facilities of importance to the welfare of the community, principally persons of low and moderate income.
The elimination of conditions which are detrimental to health, safety and public welfare, through code enforcement, demolition, interim rehabilitation assistance and related activities.
The conservation and expansion of the nation's housing stock in order to provide a decent home and a suitable living environment for all persons, but principally those of low and moderate income.
The expansion and improvement of the quantity and the quality of community services, principally for persons of low and moderate income, which are essential for sound community development and for the development of viable urban communities.
A more rational utilization of land and other natural resources, and the better arrangement of residential, commercial, industrial, recreational and other needed activity centers.
The reduction of the isolation of income groups within communities and geographical areas and the promotion of an increase in the diversity and vitality of neighborhoods through the spatial de- concentration of housing opportunities for persons of lower income and the revitalization of deteriorating or deteriorated neighborhoods.
The restoration and preservation of properties of special value for historic, architectural or aesthetic reasons.
The alleviation of physical and economic distress through the stimulation of private investment and community revitalization in areas without population migration or a stagnating or declining tax base.
The conservation of the nation's scarce energy resources, improvement of energy efficiency, and the provision of alternative and renewable energy sources of supply.
Objectives of the New York State CDBG Program
In support of the State's long-term objectives, the New York State CDBG Program will:
Preserve and increase the supply of decent, safe, and affordable housing available to all low- and moderate-income households, and help identify and develop available resources to assist in the development of housing.
Improve the ability of low- and moderate-income New Yorkers to access rental housing and homeownership opportunities.
Address the shelter, housing, and service needs of the homeless, poor, and others with special needs.
Provide communities with assistance to undertake economic development initiatives.
Provide assistance to help communities undertake community infrastructure, facility, and service projects affecting public health, safety, and welfare.
Project selection shall take into consideration the recommendation of the relevant regional economic development council or the Commissioner's determination that the proposed project aligns with the regional strategic priorities of the respective region.
Outline
Available Funds
Through an annual allocation of funds from the U.S. Department of Housing and Urban Development (HUD), approximately $50 million in CDBG funds are available each year. New York State intends to allocate these funds to eligible non-entitlement grant recipients according to the following approximate allocations: annual round competition involving the funding categories of Housing and Public Infrastructure/Facilities (60%), open round Economic Development (30%), Innovative Projects and Special Assistance (5%), Imminent Threat (2%), Administration (2%), and Technical Assistance and Capacity Building (1%), and Community Planning (1%). Actual allocation percentages are dependent upon the number of applications received in any given year.
Eligible Applicants
Cities, towns, and villages located in non-entitlement areas with a population under 50,000 and counties with an unincorporated population of 200,000 are eligible to apply for CDBG funding through the Office of Community Renewal. Eligible applicants must be in substantial compliance with all applicable State and Federal laws, regulations, and Executive Orders that pertain to the CDBG Program.
Types of Applications
New York State's CDBG Program is divided into two primary components: the Annual Competitive Round and the Economic Development Grants; and four secondary components: Community Planning Grants, available once a year, Imminent Threat, and Technical Assistance and Capacity Building.
Applicants applying for a competitive round grant must address and resolve specific community development needs within the areas of Housing, Public Infrastructure, or Public Facilities. Applications for economic development activities must support business creation, expansion or retention. Community Planning applications are also accepted in a competitive format, but the competitive period generally runs in the fall of each year, and applications are accepted specifically for the preparation of Strategic Plans and related activities. Eligible applicants may apply, individually or jointly, once per Program Year for an annual competitive round grant.
In addition to the above, the Office of Community Renewal will entertain additional inquiries for applications related to Imminent Threat, and Technical Assistance and Capacity Building. If an application in either of these categories is being considered, Applicants must first contact the Office of Community Renewal to determine eligibility and potential application requirements.
Joint and County Applications
Under New York State's CDBG Program, two or more eligible applicants facing a common problem may submit a joint application. In order to qualify, local governments must not only share a common problem, but must also be able to demonstrate that a joint effort is required to solve the problem. With the exception of housing applications, joint applications submitted only for administrative convenience are not accepted.
Counties may apply on behalf of units of general local government located within their jurisdiction when the unit of general local government has authorized the county to apply. The unit of general local government will be considered the applicant for determining grant limits, and its statistics will be used for purpose of the selection factors.
Maximum Grant Amounts
Annual Competitive Round
Towns, Cities, Villages:
| Housing/Public Facilities | $400,000 |
| Public Infrastructure (water/sewer only) | $600,000 |
Counties:
| Housing/Public Facilities/Public Infrastructure | $750,000 |
Joint Applicants*
| Public Infrastructure | $900,000 |
* Projects must meet specific requirements in order to qualify for funding under the Joint Applicants category.
Economic Development
| Economic Development program (Assistance to a business or public infrastructure projects in support of a business) |
$750,000 (minimum of $100,000) |
| Small Business Assistance program (Award range for grant assistance to an individual business) |
$100,000 (minimum of $25,000) |
| Microenterprise program (Assistance to multiple businesses and/or entrepreneurs) |
$200,000 maximum per community $5,000 to $35,000 range per business |
Applicants may request up to $750,000 in a program year (January 1 - December 31) for one or more economic development activities. One or more applications totaling the maximum award amount may be submitted in a program year.
Eligible Activities
The activities eligible under the CDBG Program are identified in Section 105(a) of the Housing and Community Development Act of 1974, as amended and 24 CFR 570.482, as amended.
Primary and National Objectives
All CDBG projects are required to meet the two program goals - the primary and national objectives. The primary objective of the CDBG program is to develop viable communities by providing decent housing and a suitable living environment by expanding economic opportunities, principally for persons of low and moderate income. To achieve this primary objective, applicants must ensure that at least 70 percent of its grant funds are used for activities that benefit low- and moderate-income families.
In addition to meeting the primary objective, applicants must also meet one of the three National Objectives: benefit low- and moderate-income persons, prevent or eliminate slums and blight, or address an urgent community development need. All applicants must maintain data to demonstrate that the project is meeting one of the above listed objectives.
Types of Grants
Housing
There are three types of housing projects eligible for NYS CDBG funding: housing rehabilitation, direct homeownership assistance, and private water/wastewater system assistance. The primary goal of any housing project is to increase the supply of affordable housing for low- and moderate-income residents. Through a needs analysis and detailed survey of income and housing conditions, each applicant will be able to determine the most suitable approach for addressing these goals.
Housing Rehabilitation
Many of New York State's communities are concerned with high rates of substandard housing that are difficult to reduce because of homeowners' inability to address costly repairs. In order to make an application competitive, a community should conduct two types of surveys: a housing conditions survey to determine the location and severity of the substandard conditions of housing, and an income survey to identify applicants who are income eligible and willing to participate. When conducting the housing conditions survey, Applicants should adhere to the Office of Community Renewal's definition of substandard housing as stated in the Annual Competitive Round Application Packet.
The CDBG program is highly flexible, allowing for communities to develop an approach to rehabilitation that best suits their needs. The following are examples of program designs:
- Direct financial assistance as a grant or loan or a combination thereof.
- A target area approach for substandard housing located in a defined geographic area.
- A non-target area approach for substandard housing on scattered sites.
- A focus on a certain income categories (i.e. below 50% of the median income).
- Selection criteria based on severity of need or first come, first serve approach.
- Rehabilitation can be for owner-occupied, renter occupied, or vacant units to be occupied by low- and moderate-income persons.
All of the above are examples of the ways in which a community can address their substandard housing conditions. Programs designed to conduct housing rehabilitation activities that provide safe and habitable housing primarily for low-and moderate-income households at standards of quality meeting New York State building codes and federal and local regulations are strongly encouraged.
Homeownership
In addition to housing rehabilitation needs, communities may have homeownership needs that could be addressed through a homeownership assistance program. Such a program would provide financial assistance to low- and moderate-income first-time homebuyers for the purchase of homes for sale. As with the Rehabilitation activities, the program is designed to be flexible so communities can determine the appropriate means of assistance. Activities that are commonly found in homeownership programs include the following:
- Direct financial assistance including down payment assistance and closing costs
- Counseling of prospective homeowners to ensure applicants have an understanding of program obligations, budgeting, and overhead costs.
- Minor rehabilitation of certain houses that are otherwise structurally sound.
A successful homeownership application will include: information on the manner in which the program will be marketed to potential applicants; a list of potential eligible applicants to document the market and need; real estate data including average cost of homes and number of homes available within the price range; and evidence that the amount available for assistance will be sufficient to purchase the available homes.
Private Water/Wastewater System Assistance
Providing safe drinking water and wastewater systems to individual property owners falls under the category of housing, as these types of assistance provide a direct benefit to those receiving funding. Direct assistance activities can include drilling of private wells, construction or rehabilitation of septic systems, and installation of lateral connections to low- and moderate-income households from the public water/sewer mains. Applications for funding of lateral connections can be stand-alone projects or can be part of a larger public infrastructure project. However, in order for a community to construct the laterals out of CDBG funds, the homeowners must be low- and moderate-income.
Successful applications for private water/wastewater systems will include evidence that property owners are eligible and willing to participate in the program, information as to how the program will be marketed, and information on the level of subsidy and type of subsidy (loan or grant).
Public Facilities and Public Infrastructure
Communities throughout New York are faced with a variety of issues that affect public health, safety, and welfare. Through the CDBG public facilities grants, many of these issues can be addressed. At least 51% of the persons benefiting from these activities must qualify as low- and moderate-income, as determined by the U.S. Census or an income survey. In general, public facilities projects fall into two categories: public infrastructure and public service facilities.
Public Infrastructure
Under the public infrastructure category, projects may include: water source development, storage, and distribution; sanitary sewage collection and treatment; flood control and storm water drainage; public works such as sidewalks, streets, parking, open space, and publicly owned utilities. Eligible programs can include the repair or replacement of existing systems, construction of new systems, or expansion of existing systems into previously unserved areas. Projects that provide assistance for lateral connections for water and sewer projects are considered under the housing category.
For projects that require funding above the maximum funding level available from the Office of Community Renewal, the applicant must find additional sources of funding and provide evidence that funding is committed to the project. For additional information on other sources of information, applicants may contact the New York Co-Funding Initiative.
Public Facilities
Through the public facilities category, applicants can seek funding for structures to house or serve special-needs populations; senior services; child care centers; removal of architectural barriers for the disabled (lifts, automatic doors, ramps, etc.); and multi-purpose buildings housing several qualifying activities for low- and moderate-income persons. CDBG funds can be used for construction or renovation of facilities, but cannot be used to cover the day-to-day operational costs, nor can funds be used for buildings that are primarily for the general conduct of government business (i.e. town halls).
For projects that require funding above the maximum funding level available from the Office of Community Renewal, the applicant must find additional sources of funding and provide evidence that funding is committed to the project.
Economic Development
The Office of Community Renewal recognizes that New York's smaller communities must have an economy that encourages business development and promotes jobs for low- and moderate-income persons. Through the Economic Development Program, the Office of Community Renewal provides grants up to $750,000 to communities that wish to sponsor economic development activities that create or retain jobs for low- and moderate-income persons. Such activities may include providing financial assistance to businesses or constructing publicly-owned facilities or infrastructure necessary for the creation, expansion, or retention of businesses. If funds are provided to a business as a loan, the community can retain the repayment funds for future economic development activities. Economic development funds are flexible and can be used for most legitimate business purposes. The goal of the program is to fund projects that result in high quality, full-time jobs that are well paying and provide benefits and training to low- and moderate-income persons. For additional information on the Economic Development Program, see the Economic Development Program Guidelines, or contact the Office of Community Renewal.
Section 108
Section 108 of the Housing and Community Development Act of 1974, as amended, authorizes the Section 108 Loan Guarantee Program as an extension of the CDBG program to provide communities with a source of financing for community and economic development projects that are frequently too large for financing by annual grants. Under the Section 108 Loan Guarantee Program, HUD guarantees notes issued by entitlement and non entitlement communities assisted by States that administer the CDBG Program. Interested eligible applicants should contact the Office of Community Renewal for further information concerning this program.
Applying for Funding
Eligible applicants seeking to apply for funding must complete the Regional Economic Development Council's Consolidated Funding Application (CFA). The CFA will be the single application economic development projects must complete. Applications for competitive round CDBG funds submitted under the 2011 NOFA may be considered by Regional Economic Development Councils. New applications for these programs will be accepted in connection with future Notices of Funding Availability.
Last Updated: 6/3/11