THE COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) PROGRAM
NOTICE: Invitation to businesses & residents to become certified by the City of Lock Haven as a Section 3 Business Concern or Section 3 Resident
What is the CDBG Program?
The Community Development Block Grant (CDBG) is a federal U.S. Department of Housing and Urban Development (HUD) program. The Commonwealth of Pennsylvania receives an annual allocation of federal CDBG funds from HUD. These funds are administered by the PA Department of Community and Economic Development (DCED). DCED distributes the allocation among entitlement cities, boroughs and townships, and non-urban counties that benefit non-entitlement communities throughout the Commonwealth.
All CDBG-funded projects and programs must meet one or more of the following national objectives:
- Benefit a majority of low/moderate income residents; or
- Aid in the prevention or elimination of conditions of slum and blight; or
- Meet a community need having a particular urgency because existing conditions pose a serious and immediate threat to the health and/or welfare of the community and no other financial resources are available to meet the need. (A condition will be considered urgent or of recent origin if it developed or became critical within the 18-month period preceding the application).
Who is eligible to apply for CDBG funds?
The City of Lock Haven applies annually to DCED for these funds. Nonprofit entities operating public facilities in LMI areas located in the City, or serving seniors, persons with disabilities, the homeless, victims of domestic violence and other protected groups in the City may apply to the City for funding.
The Lock Haven City Council may initiate projects that meet one of the national objectives listed above.
What kinds of projects are eligible?
Projects must meet one of the three national objectives stated above, and be permitted by the Code of Federal Regulations, 24 CFR 570.
- Click here for information on Categories of Eligible Activities
- Click here for information on Meeting a National Objective
- Click here for information on Overall Expenditures Level – Benefit to L/M Income Persons
What other factors affect eligibility?
The area served must be an LMI area: that is, 51% or more of its residents must be deemed low income, according to HUD’s annual income limits. This determination is made using:
- HUD-provided municipal LMISD tables, taken from the federal census and the American Community Survey; or
- An income survey of the project area; or
- In some other limited instances, individual income documentation.
The activity or project must serve a “presumed benefit” group such as disabled adults, homeless persons, the elderly, victims of domestic violence, and others.
Who decides whether a project or activity is eligible under the program?
Projects/Activities are determined eligible and fundable by the City Planner.
Who decides which projects are submitted to DCED in the annual application?
The Lock Haven City Council selects projects for inclusion in the application. Selected projects are publicly announced at a regular board meeting.
What is the application process?
Upon notification from DCED of the City’s CDBG allocation and application submission date, the City Planner Administrator will send a letter to all known nonprofit agencies and other entities serving the residents of the City of Lock Haven with the application, application schedule and due dates. The announcement and application packet will at the same time be posted online on the City of Lock Haven’s website.
How much time is allowed to undertake a project?
The project activity period is 12 to 18 months from the date the City enters into a subcontract with the awardee for CDBG funds.
How is the program kept fair and accessible to all?
The City of Lock Haven has instituted plans and procedures to keep its activities in conformance with Federal law, covering the following issues:
- Citizens Participation Plan
- Citizen Complaint Resolution
- Conflict of Interest
- Minority and Woman Business Enterprise Plan
- Section 3 Resident Action Plan
- Fair Housing and Equal Opportunity Plan
- Residential Anti-displacement & Relocation Assistance Plan
- Accessibility for Persons with Disabilities
- Accessibility for Persons with Limited English Proficiency
What is the environmental impact of CDBG projects?
Federal law requires that the environmental impact of every CDBG project be evaluated and proven to have no adverse effect. Any detected adverse effects must be addressed or eliminated prior to undertaking the project.