Community Development Block Grant Program Office

Frequently Asked Questions What is CDBG? The Community Development Block Grant [CDBG] Program is a flexible, income-driven program that provides states and local governments with resources to address a wide range of unique community development needs. Since 1974, the CDBG program is arguably the most successful domestic federal program ever initiated by Congress and is one of the longest continuously run programs at the U.S. Department of Housing and Urban Development [HUD]. The CDBG program provides annual grants on a formula basis to over one thousand local governments and States. The overarching goal of the CDBG program is to develop viable communities by providing decent housing, a suitable living environment, and to expand economic opportunities, principally for low- and moderate-income persons. How do I know if my project is eligible for CDBG funds? The basic types of eligible CDBG project categories include housing, public facilities, public services, and economic development. Each of these overall categories has subcategories of activities, which can be addressed in greater detail by contacting the local CDBG Program Office at (770) 528-4600. How do we determine if the beneficiaries we serve are eligible under the CDBG Program? At least 51% of the beneficiaries of the activity must be low-to-moderate income persons as defined by income limit guidelines provided each year by HUD. HUD also stipulates the following population groups are automatically deemed eligible: abused children, elderly persons (62 years of age or older), battered spouses, homeless persons, severely disabled persons (as defined by the U.S. Census Bureau), illiterate adults, persons living with AIDS, and migrant farm workers. What are the Record Keeping requirements for the CDBG Grant? Subrecipients are required to follow record keeping guidelines as stipulated in the Subrecipient Agreement signed upon approval of funds. Based on the type of funding received (CDBG, HOME, ADDI, or ESG), each Subrecipient must maintain client files that include demographic information for each client and documentation of income verification and/or documentation of homelessness/sudden loss of income. Please contact a CDBG representative for greater detail on record keeping guidelines. How will our organization receive our grant? Cobb County utilizes the reimbursement method for all CDBG, HOME, and ESG activities. In other words, the organization will expend funds from their general operating fund and then seek reimbursement. For this to occur, the organization must submit proper supporting documentation to get reimbursed for all qualified expenses incurred. How long has Cobb County received CDBG Funds? Cobb County became an Entitlement Community in 1982. The County has received nearly $73 million in CDBG funds that have been used to support various County projects aimed at serving low and moderate income people. The Program has also built senior centers, parks and recreation facilities, neighborhood streets and utilities, and renovated facilities to ensure compliance with the Americans with Disabilities Act [ ADA]. Will our organization be monitored? Yes, HUD regulations require that the performance of each Subrecipient receiving CDBG funds must be reviewed at least annually to ensure compliance with applicable program requirements. Subrecipients that are new to the CDBG program, have experienced turnover in key staff positions, had previous compliance or performance problems, carry out high-risk activities and undertake multiple CDBG activities for the first time will be considered high-risk subrecipients and might require comprehensive monitoring throughout the program year. When will our organization receive funds? The grant year for the CDBG Program runs from January 1- December 31. Typically, HUD will release funds during the first quarter of each program year. How do I find the CDBG Program Office? The CDBG Program Office is located in the Historic Brumby Building at Marietta Station across from the 1 st Baptist Church of Marietta at 127 Church Street, Suite 270, Marietta, GA 30060. An appointment to speak with a CDBG staff person can be made by calling (770) 528-4600. Can we get an advance on our grant once we are approved? No. Cobb County utilizes the reimbursement method for all financial transactions that are processed for the CDBG and HOME Program. We do our best to process your reimbursement requests as expeditiously as possible. What other types of grants are available under the CDBG Program? The CDBG Program Office also manages grants for the Home Investment Partnership Act [HOME] Program, the American Dream Downpayment Initiative [ADDI] [a subsidiary of the HOME Program], and the Emergency Shelter Grant [ESG] Program. More details on these programs can be found by clicking on www.hud.gov. If my agency receives CDBG funds, what is the agency’s obligation to the County? Subrecipients are required to submit monthly reports each year until all CDBG funds are fully expended plus an additional five years unless CDBG funds have been used to purchase real property. EXAMPLE ONE: CDBG Funds as Operating Costs Agency XYZ receives funds in 2007 for operating costs for their tutoring program for low-to-moderate income school children. XYZ will submit monthly reports and is reimbursed for incurred operating expenses. Reporting requirements for XYZ would expire in 2012. EXAMPLE TWO: CDBG Funds to Purchase Real Property Agency ABC receives CDBG funds to purchase a building that will function as a homeless shelter. ABC is required to submit monthly reports for as long as Cobb County receives CDBG funding plus five years after the last allotment is granted to the County. Owners of real property purchased with CDBG funds may sell or transfer ownership of property to another entity; however, sale or transfer may discontinue the eligible activity. With the sale of real property purchased with CDBG funds, the County requires repayment of fair market value less depreciation.