Community Development Block Grant

What is the CDBG?

Through the Housing and Community Development Act of 1974, local governments with populations of 50,000 or more become eligible for funds from the U.S. Department of Housing and Urban Development (HUD) to implement a wide range of programs and projects dealing with neighborhood improvements and city services. In order to receive the funds under the CDBG Program, the City must submit to HUD a One Year Action Plan identifying the proposed utilization of the funds, performance measurements and the proposed beneficiary outcomes. The City submitted a Consolidated Plan & Strategy with its Action Plan 2013 which assesses, identifies, and predicts the trend of the Pharr residents needs and demands for the next five years. In addition, the City must comply with Federal laws concerning civil rights, payment of wages, environmental review, monitoring requirements, fair housing and other programmatic regulations. Most importantly, all funded activities must meet at least three national objectives which are: elimination of slum or blight and/or benefit of low-income families or persons and/or be of urgent need.

Title 1 of the Housing and Community Act of 1974 as amended, authorizes the Community Development Block Grant (CDBG) to improve and enhance the quality of life for the citizens of Pharr, with emphasis on low and moderate-income persons residing in targeted areas of the city.

Program Objectives must provide for the:

1. Promotion of diversity and vitality of neighborhoods
2. Elimination of slums and blight, and deterioration of community facilities
3. Elimination of conditions detrimental to health, safety, and public welfare
4. Enhancing, improving and expansion of the housing stock
5. Reduction of income group isolation within communities
6. Enhancing economic development opportunities, principally to low-income individuals

General Requirements for CDBG Projects

• CDBG projects must be located within the low income areas of the City of Pharr
• Prospects should clearly indicate under which category the project should be funded
• Projects may be funded either in whole or in part
• Services may be funded based on negotiated unit cost to provide the service

Environmental Policies and Review
The City is required to determine the impact of its community development projects or activities on environmental quality. Where applicable, multiple criteria including policies and various governmental regulations must be considered during the production of the Environmental Review Record, which is submitted to HUD with the One Year Action Plan in what is referred to as the Request for Release of Funds.

Project Implementation
Upon notification of funding approval, project coordinators must make arrangements to begin their projects as soon as the City receives approval from HUD to disperse funds. Any proposed project not scheduled to begin during that upcoming fiscal year will not be considered for funding. The reason for this is that HUD monitors the City as the City monitors the fund recipients. If at the end of the grant year a City subgrantee or City project has not begun spending their allocated funds, the City’s funds/expenditure ratio may be affected. HUD imposes this ratio and if the City is not in compliance with this measure, future CDBG funds can be at-risk of being de-obligated or reduced.