Community Development Block Grant Program

HISTORY

The primary objective of the CDBG Program was established under Title I of the Housing and Community Development Act of 1974 and signed into law under President Gerald R. Ford. This objective consisted of "the development of viable urban communities, by providing decent housing and suitable living environment and expanding economic opportunities, principally for persons of low and moderate income." The CDBG Program was one of the first block grant programs passed by Congress and resulted as a compromise between Democratic leaders in Congress and the Nixon Administration. Congress in an attempt, to fund a comprehensive housing program, agreed to President Nixon's demand that more power be given to state and local governments by consolidating the many categorical grants that dealt with housing and community development. Although the CDBG Program was signed into law in 1975, it took several years for Sandy City to receive funds. From 1978 to 1982 Sandy City received CDBG funds through Salt Lake County under the CDBG Urban County Program. Once Sandy City's population grew to 50,000, Sandy City became an Entitlement City. As an Entitlement City, Sandy became eligible for CDBG funds directly from the U.S. Department of Housing and Urban Development (HUD), the federal agency responsible for the CDBG Program. The City's own CDBG Program began with the 1982-83 program year. Since then the number of activities and funding has significantly grown. In 1988, the City Council formally established the CDBG Citizens Committee in its present form. The "Governance Guidelines and Procedures of the CDBG Program" are the city documents governing how the CDBG program is to operate. In 1992, the CDBG Committee adopted its own "Mission Statement" further refining the City's program.

ELIGIBLE ACTIVITIES

The CDBG Program provides the maximum flexibility to state and local governments in the funding of CDBG activities. However, certain general eligibility requirements have to be adhered to. Specific activities that "directly" benefit individual low and moderate income residents must follow income limits set yearly by HUD. Eligible geographic areas must contain at least 32.5% low and moderate income residents based upon 2000 Census data. Overall at least 70% of all CDBG activities must benefit low and moderate income residents.

SANDY CITY'S CDBG PROGRAM

Over eight million dollars in authorized expenditures have been approved for Sandy since 1978. Sandy City has operated its own Entitlement CDBG Program since 1982. Today, a Citizen Committee of seven to fifteen members who are appointed by the Mayor and City Council, recommends projects or activities for funding and review program performance. The Committee follows a locally developed Citizen Participation Plan required under federal regulations in reviewing and recommending CDBG activities. Most of the funds have traditionally been used for housing and public improvements. Funds have been spent for different activities such as street lamps, historic preservation, food banks, abuse counseling, crime prevention, homeless shelters, and senior citizen center improvements and programs. The premier CDBG housing program, the Housing Rehabilitation Program, provides low-interest loans to low and moderate income residents

CDBG ADMINISTRATION

The CDBG Program administration changes have corresponded to major changes in the law. Initially, from 1975 to 1982, the CDBG Program operated under detailed administrative rules including specific citizen participation requirements and housing assistance plans. Former Senator Jake Garn, as Chairman of the Senate Banking Committee, pushed through Congress the Urban-rural Recovery Act of 1983 deregulating the CDBG Program. Nevertheless, the Sandy City Community Development Department must still ensure compliance to numerous federal laws and regulations in administering any CDBG activity. The City's CDBG Program Administrator oversees these laws and regulations. Three of the most important administrative documents are the federal regulations governing the CDBG Program, the 2005-2010 Consolidated Plan, and the Consolidated Annual Performance and Evaluation Report (CAPER); The federal regulations dictate the procedural and compliance requirements for the CDBG Program; The Consolidated Plan is submitted to HUD each year that identifies which proposals or activities the City intends to fund with its CDBG Entitlement funds; The CAPER is an annual report submitted to HUD at the end of the fiscal year reviewing the accomplishments of the CDBG Program that year. Of the many Federal Programs that are mandated to be administered by either local or state governments, the CDBG program is one of the few that is actually funded federally. Of the entire grant money allocated to the City, we are allowed to use up to 20% of the funds to administer the program. Sandy City has historically not utilized 20% (traditionally have used 15%), and the staff member(s) assigned to the program are generally funded partially from both CDBG and the general fund

FACTS

Sandy City will receive approximately $402,201 for the 2006-2007 fiscal year. The City has allocated approximately $238,000 or 58.9% of its yearly funds for the next nine years toward the new Senior Citizen Center located at 9400 South and 1300 East. This will be accomplished through the repayment of a Section 108 loan and is based on borrowing against future CDBG funds. Other activities that Sandy City has funded in the past include:

Emergency Home Repair and Community Design - Assistance
Housing Rehabilitation - Salt Lake County Housing Authority
Senior/Handicapped Home Improvement Program (SHHIP) - LifeCare
Transitional Housing for Homeless Persons - Traveler
Historic Sandy Community Police Officer - Sandy City
Child Abuse Assessment and Treatment - Family Support Center
South County Emergency Food Pantry - Community Action Program
Housing Outreach Rental Program - Community Action Program
Utah Food Bank - Community Services Council
Capital Improvements - overlays, sidewalks, waterlines, etc. - Sandy City

When funding projects, Federal Guidelines limit the amount of money that the City can provide to certain categories of projects; HUD (U.S. Department of Housing and Urban Development) classifies most projects as either Public Service, Administration, or Public Facilities and Improvements. Under these guidelines, the City may allocate up to 15% of the grant to Public Services, up to 20% for Administration, and there is no cap for Infrastructure, Housing, and other Miscellaneous projects. In the event that the City allocates or spends more than the Federally mandated spending cap, the City will be required to cover the extra costs from the General Fund, and not utilize CDBG funds. The City may also be penalized and lose future funds if it exceeds the maximum caps for spending or projects are not in compliance with the CDBG program regulations.

If you have any questions about the City's CDBG program you may contact Jared Gerber at 801-568-7265, or by email: jgerber.

Site Assistant:

10000 Centennial Pkwy Sandy, UT 84070