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Community Development Block Grant (CDBG) Program

2013 Grant Year Guidelines & Application
As an entitlement community, The City of Frederick receives a Community Development Block
Grant annually from the U.S. Department of Housing and Urban Development (HUD) to carry out
a wide range of community development activities directed toward revitalizing neighborhoods,
increasing economic development opportunities, and providing improved community facilities and
This year, the City of Frederick will look to the many concerned citizens and community
organizations to help identify programs and projects for CDBG funding to meet these goals. In
addition, the City of Frederick will continue with several of its own programs and funding priorities.
For the 2013 Grant Year, which begins July 1, 2013, the City expects to receive approximately
$281,000 in CDBG fund and $17,500 in program income. Of this amount, the City may spend up
to 20% on program administration and 15% on public service activities. The balance of funds will
be used for housing and community development-related activities.


HUD regulations for the use of CDBG funds are very specific. It is the responsibility of the City to
ensure that each activity approved for funding meets one of HUD’s national objectives and is
included in the list of activities eligible for funding. The City of Frederick has used all of its CDBG
funds for projects and activities that meet the first national objective of benefitting low and
moderate income persons.
 Benefit Low and Moderate Income Persons (LMI)
These are persons whose household income is equal to or less than 80% of the area median
family income, adjusted for family size; the handicapped; the homeless the elderly; or those
with other special needs. To qualify as meeting this objective, an activity must:
 have income eligibility requirements that limit the activity to low- and moderate-income
persons as defined by HUD (80% of median income);
 be located in an area that has predominantly low and moderate income residents or
 serve mostly low and moderate income persons (minimum of 51%).
The following are the 2011 income limits used for HUD Community Planning and Development
(CPD) programs, including the Community Development Block Grant (CDBG) program. This is
the program year income limits that The City of Frederick will be using for the 2013 Grant Year.
HUD Low/Mod Income Guidelines, Effective May 2011
Family Size 1 Person 2 Person 3 Person 4 Person 5 Person 6 Person 7 Person 8 Person
Extremely Low *
30% of median 22,300 25,500 28,700 31,850 34,400 36,950 39,500 42,050
Low *
50% of median 37,150 42,450 47,750 53,050 57,300 61,550 65,800 70,050
Moderate *
80% of median 47,350 54,100 60,850 67,600 73,050 78,450 83,850 89,250
* Terms used for HUD CPD programs.
• Aid in the Prevention or Elimination of Slums or Blight (SB/A/S/R)
A maximum of 30% of grant expenditures can aid in the prevention or elimination of blight.
This is usually accomplished through building rehabilitation.
• Meet Other Urgent Community Development Needs (URG)
Other community development needs certified by the City as having a particular urgency
because existing conditions pose a serious and immediate threat to the health or welfare
of the community where other financial resources are not available to meet such needs.
An example of this would be a major catastrophe such as a hurricane or earthquake.
HUD regulations also specify categories of activities that are eligible for CDBG funding.
These fall into one of three general categories:
• Public Services
(e.g. education and recreation programs, public safety services, services for senior
citizens and homeless persons, housing-related supportive services, employment,
positive youth development, mental health, welfare or recreation);
• Capital Projects
(e.g., construction, rehabilitation, acquisition, demolition, clearance, etc);
• Economic Development
(assistance to profit-motivated businesses to carry out economic development and job
creation and retention activities).
The City undertakes CDBG-funded activities directly. Eligible community groups or
organizations may also apply for funding to carry out either a public service or capital project
activity. Applicants for such funding are referred to as Sub-recipients. Sub-recipient must
be a registered non-profit organization and MUST provide supporting documentation
that confirms this status.
All activities must be located in the City and benefit primarily City of Frederick residents. If an
activity is not located in the City, please provide documentation that shows the activity serves
City residents.
While this is not an exhaustive list of eligible activities, it should be used as a guide in
determining what types of activities can be funded with CDBG funds. These basic eligible
activities are found in HUD regulations Part 24 CFR 570.201-206.
 Acquisition, disposition and/or rehabilitation of real property:
 Acquisition, construction, reconstruction, rehabilitation or installation of public facilities and
improvements, carried out by a public or private nonprofit entity: including but, not limited to,
streets, curbs, sidewalks, storm drainage, sanitary sewers, parks and recreation facilities,
community centers, and libraries.
 Clearance, demolition, and removal of buildings and improvements, including movement of
structures to other sites.
 Provision of public services (including labor, supplies, and materials) including but not limited
to those concerned with employment, crime prevention, child care, health, drug abuse,
education, fair housing counseling, energy conservation, welfare (but excluding the provision
of income payments), homebuyer down payment assistance, or recreational needs.
 Home ownership assistance.
 Acquisition, construction, or reconstruction of privately owned utilities necessary for
neighborhood revitalization and/or to prepare sites for the construction of sale or rental
 Micro-enterprise assistance
 Rehabilitation of public buildings and public housing and improvements.
 Rehabilitation preservation or restoration of historic properties, whether publicly or privately
 Renovation of closed buildings such as school buildings, for use as an eligible public facility or
to rehabilitate such buildings for housing.
 Lead-based paint hazard evaluation and reduction
 Eligible planning activities
 Program administration costs
1. Buildings or portions thereof used for the general conduct of government.
2. General government expenses.
3. Political activities. CDBG funds shall not be used to finance the use of facilities or equipment
for political purposes or to engage in other partisan political activities, such as candidate
forums, voter transportation, or voter registration.
4. The purchase of equipment with CDBG funds is generally ineligible.
5. Construction equipment is generally ineligible.
6. The purchase of equipment, fixtures, motor vehicles, furnishing, or other property not an
integral structural fixture is generally ineligible.
7. Expenses associated with repairing, operating or maintaining public facilities, improvement
and services is ineligible. Examples include: maintenance and repair of publicly owned
streets, parks, playgrounds, water and sewer facilities, neighborhood facilities, senior centers,
centers for persons with disabilities, parking and other public facilities and improvements;
payment of salaries for staff, utility costs and similar expenses necessary for the operation of
public works and facilities.
8. New construction of low or moderate-income housing is generally ineligible except under
certain circumstances as outlined under Section 570.207(b)(3) of the CDBG regulations.
9. CDBG funds shall not be used for income payments. Income payments means: a series of
subsistence-type grant payments made to an individual or family for items such as food,
clothing, housing (rent or mortgage) or utilities, but excludes emergency grant payments
made over a period of up to three consecutive months on behalf of an individual or family.