Publication Date

Spring 1998

Degree Type

Master's Project

Degree Name

Master of Urban Planning (MUP)

Department

Urban and Regional Planning

Abstract

Cities and counties are experiencing the results from severe Federal funding cutbacks and diminishing local tax bases. Currently, many jurisdictions are searching for new revenue sources to fund their community programs. Some funding sources increasing in popularity and importance are grants, low interest loans, and foundation grants. For small cities and rural counties, an important funding source is the Community Development Block Grant Program.

The Community Development Block Grant (CDBG) Program is funded by the Department of Housing and Community Development (HUD) as a way to fairly distribute the Federal dollars to local areas. HUD established the Office of Block Grant Assistance to oversee the awarding of block grants. The Office of Block Grant Assistance ensures that the Federal funds are used to provide decent, safe, and affordable housing for persons with low or moderate incomes, and to expand economic opportunities for persons of low and moderate income and where it is most needed. The State of California Department of Housing and Community Development (HCD) manages the State’s allocation and received more than forty three-billion ($43,276,000) dollars for the State's CDBG Program in fiscal year 1997.

The CDBG program is an opportunity for many small jurisdictions to obtain grants to fund needed community projects. These projects can encompass a variety of services and activities ranging from affordable housing programs, economic development and downtown revitalization strategies, community policing, infrastructure improvements, establishment or expansion of community services for children, elderly, and low-income households, historic preservation and habitat restoration.

This report examines the CDBG Program and provides an overview of the qualifications necessary for a jurisdiction to participate in the program, the project criteria, the application process, and the general grant management requirements. This report provides a Case Study, the City of Sand City, to examine the CDBG Program process for a small city. The City of Sand City used the CDBG Program to fund a planning study to assess the City's parking and infrastructure deficiencies, and incompatible land uses. Based upon the outcome of the Case Study, the CDBG Program has limitations with the extensive reporting requirements necessary for small grants, but also provides a significant benefit to small communities. Although there are limitations, the CDBG Program provides jurisdictions the opportunity to accomplish community priorities where the funding is limited.

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