Community Development Block Grant
CDBG Allocation - General Information
The program is authorized by Title I of the Community Development Act of 1974. Federal funds are provided to local governments to assist in the development of decent housing, a suitable living environment, and expanded economic opportunities primarily for persons of low and moderate income. CDBG funds must be used for activities determined by the federal government to be eligible and the local government determines which eligible use is appropriate in the community.
The City of Anacortes is an "entitlement city" and receives an annual CDBG allocation from the federal government. The City accepts applications from various organizations to implement CDBG activities.
Each application, at a minimum, must meet the four threshold requirements. It must be:
1. Implemented by an eligible applicant/recipient;
2. Eligible under the CDBG program requirements;
3. One of the three national objectives; and
4. Complete as of the due date.
What are the three National Objectives?
An eligible CDBG activity must either:
1. Principally benefit low and very low income households;
2. Reduce or prevent slum and blight; or
3. Meet an urgent need
The National Objectives are included in the CDBG regulations at 24 CFR 570.208.
Who are eligible applicants/recipients?
Other local public agencies
Public and private nonprofit organizations (501(c)(3))
Section 301(d) small business investment companies
Local development corporations
Private profit organizations may implement certain economic development and microenterprise activities.
Additionally applicants must:
Demonstrate an active governing body or board of directors with skills and experience to provide leadership and direction to the agency;
Demonstrate the legal, financial, and programmatic ability to administer the proposed project; and,
Meet the City's requirements for contracting agencies such as insurance requirements, audit and financial requirements.
What are eligible activities?
Eligible activities are defined in the CDBG program regulations at 24 CFR 570.201- 570.207. More information concerning eligible activities, and special circumstances relating to the activities, can be obtained from the City. A list of some of the activities follows:
Acquisition of real property by purchase, lease or donation
Acquisition, construction, reconstruction, rehabilitation or installation of public facilities and improvements Code enforcement in deteriorated or deteriorating areas
Clearance, demolition and removal and rehabilitation of buildings and improvements
Removal of material and architectural barriers
Public services (including labor, supplies and materials) including but not limited to those concerned with employment, crime prevention, child care, health, drug abuse, education, energy conservation, welfare or recreation needs
Assistance to Community Based Development Organizations (CBDO) to carry out projects
Assistance to carry out economic development projects
Housing services such as housing counseling and energy auditing
Assistance to facilitate and expand homeownership opportunities for low and very low income people
Lead based paint hazard evaluation and reduction
The following activities generally are not eligible for CDBG funding:
New residential housing construction, except in special circumstances
Regular government operations
Buildings such as city halls, police stations, or other buildings primarily for the general conduct of government (except for the removal of architectural barriers)
Income payments such as payments to individuals or families for food, clothing, or rent, except in certain circumstances
Are there rules or regulations that I should consider when thinking about submitting an application?
All projects are subject to environmental review, civil rights compliance, and procurement requirements. Some of the other things that may affect your request, and your project, are labor standards, relocation, local hire, American Disability Act, and audit requirements.
How much money is available?
The funding is determined by Congress each year. Typically, the City receives an estimated allocation in January of each year with the actual funding award provided with acceptance of the annual Action Plan, typically in August. The amounts may vary.
How do I apply?
Applications are accepted January through March of each year and can be obtained via:
City of Anacortes
Department of Planning, Community & Economic Development, Attn: CDBG
P.O. Box 547, 904 6th Street
Anacortes, WA 98221
Or see below for applications
How do I get help with the application? Call Joann Stewart at 360-293-1907.
How are applications reviewed and projects selected?
City staff will review the application to assure it is complete, the applicant and project meet the three threshold requirements, and the project is consistent with the Consolidated Plan. Projects not meeting the threshold requirements will be disqualified from consideration for funding.
Recommendations will be presented to City Council at a public hearing who will make the final decision on approval. The recommendations will be sent to HUD by May 15 for approval.
When will funds be available?
Funding is dependent on the federal HUD budget being ratified and typically takes place by August. The City is unable to sign contracts with subrecipients until a contract between the City and HUD is signed.
*Important Note – Utilizing Federal Funding*
CDBG funds are federal funds. Use of federal funds may affect the way your agency does business. If you are applying for federal funds for the first time, you are strongly encouraged to meet with CDBG staff to discuss the regulations.