What type of programs are funded by Community Development Block Grants (CDBG)?
Funded programs are those that serve 51 percent low- or moderate-income neighborhoods and residents within the City of San Diego. The majority of CDBG funds are used in acquisition, construction, engineering, development, and employment projects. However, the U.S. Department of Housing and Urban Development (HUD) allows 15 percent of the City's entitlement to go toward funding public service programs. Such public service funded programs include: juvenile diversion/youth services, senior citizen services, persons with HIV/AIDS services, work rehabilitation services, homeless services, family violence/crime intervention and prevention services, and transitional living services. (NOTE: This list is not inclusive of all types of services that may be eligible under the CDBG Program.)
Are there any general requirements for applying for CDBG funding?
The applicant must be incorporated and authorized to do business in the state of California by the time of application submittal. The applicant must meet any outstanding obligations from previous CDBG allocations. The applicant’s project must meet a national objective and eligible activity. The project proposed must benefit at least a target population of 51 percent low- or moderate-income levels.
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When is funding made available and what is the process?
CDBG funding is made available on an annual basis. The process requires an application submittal. All applications are reviewed for eligibility. Applicants will be notified if the application has any eligibility issues. All applications are cataloged and distributed to the City Council. Recommended Mayor Council District funding recommendations the CDBG office. These recommendations are posted on the City’s CDBG website for public review and comment period of two weeks. City Council then adopts the CDBG budget during one of its regularly scheduled Public Hearings.
What happens after an agency is allocated funds?
All awarded applicants must attend a mandatory workshop on CDBG contracts and reporting requirements. They must complete and submit a contract or memorandum of understanding (MOU) packet to the CDBG office. Awarded applicants are assigned a City Contract Administrator. The City Contract Administrator contacts the applicant within three to four weeks after the allocation is made to negotiate the terms of the contract.
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Will funding be available to be used upon notification of funding allocations?
No. CDBG funds will not reimburse any project or fiscal activity completed prior to the execution date of a contract or MOU with the City. Award of CDBG funding does not authorize project start. Awarded applicants must have an executed contract or MOU with the City in place prior to providing project services and incurring expenses.
Once the scope of services and budget are negotiated and the contract executed, are agencies restricted from making changes during the contract period?
No. Scope and budget adjustments may be submitted to the City Contract Administrator or CDBG staff for review and approval. The adjustment request will be reviewed as to appropriateness to project objectives and allowable costs. Once the adjustment is determined to be allowable, it may be subject to approval through a Council Action, which includes a 30-day public notice process.
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