ECD proposing changes to how CDBG is administered
The Tennessee Department of Economic and Community Development (ECD) is soliciting input on proposed changes to how the Small Cities Community Development Block Grant Program (CDBG) is administered and how applications are reported.
ECD held a public hearing Oct. 4 to review the CDBG program as it has operated, to inform communities of changes for the 2013 application year, and to make suggestions for other possible changes.
For the 2013 application year, ECD is proposing changes to several reporting requirements as well as changes to the actual grant program including dedicating funds to Tennessee's very small communities, establishing a new Microenter-prise Grant Program, and proposing earmark funding for a Commercial Façade Program for Main Street and TN Downtown communities.
The CDBG program provides grants to carry out a wide range of community development activities directed toward neighborhood revitalization, economic development, and improved community facilities and services. The CDBG is a federally-funded program and must meet national objectives. ECD administers only the Small Cities CDBG program.
Entitlement areas receive money directly from HUD. Those entitlement areas include Shelby County and Memphis, Jackson, Clarksville, Hendersonville, Davidson County, Franklin, Murfrees-boro, Oak Ridge, Knox County and Knoxville, Chattanooga, Cleveland, Morristown, Kingsport, Bristol, and Johnson City.
For small cities, the block grant funds are provided to the state, which distributes them as grants to eligible local governments. Local governments have the responsibility to consider local needs, prepare grant applications for submission to the state, and carry out the funded community development activities. Local governments must comply with federal and state requirements.
The following are changes ECD is proposing to reporting and application requirements: • Elimination of maps that show random survey methodology. Instead of submitting maps to determine the number of households served in a CDGB funded project, the grant applicant will now have to certify that the survey sample was random. • Housing applications will now require a standard reporting of the number of people to be served. In prior years applicants provided many different statistics, and as a result, ECD received applications that included anything from the number of people served to the cost per person to the number of households impacted to the size of the target area. • Additional information will be required on Target Area Surveys (TAS's). HUD raised concerns about income reporting and the verification process. Surveys will now require a signature of the person living in the house when documenting income. • Any amendments to an application once submitted, will require a new application submission. • Minor changes will be made to the budget format to match the applicant's contract.
Proposed program changes:
- Should ECD set aside money for the smallest communities?
- ECD is soliciting feedback on whether the very small communities would like to participate in the program, and if so, what should the criteria be to participate in the program. For example:
- How should a "very small community" be defined? ECD suggested communities with fewer than 3,000 residents.
- ECD is proposing an initial investment of $5 million. Is that a fair amount?
- Should the smaller communities be required to follow the same criteria?
- Or should there be a separate program solely for the very small communities?
- Or should ECD just guarantee a minimum amount of dollars set aside for smaller communities?
- ECD is proposing a new Microenterprise Grant Program.
- The proposed grant program would be funded with the Economic Development loan repayment fund and therefore, will not impact CDBG money.
- Grant money will be limited to only graduates from one of the nine regional business accelerators. Regional Entrepreneurial Accelerators are part of Gov. Bill Haslam's Jobs4TN initiative designed to drive innovation across the state.
- ECD is proposing to initially start with a small pilot program and expand it if deemed successful.
ECD is proposing earmark funding for a Commercial Façade Program for Main Street and TN Downtown communities.
- The first year's initial allocation would be $200,000 to be dispersed among eight grant recipients.
- The Tennessee Main Street and the TN Downtowns associations would help determine eligible recipients.
- Once established, should communities that currently have an open grant be able to participate?
- Should grant applicants receive additional points for increased energy efficiency in water and sewer system projects?
- Additional points would be given in the project need category if the PER shows that the project will save energy. For example, points would be given for saving 20 percent on energy costs, and additional points for saving 30 percent.
Next steps For any questions about the CDGB program or proposed changes, contact Brooxie Carlton at (615) 741-8806.
