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City of Rio Rancho: Community Development Block Grant (CDBG)

Deadline: January 16, 2015

The Community Development Block Grant (CDBG) is an an entitlement program that is administered through the U.S. Department of Housing and Urban Development (HUD). The CDBG program offers local governments, with citizen participation, the opportunity to improve development priorities, provided that these projects benefit low- and moderate-income persons, prevent or eliminate slums or blight, or meet other urgent community development needs.

The City of Rio Rancho uses CDBG funds to benefit low- and moderate-income citizens through the prevention and elimination of neighborhood blight and to alleviate serious and immediate threats to the health and welfare of community residents. CDBG funding supports activities which meet the eligibility criteria as established by HUD and the goals and objectives as defined in the City’s Consolidated Plan. The City of Rio Rancho’s Consolidated Plan outlines a a coordinated strategy to guide the City’s affordable housing, human services, and economic opportunity programs. Proposed CDBG projects need to address one of the following 2013-2018 City of Rio Rancho goals:

  • Housing: Expand and preserve a continuum of affordable housing opportunities.
  • Community & Supportive Services: Provide community and supportive services for low to moderate income persons and those with special needs.
  • Public Improvements & Community Facilities: Create healthy sustainable communities.
  • Economic Development & Anti-Poverty: a) Promote economic development opportunities; b) Promote self-sufficiency; and c) Increase financial literacy and wealth building.

Amount: Approximately $375,000 is distributed annually in the form of contract awards.

Eligibility: Governmental agencies within the City of Rio Rancho and private nonprofit organizations serving the City of Rio Rancho. CDBG funded activities must comply with a national objective and an eligibility activity. National objectives include:

1. Benefit to Low/Moderate Income Persons:

  • Area Benefit Activities. An activity that benefits all residents in a particular area, where at least 51% of the residents are low- and moderate-income persons. CDBG regulations require the recipient to document that activities were performed in CDBG-eligible census tracts.
  • Limited Clientele Activities. An activity that benefits a limited clientele at least 51% of whom are low- or moderate-income persons or benefits clients presumed to be low- or moderate-income persons. Presumed benefit clients are abused children, battered spouses, elderly persons, adults meeting the Bureau of the Census’ current Population Reports definition of “severely disabled”, homeless persons, illiterate adults, persons living with AIDS, and migrant farm workers. CDBG regulation require the recipient to document the demographics and income levels of clientele provided such activities.
  • Housing Activities. An activity carried out for the purpose of providing or improving permanent residential structures which, upon completion, will be occupied by 51% low- or moderate-income households. CDBG regulations require the recipient to document number of households served, number of units completed, and demographics and income level of the household occupying the unit.
  • Job Creation or Retention Activities. An activity designed to create or retain permanent jobs where at least 51% of the jobs, computed on a full time basis, involve the employment of low- or moderate-income persons. Recipients must document one of the following: 1) For an activity that creates jobs, the recipient must document that at least 51% of the jobs will be held by, or will be available to, low- or moderate-income person; or 2) For an activity that retains jobs, the recipient must document that the jobs that would have been lost without CDBG assistance and that either (or both) the job is known to be held by a low- or moderate-income person, or that the job can reasonably be expected to turn over within the following two years and that steps will be taken to ensure that it will be filled by, or made available to, a low- or moderate-income person upon turnover.

2. Elimination of Slum and Blight:

  • Address Slums or Blight on an Area Basis. An activity will be considered to address prevention or elimination of slums or blight in an area that meets certain regulations (see RFP).
  • Address Slums or Blight on a Spot Basis. The following activities may be undertaken on a spot basis to eliminate specific conditions of blight, physical decay, or environmental contamination that are not located in a slum or blighted area: 1) clearance; 2) relocation; 3) historic preservation; 4) remediation of environmentally contaminated properties; or 5) rehabilitation of buildings or improvements.

Eligible activities include: acquisition; disposition; public facilities and improvements; clearance and remediation activities; public services; interim assistance; payment of non-federal share; relocation; loss of rental income; housing services; privately owned utilities; construction of housing; homeownership assistance; microenterprise assistance; technical assistance; rehabilitation and preservation activities; code of enforcement; historic preservation; renovation of closed buildings; lead-based paint activities; special economic development activities; and planning.

Link: http://www.ci.rio-rancho.nm.us/index.aspx?nid=1217

Note: An application workshop will be held on January 9, 2015.

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