Transcript Community Development Block Grant (CDBG) Program

Community Development
Block Grant (CDBG)
Program
City of Alexandria, VA
Prepared for City of Greenbelt, MD
July 2006
CDBG Program, Alexandria VA
 Since City Fiscal Year 1976, Alexandria’s
annual grant has ranged from a high of
$1,735,000 (FY 1976 – FY 1978) to a low of
$903,000.
 City FY 2007 (July 2006 – June 2007) grant:
$1,284,295
Annual Grant Amounts
Alexandria's CDBG Grant ($1000s) by City Fiscal Year
$ 2,000
$ 1,500
$ 1,000
$ 500
$0
Administration and Staffing
 Primarily administered by Office of Housing
 19 of 20 Housing staff positions have some CDBG
responsibilities, but only 6.9 FTEs charged to
program in FY 2006
– Supervisory/management staff charged elsewhere to
avoid exceeding CDBG 20% cap on admin. costs
– Program staff charged based on percentage of duties
attributed to CDBG
 Department of Human Services administers 3
CDBG-funded activities; no CDBG-funded staff
Current CDBG-Funded Activities
 Ongoing Programs
– Homeownership Assistance Program (HAP)
– Home Rehabilitation Loan Program (HRLP)
– Rental Accessibility Modification Program (RAMP)
– Eviction Assistance & Furniture Storage
– Transitional Assistance Program
– Winter Shelter
 Administrative Activities
– Program Administration
– Submissions/Applications for Federal Programs
– Fair Housing Testing
Special Activities
 Special activities, often added by program
amendment, have included:
– Rehabilitation of specified public housing
developments
– Acquisition and/or rehabilitation of special
needs housing
– Senior grant program (home rehabilitation)
– Development of Homeless Management
Information System
Other Previously Funded Activities




Blighting Influences Program
Business Assistance Loan Program
Commercial Revitalization Program
Loan Loss Reserve for Microenterprise Loan
Program
 Rehabilitation of various non-profit facilities
 Operation Match
 Renovation of Group Homes
 Day Care
Homeownership Assistance Program
(HAP)
 Up to $50,000 for downpayment, closing costs,
principal/interest reduction
 No-interest, deferred payment 2nd (or 3rd) trust, due
upon sale (or in 99 years); no monthly payments
 5-year anti-speculation surcharge
 Access to special financing from Virginia Housing
Development Authority
 City pays $1,000 (from non-CDBG monies) of
seller’s real estate commission as incentive to sell
to HAP buyer
Home Rehabilitation Loan
Program
 Provides no-interest loans to income-eligible
owner-occupants of single family homes
 Construction cost limit of $90,000 (may be
exceeded to meet lead-based paint requirements),
plus recordation, title search, termite inspection,
recording fees and moving and storage expenses.
 Due on sale (or in 99 years)
 Architectural costs are not included in the loan;
treated as costs of administering the program
 Lead-based paint requirements can add substantial
costs; five recent loans exceeded $150,000
Special Features of HAP and
Home Rehabilitation Loans
 City will subordinate its second trust upon
refinancing, if transaction is not deemed to
pose a risk to City
 If loan recipient sells and purchases another
home in the City, and is still income
eligible, loan may be rolled over to new
property
 Rollover applies to rehab loans only if first
property is sold to income-eligible buyer
Rental Accessibility Modification
Program (RAMP)
 Grants of up to $50,000 in CDBG monies to
modify rental units for persons with
disabilities
 Mini-grants of up to $1,500 in Housing
Trust Fund (non-CDBG) monies for minor
items, such as grab bars
Fair Housing Testing Program
 Fair Housing Testing Program tests for
discriminatory housing practices by landlords, real
estate firms, and lenders.
 Program has tested for discrimination based on
race/national origin, familial status, disability, and
sexual orientation.
 Upon a finding of discrimination, complaints are
filed with Human Rights Commission. All
complaints filed have been settled.
DHS Public Service
 Eviction Assistance and Furniture Storage
– City contracts with moving and storage company for
collection and storage (up to 60 days) of belongings of
households being evicted.
 Transitional Assistance Program
– City pays ½ of security deposit and ½ of rent for up to
three months. Classified as emergency housing
assistance.
 Winter Shelter
– Hypothermia shelter from November 1 through April
15. Housed in several churches plus additional beds in
year-round shelters. Total of up to 67 beds nightly.
Special Considerations in Using
CDBG Monies
 Program income effect on “timeliness”
requirement
 Section 104(d) relocation and replacement
housing requirements – effect on multifamily
acquisition/rehab
 Lead-based paint requirements
 Environmental reviews
 Program administration and public service ceilings
 Davis-Bacon wage rates