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Grants Administrator
433 North Virginia Street
Prescott, AZ, 86301
Phone 928-777-1143

CDBG

CDBG stands for the Community Development Block Grant program, which is funded by the U.S. Department of Housing and Urban Development (HUD).

Community Development Block Grants help communities provide decent housing, a suitable living environment, expanded economic opportunities, principally for persons of low and moderate income.

HUD awards grants to entitlement community grantees to carry out a wide range of community development activities directed toward revitalizing neighborhoods, economic development and providing improved community facilities and services. Entitlement communities develop their own programs and funding priorities.

When Prescott qualified as an entitlement community it developed the first Five Year Consolidated Plan and One Year Action Plan. The plan was approved by HUD in July 2005. Since then, the City has developed FY 2006 and 07 Action Plans, both approved by HUD.

When Prescott qualified as an entitlement community it developed the first Five Year Consolidated Plan 2005 - 2009 and One Year Action Plan 2005. We are at this time developing our 2010-2014 Consolidated Plan and 2010 Action Plan.

During the first 5 year plan we have made infrastructure improvements, (sidewalks and street paving, rehabilitated low income limited clientele rental unites, renovations at residential treatment facilities, worked with Habitat for Humanity to have a tool lending program for the Brush with Kindness program, provided support for a coordinator at the Prescott Area Women's Shelter, supplied bed night dollars to Project Aware as well as assistance dollars for case management of homeless vets, provided funding to Meals on Wheels Homebound Program for the Elderly and more. Renovation project in process for Catholic Charities duplex rehabilitation.

This year we have unveiled a rehabilitation program for single family owned dwelling rehabilitation for low to moderate income families. Applications are available at 433 N. Virginia Street or online here. You can also email the Grants Administrator.

Proposed Funding for 2010 projects that will be included in the Annual Plan are:

  • Project Aware - $100,000 Matching Funds for renovation that will increase apt space to 20 - 14 are already built.
  • Meals on Wheels - $30,000 for meals for the homebound elderly program
  • WYGC - $80,000 in rehabilitation funding for Hillside Center and Cortez Center
  • PAWS - $23,000 Kitchen flooring, extended shelving/cabinetry and a bathroom in the community room.
  • Fair Housing $2000 Educational programs regarding fair housing laws and impediments that may be identified in the new analysis
  • Administration - $59,000 Staff salary, AI Study, legal noticing, mailings associated with programs, bids/contracts and noticing.
  • Additionally the housing rehabilitation program will be continued.

Funded Projects

Shown below are the projects approved by HUD in July 2007. The projects will be completed prior to June 30, 2008.

  • Dexter Sidewalk Project
    As a continuation of the Dexter Neighborhood Revitalization, the City will use HUD funding to install 3466 SF of four foot sidewalk, exclusive of driveway cuts, on Merritt Street between Division and Lincoln Ave.
  • Dexter Streetlight Project
    As a continuation of the Dexter Neighborhood Revitalization, the City will use HUD funding to install/upgrade approximately 30 streetlights in the northwest and central sections of the neighborhood.

Posted Documents Relating to the CDBG Program Management

FAQ

Q. What can CDBG funds be used for?
A. A wide variety of activities including:
  • Street, water and wastewater improvements;
  • Housing rehabilitation or buying land for new housing development;
  • The construction of or improvements to parks, libraries, health clinics, shelters for domestic violence victims or the homeless;
  • Salaries of people who provide public services such as child care or job training, or paying for furniture for such programs; and
  • Loans and other kinds of assistance so businesses can hire new employees.
Who is eligible for CDBG funds?
A. Only a city, town or county is eligible. However, a special district or a nonprofit agency can receive the funds if the city, town or county determines that the project proposed by that district or agency meets community needs.
Q. Are there certain criteria to receive CDBG Funding?
A. Yes. Community applications for CDBG funds must meet the "National Objectives" established by Congress.
Q. What are the “National Objectives”?
A. They require each project to:
  1. Primarily benefit low-to moderate-income persons,
  2. Prevent or eliminate slum and blight, or
  3. Meet other urgent community development needs relating to health and safety issues.
Q. What constitutes “low and moderate income”?
A. “Low and moderate income” refers to the total annual family income that is less than 80 percent of the average income for same-size families in that area.
Q. Is public involvement necessary for the CDBG application process?
A. Yes. Every community applying for CDBG funds must hold at least two public hearings to let residents identify possible projects. Public hearing notices also must be published in the local newspapers. These notices must be published before the community can send its application to HUD, and they must inform the public about the process to comment on projects recommended by elected officials. Notice of public meetings can also be posted at the local city hall.
Q. How can CDBG funds be used for economic development?
A. CDBG funds can be used to:
  • Lend funds to a business;
  • Provide the business with a loan guarantee;
  • Install a water line allowing a business to locate or expand;
  • Acquire land to be leased to a business; or
  • Provide training and support services to low-to-moderate income persons wishing to start their own businesses.
In most cases, the business must agree to create or retain a reasonable number of jobs in relation to the CDBG assistance and hire 51 percent LM income persons.
Q. How can CDBG funds be used by a community to address its affordable housing needs?
A. CDBG funds can be used to:
  • Rehabilitate homes owned and occupied by LM persons or rental units in which at least 51 percent of the tenants are or will be LM and will pay “affordable rents”
  • Acquire property to be sold to LM persons or to be converted primarily to rental housing, with at least 51 percent of the units to be occupied by LM persons;
  • Acquire or clear property to be sold or leased to a private developer;
  • Construct off-site improvements for a developer who will build homes at least 51 percent of which will be sold to or constructed by (self-help) LM persons; or
  • Construct or rehabilitate shelters and transitional housing for the homeless.
Q. What are the liabilities of the CDBG program?
A. Like all federally funded programs, the CDBG program requires that the community comply with a number of requirements relating to record keeping, competitive procurement and public participation. The community must also comply with other federal "overlay" laws. These relate to protection of the environment, acquisition and relocation, civil rights/nondiscrimination and the payment of Davis-Bacon prevailing wages and other construction labor standards.

Additional Resources

Arizona Department of Housing
1110 West Washington, Suite 310
Phoenix, AZ 85007
602-771-1000

Habitat for Humanity, Prescott Area
1230 Willow Creek Road
Prescott, AZ 86301
928-445-8003

Housing and Urban Development - CDBG
Rebecca Flanagan, Field Office Director
One North Central, Suite 600
Phoenix, AZ 85004
602-379-7100

NACOG (Northern Arizona Council of Governments)
221 N. Marina Street, Suite 201
Prescott, AZ 86301
928-778-2692