CDBG stands for the Community Development Block Grant program, which is funded by the U.S. Department of Housing and Urban Development (HUD). The CDBG program provides communities with resources to address a wide range of unique community development needs, providing that the project primarily benefits the low to moderate (LM) income population. Begun in 1974, the CDBG program is one of the longest continuously run programs at HUD. HUD provides annual grants on a formula basis to Entitlement Communities and State Administered CDBG programs for rural communities.
Communities receiving these grants:
Entitlement Communities are larger cities with a population of a least 50,000 and qualifying urban counties with a population of a least 200,000 (excluding the population of entitled cities). Entitlement Communities apply directly to HUD for these grants.
State Administered Communities, also known as the Small Cities/Rural CDBG program, is administered by the state receiving the grant distribution from HUD. In Arizona, the state agency administering these funds is the Arizona Department of Housing (ADOH).
Each year, Arizona receives an annual allocation from HUD and then ADOH divides 75 percent of that amount between four rural Councils of Government for the non-competitive Regional Account through a formula based 70 percent on the poverty level and 30 percent on population. ADOH retains 15 percent to fund the State Special Projects (SSP) account and 10 percent for the Colonias Set Aside Account. Both of these are competitive grants available to communities statewide. For additional information on these funding sources, click here .
SouthEastern Arizona Governments Organization (SEAGO), one of the four rural Councils of Governments, covering Graham, Greenlee, Santa Cruz and Cochise Counties, receives a portion of these funds for the Regional Account (RA). Cities, towns and counties within SEAGO submit an annual Regional Account Application to SEAGO by May 1 of each year, per a rotation schedule found in the Method of Distribution (MOD).
SEAGO assists member entities with the required public participation, planning and budgeting processes. SEAGO also assists with writing the grant application and each entity has the option of hiring SEAGO on a contract basis to administer their grant. Projects can take two years from the time the grant is awarded to the completed product. The administration of the grant involves completing environmental reviews, providing the procurement of design and construction services, tracking all financial transactions, providing overall project management, and overseeing compliance with federal labor standards and a host of other federal regulations.
The Community Development Program Manager assists member entities in applying to the Arizona Department of Housing for annual Regional Account (RA) Community Development Block Grants (CDBG), which are funded through the State by the Federal Department of Housing and Urban Development (HUD). Funds are allotted to SEAGO each year by the State, based on population and poverty formulations. SEAGO then distributes the funds according to the Method of Distribution (MOD) approved each year by our Executive Board. Due to new population figures from the 2010 Census, the SEAGO region lost substantial funds as population grew in other parts of the state more than in our region. Additionally, federal funding for CDBG has been reduced each year.
In the MOD, each of the four counties within the four-county SEAGO region has elected to rotate the funding according to various schedules, rather than compete for the RA grant. Please see current MOD for schedules. For instance, Cochise County has six participating local governments, of which two communities apply each year over three years. Then the cycle repeats.
SEAGO assists member entities with the public participation, planning and budgeting processes, and with the writing of grant applications. Each member entity also has the option of hiring SEAGO on a contract basis to administer their grant project. This typically takes two years, and involves completing environmental reviews, providing the procurement of design and construction services, tracking all financial transactions, providing overall project management, and overseeing compliance with federal labor standards and a host of other federal regulations. SEAGO fees are reimbursed by the grant.
In addition to the Regional Accounts, the State has two competitive grants that member entities can apply for, or at their option, can contract with SEAGO to assist with:
- State Special Programs Account (SSP) (annual)
- Colonias Set Aside Projects Account (bi-annual)
Additional information on these grant opportunities can be accessed by clicking HERE.
For more information regarding the SEAGO CDBG Program or Labor Standards Compliance, please contact Bonnie Williams, CDBG Program Manager at 520.432.5301 Ext 211.