Only a City, Town, or County Government is eligible to apply for these funds. However, a Special District or a Nonprofit Agency can receive the funds through the city, town, or county government. In any case, the project must primarily benefit a low to moderate income (LM) population.
PRIORITY HOUSING ACTIVITIES/INVESTMENT PLAN (ADOH)
Applications for CDBG funds must meet one of the three "National Objectives" established by Congress, and the beneficiaries must be primarily low to moderate income (LM).
1. Primarily benefit Low to Moderate (LM) income persons:
- 51percent of beneficiaries are LM
- Target Groups that are assumed LM
2. Prevent or eliminate slum and blight conditions:
Statutory process involving public notice, hearings and a Council/Board Resolution, allowing the applicant to single out a deteriorated neighborhood area to be presumed LM, or a single building that could be used to benefit LM people
3. Meet other urgent community development needs, relating to health and safety issues:
Human Health Hazard
How to Demonstrate the Community Project Meets One of Three National Objectives:
1. Demonstrate that the project will benefit LM income population:
Show that at least 51percent of the beneficiaries where the project will take place (the service area) are of LM income; or
Show that the building (such as a senior housing complex) will serve primarily people who are of LM income; or
Show that the houses to be rehabilitated are owned by LM income persons; or
Show that jobs will be offered to LM income population.
2. Go through the statutory process to identify deteriorated (slum/blight) neighborhoods.
After this process, the area will be deemed LM.
3. Demonstrate that the project will help meet an urgent need, that the problem happened recently, and the community has no other funds to solve it:
Show that the problem is the result of a natural disaster such as a flood; or
Show that the problem poses a serious threat to public health if not remedied quickly.
Low to Moderate Income
"Low to moderate income" refers to total annual family income that is less than 80 percent of the average income for same size families in that area. These averages vary in different counties of the state and are calculated by HUD annually. These calculations are available under “Forms”, as rent and income limits at the Arizona Department of Housing website.
Choices for Determining Beneficiaries:
By Area wide Benefit:
Determine the geographic service area that will primarily benefit from the project. Individuals residing in the service area must be at least 51 percent LM. This can be determined by:
1. Census Data at the block group level, where the percent LM is determined by HUD.
2. Special Income Survey, conducted per the requirements of ADOH (see the application handbook Arizona Department of Housing website).
3. Slum/Blight designation
By Income Qualified Benefit:
Each recipient is qualified to determine that they are low or moderate income. This is a requirement for owner occupied housing rehabilitation programs.
By Limited Clientele Benefit:
Groups of people who are automatically determined to be low or moderate income are:
Elderly Persons (62+)
Persons with Disabilities
Migrant Farm Workers
Public Involvement for the CDBG Application Process
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 local or area newspapers. Notices must be published and posted before the community can send its application to the ADOH. Although the public is invited to participate, the elected officials in the city, town or county make the final decision regarding which project is applied for.