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Community Development Block Grants/Small Cities Program

Published on AidPage by IDILOGIC on Jun 24, 2005

Administered by:

Assistance considerations...

Length and Time Phasing of Assistance

Assistance is for an annual program of activities, but activities may be continued beyond one year until completed.

Formula and Matching Requirements

Allocations to States are based on U.S. Census data using a dual formula prescribed under Section 106 of the Act. Allocations for each State are based on an amount equaling the greater of the amounts calculated under the two formulas. The factors involved in the first formula are population, extent of poverty and extent of overcrowding, weighted 0.25, 0.50, and 0.25, respectively. The factors involved in the second formula are population, poverty, and age of housing, weighted 0.20, 0.30, and 0.50, respectively. The statistical factors used for fund allocation are (1) total resident population for all places in the nation (2) number of persons with incomes below the poverty level; (3) number of housing units with 1.01 or more persons per room; and (4) age of housing (number of year-round housing units built in 1939 or earlier). The statistical factors for each State are adjusted to reflect only the non-entitled area; that is, the State area excluding metropolitan cities and urban counties. The amount of non-entitlement funds allocated to a State is not affected by whether the State or HUD administers the fund in that State. There is no matching requirement for the allocation of funds under the formula. Address questions concerning the formula to the Systems Development and Evaluation Division, Rm.7224, Community Planning and Development, 451 7th Street, SW. Washington, DC 20410. Telephone: (202) 708-0790.

A formula may be based on population, per capita income, and other statistical factors. Applicants are informed whether there are any matching requirements to be met when participating in the cost of a project. In general, the matching share represents that portion of the project costs not borne by the Federal government. Attachment F of OMB Circular No. A-102 (Office of Management and Budget) sets forth the criteria and procedures for the evaluation of matching share requirements which may be cash or in-kind contributions made by State and local governments or other agencies, institutions, private organizations, or individuals to satisfy matching requirements of Federal grants or loans.

Cash contributions represent the grantees' cash outlay, including the outlay of money contributed to the grantee by other public agencies, institutions, private organizations, or individuals. When authorized by Federal regulation, Federal funds received from other grants may be considered as the grantees' cash contribution.

In-kind contributions represent the value of noncash contributions provided by the grantee, other public agencies and institutions, private organizations or individuals. In-kind contributions may consist of charges for real property and equipment, and value of goods and services directly benefiting and specifically identifiable to the grant program. When authorized by Federal legislation, property purchased with Federal funds may be considered as grantees' in-kind contribution.

Maintenance of effort (MOE) is a requirement contained in certain legislation, regulations, or administrative policies stating that a grantee must maintain a specified level of financial effort in a specific area in order to receive Federal grant funds, and that the Federal grant funds may be used only to supplement, not supplant, the level of grantee funds.