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Community Development Block Grant Program

Background
HCD administers the federal Community Development Block Grant (CDBG) Program for Daly City. Since the program’s creation in 1974, the Department of Housing and Urban Development (HUD) has allocated CDBG funds to entitlement cities such as Daly City each year. All CDBG-funded activities must meet at least one of the following three national objectives:

  1. Benefit low- and moderate-income persons
  2. Aid in the prevention of slum and blight
  3. Alleviate urgent needs (e.g., disaster relief)
Eligibility
Non-profits, for-profits and governmental entities are eligible to apply for CDBG funds. In order to target people with the greatest needs, however, CDBG-funded activities must benefit a majority of low- and moderate-income people. There is a broad range of activities that are eligible for CDBG dollars. Daly City has five funding categories that all CDBG-funded activities must fall under: general administration, capital improvements, economic development, housing, and public services. Each year the City awards funds to many public services subrecipients (e.g. nonprofits) to meet the diverse and priority needs of Daly City residents. CDBG funding annually supports the City’s Residential Rehabilitation Program, which offers loans and grants for a variety of home improvement activities (e.g., roofing, painting, security bars, etc.) and Renaissance Entrepreneurship Center, which provides technical assistance to small businesses and promotes the creation of jobs.

Funding Cycle
The CDBG funding cycle begins in early December when the grant application [doc, xls] becomes available. In December or early January, the City Council conducts a public hearing to receive citizen input regarding housing and community development needs. Applications are due at the end of January. During February through March, the City reviews and evaluates the applications. From March through April, the City prepares a draft One-Year Action Plan, which contains the preliminary funding recommendations and is made available for a 30-day public comment period. In late April, the City Council conducts a public hearing to receive final comments and approves the Action Plan.
HUD Consolidated Plan
In 1995, HUD established the Consolidated Plan process for local and state governments that received any one of four federal funding sources: CDBG, Home Investment Partnerships (HOME), Emergency Shelter Grants (ESG), and Housing Opportunities for Persons with AIDS (HOPWA). The rationale for the Consolidated Plan was to streamline and to integrate the planning, application, and reporting for these four separate federal programs. Under HUD’s Consolidated Plan regulations, all entitlement cities such as Daly City must prepare a Five Year Plan. The Five Year Plan describes the City’s housing and community development inventory and resources, needs, priorities, strategies, and performance measures.

Within the period covered under the Five Year Plan, HUD requires the City to prepare a One Year Action Plan based on the Five Year Plan. The One Year Action Plan details the City’s priorities, strategies, and objectives for the coming program year. In addition, the Action Plan contains the annual CDBG funding allocations.

At the end of each program year, the City describes and evaluates the performance of its CDBG-funded activities through the Consolidated Annual Performance and Evaluation Report (CAPER). The City submits the CAPER to HUD in September.