City of Elgin Community Development Block Grant (CDBG)

Grants to Elgin, Illinois nonprofit organizations to support a broad range of housing and community development projects. Applicants are strongly encouraged to meet with program staff prior to applying. Emphasis is placed on projects benefitting low and moderate income households.

Purpose:

In 1974, the federal government enacted the Federal Housing and Community Development Act. Title I of the Act combined several previous categorical programs into a single program named the Community Development Block Grant (CDBG) program. Congress designed the CDBG program to enhance and maintain viable urban communities. The CDBG program accomplishes this by providing decent housing, suitable living environments and expanded economic opportunities, principally for low‐ and moderate‐income persons. The U.S. Department of Housing and Urban Development (HUD) administers the CDBG program, which provides grants to local and state jurisdictions.

The City of Elgin participates in the CDBG program as an Entitlement City and is the “recipient” of an annual allocation of CDBG funding. Agencies that receive sub‐grants of CDBG funds are defined by HUD as “Project Sponsors” or “sub‐grantees” and referred to by the City of Elgin as Project Sponsors. At its discretion, the City of Elgin will use these federal funds to assist eligible projects to meet local community development and housing needs. Under CDBG regulations, all projects must serve residents of the City of Elgin.

These guidelines are intended to create a unified set of standards for all activities financially assisted under the CDBG program. Such activities, whether they consist of “brick and mortar” development or services to the public, will be referred to throughout these guidelines as “Activities”. The overall goal of the Community Development Program is to foster viable urban communities by providing decent housing, creating suitable living environments, and expanding economic opportunities, principally for low‐ and moderate‐income persons.

General Compliance with Federal Regulations:

Project Sponsors must comply with all applicable requirements of 24 CFR 570 concerning CDBG funds, all applicable portions of 2 CFR 200 OMB’s Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, and all other federal requirements and policies issued pursuant to these regulations, including, but not limited to, those set forth herein. Project Sponsors shall be responsible for complying with all applicable changes or additions to the requirements currently set forth in said regulations. Project Sponsors must comply with all other applicable federal, state and local laws and regulations governing the funds provided to the City.

Meeting a National Objective:

In order to be considered for funding, an activity must satisfy a national objective of the CDBG program. Generally, this means it must benefit low‐ to moderate‐income residents and it can do this by satisfying one of two criteria detailed below. The distinguishing factor between the two categories is whether the service will be offered to all residents of a specific neighborhood or to a particular group of residents from throughout the community.

Under the Area Benefit criteria, the activity must be available to all residents of an area where at least 51 percent of the residents are low to moderate income. The area must be clearly delineated by the project sponsor and must be primarily residential.

Under the Limited Clientele criteria, the activity will benefit a specific targeted group of persons of which at least 51 percent are low to moderate income. In order to meet the Limited Clientele criteria, the activity must meet one of the following standards:

-Serve at least 51 percent low to moderate income persons, as evidenced by documentation and data concerning beneficiary family size and income; OR

-Have income‐eligibility requirements which limit the service to persons meeting the LMI income requirement, as evidenced by the administering agency’s procedures, intake/application forms, income limits, and other sources of documentation; OR

-Serve a group made up exclusively of persons that are “presumed” to be low to moderate income. Such populations include abused children, battered spouses, elderly persons, severely disabled adults, homeless persons, illiterate adults, persons living with AIDS and migrant farm workers.

Eligible/Ineligible Projects:

Federal regulations limit the kinds of activities that the City may carry out with CDBG funds. The regulations governing the CDBG program provide detailed eligibility requirements. In general, a project may be undertaken when the following requirements are met.

A. The type of the project must be included within the list of eligible activities in the CDBG regulations (see 24 CFR 570.201). The CDBG regulations also list activities that are explicitly ineligible (see 24 CFR 570.207). Note: Maintenance work and equipment purchases are ineligible.

B. Projects funded under this application must principally serve low‐ and moderate‐income persons (see Section IV for more information).

C. Projects funded under this program must be consistent with one of the following the objectives and strategies outlined in the Kane‐Elgin Consolidated Plan, as follows:
1. Facility Development and Improvement
2. Homeless and Supportive Services

Depending on the type of project contemplated, applicants should review the supplemental guidelines that have been established for each of these activity types. These general guidelines and the applicable supplemental guidelines are intended to be utilized together.

For CDBG eligible activities, at least 51% of beneficiaries must be low- and moderate-income persons.

Additionally, the City of Elgin’s Strategic Principles and Priorities define goals for Safe and Healthy Community. Projects/Programs that support or provide a clean, healthy community where people are safe and enjoy access to amenities that support a high quality of life will be prioritized.