Erie County CDBG
Erie County is entitled to receive Community Development Block Grant funds from the State each year pursuant to PA Act 179 of 1984. Since 1985 the County has received nearly $10.5 million in state CDBG monies. Last year’s grant (FY 2009) was $392,595. The allocation for FY 2010 is anticipated to be $425,000.
County’s CDBG funds are to be used to assist non-entitlement boroughs and townships undertake activities which address community development and /or housing needs and which primarily benefit low-to-moderate income persons. Of the 38 municipalities in the County, 30 do not receive their own annual allocation, and therefore can apply for a share of the County’s CDBG funds.
“Eligibility” and “Fundability"
To be considered for CDBG funding, the municipality must show that its proposed activity is “eligible” and “fundable”. Eligible activities include, but are not limited to:
- water, sanitary sewer, and storm sewer construction
- street reconstruction, and sidewalk/curb replacement
- recreation improvements
- housing rehabilitation
- homeownership assistance
- acquistion of property
- fair housing activities
- handicapped accessibilty improvements
“Fundable” refers to whether the activity meets the National Objective of the CDBG program of primarily benefiting low-to-moderate income (LMI) persons.
“Primarily benefiting” means that at least 51% of the persons benefiting from an activity are of low-to-moderate income.
A “LMI person” is one whose income is no more than 80% of median income established for the area. This percentage is determined by HUD based on a four-person family and adjusted upward or downward for larger or smaller families.
Certain groups of persons are “presumed” by HUD to be LMI and therefore activities to assist these persons automatically meet the fundability requirement. Groups presumed to be LMI include adults with physical disabilities, abused children, elderly persons, battered spouses, homeless persons, illiterate adults, persons living with aids, and migrant farmers.
Most projects do not solely benefit a “presumed” group of LMI persons, so the municipality has to show that its project will benefit an area or neighborhood where the concentration of LMI persons is at least 51%. Concentrations of LMI persons can be determined in one of two ways- HUD Census data and income surveys. In nearly all cases a project’s service area does not coincide with a census area where the concentration of LMI persons is at least 51%, and therefore an income survey needs to be undertaken to determine fundability. County Planning must be contacted for assistance in undertaking a survey.
How Are County CDBG Funds Awarded?
County CDBG funds are awarded annually on a competitive basis. Application packets are forwarded to each non-entitlement municipality in May and are due back to the ECDP by October. In November, the Erie County Planning Commission reviews and ranks the projects and submits its funding recommendations to the County Executive who along with the County Council decide which projects should receive the grant monies.
The ECDP submits the County’s CDBG funding request to DCED in April of the following year. A contract between the State and County is awarded in August. Bidding and construction of the projects is expected to be completed within 12 – 18 months.
Project Status Report:
Erie County (FY2000-FY2009)
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