Community Development Block Grant (CDBG)

The CDBG general competitive program is essentially for public works or facilities projects. Applications are due in mid-December and awards are announced in March the following year. ECICOG has extensive experience administering CDBG projects for local governments in the region. Our activities include the development of all required resolutions and publications related to the project, preparation of monthly requests for funds from the Iowa Department of Economic Development, labor standards reviews, and filing of quarterly reports.

CDBG programs are designed to help create viable communities through assistance to low-to-moderate income persons. Grant ceilings for projects are set based on community size or number of persons served by the project. The per capita limit is $1,000 or the maximum ceiling for the community size.

Pre-applications are normally due tot the Iowa Department of Economic Development (IDED) in August. If the pre-application is approved, IDED will then request that a full application be submitted in December by the jurisdiction with help from the project engineer/architect. Award decisions are announced in March of the following year. Typically, each grant has a two year contract that can be extended if necessary.

Community Facilities and Services Fund

Water / Sewer (Public Facilities) Fund

About $11 million in federal Community Development Block Grant (CDBG) funds are available to cities and counties on an annual competitive basis through the Community Facilities and Service Fund and the Water/Sewer Fund. Examples of assisted activities include storm sewers, child care centers, group homes, employment facilities, senior centers, health facilities, and homeless shelters, sanitary sewer system improvements, water system improvements, water and wastewater treatment facilities, storm sewer projects related to sanitary sewer improvements, and rural water connections.

CDBG programs are designed to help create viable communities through assistance to low-to-moderate income persons. Grant ceilings are based on the community size or number of persons served by a project. The per capita limit is $1,000 or the maximum ceiling for the community size. Per capita limits are listed in the table below.

Pre-application

1 LMI Survey (CDBG guidelines)

Community Facilities and Service Funds

If a project proposes to primarily benefit low-to-moderate income persons, that benefit must be documented. If the project is LMI targeted and meets the definition for a limited clientele group, the applicant can document a 51 percent LMI benefit without an LMI survey. In CDBG projects, limited clientele groups include abused children, elderly persons, battered spouses, and homeless persons. If the project is community wide, current census data can be used to determine benefit. For most applications an income survey must be done to determine LMI benefit.

Water/Sewer Fund

An LMI survey must be conducted of the city/town/area that will be serviced.

All households must be attempted to be surveyed if the area is less than 300 households.

If area is more than 300 households, at least 300 households must be included in the sample.

At least 51% of those surveyed must be at or below LMI.

An LMI survey is valid for three years.

ECICOG can provide the form and training to conduct this survey and tally the results.

2 MHI Survey (Median Household Income to use USDA money)

A survey of the median household income (MHI) must be conducted by an impartial source.

100% of potential users must be contacted, with a minimum of 90% return.

Users report actual income, not estimates.

Only relevant if current data does not adequately reflect the MHI of residents in the service area.

Must submit methodology and instrument to USDA before using.

IDED Income Survey Overview and Instructions

3 Local Match

The jurisdiction must provide some amount of local match. Some options for local match include bond issuance, jurisdiction cash reserves, USDA grants and loans, and bank financing.

4 Information Required

Community Facilities and Service Funds

For community services and facilities pre-applications, the following information must be included:

General location of the facility;

Purpose and benefit to whom;

Estimated cost of the project; and

Sources, commitments, and uses of other funds for the project.

Water/Sewer Fund

The jurisdiction will need the services of an engineer for a cost estimate. Remember:

The process to procure an engineer begins by requesting for qualifications

Contracts for full engineering services should not be signed until after CDBG funding awards are announced.