The City of Burlington is soliciting applications from community organizations and city departments for funding through its Community Development Block Grant program.
Donor Name: City of Burlington
State: Vermont
City: Burlington
Type of Grant: Grant
Deadline: 01/19/2023
Size of the Grant: $700,000
Details:
The CDBG Program is a principal revenue source for local communities to address the roots and consequences of poverty. The City solicits proposals for funding from community- and faith-based organizations, non-profits, and City Departments.
In addition, each application must satisfy one of the three following overriding goals:
- The project must help people move out of poverty, or
- The project must prevent people from entering poverty, or
- The project must address the basic needs of people living in poverty.
Funding Information
The Department of Housing and Urban Development (HUD) has yet to announce the appropriation for the 2023 program year but the City is anticipating approximately $700,000 of Community Development Block Grant Entitlement funds based on the City’s funding history. The number of applications funded, and the amounts, may be restricted depending on the City’s internal applications and administrative funding. Of the total amount appropriated to the City, the maximum allowable (20%) will be used for Administration. Public Service Projects are limited by Federal regulations to 15% of the total appropriation. The remaining funding is expected to be used for Development Projects. Funding for projects receiving awards is expected to become available on July 1, 2023.
A. Public Service Projects Public Service Projects are restricted to 15% of the total CDBG allocation, estimated at $105,000 based on prior year HUD awards. Each agency may submit only ONE Public Service application, and it must fall into the following categories: Early Childhood Education/Childcare, Youth Services, Economic Opportunity, Housing and Homelessness, and Health projects. A minimum level of funding of $5,000 applies to Public Service projects. There is no maximum amount.
B. Development Projects Development funds can be used for public facilities and improvements, economic development initiatives, and affordable housing initiatives. An estimated $455,000 of new Development funds will be available based on prior year HUD awards. A minimum level of funding of $5,000 applies to development projects. There is no maximum amount.
Eligibility Requirements
Applications for CDBG funding must meet the requirements of both Section A (relating to national objectives) and Section B (relating to eligible activities) below. These are Federal requirements prescribed by the Housing and Community Development Act of 1974, as amended, and by the implementing Federal regulations at 24 CFR Part 570.
A. Threshold Criteria – National Objectives
In order for a project to be funded with CDBG funds, it must meet one of the following three national objectives:
- Benefits low and moderate income persons as per the guidelines established by the U.S.
Department of Housing and Urban Development. Locally, the primary use of CDBG funds is for services and programs for low and moderate income persons. In order to be eligible, the project must either serve an eligible geographic area must benefit low and moderate income persons directly (through serving a targeted population). A direct benefit to low and moderate income persons may come through services, housing, or jobs. - If your project falls in the direct benefit category, then at least 51% of the people served by your project/program must be low and moderate income Burlington residents. You must keep records (i.e., intake form, application, self certifications etc.) to verify the income by household size and the residence of those served by your project/program. Certain groups of people are presumed by HUD to be principally low/moderate income persons. Those groups include: abused children, elderly persons, battered spouses, homeless persons, adults meeting Bureau of Census’ definition of severely disabled persons, illiterate adults, persons living with AIDS, and migrant farm workers. If your program/project exclusively serves one of these groups, you may document the limited nature of your clientele without documenting actual client income. Moderate income” means a household whose income does not exceed 80% of the median family income for the area.
- Aids in the prevention or elimination of slums and blight.
- Meets other community development needs having a particular urgency because existing conditions pose a serious and immediate threat to the health and welfare of the community and where other financial resources are not available to meet such needs.
- If you are considering a project under either the “elimination of slums and blight” or the “immediate threat to health and safety” objective, please contact CEDO prior to completing your application.
Eligible Activities
This section describes many of the activities which can be assisted with CDBG funds under the Federal regulations. There are a limited number of additional miscellaneous activities which may be eligible for funding. If you have a question about the eligibility of an activity for which you
want to seek funding,.
Eligible activities include:
- Purchase, sale, lease or other disposition of real property.
- Clearance, demolition and removal of buildings.
- Rehabilitation of publicly or privately-owned residential property; commercial/industrial property (but if privately-owned, only for exterior improvements and correction of code violations); and nonresidential buildings and improvements owned by a nonprofit. Funding can be used for:
- Labor, materials and other costs relating to rehabilitation.
- Grants, loans, loan guarantees and other forms of assistance for financing rehabilitation.
- Loans for refinancing indebtedness.
- Improvements to increase the energy efficiency of buildings and/or the efficient use of water.
- Installing sprinkler systems, smoke detectors, deadbolt lock and other security devices.
- Connecting residential structures to water or sewer collection lines.
- Initial homeowner warranty premiums and hazard or flood insurance.
- Lead-based paint hazard evaluation and reduction.
- Rehabilitation services (counseling, energy auditing, preparation of work specifications, loan processing, inspections, etc.)
- Historic preservation.
- Converting a closed building from one use to another.
- Removal of architectural barriers to accommodate people with disabilities.
Funding cannot be used for costs of equipment, furnishings or other personal property, or for the labor costs for homeowners to rehabilitate their own property.
- Relocation assistance to businesses, individuals, families, and non-profit organizations displaced by CDBG activities, and loss of rental income incurred in connection with the temporary relocation of displaced individuals and families.
- Code enforcement.
- Homeownership assistance.
- Interim assistance either to alleviate an emergency condition or to cover limited, immediately needed improvements to a deteriorating area as a prelude to permanent improvements.
- These limited improvements can include special neighborhood cleanup campaigns.
- Purchase, construction, reconstruction, rehabilitation or installation of public facilities and improvements. Public facilities include schools, libraries, and special needs shelter facilities (nursing homes, hospitals, domestic violence shelters, homeless shelters, halfway houses, group homes, emergency shelters). Public improvements include streets, sidewalks, curbs, parks, playgrounds, water and sewer lines, parking lots, and aesthetic amenities on public property (trees, sculptures, etc.).
- A “public facility” may be owned and operated by a non-profit (i.e., senior centers, neighborhood centers) as long as it is open to the general public.
- Buildings used primarily for the general conduct of government are ineligible.
- Flood and drainage facilities and parks established as a result of reclamation of land near a river are ineligible unless certain requirements are met.
- CDBG funds cannot be used to operate or maintain public facilities/improvements.
- CDBG funds cannot be used to buy construction equipment, to buy furnishings or other personal items, or for new construction of public housing.
- Public services are limited to Early Childhood Education/Childcare, Youth Services, Economic Opportunity, Housing and Homelessness, and Health projects. If you have a question about what category your program falls into, please contact CEDO.
- Grants for public services may not exceed 15% of the City’s total annual CDBG appropriation.
- CDBG funds cannot be substituted for recent City or State funds supporting public services. The service must be a new service or a “quantifiable increase in the level of service”.
- Ongoing grants or non-emergency payments to individuals for food, clothing, rent, utilities or other income payments are not eligible activities.
- Special economic development activities, including:
- Acquisition, construction, reconstruction, rehabilitation or installation of commercial or industrial buildings, structures, and improvements.
- Grants, loans, loan guarantees, interest supplements, and technical assistance to private, for-profit businesses.
- Economic development services including outreach efforts to market available forms of assistance; screening of applicants; reviewing and underwriting applications for assistance; preparation of necessary agreements; management of assisted activities; and screening, training, referral, and placement of applicants for employment opportunities generated by CDBG-eligible economic development activities.
- Microenterprise assistance in the form of loans, grants, technical assistance and general business support services.
- Grants or loans to any qualified Community-Based Development Organization (CBDO) to carry out a neighborhood revitalization, community economic development, or energy conservation project. For a description of eligible CBDO’s and activities.
For more information, visit Community Development Block Grant.
