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Community Development Block Grants/Entitlement Grants

Published on AidPage by IDILOGIC on Jun 24, 2005

Assistance considerations...

Length and Time Phasing of Assistance

Assistance is for an annual program of activities, but activities generally may be continued beyond one year until completed.

Formula and Matching Requirements

Entitlements are based on a dual formula under Section 106 of the Act using statistical factors. Each metropolitan city and urban county is entitled to receive an amount equaling the greater of the amounts calculated under two formulas. The factors involved in the first formula are population, extent of poverty and extent of overcrowded housing, weighted 0.25, 0.50, and 0.25, respectively. The factors involved in the second formula are population growth lag, poverty, and age of housing, weighted 0.20, 0.30, and 0.50, respectively. The statistical factors used for fund allocation in 2004 are (1) 2002 population estimates from the Bureau of Census; (2) number of persons with incomes below the poverty level from the source 2000 Census; (3) number of housing units with 1.01 or more persons per room from the source 2000 Census; (4) age of housing; number of year-round housing units built in 1939 or earlier from the source 2000 Census; (5) growth lag; the lag in population growth as computed from population in 1960 to current population from the source 1960 Census and P25, Census Report. Statistical factors used for eligibility are (1) metropolitan city: principal city of a Metropolitan Area (MA) or city within MA with 50,000 population from the source Census and OMB; (2) urban county: generally, counties in MA having a net population of 200,000 or more, excluding entitlement cities located therein, from the source Census and OMB. Questions concerning the formula should be addressed to the Systems Development and Evaluation Division, Community Planning and Development, 451 7th Street SW., Washington, DC 20410. Telephone: (202) 708-0790.

A formula may be based on population, per capita income, and other statistical factors. Applicants are informed whether there are any matching requirements to be met when participating in the cost of a project. In general, the matching share represents that portion of the project costs not borne by the Federal government. Attachment F of OMB Circular No. A-102 (Office of Management and Budget) sets forth the criteria and procedures for the evaluation of matching share requirements which may be cash or in-kind contributions made by State and local governments or other agencies, institutions, private organizations, or individuals to satisfy matching requirements of Federal grants or loans.

Cash contributions represent the grantees' cash outlay, including the outlay of money contributed to the grantee by other public agencies, institutions, private organizations, or individuals. When authorized by Federal regulation, Federal funds received from other grants may be considered as the grantees' cash contribution.

In-kind contributions represent the value of noncash contributions provided by the grantee, other public agencies and institutions, private organizations or individuals. In-kind contributions may consist of charges for real property and equipment, and value of goods and services directly benefiting and specifically identifiable to the grant program. When authorized by Federal legislation, property purchased with Federal funds may be considered as grantees' in-kind contribution.

Maintenance of effort (MOE) is a requirement contained in certain legislation, regulations, or administrative policies stating that a grantee must maintain a specified level of financial effort in a specific area in order to receive Federal grant funds, and that the Federal grant funds may be used only to supplement, not supplant, the level of grantee funds.