Community Development Block Grant Program

 

The Office for Small Cities administers the Community Development Block Grant (CDBG) Program for the State of New York. http://www.nysmallcities.com/

 

The NYS CDBG program provides financial assistance to eligible cities, towns, and villages with populations under 50,000 and counties with an area population under 200,000, in order to develop viable communities by providing decent, affordable housing and suitable living environments, and expanding economic opportunities, principally for persons of low and moderate income.

 

The state must ensure that not less than 70% of its CDBG funds are used for activities that benefit low- and moderate-income persons.  The program objectives are achieved by supporting activities or projects that benefit low- and moderate-income families, create job opportunities for low- and moderate income persons, prevent or eliminate slums or blight, or address a community development need that poses a serious and imminent threat to the health or welfare of the community 

 

The Office for Small Cities is a subsidiary public benefit corporation of the New York State Housing Trust Fund Corporation and a member of the team at the New York State Division of Housing and Community Renewal.

 

The Budget proposes statutory amendments to conform the state’s Community Services Block Grant Program to the federal Community Services Block Grant Program and make permanent the distribution formula for funds received under this federal program.

 

The federal law authorizing the Community Services Block Grant Program (42 USC §9901 et seq.) was comprehensively amended in 1998. However, the state statute implementing this federal program has not been updated to reflect the 1998 changes to the underlying federal law.

 

This bill amends Executive Law §§159-e et seq. to conform to current federal law governing administration of the Community Services Block Grant Program. Specifically, the bill updates the definition of eligible entities and the formula for state distribution of federal funding allocations, and adds provisions to govern funding reductions, eligible entity decertification and the designation of new entities to serve unserved areas.

 

In addition, this bill amends Executive Law §159-i to make the formula for state distribution of federal funding allocations permanent. Historically, the distribution formula has been extended annually to authorize distribution of federal funding allocations, and the current authority is scheduled to sunset on September 30, 2008.

 

For More information go to

Article VII

Part R, Transportation Economic Development and Environmental Conservation

S6809 (www.senate.state.ny.us) or A9809 (www.assembly.state.ny.us)

 

For More information on the Budget Amendments to the CDBG Program contact

The Office for Small Cities 518-474-2057

 

For information on the Federal Community Services Block Grant Program

http://www.hud.gov/offices/cpd/communitydevelopment/programs/entitlement/

 

 

Budget Implications:

The Department of State has administered the Community Services Block Grant Program since 1982. The Department's authority to distribute CSBG funds is predicated upon the receipt of funding from the Federal government and its compliance with federal program requirements. The Department anticipates continued Federal funding for the CSBG Program and the State financial plan assumes these funds will be disbursed during the 2008-09 State fiscal year.