Rule 110-8-1-.03. Scope and Purpose

Rule 110-8-1-.03. Scope and Purpose

1. (1) The Georgia Community Development Block Grant (CDBG) program provides grants to eligible units of general purpose local government to undertake community development activities eligible under the Housing and Community Development Act of 1974, as amended.
2. (2) The objective of the Georgia CDBG program is to improve living conditions and economic opportunities in Georgia's cities and counties, principally for persons of low and moderate income. Consistent with this primary objective, not less than 70% of the CDBG funds received each fiscal year shall be used for the support of activities that benefit persons of low and moderate income. To be funded, maximum feasible priority must be given to activities which benefit low and moderate income families, or aid in the prevention or elimination of slums or blight, or which meet urgent community needs.

3. (3) Recognizing that the needs of communities vary widely, the Georgia CDBG program is divided into five separate components:

   1. (a) The Regular Annual Competition,
   2. (b) The Immediate Threat and Danger Grant Program,
   3. (c) The Employment Incentive Program,
   4. (d) The CDBG Section 108 Loan Guarantee Program and
   5. (e) The Georgia Redevelopment Fund.

   6. (a) Applications under the regular annual competition must be for either a single activity or a multi-activity grant:

      1. 1. Single activity grant applications must be structured to address problems within one of the following three areas:

         1. (a) housing,
         2. (b) public facilities, or
         3. (c) economic development.
      2. 2. Multi-activity grant applications must involve two or more activities which address identified community development needs in a comprehensive manner. This funding component requires an applicant to address problems within more than one of the areas listed above.
   7. (b) Immediate Threat and Danger applications must address an event or situation which has a particular urgency and uniqueness which adversely affects or impacts a community and its citizens and where other financial resources are not available to meet such needs.
   8. (c) Employment Incentive Program applications must address community development needs which provide for the creation and/or retention of jobs, or job training principally for persons of low and moderate income.
   9. (d) The Redevelopment Fund applications should generally be targeted to projects that will leverage private sector investments in blighted downtown commercial and industrial areas. Projects that meet HUD's "slum and blight" national objective and will result in employment opportunities for low and moderate-income persons are encouraged.

   10. (e) The CDBG Section 108 Loan Guarantee Program is an economic and community development-financing tool authorized under Section 108 of Title I of the Housing and Community Development Act of 1974, as amended. The program is a method of assisting nonentitlement local governments with certain unique and large-scale economic development projects that cannot proceed without the loan guarantee. In order to be eligible a project must meet all applicable CDBG requirements and result in significant employment and/or benefit for low and moderate income persons. Projects that are eligible for financing under existing federal, state, regional or local programs will generally not be considered for guarantee assistance unless the programs would fail to fully meet a project's needs.

       Unlike the traditional CDBG or EIP Program, the Section 108 Program does not operate through assistance from the Department of Community Affairs (DCA). Rather, funds are raised through DCA's "Pledge of Grants" to the U.S. Department of Housing and Urban Development (HUD) in order to obtain a federal guarantee of notes issued by the local government. The federally guaranteed notes are sold into private markets through public offerings conducted by HUD. By approving the project, a State pledges its future CDBG funds as the ultimate repayment source should a Section 108 loan default. The State's participation in the Section 108 program does not involve a pledge of Georgia's full faith and credit nor does it commit any funding to the local government. HUD makes the ultimate approval or denial of the federal guarantee.

Submitted: Mar. 18, 1999.Submitted: Sept. 12, 2000.

Authority: O.C.G.A. Sec. 28-5-122, 50-8-8.

History. Original grant description entitled "Scope and Purpose" submitted September 9, 1993.