USE OF CDBG FUNDS FOR CODE ENFORCEMENT ACTIVITIES Office of Block Grant Assistance Entitlement Communities Division
WHAT WILL BE COVERED TODAY Brief overview of the CDBG program – statutory/regulatory authority, • objectives, and national objective compliance. How CDBG funds may be used for code enforcement activities: • – what is code enforcement – purpose of code enforcement – eligible code enforcement costs – ineligible code enforcement costs – national objective compliance – how revenue from code inspections and enforcement of codes is treated – recordkeeping requirements Slide 2
POLLING QUESTION #1 • Years of experience with CDBG – 1 – 5 years – 5 – 10 years – 10 + years Slide 3
OVERVIEW OF THE CDBG PROGRAM • The CDBG program is authorized by Title I of the Housing and Community Development Act of 1974, as amended and codified at 24 CFR Part 570. • The objective is the development of viable urban communities, provision of BRIEF OVERVIEW OF THE CDBG decent housing and a suitable living environment, and expanding economic opportunities, principally for low and moderate income persons. PROGRAM • $3 billion appropriated for 2015. Seventy percent is appropriated to entitlement communities. Thirty percent is appropriated to States (non- entitlements). • Annual entitlement grants are provided on a formula basis to states, metropolitan cities, and urban counties to implement a wide variety of community-based activities directed toward neighborhood revitalization, economic development, and public facilities and services. Slide 4
OVERVIEW OF THE CDBG PROGRAM The CDBG program is authorized by Title I of the Housing and Community • Development Act of 1974, as amended and codified at 24 CFR Part 570. The objective is the development of viable urban communities, provision of • decent housing and a suitable living environment, and expanding economic opportunities, principally for low and moderate income persons. $3.3 billion appropriated for 2019. Seventy percent is appropriated to • entitlement communities. Thirty percent is appropriated to States (non- entitlements). Annual grants are provided on a formula basis to states, metropolitan cities, • and urban counties to implement a wide variety of community-based activities directed toward neighborhood revitalization, economic development, and public facilities and services. Slide 5
OVERVIEW OF THE CDBG PROGRAM (CONT.) Each grantee receiving CDBG funds is free to determine what activities it • will fund as long as they meet all CDBG program requirements, are eligible, and meet one of three national objectives: – benefits persons of low and moderate income (70% requirement) – aids in the prevention or elimination of slums or blight – meets other community development needs of a particular urgency that the grantee is unable to finance on its own. Slide 6
POLLING QUESTION #2 • Years of experience with Code Enforcement – on a regular basis – Less than 1 year – 1 – 5 years – 5 – 10 years – 10 + years Slide 7
WHAT IS CODE ENFORCEMENT? As defined at 24 CFR 570.202(c) for Entitlement grantees: Costs incurred • for inspection for code violations and enforcement of codes (e.g., salaries and related expenses of code enforcement inspectors and legal HOW CDBG FUNDS MAY BE USED FOR proceedings, but not including the cost of correcting the violations) in deteriorating or deteriorated areas when such enforcement together with CODE ENFORCEMENT public or private improvements, rehabilitation, or services to be provided may be expected to arrest the decline of the area. As defined at Section 105(a)(3) for States: the use of CDBG funds for code • enforcement in deteriorated or deteriorating areas in which such enforcement, together with the public or private improvements or services to be provided, may be expected to arrest the decline of the area. Slide 8
WHAT IS CODE ENFORCEMENT? As defined at 24 CFR 570.202(c) for Entitlement grantees: Costs incurred • for inspection for code violations and enforcement of codes in deteriorating or deteriorated areas when such enforcement together with public or private improvements, rehabilitation, or services to be provided may be expected to arrest the decline of the area. As defined at Section 105(a)(3) for States: the use of CDBG funds for code • enforcement in deteriorated or deteriorating areas in which such enforcement, together with the public or private improvements or services to be provided, may be expected to arrest the decline of the area. Slide 9
WHAT IS CODE ENFORCEMENT? (CONT.) Code enforcement is defined by some jurisdictions as the prevention, • detection, investigation, and enforcement of violations of statutes and ordinances regulating public health, safety and welfare. Jurisdictions may also include the maintenance and preservation of the • value and appearance of residential, commercial, and industrial buildings within its boundaries in its definitions of code enforcement. Some jurisdictions focus on buildings and structures while other focus on • neighborhood cleanliness, public advertisement displays, lawn care, environmental concerns, and the condition of motor vehicles on its streets. Slide 10
WHAT IS CODE ENFORCEMENT? (CONT.) For CDBG program purposes, code enforcement is defined as a process • whereby local governments gain compliance with ordinances and regulations regarding health and housing codes, land use and zoning ordinances, sign standards, and uniform building and fire codes. The CDBG program expects the focus of code enforcement to be on health • and safety issues in buildings and structures. Supplemental efforts to address code violations related to vacant lots, • signs, and motor vehicles are allowed in conjunction with efforts involving buildings and should only be a minor part of the grantee’s code enforcement program. Slide 11
PURPOSE OF CODE ENFORCEMENT To protect the public health, safety and welfare. • To protect the health and safety of persons using buildings such as public • facilities. To encourage homeowners and tenants to maintain the appearance and • value of their housing units. To reduce crime in a neighborhood. • Slide 12
ELIGIBLE CODE ENFORCEMENT COSTS Salaries of code enforcement officers working in CDBG-eligible areas. This • may include procurement of code enforcement inspection specialists or companies or hiring another unit of government to perform code inspections. Lease of vehicle to conduct inspections and/or use allowances for vehicles • purchased with other funding sources. Uniforms and coveralls if they are a job requirement and hand-held • computers and tablets to record information are eligible uses of CDBG. Costs charged to CDBG must be in proportion to the time spent conducting • inspections for CDBG purposes in CDBG eligible areas and for the costs identified above. Slide 13
ELIGIBLE CODE ENFORCEMENT COSTS (CONT.) Enforcement of Codes Legal and code enforcement hearings. • Cost of processing and issuing citations. • Collection and processing of fines assessed. • Hearing Officers’ salaries in proportion to the amount of time spent hearing • and deciding appeals from code enforcement citations or fines from CDBG- assisted code inspections and enforcement. Legal fees paid to attorneys by grantees as part of the legal proceedings. • Slide 14
INELIGIBLE CODE ENFORCEMENT COSTS Public or private improvements, rehabilitation, or services provided that • are expected to arrest the decline of areas inspected under the authority of 24 CFR 570.202(c). Conducting code enforcement inspections in every neighborhood in a • jurisdiction. General government expenses (code enforcement carried out in non- • CDBG eligible areas or non-deteriorated/deteriorating areas). Legal fees for persons cited for code violations. • Slide 15
CDBG-ELIGIBLE CODE ENFORCEMENT AREAS Areas inspected with CDBG funds must meet the local or state law • definition of deteriorated/deteriorating. The standards at 24 CFR 570.208(b)(1) for Entitlements and 24 CFR • 570.483(c)(1) for States may be used to determine if an area is deteriorated/deteriorating, with limitations. – For example, a determination that public improvements are in a general state of deterioration would not sufficiently justify conducting code enforcement inspections in private property in certain neighborhoods. – Local or state definitions of deteriorated/deteriorating may contain criteria that have nothing to do with the physical condition of the built environment (such as undeveloped land or inappropriately zoned parcels). Slide 16
NATIONAL OBJECTIVE COMPLIANCE Benefit to low- and moderate-income persons on an area basis – 24 CFR • 570.208(a)(1) for Entitlements and 24 CFR 570.483(b)(1) for States. – Inspections may be conducted on single or multifamily housing units, commercial buildings, and other publicly- or privately-owned buildings. – The buildings inspected must be located in a primarily residential area where a minimum of 51 percent of the residents in the area are low- and moderate- income. Slide 17
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