Skip to Content or Accessibility Information

Grants

Contact Us

Grants Administrator
433 North Virginia Street
Prescott, AZ, 86301
Phone 928-777-1143

CDBG

CDBG stands for the Community Development Block Grant program, which is funded by the U.S. Department of Housing and Urban Development (HUD).

Community Development Block Grants help communities provide decent housing, a suitable living environment, expanded economic opportunities, principally for persons of low and moderate income.

HUD awards grants to entitlement community grantees to carry out a wide range of community development activities directed toward revitalizing neighborhoods, economic development and providing improved community facilities and services. Entitlement communities develop their own programs and funding priorities.

When Prescott qualified as an entitlement community it developed the first Five Year Consolidated Plan and One Year Action Plan. The plan was approved by HUD in July 2005. Since then, the City has developed FY 2006 and 07 Action Plans, both approved by HUD.

Funded Projects

Shown below are the projects approved by HUD in July 2007. The projects will be completed prior to June 30, 2008.

  • Dexter Sidewalk Project
    As a continuation of the Dexter Neighborhood Revitalization, the City will use HUD funding to install 3466 SF of four foot sidewalk, exclusive of driveway cuts, on Merritt Street between Division and Lincoln Ave.
  • Dexter Streetlight Project
    As a continuation of the Dexter Neighborhood Revitalization, the City will use HUD funding to install/upgrade approximately 30 streetlights in the northwest and central sections of the neighborhood.

The projects identified will increase safety in the neighborhood; (a) sidewalks will aid pedestrians to move safely through the neighborhood on primary routs and will provide benefit to people with accessibility needs in maneuvering through the neighborhood. (b) Lighted streets are effective in deterring potential crime. The lighting also provides increased visibility between dusk and dawn for pedestrians. (c) The identified projects benefit Dexter Neighborhood LtM-HH which is the only LtMA income neighborhood in the City of Prescott. The proposed projects assist in creating a suitable living environment, improve accessibility and infrastructure.

Consolidated Annual Performance & Evaluation of FY 2006

FAQ

Q. What can CDBG funds be used for?
A. A wide variety of activities including:
  • Street, water and wastewater improvements;
  • Housing rehabilitation or buying land for new housing development;
  • The construction of or improvements to parks, libraries, health clinics, shelters for domestic violence victims or the homeless;
  • Salaries of people who provide public services such as child care or job training, or paying for furniture for such programs; and
  • Loans and other kinds of assistance so businesses can hire new employees.
Who is eligible for CDBG funds?
A. Only a city, town or county is eligible. However, a special district or a nonprofit agency can receive the funds if the city, town or county determines that the project proposed by that district or agency meets community needs.
Q. Are there certain criteria to receive CDBG Funding?
A. Yes. Community applications for CDBG funds must meet the "National Objectives" established by Congress.
Q. What are the “National Objectives”?
A. They require each project to:
  1. Primarily benefit low-to moderate-income persons,
  2. Prevent or eliminate slum and blight, or
  3. Meet other urgent community development needs relating to health and safety issues.
Q. What constitutes “low and moderate income”?
A. “Low and moderate income” refers to the total annual family income that is less than 80 percent of the average income for same-size families in that area.
Q. Is public involvement necessary for the CDBG application process?
A. Yes. Every community applying for CDBG funds must hold at least two public hearings to let residents identify possible projects. Public hearing notices also must be published in the local newspapers. These notices must be published before the community can send its application to HUD, and they must inform the public about the process to comment on projects recommended by elected officials. Notice of public meetings can also be posted at the local city hall.
Q. How can CDBG funds be used for economic development?
A. CDBG funds can be used to:
  • Lend funds to a business;
  • Provide the business with a loan guarantee;
  • Install a water line allowing a business to locate or expand;
  • Acquire land to be leased to a business; or
  • Provide training and support services to low-to-moderate income persons wishing to start their own businesses.
In most cases, the business must agree to create or retain a reasonable number of jobs in relation to the CDBG assistance and hire 51 percent LM income persons.
Q. How can CDBG funds be used by a community to address its affordable housing needs?
A. CDBG funds can be used to:
  • Rehabilitate homes owned and occupied by LM persons or rental units in which at least 51 percent of the tenants are or will be LM and will pay “affordable rents”
  • Acquire property to be sold to LM persons or to be converted primarily to rental housing, with at least 51 percent of the units to be occupied by LM persons;
  • Acquire or clear property to be sold or leased to a private developer;
  • Construct off-site improvements for a developer who will build homes at least 51 percent of which will be sold to or constructed by (self-help) LM persons; or
  • Construct or rehabilitate shelters and transitional housing for the homeless.
Q. What are the liabilities of the CDBG program?
A. Like all federally funded programs, the CDBG program requires that the community comply with a number of requirements relating to record keeping, competitive procurement and public participation. The community must also comply with other federal "overlay" laws. These relate to protection of the environment, acquisition and relocation, civil rights/nondiscrimination and the payment of Davis-Bacon prevailing wages and other construction labor standards.

Additional Resources

Arizona Department of Housing
1110 West Washington, Suite 310
Phoenix, AZ 85007
602-771-1000

Habitat for Humanity, Prescott Area
1230 Willow Creek Road
Prescott, AZ 86301
928-445-8003

Housing and Urban Development - CDBG
Rebecca Flanagan, Field Office Director
One North Central, Suite 600
Phoenix, AZ 85004
602-379-7100

NACOG (Northern Arizona Council of Governments)
221 N. Marina Street, Suite 201
Prescott, AZ 86301
928-778-2692