Louisiana's Community Development Block Grant Program
The primary objective of Louisiana's Community Development Block Grant Program is to provide assistance to units of general local government in non-entitlement areas for the development of viable communities by providing decent housing and a suitable living environment and expanding economic opportunities, principally for persons of low and moderate income. Non-entitlement areas are municipalities with a population of less than 50,000 and parishes with an unincorporated population of less than 200,000.
Each activity funded under the CDBG Program must address one of the following three national objectives:
Principal benefit to low and moderate income persons (at least 51 percent)
Elimination or prevention of slums and blight
Urgent Need
The State has a two-year funding cycle for housing and public facilities applications. Applications for FY 2008 - 2009 were accepted December 17, 2007.
Those applications received but not funded in FY 2008 will be reconsidered for funding in FY 2009.
Applications for FY 2008 Economic Development, Demonstrated Needs and LaSTEP funds will be accepted through March 31, 2009.
Louisiana's federal allocation for the FY 2008 CDBG Program is $27,552,106. Five program areas were established for the distribution of these funds.
Public Facilities
To improve or construct new water systems (potable and fire protection), sewer systems, residential streets and to construct multi-purpose community centers
Funds Available - Approximately $15 million
Maximum Grant Amounts - $1,000,000 (sewer treatment), $800,000 (sewer collection rehabilitation), $800,000 (new sewer system), $500,000 (fire protection), $800,000 (potable water), $600,000 (streets), $800,000 (multi-purpose community center)
Funding Criteria - (a) At least 51 percent of the beneficiaries served by the projects must be of low/moderate income. (b) Water and sewer projects must remedy existing conditions which violate a state or federal standard established to protect public health and safety.
Housing
To provide safe and sanitary living conditions
Funds Available - $2,600,000
Maximum Grant Amount - $600,000 (rehabilitation/reconstruction) and $100,000 (physical accessibility)
Funding Criteria - (a) all units to be rehabilitated or replaced must be owned and occupied by low/moderate income persons; (b) the number of housing target areas may not exceed two; (c) at least 75 percent of the needs in the identified target area must be addressed.
Demonstrated Needs
To alleviate critical/urgent community needs involving improvements to existing water, sewer, and gas systems
Funds Available - $2 million
Maximum Grant Amount - $250,000
Funding Criteria - (a) must address a critical/urgent need that developed within three months prior to the submittal of the application; (b) at least 51 percent of the beneficiaries served by the system must be of low/moderate income.
LaSTEP
To solve water and sewer problems through the Small Towns Environmental Program (STEP) self-help techniques
Funds Available - $500,000
Maximum Grant Amount - $500,000
Funding Criteria - (a) proposed activities can be completed through self-help; (b) self-help methods will result in significantly reduced project cost; (c) applicant is totally committed to utilizing self-help; (d) at least 51 percent of the beneficiaries served by the system must be of low/moderate income.
Economic Development
To provide loans to local governing bodies that will assist a for-profit business and to provide grants to local governing bodies for infrastructure improvements that will assist a for-profit business
Funds Available - $5 million
Maximum Grant Amount - $639,000 (loan or grant or loan/grant combination for the creation of a new business), no funding ceiling (loan or loan/grant combination for the expansion of an existing business), $1,039,000 (grant for infrastructure improvements)
Funding Criteria - (a) Loan - the State will fund up to 80 percent of value; (b) Grant - private funds/public funds ratio must be 1:1; (c) cost per job created or retained cannot exceed $15,000 for a loan or $10,000 for a grant; (d) minimum of ten jobs must be created or retained; (e) at least 51 percent of the employment will be made available to persons who at the time of their employment have a family income that is at or below the low/moderate income limit; (f) project must be feasible from management, marketing, financial, and economic standpoints.
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