Demonstrated Needs
DEMONSTRATED NEEDS
Eligible Activities
An activity may be assisted in whole or in part with CDBG funds if the activity is defined as eligible under Section 105(a) of Title I of the Housing and Community Development Act of 1974, as amended, {current law 42 USC 5305}. However, only the following activities are eligible under this category of funds:
- improvements to existing sewer systems involving collection and treatment
- improvements to existing water systems addressing potable water
- improvements to existing gas systems
The State also allows for program administration and pre-agreement costs.
Ineligible Activities
The following are ineligible activities under the Demonstrated Needs program: fire trucks and fire-fighting equipment; projects for sewer treatment facilities for which the Department of Environmental Quality or the EPA have issued compliance orders; routine work such as sewer line or manhole repair/replacement or water line repair/replacement.
Funding Criteria
An application will not be considered for funding if it is also being considered under another LCDBG program category.
Evaluation Criteria
General Eligibility –
Projects involving improvements to existing water, sewer, and gas systems, and other community needs as determined by the State.
National Objectives –
Project must principally benefit persons of low-to-moderate income (at least 51 percent) or meet an urgent need.
Critical/Urgent Infrastructure Need (Project Severity) –
Project must address a critical need that developed within 3 months of the submittal of an application. Each project will be evaluated in degree of urgency, degree of risk, number of persons affected and feasibility of the proposed solution. The evaluation will not be based upon a numerical rating system.
Demonstrated needs activities must be consistent with the current Consolidated Annual Action Plan.
Allocation
Awards are made continuously April 1 through March 31 of each program year and are subject to the availability of funds. A minimum construction amount of $50,000 must be included in the cost.
Project ceiling amount: $300,000 – Includes up to $35,000 for administration; up to $3,700 for pre-agreement costs. Within the allowable maximum administrative fee, a maximum of $5,000 will be allowed for administrative pre-agreement services if the Environmental Review Record for the project is submitted to the Office of Community Development prior to or approximately at the time of submittal of the application
Application
Interested local governments must contact the Office of Community Development to discuss the feasibility of the proposed project. If it is determined feasible, the local government is invited to submit an application. Please contact the Office of Community Development to request the Demonstrated Needs Application.
