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Attachment 4 Objectives and Eligible Activities for Specific Funding Programs Community Development Block Grant(CDBG) Each year, the City of Pleasanton receives an entitlement grant of federal Community Development Block Grant (CDBG) funds through the U.S. Department of Housing and Urban Development (HUD). CDBG funds must be used for projects which benefit primarily lower income households or individuals, aid in the prevention or elimination of slums or blight, or meet an urgent local community development need. The City has traditionally opened these federal funds for application by eligible nonprofit agencies which provide housing and services benefiting low-income Pleasanton residents. Activities that are eligible for CDBG funding include acquisition, construction, rehabilitation, or installation of public facilities and improvements; public services (limited to 15% of the City's total grant); removal of architectural barriers to elderly or handicapped persons; and, rehabilitation and preservation activities for low-income housing, senior housing, and other qualified facilities. Prior to 1994, the City received its CDBG funds through Alameda County as a smaller city. As of July 1, 1994, the City became eligible (due to its increased population) to receive a direct entitlement from HUD. HUD determines each jurisdiction's funding level prior to the beginning of each new fiscal year based on a formula which includes factors such as the population of low income persons and the age and quality of the housing stock. Since becoming an entitlement city in 1994, Pleasanton has received approximately $250,000 to $300,000 in CDBG funds each year. In order to receive CDBG funds each year, the City enters into a contract with HUD to agree to implement the Housing and Community Development Act of 1974 and related CDBG program regulations in 24 CFR (Code of Federal Regulations) 570. All CDBG allocations are subject to the regulations detailed in OMB Circulars A-110 & A-122. Information regarding both programs can be obtained on HUD's website (www.hud.gov) and in Appendix B of this manual. All CDBG-funded activities must meet at least one of the National Objectives stated in 24 CFR 570.200(a)(2): 1. At least 70% of the program's participants must have low or moderate income as defined by HUD. 2. The project must eliminate slum and blight as defined by HUD. 3. The project must meet an urgent need designated as an emergency The following activities are eligible for CDBG funding per 24 CFR 570.201: • Acquisition of real property for any public purposes other than the general conduct of government. • Disposition of property acquired with Community Development Block Grant (CDBG)funds. • Acquisition, construction, rehabilitation, or installation of public facilities and improvements carried out by the City or other public or private nonprofit entities. • Public services (limited to 15% of the City's total CDBG grant) which are directed toward improving the community's public services and facilities, including, but not limited to, those concerned with employment, Welfare Reform, child care, health, drug abuse, education, job training assistance, recreational needs, crime prevention, or energy conservation. To qualify, a public service must be either a new service or a quantifiable increase over the previous year and must benefit seventy percent (70%) low/moderate income persons. • Removal of architectural barriers, which restrict the mobility, or access of elderly and/or persons with disabilities. All publicly and privately owned buildings and facilities are eligible for funding.