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<br />HUD/CDBG Program Requirements <br /> <br />All projects or activities receiving CDBG funding must primarily benefit low-income <br />households (i.e. less than 80% of the Alameda-Contra Costa area median income level; see <br />Attachment 5 for current income levels). In addition, projects must generally fall within the <br />categories listed below (and must meet the applicable criteria): <br /> <br />1. Public ImprovementslEconomic Development <br /> <br />a. Public Works: <br />. The project must fulfill a need within a designated target area (Pleasanton does not <br />currently have any designated target areas). <br />. A minimum of30% of the total project cost must be met by the City. <br /> <br />b. Public Facilities: <br />. The project must meet a need not being met by existing facilities. <br />. The project must benefit persons of lower income within a neighborhood target area <br />Pleasanton's Downtown area). <br /> <br />c. Economic Development: <br />. The project should produce visible results in meeting identified needs of persons of <br />lower income. <br />. The majority of funds for the project must come from non-CDBG, outside funding <br />sources. <br />. The request should involve primarily the funding of "hard" items (physical <br />improvements, etc.); "program costs" and similar on-going expenses are generally <br />ineligible for CDBG funding. <br /> <br />2. Housing Rehabilitation <br /> <br />3. New Construction <br /> <br />4. Fair Housing <br /> <br />HUD places several key restrictions on the total CDBG funding allocated to Pleasanton (a total <br />of $287,563 for FY 2006). A maximum of twenty percent (20%) of the City's grant (or <br />$57,513) can be applied toward the costs of administering the program. The City has <br />historically used this entire amount to cover staff costs that are necessary to administer the <br />CDBG program on an on-going basis (administration of the allocation process, contracts, <br />reporting, monitoring, technical support, communications with sub-recipients and with HUD, <br />etc.). The most recent Citybudget approved by the City Council has reserved this portion of the <br />CDBG grant for administration purposes, primarily staff costs (the HSC recommended <br />allocating the $57,513 allowed for administration to three agencies for capital projects). <br /> <br />SR:06:095 <br />Page 4 <br />