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HUD/CDBG Program Requirements <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; <br />see Attachment 5 for current income levels). In addition, projects must generally fall <br />within the categories listed below (and must meet the applicable criteria): <br />1. Public Improvements/Economic Development as follows: <br />a. Public Works: <br />• The project must fulfill a need within a designated target area (Pleasanton <br />does not currently have any designated target areas). <br />• A minimum of 30% of the total project cost must be met by the City. <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 <br />target area (Pleasanton's Downtown area). <br />c. Economic Development: <br />• The project should produce visible results in meeting identified needs of <br />persons of lower income. <br />• The majority of funds for the project must come from non-CDBG, outside <br />funding sources. <br />• The request should involve primarily the funding of "hard" items (physical <br />improvements, etc.); "program costs" and similar on-going expenses are <br />generally ineligible for CDBG funding. <br />2. Housing Rehabilitation, new construction and/or fair housing programs/projects. <br />In addition, HUD places several key restrictions on CDBG allocations including limiting <br />program administration to twenty percent (20%) and limiting "public services" projects to <br />a maximum of fifteen percent (15%) of the grant. These limits are reflected in <br />Attachment 1/Table A. The remainder of the funding ($185,506) can be used for <br />projects that meet the eligibility criteria noted above (generally capital improvements <br />and rehabilitation projects). The table below details the total dollar amount of <br />applications received (based on the aforementioned categories) compared to the <br />amount of available CDBG funding. <br />Com arison of Available Fundin and Requests for Funding <br />Category Available Requests <br />Public Services (15% max.) $42,809 $98,301 <br />Capital /Rehab Pro ects (65%) $185,506 $779,849 <br />Administration (20% max.) $57,079 $57,079 <br />Housing Services Included in <br />$185,506' $86,181 <br />Total: $285,394 $1,022,331 <br />These projects have been historically supplemented with City Lower <br />Income Housing Funds <br />Page 3 of 12 <br />