Catalog of Federal Domestic Assistance
| CATALOG OF FEDERAL DOMESTIC
14.248: Community Development Block Grants: Section 108 Loan Guarantees
|PROGRAM AND AWARD||FINANCIAL AND INFORMATION CONTACTS|
|ELIGIBILITY REQUIREMENTS||FINANCIAL AND ADMINISTRATIVE INFO.|
|APPLICATION AND AWARD PROCESS||INFORMATION CONTACTS|
|RELATED PROGRAMS||ASSISTANCE CONSIDERATIONS|
|PROGRAM ACCOMPLISHMENTS||POST ASSISTANCE REQUIREMENTS|
Applicant Eligibility: Eligible Applicants include: metropolitan cities and urban counties, i.e., CDBG entitlement recipients; nonentitlement communities that are assisted in their submission of applications by States that administer the CDBG program; and nonentitlement communities eligible to receive CDBG funds under the HUD-Administered Small Cities CDBG program. Furthermore, the public entity may be the borrower or it may designate a public agency to be the borrower.
Beneficiary Eligibility: The principal beneficiaries are low and moderate income persons.
Credentials/Documentation: Costs will be determined in accordance with OMB Circular No. A-87 for State and local governments.
Preapplication Coordination: Preapplication requirements are found in 24 CFR Section 570.704. Presubmission requirements are similar to those applicable for the Community Development Block Grants Program. Proposed activities must be consistent with a unit of local government's consolidated plan submitted for HUD's Community Planning and Development Programs. This program is eligible for coverage under E.O. 12372, "Intergovernmental Review of Federal Programs." An applicant should consult the office or official designated as the single point of contact in his or her State for more information on the process the State requires to be followed in applying for assistance, if the State has selected the program for review.
Application Procedure: Application requirements are found in 24 CFR Section 570.704.
Award Procedure: Upon approval of an application, HUD will issue to the worthy applicant an offer of commitment to guarantee notes or other obligations issued by the applicant or its public agency designee. The commitment will be subject to compliance with applicable requirements and such conditions as HUD may specify in the commitment document. Furthermore, borrowers are required to pledge current and future CDBG funds as security for the loan guarantee. HUD also requires that the loan guarantee be secured with other collateral.
Deadlines: None; applications can be submitted at any time.
Range of Approval/Disapproval Time: None.
Renewals: Not Applicable.
Criteria for Selecting Proposals: Applications are reviewed against criteria set forth at 24 CFR S 570.704.
Examples of Funded Projects: A wide-range of community and economic development projects includes public facilities, housing rehabilitation projects, and economic development loan funds.
Range and Average of Financial Assistance: The range of assistance for FY 99 was from $130,000 to $60,000,000.
Federal Agency: OFFICE OF COMMUNITY PLANNING AND DEVELOPMENT, DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
Type of Assistance: Guaranteed/Insured Loans.
Obligations: (Loan limitation) FY 99 $1,261,000,000; FY 00 est $1,261,000,000; and FY 01 est $1,217,000,000.
Budget Account Number: 86-0198-0-1-451.
Authorization: Housing and Community Development Act of 1974, Section 108 as amended.
Regulations, Guidelines, and Literature: 24 CFR 570 Subpart M.
Regional or Local Office: Contact appropriate HUD Field Office listed in Appendix IV of the Catalog.
Headquarters Office: Financial Management Division, Community Planning and Development, Department of Housing and Urban Development, 451 7th Street, SW., Washington, DC 20410.
(See Appendix IV for more contact info.)
Formula and Matching Requirements: Section 108 has no matching requirement. Maximum commitment amounts are limited as follows: Entitlement Public Entities - an entitlement public entity may apply for up to five times the public entity's latest (approved) CDBG entitlement amount, minus any outstanding Section 108 commitments and/or principal balances on Section 108 loans; State assisted public entities - a nonentitlement public entity may apply for up to five times the latest (approved) CDBG amount received by its State, minus any outstanding Section 108 commitments and/or principal balances on Section 108 loans for which the State has pledged its CDBG funds as security; and Nonentitlement public entities eligible under the HUD administered Small Cities Program - for a public entity in Hawaii, the maximum commitment amount is five times the public entity's latest grant under Subpart F of 24 CFR Part 570, minus any outstanding Section 108 commitments and/or principal balances on Section 108 loans. A nonentitlement public entity in New York may apply for up to five times the greater of: the most recent grant made to the public entity under Subpart F, the average of the three most recent grants made to the public entity under Subpart F, or the average of grants made under Subpart F to units of general local governments in New York State in the previous fiscal year. (The maximum amount calculated above for any New York State public entity is reduced by any outstanding Section 108 commitments and/or principal balances on Section 108 loans)
Length and Time Phasing of Assistance: The maximum repayment period for a Section 108 loan is 20 years. Repayment schedules and forms are negotiable.
Uses and Use Restrictions: For purposes of determining eligibility, the CDBG rules and requirements apply. As with the CDBG program, all projects and activities must either principally benefit low and moderate-income persons, aid in the elimination or prevention of slums and blight, or meet urgent needs of the community.
Reports: The reporting requirements for Section 108 are the same as the reporting requirements for the CDBG program.
Audits: In accordance with the provisions of OMB Circular No. A-133, "Audits of State and Local governments and Non-Profit Organizations," nonfederal entities that receive financial assistance of $300,000 or more in Federal awards will have a single or a program-specific audit conducted for that year. Nonfederal entities that expend less than $300,000 a year in Federal awards are exempt from Federal audit requirements for that year, except as noted in Circular No. A-133.
Records: The recordkeeping requirements of Subpart J of 24 CFR Part 570 apply to entitlement public entities receiving grants under Subpart F of 24 CFR Part 570. The recordkeeping requirements of Subpart I of 24 CFR Part 570 apply to State-assisted public entities.
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