By : JILL SCHRAMM
Source : http://www.minotdailynews.com
Category : Small Business Grant
Extending infrastructure to new housing developments and helping flooded homeowners rebuild can be legitimate uses of Minot's $67 million Community Development Block Grant, federal officials told the Minot City Council Wednesday.
Stanley Gimont, director of the Office of Block Grant Assistance in the U.S. Department of Housing and Urban Development, and Scott Davis, director of disaster recovery for HUD, met with aldermen to discuss the grant requirements.
"If you are looking to envision and implement big ideas, such as buying out properties or reducing overall risk to your community," Davis said, "this is a good time to look at those things. That said, all these funds at the end of the day do have to be for activities that respond to a disaster-related impact. They are disaster recovery Community Development Block Grant funds. .... Per the statute that Congress appropriates the money through, it requires that it has to be for necessary expenses related to long-term recovery."
Alderman Larry Frey questioned whether extending infrastructure qualifies. The city is considering using some grant money to build out sewer to the growth area in northwest Minot because of the need to replace housing lost to the flood and to a future flood protection project.
Davis responded that such a project would qualify if shown to part of flood recovery.
"If you need to build new housing or build something else to respond to a disaster-related impact, then you just need to be able to make that tie or that justification," he said.
Frey then sought to clarify that the housing development cannot be for new people coming into the community. Davis said the new development wouldn't need to be exclusively for flood victims, although he and Gimont noted that there must be a close link between the new housing and disaster recovery.
Community Development Block Grants also require that there be a significant benefit to low- to moderate-income residents and that the funds be used to eliminate slums and blight or address an eminent threat or urgent need. With disaster grants, the requirement has been that half of the money be used to benefit low- to moderate-income residents. However, the guidelines for 2012 have yet to be announced.
Eligible activities can include property acquisition and demolition, housing rehabilitation, economic development activities such as loans to businesses, work on water, sewer and other public facilities, community and recreational facilities and public service activities such as child care, health care or education.
One potential use is rehabilitation loans or other direct assistance to homeowners. Davis said residents can receive assistance without jeopardizing other federal assistance, such as a Federal Emergency Management payment, federal flood insurance or Small Business Administration loan. Assistance from the block grant can be in addition to those sources as long as total assistance from all sources doesn't exceed the homeowner's level of loss, he said.
The Community Development Block Grant dollars come with fewer restrictions than most federal money.
"It is one of the most flexible programs," Davis said. "If you can justify that it is necessary for your recovery and consistent with the overall purpose of the act, then you can request a waiver for that use and the department will consider it. So it's very open. The program is designed to be responsive to your priorities.
"We will always be available to work with you all and your staff to understand the intricacies and how to make this unique fund work the best for you so you can get the biggest bang for your buck and really maximize on opportunity here. Because it's kind of a unique scenario, where you do have an opportunity with a relatively large investment to make in your city over the next few years."
Source : http://www.minotdailynews.com/page/content.detail/id/563944/Federal-grant-comes-with-few-strings-but-must-go-to-flood-recovery.html?nav=5010
