Community Development Block Grant (CDBG) Program

City of Alexandria, VA

Prepared for City of Bowie, MD

March 2006

CDBG Program, Alexandria VA

Since City Fiscal Year 1976, Alexandria’s annual grant has ranged from a high of $1,735,000 (FY 1976 – FY 1978) to a low of $903,000.

City FY 2006 (July 2005 – June 2006) grant: $1,411,586

City FY 2007 grant: $1,284,295

Annual Grant Amounts

Alexandria's CDBG Grant ($1000s) by City Fiscal Year

$0

$500

$1,000

$1,500

$2,000

1976

1978

1980

1982

1984

1986

1988

1990

1992

1994

1996

1998

2000

2002

2004

2006

Administration and Staffing

Primarily administered by Office of Housing 19 of 20 Housing staff positions have some

CDBG responsibilities, but only 6.9 FTEs charged to program– Supervisory/management staff charged elsewhere to

avoid exceeding CDBG 20% cap on admin. costs

– Program staff charged based on percentage of duties attributed to CDBG

Department of Human Services administers 3 CDBG-funded activities; no CDBG-funded staff

Current CDBG-Funded Activities Ongoing Programs

– Homeownership Assistance Program (HAP)– Home Rehabilitation Loan Program (HRLP)– Rental Accessibility Modification Program (RAMP)– Eviction Assistance & Furniture Storage– Transitional Assistance Program– Winter Shelter

Administrative Activities– Program Administration– Submissions/Applications for Federal Programs– Fair Housing Testing

Special Activities

Special activities, often added by program amendment, have included:– Rehabilitation of specified public housing

developments– Acquisition and/or rehabilitation of special

needs housing– Senior grant program (home rehabilitation)– Development of Homeless Management

Information System

Other Previously Funded Activities

Blighting Influences Program Business Assistance Loan Program Commercial Revitalization Program Loan Loss Reserve for Microenterprise Loan

Program Rehabilitation of various non-profit facilities Operation Match Renovation of Group Homes Day Care

Homeownership Assistance Program (HAP)

Up to $50,000 for downpayment, closing costs, principal/interest reduction

No-interest, deferred payment 2nd (or 3rd) trust, due upon sale (or in 99 years); no monthly payments

5-year anti-speculation surcharge Access to special financing from Virginia Housing

Development Authority City pays $1,000 (from non-CDBG monies) of

seller’s real estate commission as incentive to sell to HAP buyer

Home Rehabilitation Loan Program

Provides no-interest loans to income-eligible owner-occupants of single family homes

Construction cost limit of $90,000 (may be exceeded to meet lead-based paint requirements), plus recordation, title search, termite inspection, recording fees and moving and storage expenses.

Due on sale (or in 99 years) Architectural costs are not included in the loan; treated

as costs of administering the program Lead-based paint requirements can add substantial costs;

two recent loans exceeded $150,000

Special Features of HAP and Home Rehabilitation Loans

City will subordinate its second trust upon refinancing, if transaction is not deemed to pose a risk to City

If loan recipient sells and purchases another home in the City, and is still income eligible, loan may be rolled over to new property

Rollover applies to rehab loans only if first property is sold to income-eligible buyer

Grants of up to $50,000 in CDBG monies to modify rental units for persons with disabilities

Mini-grants of up to $1,500 in Housing Trust Fund (non-CDBG) monies for minor items, such as grab bars

Rental Accessibility Modification Program (RAMP)

Fair Housing Testing Program

Fair Housing Testing Program tests for discriminatory housing practices by landlords, real estate firms, and lenders.

Program has tested for discrimination based on race/national origin, familial status, disability, and sexual orientation.

Upon a finding of discrimination, complaints are filed with Human Rights Commission. All complaints filed have been settled.

DHS Public Service Eviction Assistance and Furniture Storage

– City contracts with moving and storage company for collection and storage (up to 60 days) of belongings of households being evicted.

Transitional Assistance Program– City pays ½ of security deposit and ½ of rent for up to

three months. Classified as emergency housing assistance.

Winter Shelter– Hypothermia shelter from November 1 through April

15. Housed in several churches plus additional beds in year-round shelters. Total of up to 67 beds nightly.

Special Considerations in Using CDBG Monies Program income effect on “timeliness”

requirement Section 104(d) relocation and replacement

housing requirements – effect on multifamily acquisition/rehab

Lead-based paint requirements Environmental reviews Program administration and public service ceilings Davis-Bacon wage rates