Published: June 28, 2009 09:02 pm      

Community development funds to be distributed

Money to be used for assistance for low-to-moderate income families

Recently the Orange City Council held a public hearing on the distribution of the 2009 Community Block Grant Program Year.

According to Jimmie Lewis, director of planning and community development, this is part of an annual allocation process.

Lewis said the recipients of the funds had to first put in an application. Then it is reviewed by a citizens advisory committee. Those who receive the funds must follow guidelines in their use of the money.

“The funds are specified to assist the public with low to moderate incomes,” Lewis said.

According to Lewis, the median income for a family of four is $50,000 and those who are considered to have a low to moderate income is a family of four with 80 percent of the median income which is $40,000 or less.

This year the recipients of the funds are the Garth House for $9,000, Greater Orange Area Literacy Service Inc. for $15,000, Orange Community Action Association (Meals on Wheels) for $9,000, Samaritan Counseling Center of Southeast Texas for $9,980, Southeast Texas Hospice for $18,000 and the Scholarship Program received $5,003.

CDBG funds were also allocated to be used for projects in Orange. Funds will be used such as $93,164 for clearance and demolition, $91,836 for code enforcement, water and sewer connections for $110,768 and $90,437 for administration.

The CDBG program is one of the longest-running programs of the U.S. Department of Housing and Urban Development which funds local community development activities such as affordable housing, anti-poverty programs and infrastructure development. CDBG like other block grant programs, differ from categorical grants, made for specific purposes. They are subject to less federal oversight and are largely used at the discretion of the state and local governments and their subgrantees.

CDBG funds are allocated to more than 1,100 local and state governments on a formula basis. Larger cities and urban counties, called "entitlement communities," are required to prepare and submit a "consolidated plan" which establishes goals for the use of the funds. Grantees are also required to hold public meetings to solicit input from the community which ensure proposed projects are aligned with the community's most urgent needs.

Proposed CDBG projects must be consistent with broad national priorities for activities that benefit low to moderate income people, the prevention or elimination of slums or blight, or other community development activities to address an urgent threat to health or safety. CDBG funds may be used for community development activities such as real estate acquisition, relocation, demolition, rehabilitation of housing and commercial buildings, construction of public facilities and improvements such as water, sewer. The funds can also be used for other utilities such as street paving, sidewalks, construction and maintenance of neighborhood centers, the conversion of school buildings, public services and economic development and job creation/retention activities. CDBG funds can also be used for preservation and restoration of historic properties in low-income neighborhoods, according to the office of the US Department of Housing and Urban Development.



Debby Schamber is a reporter for the Orange Leader. She can be reached at 409-883-3571 ext. 2603 or at dschamber@orangeleader.com.