CDBG ELIGIBILITY REQUIREMENTS
Summary below provided as a convenience and does not replace the Code of Federal Regulations as amended
ARE YOU AN ELIGIBLE APPLICANT?
IS THE PROJECT ELIGIBLE?
Specific eligible uses and guidelines of CDBG funds are published in the Code of Federal Regulations book 24 Part 570
(also referred to as 24 CFR Part 570).
1. Does THE project meet one of the three (3) Outcome requirements?
Provide decent affordable housing
Create economic opportunities
Create a suitable living environment
2. Does THE project meet one of the three (3) National Objectives?
Benefit low and moderate income residents,
Aide in prevention or eliminate slums and blighting, or
Meets urgent community development need
All of Barnstable’s activities must meet Objective 1 “to benefit low and moderate income residents”.
Objective #2 requires designating target areas and enacting definitions of “slum” and “blight”. Objective #3 is sometimes known as the
“tornado clause”. Most prospective subrecipient grantees tell us the need for the project is urgent and we don’t disagree. However, for
HUD’s purposes, Objective #3 is reserved almost exclusively for responses to natural disasters such as hurricanes, tornadoes, and
To meet National Objective #1:
Project must benefit Town of Barnstable residents with incomes at or below 80% of the Area Median Income for the Barnstable Town MA MSA.
See Income Limits on the right.
ARE YOU ABLE TO MEET INCOME DOCUMENTATION REQUIREMENTS?
Documentation must be collected and submitted to the Town to demonstrate income eligibility of persons benefiting from CDBG programs.
Documentation shall be consistent with HUD income calculation methods as updated.
3. IS YOUR PROJECT AN ELIGIBLE ACTIVITY?
HUD provides a detailed Guide to National Objectives and Eligible Activities see link on right.
As a convenience the Project Eligibility Checklist summarizes eligible activities for a quick reference. If you do not
see your project listed in the checklist we suggest you check the HUD Guide. If not listed in either place it probably means that the
activity does not meet the eligibility requirements of this program.
· For more information by project type please refer Criteria for Project Types link on right.
4. IS THE ACTIVITY YOU ARE PROPOSING INELIGIBLE?
Certain activities are not eligible for funding under the CDBG program. Please refer to 24 CFR 570.207.
We are unable to fund any of the activities listed below:
· Buildings or portions of used for general conduct of government; general governmental expenses;
Political activities are ineligible;
· Purchase of equipment, furnishings or personal property,
Operating and maintenance expenses,
· Payment of salaries for staff, utility costs and similar expenses necessary for operation of public works and facilities;
New housing construction* and
*CDBG regulations state that new housing construction is ineligible unless conducted by an approved Community Based Development
Organization (CBDO). Please refer to 24 CFR 570.204 to see if
your organization can qualify as a CBDO and contact the Planning and Development Department if interested in pursuing. HUD approval of CBDOs is
required before funding commitments can be made. Currently the only approved CBDO for the Town is Housing Assistance Corporation (HAC).
**Income Payments are payments to an individual or family, which are used to provide basic services such as food, shelter (including
payment for rent, mortgage, and/or utilities) or clothing. However, such expenditures are eligible under the following conditions:
· The income payments do not exceed three consecutive months; and
· The payments are made directly to the provider of such services on behalf of an individual or family.
IS YOUR ORGANIZATION CAPABLE OF MEETING THE REPORTING REQUIREMENTS?
In addition to the administrative requirements listed in Item 1 above and Income Documentation, you will be required to submit
documentation demonstrating compliance with all related laws and regulations as applicable to your project.