CDBG Entitlement FAQ

How does a business assisted with CDBG funds handle lay-offs and no job creation in year 2 if it was to create jobs? Do we report negative jobs for year 2?

Date Published: May 2015

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Year 2 accomplishments should be reported as zero jobs created for year 2. Concerning the layoffs: A job filled by a low- and moderate-person meets a national objective at the time the individual is hired. The CDBG regulations do not speak of layoffs; however, it has treated layoffs that occur within two years of the CDBG assistance as though they were vacancies created through job turnover [24 CFR 570.506(b)(5) and (6)]. If the business fills the vacant position within two years of the CDBG assistance, first consideration must be given to a low- and moderate-income person to fill the vacancy. For the future, the grantee may want to specifically mention the layoff policy in the written agreement with the business. Position vacancies filled count toward the public benefit standards as a new job.

Tags: CDBG Entitlement Program Economic Development