CDBG Entitlement FAQ

What if an entitlement does not want to administer its CDBG program, what are the options?

Date Published: March 2019

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The entitlement city of Apple (the city) does not want to administer its Community Development Block Grant (CDBG) program. It is not sure how to proceed. What are the options available to Apple?

The entitlement city may contract with a nearby unit of government (city, town, county, state agency, council of governments, etc.) to run its CDBG program on its behalf. The city may also contract with another unit of government to run specific components of its CDBG program such as its housing rehabilitation programs. If the city chooses one of these options, it does not have to procure the unit of local government; it may just select one (subject to state and local law). There still must be a written contract or agreement, and Apple still must oversee the other entity's performance under the contract. Apple is still the grantee. As such, it must submit the Consolidated Plan and Action Plan, its chief official must sign and submit the certifications, and city staff must approve all IDIS drawdowns.

However, if Apple is located within a county that is a CDBG urban county, it has additional options:

  1. The city may contract with the urban county to administer its CDBG program;
  2. The city may remain an entitlement and enter into a joint agreement with the urban county during its year of requalification; or
  3. The city may relinquish its entitlement status and join the urban county during any year of its qualification period.

Finally, the city may also relinquish its status and participate in the State CDBG program, whether or not it is located within an urban county.

Tags: CDBG Entitlement Program Consolidated Plan