CDBG Entitlement FAQ

Here is an example to help illustrate the question in FAQ 3638: If Grantee X's total code enforcement division budget is $5 million, and the grantee can show that 40 percent of all code enforcement inspections were performed in CDBG-eligible neighborhoods, can the grantee charge $2 million to the CDBG program?

Date Published: April 2019

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No, unless the entire city or county meets a state/local definition of deteriorated/deteriorating or the city or county uses the criteria at 24 CFR 570.208(b)(1) or 24 CFR 570.483(c)(1) to define deteriorated/deteriorating, and the entire city/county can qualify as meeting one of three national objectives. Code enforcement activities are CDBG-eligible if carried out in areas that meet a state/local definition of deteriorated/deteriorating, but if the grantee does not meet a national objective, the costs are not CDBG allowable. For salaries of code enforcement staff to be eligible CDBG costs, a grantee must either have records showing that the staff paid with CDBG funds worked exclusively on CDBG-eligible code enforcement inspections or must have time records showing that CDBG funds paid only for time spent on CDBG-eligible code enforcement. See the last question below and 24 CFR 570.506 for further information about recordkeeping requirements regarding code enforcement activities.

Tags: CDBG Entitlement Program Code Enforcement

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