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Notice CPD-06-11: Preparation of State CDBG Method of Distribution in Accordance with Final Con Plan Rule dated Feb 9: 2006


Date Published: October 2006


This Notice provides policy guidance to states to aid in the preparation of an acceptable Method of Distribution (MOD) for the use of State CDBG funds in accordance with the requirements of 24 CFR 91.320(k)(1)(i) and 24 CFR 570.490(a)(2).  These regulations were revised on February 9, 2006, in response to many comments by states that the previous regulations were unclear on what was required to be in the MOD and whether HUD had the right to monitor a state’s MOD after the state’s Consolidated Plan had been approved.  The final rule clearly states that the MOD needs to provide sufficient information so that units of general local government (UGLG’s) will be able to prepare responsive applications.  The regulation says that the MOD shall contain a description of all criteria used to select applications from local governments for funding including relative importance of the criteria.  The MOD must include a description of how all CDBG resources will be allocated among funding categories and the threshold factors and grant size limits that are to be applied.  The final rules also states in 24 CFR 91.320(k)(1)(i) that HUD may monitor the MOD as part of its audit and review responsibilities in order to determine compliance with program requirements.

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Tags: CDBG Colonias CDBG Entitlement CDBG HUD Administered CDBG Insular Areas CDBG State
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