washington state department of commerce

WASHINGTON STATE DEPARTMENT OF COMMERCE

Public Services Funding

March 2012

Community Development Block Grant Program

WA St Community Development Block Grant

• 5 grant funds est 2012 % $12 million- General Purpose Grants (77%)- Planning-Only Grants ( 3%)- Imminent Threat Grants ( 1%)- Housing Enhancement Grants ( 3%)- Public Services Grants (13%) $1.5 million

• 3 economic development loan funds- Rural Washington Loan Fund (RLF)- Section 8 Loan Guarantees- Float-Funded Activities

2011 Funded Activities by Category

Public Services

Water/Sewer

Streets/Sidewalks

Community Facilities

Fire Protection Facilities

Housing & Homeless Related

Planning

Economic Development Grants

Public Services Grants Method of Distribution

Annual allocation to set-aside fund based on prior year level, adjusted as necessary

One year awards to 17 nonentitlement counties using poverty-based formula

County passes funds to regional community action program (CAP)

CAP subrecipient provides public services to LMI with local government’s grant oversight

The 17 CAPs’ service area covers all 33 nonentitlement counties across state

WA State Community Action Programs

CSBG and Community Action Programs

Community Services Block Grant (CSBG)• Funded by US Health & Human Services, 1964• To address causes of poverty and help achieve self-

sufficiency• To support vitality of statewide CAP network Community Action Programs (CAP)• Federally designated non-profit private/public

organizations • Community-based board (tri-partite)• Provides services based on community assessment

CDBG Funded Public Services

Wide range, depending on local needs• Education: literacy, money management, parenting,

before/after school programs• Nutrition: food banks, home delivered meals• Employment: job training, professional wardrobe,

mentoring• Emergency assistance: rent, heat, fuel• Health care: dental clinics, sobering programs, senior

home health care• Self-sufficiency: asset development, case

management, community referrals

CDBG & CSBG Partnership History

Began in 1993• St Legislature directed CDBG to offset Community

Services Block Grant (CSBG) reductions• CDBG awards 17 county grants for 17 CAPsChanges since 1993• County/CAP grantees adjusted due to entitlement

service area overlap issues• Cuts in federal CDBG result in proportionate Public

Service Grant decreases• Move from CDBG funds combined with CSBG to

CDBG stand-alone formula and contract management

Why CAPs?

Advantages:• Builds on existing network of experienced service

providers• Funds local/regional prioritized services• Targets funding for very low income• Partners with other state and federal programs• Builds partnership between county and CAP• Supports CAP network in rural, underserved areas

Why CAPs?

Disadvantages:

CAPs treat CDBG like CSBG• “Their funds” – exerting political weight on CDBG

program• CAP initiated – not county initiated• Financial management – CSBG allows more flexible uses

(admin, community partnership building, Director)• Reporting – HUD and HHS data & definitions differ

Less ownership by local government grantees

Public Services Grant Set-AsidePro/Con+ Easy formula-based funding results in fair distribution

of service funding across rural state- Need to maintain separate application & contracting

processes+ Small grant amounts ($39,000 - $172,000) leverage

other funds and stretch further- Small grant amounts mean higher number (17) of

contracts to manage with limited CDBG staff- Grant management issues differ from “typical” CDBG-

funded construction activities- Ties up 13% of annual state CDBG award

Lessons Learned• Public services make a big impact for very low income• Public services are an essential part of community

development• Use caution locking CDBG funds• Need local government support and active participation

from beginning• Entitlement/Non-entitlement area overlap issues• New or Increase Level of Service requirement• Be clear on eligible administration costs for direct

service delivery• Grant budget management difficult due to fund shifting

by CAP

Questions

Other handouts and resources

www.commerce.wa.gov/cdbg