COMMUNITY DEVELOPMENT BLOCK GRANT BUDGET SUMMARY

MISSION STATEMENT: To improve the housing, neighborhood and economic conditions of Arlington County's low and moderate income residents by effectively administering the Community Development Block Grant (CDBG) program.

FY 2006 PRIORITIES: The Community Development Block Grant program priorities are:

• To provide adequate housing; broaden housing choices; and minimize displacement for all persons, especially low and moderate income persons, minorities and persons with mental and physical disabilities.

• To plan and implement an array of housing, neighborhood improvement and special public service programs as part of strategic improvements in the Community Development Neighborhood Strategy Areas (NSAs) of Nauck, Columbia Heights West, Buckingham, Pike Village Center, Arlington View, Radnor/Ft. Meyer Heights, Long Branch Creek, Barcroft, Lyon Park, Penrose and Westover.

• To provide economic opportunities for low and moderate income persons.

• To undertake special outreach and citizen involvement activities to ensure the participation of Arlington's low and moderate income and multi-cultural communities in the annual CDBG proposal process and in CDBG-funded programs.

• To implement the ongoing consolidated planning process for HUD entitlement programs.

PRINCIPAL PROGRAMS: CDBG program staff undertake the following work items:

• Plan, develop, coordinate, implement and evaluate neighborhood improvement activities in the Neighborhood Strategy Areas.

• Provide technical assistance; and monitor and evaluate agencies and non-profit organizations implementing CDBG funded activities, including assisting subrecipients to develop and monitor performance measures.

• Develop the annual CDBG program, including soliciting proposals, coordinating interdepartmental review, evaluating proposals, and developing program and funding recommendations.

• Administer the CDBG program through financial management activities to ensure compliance with federal regulations (such as environmental assessments, labor standards, relocation, etc.) and the development of quarterly and annual reports to HUD.

• Provide information and technical assistance to citizens participating in the planning, implementation or evaluation of the CDBG program, including staff support for the Community Development Citizens Advisory Committee.

• Assist in the development of plans for affordable housing and other small area/neighborhood improvement efforts.

SIGNIFICANT PROGRAM HIGHLIGHTS:

The FY 2006 CDBG program budget includes an estimated $2,172,472 in grant funds from the U.S. Department of Housing and Urban Development for Arlington and the City of Falls Church and an estimated $1,800,000 of program income (from loan repayments and subrecipient revolving fund activity). The City of Falls Church will receive about $102,300 of the grant funds under a Cooperation Agreement with the County. The CDBG program for FY 2006, developed from proposals received in September 2004, will address the above priorities through a variety of programs for which detailed descriptions are provided on the following pages. Some activities are implemented directly by County staff; others by subrecipients.

The following criteria guided development of the FY 2006 CDBG recommendations: 1) proposal responds to a County Board CDBG priority of affordable housing development and housing support services, economic development and job training, or is targeted to NSAs; 2) proposal responds to targets established by the Partnership on Children, Youth and Families for health, safety and well-being of young people in Arlington; 3) proposal responds to needs identified in the Five -Year Consolidated Plan; 4) success of prior funded projects in meeting established performance outcomes; 5) length of time project has received CDBG funding and availability of other potential funding sources, i.e., General Fund, Arlington Affordable Housing Investment Fund, or foundations; and 6) extent to which the community was involved in proposal development.

SIGNIFICANT BUDGET CHANGES:

• Increased personnel costs ($43,175) reflect normal salary and benefits adjustments.

• The grant amount for FY 2006 is expected to be reduced by $75,528. Decreased non-personnel ($118,703) is in Program funds and reflects a reallocation of funds to cover increased personnel costs ($43,175) and a reduction in program funds ($75,528) to remain within the current FY 2006 grant amount. There is also a reduction in Program funds ($22,000) to cover anticipated salary and benefits adjustments.

PERFORMANCE MEASURES:

The above measures are aggregated for similar CD-funded programs and outcome performance measures are available for each individual program. Activities are implemented by County staff and subrecipients.

• Single-family households are assisted through the AHC, Inc. Home Improvement Program and RPJ Rebuilding Together Program. Satisfaction is measured by surveying program participants.

• Multi-family projects in FY 2004 include APAH's rehabilitation of Cameron Commons; FY 2005 includes AHC's Hunter's Park (74 units) and APAH's Cameron Commons II (5 units). FY 2006 estimates Woodbury Park (108 units) and Rosslyn Ridge (238units). CDBG funds support some of the housing development costs of non-profit sponsors.

• Job placement success rate measures the percentage of clients who remain employed 90 days after placement.

• Several customer measures are new. Data collection commenced in FY 2005.

FUTURE BUDGET CONSIDERATIONS:

• CDBG grant amount may continue to decline as CDBG formula changes are under consideration, impacting the County's ability to meet affordable housing goals, implement NSA activities, and administer the program.

* FY 2004 expenditures include $400,000 in program income received during that year.

** Federal Revenue Carryover funds for FY 2005 include $1,008,111 from the CDBG Housing Development Revolving Loan Fund program income, which was received during FY 2004 and $1,119,746 in unspent CDBG funds from prior years.