Funding Source
Every year, the US Department of Housing and Urban Development provides federal Community Development Block Grant funds directly to states, which, in turn, provide the funds to small, rural cities with populations less than 50,000, and to counties that have a non-metropolitan population under 200,000 and are not eligible for direct funding from HUD. These small communities are called "non-entitlement" areas because they must apply for CDBG dollars through ORCA. (Larger cities, such as Dallas, Houston and others, receive CDBG monies directly from HUD, and are called "entitlement" areas.) View a map of the Entitlement v. Non-Entitlement Areas in Texas.

Service Area
ORCA's CDBG program is the largest in the nation. The rural-focused program serves approximately 1,017 eligible rural communities, 245 rural counties, and provides services to over 375,000 low- to moderate-income beneficiaries each year. Of the 1,017 cities eligible for CDBG funds, 740 have a population of less than 3,000 and 424 have a population of less than 1,000. The demographics and rural characteristics of Texas have shaped a program that focuses on providing basic human needs and sanitary infrastructure to small rural communities in outlying areas.

Budget
In fiscal year 2007, ORCA received $73,611,737 from HUD for the administration of the state's CDBG non-entitlement program.

History
The CDBG program is governed by of Title I of the Housing and Community Development Act of 1974 (the Act) and Federal regulations at 24 CFR 570, Subpart I . The introduction of the CDBG program in 1974 signaled a move away from individual categorized federal development assistance programs towards the block grant model, which gives communities broad latitude in using funds for a variety of development activities. The Omnibus Budget Reconciliation Act of 1981 authorized states to administer the CDBG programs.

The primary objective of the Community Development Block Grant program is to develop viable communities by providing decent housing and suitable living environments, and expanding economic opportunities principally for persons of low- to moderate-income.

To achieve these goals, the CDBG regulations outline the eligible activities and the National Objectives that each activity must meet. As a recipient of CDBG funds, ORCA is charged with ensuring that these HUD requirements are met. Specifically, the Office is responsible for assuring the US Department of Housing and Urban Development that each project it funds meets one of three National Objectives:

• Benefit low- and moderate-income persons;
• Aid in the prevention or elimination of slums or blight; or
• Meet a need having a particular urgency, which represents an immediate threat to the health and safety of residents.

In line with the federal objectives, ORCA administers its CDBG programs according to the following goals:

• Improve public facilities to meet basic human needs, principally for low- and moderate-income persons.
• Improve housing conditions, principally for persons of low- and moderate-income.
• Expand economic opportunities by creating or retaining jobs, principally for low- and moderate-income persons.
• Provide assistance and public facilities to eliminate conditions hazardous to the public health and of an emergency nature.

All projects funded through the CDBG program typically meet the first national objective (benefit low- and moderate-income persons) by benefiting at least 51 percent low- to moderate-income persons, which are defined as those who:

• Earn equal to or less than 80 percent of the area median family income figure (where the area is a metropolitan statistical area or a non-metropolitan county) or
• Earn equal to or less than less than 80 percent of the statewide non-metropolitan median family income figure, as defined under the US Department of Housing and Urban Development Section 8 Housing Assistance Program.
• For income eligibility in your area, please review the most recent Income Limits document.

Some projects funded through the CDBG program may meet the second national objective of aiding in the prevention or elimination of slum or blight while the remainder of CDBG projects will fall under the third national objective. The third national objective includes activities designed to meet community development needs having a particular urgency, which the CDBG Program applies to Disaster Relief and Urgent Need Fund projects.

ORCA administers the CDBG programs in accordance to funding rules and regulations set by HUD. Each year, ORCA submits an Action Plan for the next fiscal year. The Action Plan describes the methods ORCA will use for distributing funds among the various CDBG programs, including award amounts per program, application selection process, etc. Once HUD approves the Action Plan it becomes codified into the Texas Administrative Code under Title 10 TAC Chapter 255.


The agency then makes applications available in accordance with each program's funding cycle. Applications received for competitive funding programs are reviewed and scored using program-specific criteria and processes. These processes may include scoring by Regional Review Committees (see below) and review by the State Review Committees (see below.)

Once awards are made from ORCA's CDBG program, contracts are executed between the agency and the city or county officials, and the grantee begins the implementation of their proposed project. To guide grantees in the implementation of their projects, the grantees follow the 2005 CDBG Implementation Manual. The Manual describes the methods a CDBG grant recipient uses to administer the CDBG contract, and includes relevant forms. This document covers the post award process.

Click here for TxCDBG Community Development grant applications and application guides.

Click here for TxCDBG Economic Development grant applications and application guides.

Click here for TxCDBG Colonias grant applications and application guides.

Composition and Role

Each of Texas' 24 regional councils, known as Councils of Government, has its own Regional Review Committee. Each RRC is comprised of 12 local elected officials, appointed by the governor for two-year staggered terms. The RRC chairperson is also appointed by the governor. Composition of each RRC reflects geographic diversity within the region, differences in population among eligible localities, and types of governments (general law cities, home rule cities, and counties).

The role of each Regional Review Committee is to participate in the process for determining regional priorities for projects funded through two of ORCA's funding categories, the Community Development Fund and the Community Development Supplemental Fund.

The RRC is responsible for developing the scoring criteria in the following three categories: project priorities, merits of the project and local effort. The role of each member is to participate in the scoring of applications for the Community Development Fund and the Community Development Supplemental Fund in a fair and equitable manner to ensure that the identified needs of the region are met.

The Regional Review Committees do not score, but may review and comment on, applications for other CDBG program funds administered by ORCA. The RRC is encouraged to provide ORCA with any information that might assist agency staff in reviewing and scoring projects for selection under the statewide competitions for other non-entitlement CDBG programs. For the most current RRC meeting information, please visit our Calendar page.


Click here for more information about Regional Review Committees including Guidebooks, and resources for the RRC Work Group.

The State Review Committee is comprised of 12 local elected officials appointed by the governor. The SRC consults with and advises the executive director on the administration and enforcement of the Community Development Block Grant program; reviews funding recommendations of eligible cities and counties; and advises and assists the executive director regarding the allocation of program funds.

Click here for more information about the upcoming State Review Committee meeting (agenda, date, time, location), prior meetings (agenda, minutes, handouts), and member names.