California Code of Regulations
Title 25 - Housing and Community Development
Division 1 - Housing and Community Development
Chapter 7 - Department of Housing and Community Development Programs
Subchapter 2 - State Community Development Block Grant Program
Article 2 - Application Process
Section 7058 - Eligible Activities

Universal Citation: 25 CA Code of Regs 7058

Current through Register 2024 Notice Reg. No. 38, September 20, 2024

(a) Eligible Activities: Activities eligible for funding under State CDBG Program are those described in 24 CFR 570.482 and in Section 105(a) of the Housing and Community Development Act of 1974 (42 USC 5305):

(1) Housing Assistance -- Single Family Residence (1-4 units) or Multi-Family Housing (5 or more units) -- Acquisition, Rehabilitation, New Construction;

(2) Public Facilities -- Acquisition, Rehabilitation, Construction;

(3) Infrastructure and Infrastructure in Support of Housing;

(4) Public Services -- Certain costs associated with providing services including but not limited to Child Care, Health Care, and Job Training.

(5) Planning and Technical Assistance -- Costs associated with completing a planning study.
(A) Pursuant to Health and Safety Code 50833(a) the cash match amount is five percent (5%) of the Planning and Technical Assistance grant amount applied for.

(6) Economic Development including Business Assistance and Micro Enterprise Assistance.

(b) Each activity must meet all benefit requirements of 24 CFR 570.483 and 24 CFR 570.484 by the end of the contract term.

(1) At least fifty-one percent (51%) of the funds awarded shall benefit the targeted income group. No activity or portion of a program assisted by these funds may exclude from its benefits the lowest targeted income group. Individual activities shall meet one of the following three national objectives:
(1) the development of viable urban communities by providing decent housing and a suitable living environment and expanding economic opportunities, principally for persons of low- and moderate-income;

(2) aiding in the prevention or elimination of slums or blight; or

(3) meeting other community development needs having a particular urgency.
(A) For the purposes of this section, "slums" and "blight" means a blighted area or structure characterized by one or more of the following conditions:
(1) the buildings and structures, used or intended to be used for living, commercial, industrial, or other purposes, which are unfit to occupy for such purposes and are conducive to ill health, transmission of disease, infant mortality, juvenile delinquency,

(2) high crime rate and

(3) other conditions listed in Health and Safety Code Section 33031; and

(4) properties which suffer from economic dislocation, deterioration, or disuse because of factors listed in Health and Safety Code, Section 33031.

(B) For the purposes of this section, an activity will be considered to address the standard of urgency if the applicant certifies that the activity is designed to alleviate existing conditions which pose a serious and immediate threat to the health or welfare of the community which are of recent origin or which recently became urgent, that the applicant is unable to finance the activity on its own, and that other sources of funding are not available to meet such needs. For the purposes of this section, any condition which has existed longer than eighteen (18) months prior to the final filing date for applications shall not be considered to meet the standard of urgency.

(c) Each Economic Development activity must meet all benefit requirements listed in Section 7062.1(a)(1) and (2).

1. Amendment filed 2-22-85; effective upon filing pursuant to Government Code Section 11346.2(d) (Register 85, No. 9).
2. New subsection (a) and amendment of NOTE filed 11-8-95; operative 11-8-95 pursuant to Government Code section 11343.4(d) (Register 96, No. 48).
3. Repealer of section, new section and amendment of NOTE filed 7-31-96; operative 7-31-96 pursuant to Government Code section 11343.4(d) (Register 96, No. 31).
4. Editorial correction adding HISTORY 2 and renumbering former HISTORY 2 to HISTORY 3 (Register 96, No. 48).
5. Amendment of section and NOTE filed 8-13-2012; operative 8-13-2012 pursuant to Government Code section 11343.4 (Register 2012, No. 33).

Note: Authority cited: Sections 50406(h) and 50406(n), Health and Safety Code; and 24 CFR 570.489(b). Reference: Sections 33031, 50406 and 50407, Health and Safety Code; 15 U.S.C. 681; 42 U.S.C. 1450 et seq.; 42 U.S.C. 5305; 24 CFR, Part 570, Subpart C; 24 CFR 570.489 and 24 CFR 570.482.

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