go to the Kentucky Unbridled Spirit website Visit the KY Council of Area Development Districts. Return to the home page.
Map & driving directions
Gateway Area Development District Office at Eagle Point MMRC
Bath County Courthouse
Cave Run Lake
Montgomery County Courthouse
Scene from Morgan County Sorghum Festival
Red River Gorge area of Menifee County

COMMUNITY DEVELOPMENT BLOCK GRANTS APPLICATION PREPARATION

The Governor’s Office for Local Development (GOLD), Divisions of Grants administers the federally funder Community Development Block Grant (CDBG) program. This programs works to enhance the quality of life of Kentucky communities by working through and with city and county governments. The U.S. Department of Housing and Urban Development (HUD) funded CDBG programs allows GOLD to provide assistance to communities for use in revitalizing neighborhoods, providing infrastructure, expanding affordable housing and economic opportunities, and/or improving community facilities and services. With the participation of their citizens, communities can devote these funds to a wide range of activities that best serve their own particular development priorities, provided that these projects meet at least one of the following three national objectives:

1. Benefit low and moderate income persons
2. Prevent or eliminate slums or blight; or
3. Meet other urgent community development needs

All cities and counties in Kentucky are eligible to apply for the funds with the exception of several entitlement communities. These communities receive CDBG funds directly from HUD. For the 2006 funding cycle GOLD has received $26,433,064 for Community Development Block Grants. The funding is allocated into the following categories:

Public Facilities $7,433,064
Economic Development $7,500,000
Public Service $3,000,000
(Recovery KY)
Housing $4,000,000
Community Projects $3,500,000
Community Emergency $1,000,000
Relief Fund

Each program area has specific requirements that must be met prior to GOLD approving acceptance of an application. For a project to be funded, a determination must be made regarding project need, reasonability of costs, and overall effectiveness.

Housing & Communities Program Branch

The Communities program is designed to provide funds for community development projects that address human service needs, such as senior centers, crisis centers, and facilities that provide services to low-income persons. As part of the Commonwealth’s allocation from the CDBG program, these projects have been allocated $3,500,000 for 2006 with the maximum amount of $500,000 of CDBG funding per community.

Renaissance on Main projects are also funded and administered under this branch. Cities that are in the Renaissance on Main Program designated as certified communities may apply for CDBG Renaissance funding. As part of the Commonwealth’s allocation from the CDBG program, these certified cities may apply for the maximum CDBG funding amount of $500,000 per project. The project must be within the applicants designated Renaissance area.

Community Emergency Relief Fund (CERF)
CERF funds are provided to give communities a means to restore infrastructure or housing that severe weather or natural disasters negatively impact. As part of the Commonwealth’s allocation from the CDBG program, these projects have been allocated $1,000,000 for 2005 and with the maximum amount of $250,000 of CDBG funding per project.

Only communities that have experienced a disaster and have a Declaration of Emergency from the Governor may submit an application for these funds.

Economic Development Branch
The Economic Development Branch works to fund development activities that create or retain jobs principally benefiting low to moderate income (LMI) persons. Additional goals provide for the training and provision of human services that allow for the professional advancement of LMI persons. As part of the Commonwealth’s allocation from the CDBG program, these projects have been allocated $7,500,000 for 2006 with up to $1,000,000 of CDBG funding per community. Micro-enterprise Development grants (maximum amount of $50,000 per project) are also funded from this branch.

These are the three areas of CDBG Economic Development component:

Traditional economic development projects provide grant assistance to communities for projects that specifically address the creation or retention of jobs. Single jurisdiction projects may request up to $1million; multi-jurisdictional projects may request $2 million.

Non-Traditional economic development projects allow for the funding of eligible economic development activities benefiting low-to-moderate income persons that are not directly related to job creation. Single-jurisdictional projects may request up to $250,000; multi-jurisdictional projects may request up to $500,000.

Micro-enterprise projects provide grant assistance to cities or counties to develop training programs and to provide technical assistance to low and moderate income persons who currently own or are interested in starting a commercial enterprise that has five or fewer employees. Single jurisdiction projects may request up to $50,000.

Infrastructure
The U.S. Department of Housing and Urban Development’s Community Development Block Grant program funds infrastructure projects.


Multi-jurisdictional projects (cities and/or counties sharing a regional project requiring participation from multi-jurisdictions and deriving a mutual benefit) may request $2 million.]

Self-help projects may request up to $250,000 per project.

Housing
The Governor’s Office for Local Development funds housing projects through the U.S. Department of Housing and Urban Development’s Community Development Block Grant program. The maximum amount for request if $1,000,000 of CDBG funding per project.

Public Services Branch
In January 2005, Governor Ernie Fletcher unveiled Recovery Kentucky, a program to help Kentuckians recover from substance abuse and addiction, which often leads to chronic homelessness. This program will create at least ten housing recovery centers across the state.


Recently funded CDBG community projects in the Gateway Area Development District include:

Morehead Inspiration Center (Recovery Kentucky) Project

$300,000 in annual CDBG funds over a three year period (for a total of $900,000) have been awarded to the City of Morehead to construct a Recovery Kentucky project. These funds will be utilized for the construction of a recovery centers to help address the drug problem in the area and resolve some of the homeless issues at the same time. The ultimate goal is for the residents of the recovery center to achieve a life of sobriety and become productive members of society.

Frenchburg (Menifee County) Community/Economic Training Center

$500,000 in CDBG funds and $500,000 in ARC funds have been awarded to the City of Frenchburg to construct a community/economic training center. The new facility will support various community activities that promote both education and wellness to provide sustainable economic development through building a competitive workforce.