Community Development Block Grant (CDBG) & Revenue Sharing Programs
The City of Newark solicits applications for funding for its Community Development Block Grant program and Revenue Sharing program. The Community Development/ Revenue Sharing Advisory Committee begins accepting applications in June for consideration for the next fiscal year. The Committee will meet through October to develop funding recommendations for City Council. The final decision on the allocation of all Community Development and Revenue Sharing funds will be made by City Council in November. Please contact Thomas Fruehstorfer of the Planning and Development Department at 302-366-7000 for more information.
Community Development Block Grant (CDBG)
The Federal Housing and Community Development Act of 1974, as amended, created a new Community Development funding program administered by the U.S. Department of Housing and Urban Development (HUD). The City of Newark, as part of an "Urban County," receives Community Development Block Grant (CDBG) funds annually through New Castle County by an entitlement formula based on population. Under the entitlement program, the City of Newark must submit a yearly application to HUD through New Castle County for Community Development Program activities.
The primary objective of the CDBG program is "the development of viable urban communities by providing decent housing in a suitable living environment and expanding economic opportunities, principally for persons of low and moderate income" (Housing and Community Development Act of 1974, as amended). In order to qualify for Community Development funding, all projects and activities must:
• Principally benefit low and moderate income persons (80% of Area Median Income), or;
• Aid in the prevention or elimination of slums and blight, or;
• Meet other Community Development needs having particular urgency (flood, disaster, etc).
Community Development rules and regulations specify eligible and ineligible activities. As a general guideline, eligible activities include:
1. Acquisition of property
2. Clearance, demolition and removal
3. Public facilities and improvements
4. Rehabilitation and preservation activities
5. Economic development
6. Economic opportunities for low and very low income persons
7. Removal of architectural barriers
8. Public services (limited funds available)
9. Planning and administration (limited funds available)
Please note that these activities are eligible for CDBG funding provided that they first meet one of the primary objectives listed above. Please contact Thomas Fruehstorfer in the Planning and Development Department at 302-366-7000 to discuss your project's eligibility. The grant year for the Community Development Program runs from July 1 - June 30. Community Development projects approved for funding in November may begin the following July 1.
Since 1974, the City through a policy of City Council, has shared part of its Federal Revenue Sharing funds with agencies, groups and individuals who provide social services beneficial to the residents of Newark. In 1987, Federal Revenue Sharing funds were discontinued. The City of Newark Council, however, decided to continue services originally provided by Federal Revenue Sharing with an annual allocation from the City's general fund.
Revenue Sharing funds are available to outside agencies which provide social services to Newark residents. Funding will only be considered for those persons within the proposal who are residents of the City of Newark. Funds allocated must be expended within the grant year. The proposal must not legally bind the City of Newark to financial support in years subsequent to the grant year.
When reviewing proposals for Revenue Sharing funding, the Community Development/Revenue Sharing Advisory Committee considers the following guidelines:
1. Projects aimed at social needs are encouraged.
2. Proposals containing multiple funding mechanisms (matches, grants-in-aid, etc.) are favored over ones depending entirely on City funds.
3. New programs needing start up help are encouraged.
4. Programs for capital projects only are discouraged.
5. "Overhead costs" should not be funded by the City.
6. Programs that have experienced Federal funding cuts should be helped, all else being equal.
7. The Committee is reluctant to fund projects that will always depend on Revenue Sharing funds for their operation. The Committee hopes programs started with Revenue Sharing funds will become financially independent within a few years of their initial funding.
The above information is intended to assist you in deciding if your project is appropriate for submission. The Committee's position is that, while the parameters cannot be taken as absolutes and that exceptions may be made, the foregoing does provide important screening criteria. The Revenue Sharing Program runs on a calendar year. Revenue Sharing Projects approved for funding this November may begin January 1st.
Please contact Thomas Fruehstorfer in the Planning Department at 302-366-7000 if you would like to discuss your project's eligibility.