4/16/14 CDBG, CHIP funds to come in lower in 2014

  • By Nick Sabo
  • April 16, 2014
  • 371
                        
SUMMARY: Dollars aimed at assisting low income persons, communities Fewer federal dollars in programs such as the Community Development Block Grant and Community Housing Impact and Preservation program mean fewer dollars for cash-strapped municipalities and low income households in Holmes County. The Community Housing Impact and Preservation program (CHIP) provides funds for home rehabilitation and emergency repairs. The Community Development Block Grant (CDBG) funds infrastructure projects for small communities. Both are federal programs aimed at assisting low to moderate income areas or individuals. Funding for both have been reduced for 2014. The two programs are administered locally through the Holmes County Planning Commission. The county has received a $112,000 CDBG award for 2014, $6,000 lower than in 2013. In 2012, the county received $159,000. CHIP funding has been capped at $400,000 per county for 2014. In 2012, the prior round of funding, Holmes County received $544,000. Of the total 2012 CHIP funding awarded, $44,000 was funding for Habitat for Humanity. For the 2014 round of funding, any funds for Habitat will be included within the $400,000 maximum. CHIP, which formerly stood for the Community Housing Improvement Program, has been re-named the Community Housing Impact and Preservation program. The mission is essentially the same under the new name. The county must apply for CHIP, and there is no guarantee they will be funded in any given round. CHIP funds are distributed every two years and are available to counties and cities. Fund availability for CDBG and CHIP is tied to low to moderate income (LMI) standards. A municipality seeking CDBG dollars must prove that a project area is within the LMI range, and individuals getting assistance through CHIP must also meet income standards. LMI is set by the U.S. Department of Housing and Urban Development using a formula that looks at several factors, including median income. Planning commission director Arnold Oliver said LMI reflects more people than may be perceived. “In reality, low to moderate income can be a family that owns their home but are getting by paycheck to paycheck,” Oliver said. “When your water heater goes out or you need a new furnace, it’s a big expense.” CHIP dollars can help with home repair. CDBG dollars can help a community complete a project they may otherwise not have the budget for. Interest in both CHIP and CDBG is always greater than the grant awards, Oliver said. With less money going into 2014, it is very likely that even fewer applicants will receive funding, Oliver said. Oliver said the CDBG program has at least four interested applicants in 2014. The Holmes County Home needs repairs and upgrades to its fire suppression system, parking at Lake Park in Big Prairie could benefit from a resurfacing project, and the county would like to do some upgrades for handicapped accessibility at the prosecuting attorney’s office. The Village of Killbuck has expressed interest but has not named a specific project, Oliver said. Like the CDBG, the county has no trouble spending CHIP funds. When applying for CHIP, the county must list goals for each area for which funding is available. After the goals are met, left over funds can go towards additional projects. CHIP program specialist Mary Hoxworth said the county usually surpasses its goals and goes on to fund to other projects. For example, in 2010, the county set a goal of 12 home repair projects. They met that goal, then went on to do five more projects, ending out the two-year funding cycle with 17. Home repair can include such things as a new roof, replacement of a failed appliance or plumbing. The projects average $5,000 to $8,000, Hoxworth said. CHIP funds can also be used to rehab an entire house or rental property. 2010 CHIP funds totaling $210,000 were used to rehab seven homes, two above a goal of five. The county had $125,000 for home repair in 2010. It is currently working with $125,000 in 2012 CHIP funds; with a goal of 12 projects, it has completed 14. The county set a goal of two Habitat houses for the last two rounds of CHIP funding. Hoxworth said it intends to do the same for the 2014 round. So far, the planning commission has been able to assist most of the people who seek help through CHIP, Hoxworth said. Hoxworth said it cannot be predicted if the lower grant amounts will meet the needs of the community in 2014.


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