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Housing & Community Development

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1. How do we determine if the beneficiaries we serve are eligible under the CDBG Program?

At least 51% of the beneficiaries of the activity must be low-to-moderate income persons as defined by income limit guidelines provided each year by the U.S. Department of Housing and Urban Development (HUD). HUD also stipulates the following population groups are automatically deemed eligible: abused children, elderly persons (62 years of age or older), battered spouses, homeless persons, severely disabled persons (as defined by the U.S. Census Bureau), illiterate adults, persons living with AIDS, and migrant farm workers.

2. Are expectant children counted as part of the household?

It would be reasonable to anticipate imminent changes in family composition.

3. How much financial help can a family receive to rehabilitate an owner-occupied home in Marietta?

Based upon the household composition, total household income, existing mortgages, and the repair needs, a family may qualify for a grant of up to $72,999 total. Made up of grants and loans. $12,000; a 5-year forgivable loan up to $25,000 to abate lead and asbestos hazardous conditions; and up to $35,999 in a non-payable, no interest minor rehabilitation loan.

4. How much can a family borrow? Do loans have to be paid off?

A family’s total amount of all liens cannot exceed 95% of the assessed value of the home. This includes any current outstanding mortgages. CDBG liens do not have to be paid as long as the eligible homeowner remains in the home. The lien will be due and payable if the home changes ownership.

5. Whose income is counted? What about children who earn money?

The head of household, spouse, other members over 18, count-wages, pensions, SSA-VA-Unemployment-Workers’ Comp benefits, child support, alimony; children receiving Benefits (SSA, VA). Working children younger than 18-count only $480 per year.

6. Will I have to move out of my home? Where will I live while work is being done?

Depending on the age of the home, the family may have to vacate the premises for hazardous conditions (lead and asbestos) to be abated; and if the degree of work to be done makes the home unlivable for a period of time, the family will have to vacate.

The CDBG Program provides the family 2 options for temporary housing: relocate to a private residence and receive a daily stipend; or relocate to an extended-stay facility at a daily rate subsidized by the City.

Does CDBG require a lead safe clearance test for homeowner rehab programs under $5,000? Our understanding is that clearance is not required if the disturbance of the paint surface is de minimis. Clearance is not required when painted surface areas are below HUD's de minimis threshold (only). When clearance is required, HUD's Lead Safe Housing Rule (LSHR) requires a clearance examination be done by an independent party instead of the certified renovator's cleaning verification procedure.

7. What is the requirement for rehabbing older homes?

Homes built prior to 1978 must be tested for the presence of lead and asbestos. The presence of either hazard must be abated before federal funds may be used to rehabilitate the home.

8. Are there federal guidelines for appliance allowance?

There are no specific guidelines or maximum amounts for the cost of appliances included in housing rehabilitation. The cost of appliances, as with all federal grant program costs, must meet the test of reasonableness. In addition to energy efficiency standards, such as requiring Energy Star compliance, the specifications often refer to an appliance model, or equivalent, that is appropriate and typical for similar housing in the area. For appliances in modest housing typically occupied by a low- and moderate-income household, this would mean that higher end appliances with additional features would exceed the reasonable cost for CDBG assistance.

9. Can CDBG be used to pay for appliances in a minor home repairs program and do these repairs have to comply with code?

CDBG funds can be used in minor home repair and/or specialty repair programs including using CDBG funds for the acquisition of appliances that are required as part of the rehabilitation. CDBG has no minimum investment requirement and no requirement that units meet code upon completion, although this is sometimes required by grantees.

10. If someone received a CDBG assisted homeowner rehabilitation loan before, can they come back and receive additional CDBG assisted rehabilitation funding?

CDBG funds may be used more than once to rehabilitate the same housing structure if the total liens do not exceed 95% of the appraised value, and the home deficiency creates a serious or hazardous situation for the homeowner. Only one grant may be received by the homeowner.

11. Are mobile homes eligible to be rehabilitated with CDBG funds?

The CDBG regulations allow the rehabilitation of owner-occupied mobile homes if they are considered part of the community's permanent housing stock. Homeowner must own the land on which the home is grounded.

12. If a home is cited for code violations, will the CDBG program help make the repairs to comply?

If the household is eligible according to federal guidelines and the violations can be addressed through minor rehabilitation.

13. Can a new homeowner receive a grant to rehabilitate the home?

The City of Marietta prefers to assist homeowners who have lived in their homes at least 3 years and have deferred maintenance problems which could affect the health and safety of the occupants. Assistance is offered on a first come-first served basis; however, the elderly and disabled are considered first if a waiting list is in effect.

14. What is the process to apply for CDBG Public Service grant funds managed through the CDBG Program Office?

The City of Marietta CDBG Program Office conducts a competitive application process at the first of the year for all interested non-profits. A Public Notice is published in the Marietta Daily Journal to announce the start of the process. Applications can be downloaded from the CDBG Program Office website with a deadline in April. A committee will review and score each application based on certain criteria. Those applications rating highly will be considered for funding, and the committee will make preliminary recommendations based on these scores. City of Marietta Mayor and City Council will make the final selections for funding and all entities selected for funding will be notified in writing.

15. How do I know if my project is eligible for CDBG funds?

The basic types of eligible CDBG project categories include housing, public facilities, public services, and economic development. Each of these overall categories has subcategories of activities, which can be addressed in greater detail by contacting the local CDBG Program Office at 770-794-5437.

16. What are the record keeping requirements for the CDBG Grant?

Subrecipients are required to follow record keeping guidelines as stipulated in the Subrecipient Agreement signed upon approval of funds. Based on the type of funding received (CDBG, HOME, ADDI, or ESG), each subrecipient must maintain client files that include demographic information for each client and documentation of income verification and/or documentation of homelessness/sudden loss of income. Please contact a CDBG representative for greater detail on record keeping guidelines.

17. How will our organization receive our grant?

Marietta utilizes the reimbursement method for all CDBG activities. In other words, the organization will expend funds from their general operating fund and then seek reimbursement. For this to occur, the organization must submit proper supporting documentation to get reimbursed for all qualified expenses incurred.

18. Will our organization be monitored?

Yes, HUD regulations require that the performance of each subrecipient receiving CDBG funds must be reviewed at least annually to ensure compliance with applicable program requirements. Subrecipients that are new to the CDBG program, have experienced turnover in key staff positions, had previous compliance or performance problems, carry out high-risk activities and undertake multiple CDBG activities for the first time will be considered high-risk subrecipients and might require comprehensive monitoring throughout the program year.

19. When will our organization receive funds?

The grant year for the CDBG Program runs from January 1 through December 31. Typically, HUD will release funds during the first quarter of each program year.

20. How do I find the CDBG Program Office?

The CDBG Program Office is located at:
268 Lawrence Street
Suite 200
Marietta, GA 30060

To speak with a CDBG staff person, call 770-794-5437.

21. If my agency receives CDBG funds, what is the agency’s obligation to the County?

Subrecipients are required to submit monthly reports each year until all CDBG funds are fully expended plus an additional five years unless CDBG funds have been used to purchase real property.

Example One: CDBG Funds as Operating Costs
Agency XYZ receives funds in 2007 for operating costs for their tutoring program for low-to-moderate income school children. XYZ will submit monthly reports and is reimbursed for incurred operating expenses. Reporting requirements for XYZ would expire in 2012.

Example Two: CDBG Funds to Purchase Real Property
Agency ABC receives CDBG funds to purchase a building that will function as a homeless shelter. ABC is required to submit monthly reports for as long as Cobb County receives CDBG funding plus five years after the last allotment is granted to the County. Owners of real property purchased with CDBG funds may sell or transfer ownership of property to another entity; however, sale or transfer may discontinue the eligible activity. With the sale of real property purchased with CDBG funds, the County requires repayment of fair market value less depreciation.

22. Can we get an advance on our grant once we are approved?

No. Marietta utilizes the reimbursement method for all financial transactions that are processed for the CDBG Program. We do our best to process your reimbursement requests as expeditiously as possible.

23. I am interested in purchasing a home in Cobb County. How do I qualify for a down-payment assistance grant or loan?

Cobb County CDBG provides HOME Program funds to three local organizations that make grants or loans available to low and moderate-income homebuyers. Each of these organizations uses a different set of criteria for determining eligibility and each structures its down-payment assistance program differently. For the most accurate information, you should contact the organizations directly.

For more information, please see the Downpayment Assistance page.