New LMI Percentages Take Effect in April

This article was published on: 03/25/2019

 

The Community Development Block Grant (CDBG) program requires that each CDBG funded activity must either benefit low- and moderate-income (LMI) persons (at least 51% LMI), prevent or eliminate slums or blight, or resolve an urgent need where local resources are not available to do so.

Many CDBG projects benefit LMI persons. If a community does not automatically qualify at 51% LMI based on Census data, it must survey to determine if the service area of a proposed activity meets the LMI criteria.

In February, HUD released new LMI percentages. The effective date for the new data is April 1. That release has created changes for some cities in the region.

“More than a dozen cities now qualify LMI from the Census numbers, which means they no longer would have to survey to apply for CDBG funding,” NCRPC Assistant Director Emily Benedick said.

Any cities that have completed a LMI survey since 2012 can use those surveys until the 2020 Census numbers are released, which may be 2022. For communities considering a project that could involve CDBG funds, Benedick has advice.

**UPDATE April 2019: At the FY2020 CDBG application workshop, it was learned that this funding cycle is the last chance to use LMI surveys completed prior to the new Census numbers taking effect on
April 1, 2019. Any surveys completed using the 2010 Census numbers are no longer eligible to be used after the FY2020 CDBG funding round (this Fall).

“The first step is to call our office to discuss if their project would be CDBG eligible,” Benedick said. “Then we can help them determine if they need to complete an LMI survey and help in that process.”

This article appeared in the March 2019 NCRPC Newsletter.


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