Business Development

Community Development: Block Grant Programs

The Community Development Block Grant Program (CDBG) is one of the federal government’s most successful and popular local government assistance programs. CDBG was created to develop viable urban communities by providing local decision makers with financial resources to provide decent housing, a suitable living environment, and expanding economic opportunities, principally to persons of low-and moderate-income. CDBG has contributed over $34 million to Bangor's community and economic development since 1975.

Throughout its history, the focus of Bangor's CDBG Program has been rehabilitatingf private dwellings and improving neighborhood streets, sidewalks and parks. There is hardly a street or park in the city that hasn't been positively affected by these federal funds. The program has supported growing neighborhood pride, reinvestment, and restoration.

Community Development funded activities continue to ensure that the citizens of Bangor have safe, sanitary and suitable housing and public facilities that are functional, efficient and attractive. A wide range of activities are eligible for funding that can have a large and sustained impact on our quality of life. Without these federally funded activities, living conditions in Bangor would not be what they are today. Eligible activities include:

Economic Development: Making low-interest loans to new or expanding businesses to create new or retain existing jobs in the community, thus helping to increase the job base and stabilize the local economy.

Downtown Revitalization: Carrying out a continuing program of street, sidewalk, parking, and open space improvements; making low-interest loans to businesses and property owners to encourage business formation and expansion, building improvements, funding historic and facade studies to encourage preservation of the character of downtown; funding parking studies to determine the appropriate means of solving real and perceived parking problems; assisting in the formation and administration of the Bangor Center Management Corporation to coordinate downtown promotion and events, all to make downtown more competitive in the local economy and enhance the economic, aesthetic, cultural and historic value of public and private properties.

Waterfront Redevelopment: Acquiring and redeveloping industrial and vacant properties located along the Penobscot Riverfront; creating parks and pedestrian amenities that invite the public to the waterfront; stabilizing the river bank and bulkhead to protect shore-lands from further erosion and loss, all to encourage public use of the river front and the development of river-related, publicly inviting commercial, cultural, and recreational uses.

Handicap Accessibility: Removing architectural and physical barriers to persons with disabilities to ensure that all persons are afforded reasonable access to housing, social services and places of employment, education and recreation.

Housing: Seeking ways of increasing the supply of affordable and special needs housing without increasing the property tax burden or exceeding the community's ability to provide essential services to all citizens.

Environmental Enhancement: Working with and helping property owners with the identification and resolution of: environmental concerns associated with lead-based paint, asbestos, underground fuel tanks, soil and groundwater contamination; historic preservation, and flood damage control.

Available Funds: The program's funding level is subject to congressional appropriations each year. The amount of Community Development Block Grant (CDBG) funds that Bangor will receive in FY 2006, will approach $1.2 million.

National Objectives: The projected use of funds must provide no less than 70% of the funds for support of activities that benefit low and moderate income persons over a 1, 2, or 3 year period. Remaining funds may support activities that aid in the prevention or elimination of slums or blight and may also include activities which the City certifies are designed to meet other urgent community development needs that pose a serious and immediate threat to the health or welfare of the community and where other financial resources are not available to meet such needs.

Eligible Activities: Community Development Block Grant funds may be used for the following activities (further details and/or explanations may be obtained at the Community Development Office in Bangor City Hall): Acquisition, Disposition, Public Facilities and Improvements, Clearance Activities, Public Services, Interim Assistance, Payment of the Non-Federal Share, Urban Renewal Completion, Relocation, Loss of Rental Income, Removal of Architectural Barriers, Privately Owned Utilities, New Housing Construction, Eligible Rehabilitation and Preservation Activities, Code Enforcement, Historic Preservation, Renovation of Closed Buildings, Special Economic Development Activities, Eligible Planning, Urban Environmental Design, Policy Planning, Management and Capacity Building Activities, Eligible Administrative Costs.

Ineligible Activities under the Community Development Program: The following activities are ineligible for block grant assistance under most circumstances. These are examples of ineligible activities and do not constitute a list of all ineligible activities: Buildings and Facilities Used Predominantly for the General Conduct of Government, Purchase of Equipment, Operating and Maintenance Expenses, General Government Expenses, Political Activities, New Housing Construction, Income Payments.

Consolidated Plan of Housing and Community Development: The City must annually prepare a Consolidated Housing and Community Development Plan to be submitted to the U.S. Department of Housing and Urban development. That plan includes:

A. A Consolidated Plan identifying housing, service and community development needs, establishes priorities for addressing those needs, and develops a strategic plan for a period of up to five years.
B. The Action Plan of resources expected to be available to the community development program and proposed community development activities.
Citizen Participation: At least two public hearings to obtain the views of citizens on housing and community development needs must be held and a summary of the proposed Consolidated Plan and Annual Action Plan must be published community-wide before it is submitted to HUD.  

Performance Reports and Audits: A consolidated annual performance evaluation report (CAPER) must be submitted to the Department of Housing and Urban Development concerning the use of funds received together with an assessment of the relationship of such use to the objectives identified in the statement of objectives and projected use of funds.