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Annual Allocation Process Each year, the Community Development Block Grant. Advisory Committee (CDBG-AC), a PDD department advisory committee reviews program and project status and recommends funding for the upcoming fiscal year. PDD staff coordinates with other City departments, government entities, local non- . profit, and residents to develop and present proposed projects. Often, public improvement projects need to be coordinated and cost estimated in advance of the request for funding being made. PDD recommends that residents work with PW staff to spec and cost out these proposals. When requesting funds, it's important to understand the timing required on expending these funds (see below). .Each year in the early fall, City staff takes committee members to key proj ects representing. each program .area funded with CDBG. PDD coordinates this trip with other City Departments, local agencies, and businesses. The CDBG-AC generally meets in the early winter to hear updates in each program area and requests for funding in the subsequent fiscal year. Individual committee members and the City staff make preliminary recommendations as part of the process. PDD staff coordinates with other Implementing Departments to develop the overall preliminary City recommendation. All activities proposed for funding must be included in the Consolidated Plan 2005, a five year planning document which sets local priorities (see City website). During each of the five years covered in the Consolidated Plan, an annual allocation is recommended to PDD by the CDBG-AC. PDD presented a recommendation to the City Council, usually in April. The funding recommendation in presented to HUD, the funding agency, in the form of a One- year Action Plan. The One-Year Action Plan is due to HUD each year on May 15tH COMPLIANCE MONITORING There are several key requirements for CDBG-funded construction projects, including but not limited to the following: Eligibility, Projects must be eligible and meet a broad national objective. Preliminary eligibility is determined prior to requesting CDBG funding for a project. PDD staff will provide verification of this for the project file. Location in a CDBG eligible area as shown on maps or the GIS layer in ]ZL,ID does not constitute automatic eligibility. If the project serves aloes-income area, PDD will work with PW to delineate the service area to verify eligibility and provide documentation for the project file. Funding must be spent on projects or programs approved. by the City Council and included in the Consolidated Plan, One-Year Action Plan or subsequent amendments. Timeliness On May 1 of each fiscal year, HUD evaluates the City of Eugene on the rate expenditure of CDBG funds. In order to meet this calculation test, which limits the amount of unexpended grant funds, each program area and individual project strives to expend fully or substantially all CDBG funds allocated to the- activity by April 1 of each fiscal year. When general funds are also allocated to a project, CDBG funds should be expended first. The calculation test does allow for some funds to remain unexpended. Failure to spend the all of the CDBG funds in a timely manner does not automatically result in the funding being withdrawn. Substantial accumulation of funding, however, would prompt possible reprogramming of funds to another ready-to-go activity.