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| SMALL CITIES BLOCK GRANT PROGRAM |
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(A list of frequently asked questions is below)
Type of assistance: Federal grants.
Purpose: The Small Cities Block Grant program (SCBG) provides federal funds
for community and economic development projects throughout West Virginia. The
program supports job creation and retention efforts, local government efforts
to provide affordable infrastructure systems and community efforts to improve
the quality of life for low- to moderate-income citizens.
Description: The SCBG program supports the development of viable communities
by assisting in the provision of a suitable living environment and expanding
economic opportunity, principally for those of low and moderate income
(80 percent and below median household income). Eligible units of local
government may receive SCBG funds if they are documented to fulfill one
of three national objectives:
- Activities benefiting low- and moderate-income people.
- Activities that aid in the prevention or elimination of slums or blight.
- Activities designed to meet community development needs having a particular
urgency because existing conditions 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: Activities generally eligible for funding include but are not
limited to permanent public improvements related to the following:
- Community centers/senior citizen centers
- Construction and renovation of public facilities
- Demolition
- Economic development
- Flood and storm drainage
- Acquisition
- Parks and recreation
- Preservation and beautification
- Technology
- Water and wastewater facilities and services
- Community facilities renovation/construction
Eligible applicants: Funds are provided only to units of local government, generally
counties and municipalities. Nonprofits, public service districts, utility boards,
recreation boards and economic development authorities are only eligible to receive
SCBG funds through a subgrant agreement with the unit of local government. The unit
of local government must be the applicant.
Contact: For additional information about the SCBG program, please contact the West
Virginia Development Office at (800) 982-3386 or (304) 558-4010.
Small Cities Block Grant Program
(Frequently asked questions)
May counties and municipalities subgrant funds to nonprofit organizations? Counties and
municipalities may sponsor the applications of nonprofit organizations serving their
area, provided that these organizations are legally authorized to receive public funds.
Subgrant agreements are required and may be requested as part of the application review
process. As the grantee, the county or municipality must act as the administrator of any
grant funds provided to nonprofit organizations and must maintain fiduciary responsibility
for the expenditure of funds.
Nonprofit organizations must be designated as 501(c) organizations by the Internal Revenue
Service and be registered with the West Virginia Secretary of State's office as charitable
organizations. Organizations without IRS 501(c) status and/or are not registered with the
secretary of state's office are not eligible subgrantees.
What is the average grant amount? Water and sewer projects approved by the Infrastructure and
Jobs Development Council may receive up to $1,500,000. Economic development projects that
include a job creation agreement signed an expanding or new company may be eligible for up
to $1,250,000 for publicly owned utility improvements or facilities. All non-water and sewer
projects may be eligible for up to $500,000. Planning projects are eligible to receive up to
$100,000.
Which activities are not eligible? Numerous activities are not eligible for SCBG funding. They
include but are not limited to debt payment, operation and maintenance expenses, purchase of
equipment, construction activities related to the general operation of government (i.e., city
hall renovations unless for the sole purpose of accessibility) and any activity that does not
meet one of the three HUD national objectives listed under the SCBG description.
What is the program timeline? The SCBG program is administered according to the state fiscal year,
July 1 to June 30. Applications are considered during the fiscal year in which they are received.
Economic development applications with established job creation agreements are eligible any time
during the program year if funds are available. Applications for water and sewer project are only
accepted on the established deadline in May. All other applications are only accepted on the
established deadline in July. Those not approved within the fiscal year are removed from consideration
and must be resubmitted by the applicant in a subsequent fiscal year.
Upon approval, grant funds should be expended in a timely manner. Mutual written agreement between
the West Virginia Development Office and the grantee is required to extend a grant period for more
than the initial grant period of three years.
How are grants approved? The governor will announce the approval of all SCBG funds through a formal
letter to the appropriate unit of local government.
How are funds disbursed? Following the governor's approval, the West Virginia Development Office
will enter into a contract with the unit of local government for each project. No costs should be
incurred or commitments made relative to a grant prior to the full execution of the contract.
Funds are disbursed based upon approved invoices and receipts that correspond to the requirements
of the project contract. All requests for reimbursement must be certified by the unit of local
government and approved by the West Virginia Development Office.
Are prevailing wages required for public construction projects? Yes. Federal and state prevailing
wages must be paid for construction work performed on public improvement projects involving SCBG
funds. Federal wage rates may be obtained from the West Virginia Development Office. State prevailing
wage rates may be obtained from the West Virginia Secretary of State, Administrative Law Division at
(304) 558-6000. The higher of either federal or state wage rates for each work classification must be
paid.
Is competitive bidding required? The expenditure of public funds is governed by guidelines set forth
by federal law, the state of West Virginia as well as any existing local purchasing procedures. In all
cases, the grantee must follow the most stringent of the federal, state or local purchasing and bidding
requirements. Please call the West Virginia Development Office for additional details.
Are uses of grant funds audited? The state auditor's office, Chief Inspection Division or designated audit
firm, as a part of the grantee's annual audit, will audit project records. All records must be maintained
for a period of three years after completion of the final audit.
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