To improve the quality of life for Texans living in colonias where such projects will primarily benefit low to moderate income persons.

This fund is available to eligible county applicants for projects in severely distressed unincorporated areas which meet the definition as a “colonia” under this fund.

The term “colonia” means any identifiable unincorporated community that is determined to be a colonia on the basis of objective criteria, including lack of potable water supply, lack of adequate sewage systems, and lack of decent, safe, and sanitary housing; and was in existence as a colonia before the date of the enactment of the Cranston-Gonzalez National Affordable Housing Act (November 28, 1990).

Except for fund categories where additional restrictions apply, a county can only submit applications on behalf of eligible colonia areas located within 150 miles of the Texas-Mexico border region, except that any county that is part of a standard metropolitan statistical area with a population exceeding 1,000,000 is not eligible under this fund.

• Awards are made on a biennial basis through a competitive process among eligible counties.

• Awards range from a minimum of $75,000 to a maximum of $500,000

All projects funded through the CDBG program typically meet the first national objective (benefit low- and moderate-income persons) by benefiting at least 51 percent low- to moderate-income persons, which are defined as those who:

• Earn equal to or less than 80 percent of the area median family income figure (where the area is a metropolitan statistical area or a non-metropolitan county) or



• Earn equal to or less than less than 80 percent of the statewide non-metropolitan median family income figure, as defined under the US Department of Housing and Urban Development Section 8 Housing Assistance Program.



• For income eligibility in your area, please review the most recent Income Limits document.

Some projects funded through the CDBG program may meet the second national objective of aiding in the prevention or elimination of slum or blight while the remainder of CDBG projects will fall under the third national objective. The third national objective includes activities designed to meet community development needs having a particular urgency, which the CDBG Program applies to Disaster Relief and Urgent Need Fund projects.

• Application evaluation and scoring criteria may include, but is not limited to (in alphabetical order):

• Benefit to low- to moderate-income persons



• Community distress



• Project priorities



• Project design



• Matching funds



• Past performance

A total of 7.28 percent of the Texas CDBG allocation has been reserved for CFC, in accordance with Program Year 2009 Action Plan.

The fund is scored using a formula based on community distress, benefit to low/moderate income persons, project priorities, and project design.