Title
An Ordinance supplementing the Pittsburgh Code, Title One, Administrative, Article VII, Procedures,by adding Chapter 164, entitled Use of Community Development Block Grant (CDBG) funds
Body
Whereas, the City of Pittsburgh is a current recipient of CDBG funding, which is administered by the U.S. Department of Housing and Urban Development ("HUD"); and
Whereas, the CDBG program provides communities with resources to, inter alia, provide benefits to low and moderate income communities, to eliminate slum and blight, and to resolve urgent needs threatening the health and welfare of a community; and
Whereas, 24 CFR § 570.489(d), which governs HUD Program Administrative requirements, includes a provision that requires recipients to "[e]nsure that funds received under [it] are not used for general expenses required to carry out other responsibilities of state and local government"; and
Whereas, an improper practice of using CDBG funds to replace monies that a local government would otherwise provide in its operating budget in order to help maintain service levels is in direct contradiction with 24 CFR § 570.489(d) and is referred to as "supplanting;" and
Whereas, it is important for the City to verify that that its CDBG funds are allocated in accordance with all applicable federal requirements and to ensure that supplanting does not occur.
Therefore be it resolved that the Council of the City of Pittsburgh hereby enacts as follows:
Section 1. The Pittsburgh Code of Ordinances, Title One, Administrative, Article VII, Procedures is hereby supplemented as follows:
Chapter 164. Use of Community Development Block Grant (CDBG) funds
164.01 The City's use of CDBG funds shall provide an increased benefit to CDBG eligible.
No CDBG funds shall be used to supplant local general fund revenues for any purpose. All CDBG disbursements other than administrative costs must demonstrate an increased benefit to CDBG eligible communities. CDBG funds can be used to augment City Services to address specific conditions, but not replace what the City would be obligated to provide for elsewhere in the in the Operating or Capital budgets.