State Street Reconstruction | Madison, WI

Funding FAQs - Question 1

Amanda Rethwisch | with 0 Comments

Funding FAQs - Question 1

As we promised in today’s newsletter, here’s FAQ and Answer #1:
How much does it cost to prepare a Community Development Block Grant application?
For answering this question, we will use the Iowa CDBG Program as an example.
CDBG funding is most often used for water and sewer related projects, and the application process is usually one of the most time-intensive in the grants and funding world. The cost of completing a CDBG application can range from $0 to nearly $10,000.
The CDBG Program mandates that at least 51% of its beneficiaries must be of low-to-moderate income (LMI). For a project that will impact all residents of a community, the municipality may have to conduct an income survey to prove its LMI status. The municipality can opt to either solicit volunteers to complete the survey, or can hire an outside agency to assist. Hiring someone to facilitate the survey typically costs between $2,000 - $10,000, depending on the size of the community and whether the City surveys a random sample or the entire population. If surveying a random sample, at least 300 households must be included. In order to be recognized by the State, the survey must have a response rate of at least 80%.
Grant administration cannot constitute more than 10% of the grant award. A municipality may contract with its local Council of Governments (COG) to administer the grant without soliciting proposals. However, if the community would like to consider anyone else, or just want to compare the COG’s fees against others, it must follow a formal procurement procedure. This formal procurement requires the municipality to solicit at least three known grant administrators, and to publish the Request for Proposals in its official newspaper.
Grant writing costs cannot be reimbursed by the grant.If your grant writer charges you a fee, their payment must be covered independently from any awarded grant dollars. Some grant writers only charge clients if their application is successful.

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