AEDC outlines CDBG priorities as state prepares 2020 five‑year plan

Officials from the Arkansas Economic Development Commission briefed the committee on the state administration of the Community Development Block Grant (CDBG) Small Cities program and related grant activities.

Jim Hudson, executive vice president for operations at AEDC, and Jean Noble, director of AEDC’s grants division and the program manager for the State CDBG program, summarized program structure: CDBG funds are federal grants created by the Housing and Community Development Act of 1974 and flow to states and entitlement cities; AEDC manages the State Small Cities program for non‑entitlement (generally smaller and rural) communities. In 2019 AEDC reported a $17.85 million allocation for Arkansas; staff said they expected approximately $18.4 million for 2020.

Noble described the program's national objectives and scoring priorities: projects must primarily benefit low‑ and moderate‑income (LMI) persons, eliminate slum/blight conditions, or address urgent needs. AEDC’s 2019 method of distribution included set‑asides for economic development (about 55% in 2019), community development (including water and wastewater), general assistance and a rural services partnership that funds projects for communities with populations of 3,000 or less. Program staff explained that certain water and wastewater projects undergo an additional review by the Water/Wastewater Advisory Committee (WAC) to coordinate technical and funding partners.

Committee members asked about oversight and evaluation of CDBG‑funded economic development projects. AEDC said it uses a third‑party cost‑benefit tool to inform pro forma analysis for incentives and enforces semiannual or quarterly project reporting; there is not a routine independent third‑party evaluation of every funded project beyond internal reporting and the agency’s established audit and reporting processes. Members also raised eligibility questions for unincorporated areas and limited‑clientele projects (for example, projects serving the elderly or disabled), and AEDC staff explained how income surveys or census tract data determine LMI benefit for non‑city projects.

Ending: AEDC staff said they will post the draft five‑year consolidated plan for public comment in April and encouraged planning districts to consult AEDC grant staff; the committee asked AEDC to provide its presentation to staff for distribution.