Doc Meister - Hud LMI & Distressed/Not Distressed Status & Denali Commission Sustainability Criteria

for Chignik Bay Community Plan

Hud LMI & Distressed/Not Distressed Status & Denali Commission Sustainability Criteria (ID: 1466)

Funding organizations such as the U.S. Department of Housing and Urban Department (HUD) and the Denali Commission(DC)use family income levels to determine the required local cost share on projects.

The Denali Commission adopted the Distressed Community Criteria as part of its project funding evaluation. The following criteria are used to determine if a community is distressed:

1. Per capita market income no greater than 67% of the U.S. Average.
2. 150% of the U.S. Average or greater of Poverty Rate.
3. 3 year unemployment rate at 150 percent of the U.S. average or greater or have twice the U.S. poverty rate and qualify on one other indicator.

DC may fund up to 80% of a project for communities that are designated as distressed and up to 50% of a project for communities determined to be undistressed. Since Chignik is currently designated as a non-distressed community, Chignik Bay may not receive more than 50% for a project funded by DC. Chignik Bay has petitioned the Denali Commission for a review of its undistressed status and has requested the Denali Commission to increase its pro-rated share of funding.

The Indian Community Development Block Grant Program sponsored by HUD uses low-and-moderate income percentages as one of the criteria to determine if a project benefits the neediest population and should be funded. Projects benefitting communities with higher LMI percentages receive more points in the evaluation process than those benefitting communities with lower LMI percentages.

The economic status of the residents of Chignik Bay has decreased significantly since the recent fisheries disasters. The Chignik Bay Tribal Council conducted door-to-door surveys to identify the current demographic and income levels of the community. The results of the surveys show Chignik Bay has a Low-and-Moderate Income (LMI) percentage of 87% which is much higher than the 53% published by the Housing and Urban Development (HUD).