It might seem as if alternative funding sources are the fire service's Holy Grail, but they do exist. Need proof? Then check out these HUD grants and USFA reimbursements to see if your department can put them to use.

It's no secret that fire and emergency service agencies across the country are desperately seeking alternative funding sources. Volunteer departments especially are no strangers to the search for a new funding source that requires little time and effort to obtain and maintain. Unfortunately, that's pretty much a pipe dream.

So what about Community Development Block Grants? Are they just another alphabet-soup government acronym, or are they a viable alternative funding source for fire and emergency service agencies?

cdbgs are a federal program run by the U.S. Department of Housing and Urban Development. They provide eligible metropolitan cities and urban counties with annual direct grants that can be used to revitalize neighborhoods, expand affordable housing and economic opportunities, and/or improve community facilities and services, principally to benefit low- and moderate-income residents.

So far so good, right? Here are a few important facts about cdbgs:

- Over its 26-year history, the program has provided over $90 billion in funding assistance to goverments.

- cdbgs are the seventh-largest grant program in the U.S. domestic budget.

- cdbgs are the largest community development program in the federal budget.

As you can see, cdbgs have provided significant grant monies to state and local governments nation-wide for a variety of community development programs and projects. In some cases, fire departments have received these grants to build and refurbish fire stations and purchase fire and emergency apparatus.

CDBG 101 The cdbg program provides state and local governments with a flexible funding source to benefit low- and moderate-income residents, prevent or eliminate slums or blight, and meet other urgent community development needs. According to hud, the largest single use of cdbg funds has been the rehabilitation of affordable housing, but cdbgs are supporting many other local government programs and functions as well.

So who's eligible for cdbg monies? About 70% of the total cdbg allocation goes to what hud calls "entitlement communities," which are defined as local governments with 50,000 or more residents, other local governments designated as central cities of metropolitan areas, and urban counties with populations of at least 200,000. Local governments may elect to perform the services or activities, or they may choose to distribute the cdbg funds to other agencies, such as businesses or non-profit groups, to assist in the delivery of funded activities.

The remaining 30% of the total cdbg allocation goes to state governments, which can then distribute funds to smaller communities and rural areas for cdbg-approved activites. These grants are awarded competitively and administered through the state or hud field offices. Forty-eight states and Puerto Rico participate in the program; New York and Hawaii do not. In those two states, hud makes grants directly to non-entitlement communities through the hud-administered Small Cities program.

Grant applications must demonstrate how they meet the cdbg's national objectives for program funds. Funded proposals must be delivered to low- to moderate-income residents, hud's "eligible customers." Grantees must use at least 70% of cdbg funds received for activities that principally benefit this group. For state awards, eligible communities are municipalities with fewer than 50,000 residents or non-urban counties with populations of 200,000 or less.

In addition to the eligibility of recipients, hud also considers whether grants will fund eligible activities. Examples of eligible activities for entitlement communities include:

- Acquiring real property, such as land or buildings.

- Reconstructing or rehabilitating housing and other property.

- Building public facilities and improvements, such as streets, sidewalks, sewers and water systems.

- Helping people prepare for and obtain employment through education and job training.

- Assisting for-profit businesses with special economic development activities.

- Providing public services for youths, seniors or the disabled.

- Conducting crime-reduction initiatives.

- Enforcing local building codes to reverse housing deterioration and other signs of blight.

- Paying for the planning and administration of managing cdbg funds.

When considering cdbg as an alternative funding source, the key is to balance all of the eligibility components. Each element is important to the overall success of an agency or organization in obtaining cdbg funds.

Translating bureaucratese Because cdbg programs are targeted at entitlement communities and states, they're described in a certain level of "bureaucratese." Fire and emergency service agencies can get lost in this bureaucratic-speak, and they can certainly get bogged down in the accompanying paperwork. For volunteer departments with little time to maneuver these stumbling blocks, cdbgs may seem to be more trouble than they're worth. To clarify the complicated bureaucracy of the program, here are some common cdbg questions and answers.

If eligibility is defined through entitlement communities and states, where does an independent volunteer fire department fit in?

Since independent volunteer agencies or quasi-government agencies aren't eligible to receive cdbg money directly, they must pursue cdbgs through their local government. While this may seem discouraging at first, it actually simplifies the process for the department. Instead of being responsible for all the paperwork and planning documentation, departments can have someone else in the city or county government take care of it. Many local governments have offices or staff that deal with cdbg money and programs on a daily basis. Put these people to work for you.

Independent volunteer departments should work within their local government structure to gain approval to place their activities, projects or funding requests into the jurisdiction's overall plan. This planning document is the basis for cdbg funding approval for entitlement communities and states. Each local jurisdiction is different, so departments may need to do a little leg-work to find the right folks to talk to about cdbg programs and the government's plans to pursue them.

What can a fire department fund with a cdbg?

hud's eligible activities can certainly lend themselves to fire and emergency services departments. The most obvious use of cdbg funds is for building and refurbishing stations and facilities, or for purchasing fire, rescue and ems apparatus.

cdbgs are almost always used for major purchases and capital expansion or improvement. According to a hud cdbg program officer, expendable supplies and equipment are very unlikely to be accepted as eligible activities. So if you're replacing an ambulance, cdbg might be a possibility. If you're looking to purchase ems supplies like oxygen masks and iv supplies, you had best look elsewhere.

Another eligible activity is the building of public facilities and improvements, such as water systems. This is a great way to make improvements to the way fire departments do business, as well as benefit the customers and possible improve the community's iso rating. cdbgs could also provide much-needed money to pay for a rural water supply system in non-hydrant areas.

Education and job-training programs are also likely candidates. These may be an option for departments that provide training to develop an innovative program to train low- to moderate-income residents as firefighters or emts, providing departments with staffing assistance and recipients with job training for the future.

hud lists providing public services for youths, seniors or the disabled as another eligible activity. This could be a springboard for an agency to fund a new program to expand ems roles in the community with vaccinations and blood pressure checks or perhaps to target fire prevention activities for different areas of the community.

The options are limited only by your creativity and innovation. For example, one agency refurbished a station with cdbg money to become compliant with the Americans with Disabilities Act. However, departments should always consider the eligibility guidelines and the ability to meet national objectives before requesting program or activity funding.

A tale of three cities The Mercer (N.D.) Fire Department and the Palomar Mountain (Calif.) Volunteer Fire Department have both made good use of cdbgs for apparatus and station purchases. A fire protection district in Bonita, La., has also put a cdbg to good use to build two new stations and buy four refurbished pumpers and two refurbished tankers.

The Mercer (N.D.) Fire Department has successfully applied for cdbg funds twice. In 1996 they received a grant for $70,000 toward the cost of a new fire station, and early this year they requested $28,000 toward the purchase of a new fire engine, which has been approved but not yet received. In both cases, the department didn't receive the full amount for the project and had to absorb the remainder of the costs.

The Mercer Fire Department's first step was to contact their local cdbg office in Bismarck, where they were started on the path toward cdbg funds and the attendant legwork. For example, the department had to show the need for funding through income surveys that established an average household income in relation to age of residents. The department worked with the county commissioners to sponsor the application. It took four long years of re-submissions before Mercer was awarded the cdbg, at which time they were provided a case worker who helped them in administering the grant.

Mercer Fire Department leaders say that there were times they wondered if the effort required was worth it, but their hard work paid off in the end. They found the red tape and bureaucracy to be major challenges, and they also noted that the department was initially apprehensive about working with the federal government in the purchase of apparatus and equipment.

The Palomar Mountain (Calif.) Volunteer Fire Department, like the Mercer Fire Department, was able to put cdbg funds to good use in their agency. This year, the department received $197,500 for the purchase of the first new fire engine in the department's history.

The department first applied for the cdbg in November 1997, requesting $225,000 for the fire engine project. The county agency responsible for developing the cdbg plans reviewed the request, but the project wasn't selected for funding. The department then decided to pursue a smaller grant of $50,000 for a water tender, which was later recommended for funding and approved in May 1998.

Unfortunately, the department's hopes of purchasing a used tender and refurbishing it didn't account for restrictions on the use of cdbg funds for used vehicles. Since a new vehicle couldn't be purchased at the time, the department went back to the drawing board for more funds.

In October 1999, a major brush fire broke out, encompassing the southern slope of Palomar Mountain. The fire lasted for five days, burned more than 7,000 acres and took the life of a firefighter. This terrible tragedy set the tone for discussions with the local government on the urgent funding needs, giving the department new motivation for pursuing cdbg money. In November 1999, County Supervisor Bill Horn reallocated $147,500 from a previously funded cdbg project to combine with the approved $50,000 grant for the purchase of the department's first new fire engine.

The department leadership noted that while the cdbg concept seems simple - complete the paperwork and justify the need - the political process can still overpower justifiable needs. This was viewed as a major challenge by the department. However, the story has a happy ending beyond the department's new fire engine, thanks to Supervisor Dianne Jacob in San Diego County's Board of Supervisors.

This year, the county established a new trust fund dedicating $200,000 of cdbg allocations and $200,000 of general fund dollars for capital purchases and improvements for the county's volunteer fire departments. A trust fund committee reviews funding requests and makes decisions about disbursements. This innovative use of cdbgs stands to benefit all of the county's volunteer fire agencies.

Ward 10 Fire Protection District #1, Bonita, La., has been a stunning example of how cdbg programs are supposed to work. More than two years ago, the district applied for a $600,000 grant toward two new stations and six refurbished vehicles. Nine months later, they received approval for the total amount requested.

Because Bonita isn't a municipality, the district had to petition their case to the parish police jury, which then petitioned the county agency. It took an additional three months to develop the plans with engineers and caseworkers.

The money received covered the total cost of the projects, except for a meeting room in one station. A four-bay station in Bonita and a two-bay satellite station were completed early this year. Four refurbished pumpers and two tankers built from 18-wheelers were received in June.

Richard Polk, board member of Ward 10 Fire Protection District #1, said that while the process was long and drawn out, with a lot of legwork and even more paperwork, the benefits outweighed any hassles involved. According to Polk, the volunteer department receives only $22,000 in tax money annually, which wouldn't be enough for the district to purchase even one refurbished vehicle.

To cdbg or not to cdbg? The answer is as different as each community and each fire department. cdbgs are certainly a viable alternative funding option, but they require a close link with the authority having jurisdiction. Departments should be prepared to justify why their programs should be funded relative to the cdbg criteria for eligible customers, eligible activities and national objectives.

They say that life is a mystery, and that's especially true when it comes to rooting out those federal programs from which the fire service can benefit. Still, some of life's greatest moments are uncovering its mysteries.

In my short time at the U.S. Fire Administration, I've uncovered one of those mysteries and discovered a federal program that few in the fire service realize exists: Reimbursement for Costs of Firefighting on Federal Property (44 cfr Ch. 1, Subchapter c, Part 151, 10-1-98 edition). Simply put, this program allows a fire department to submit a claim directly to the usfa for the cost associated with fighting fire on federal property.

This program has been available to the fire service since the Federal Fire Prevention and Control Act of 1974. When I was chief of the Marietta (Ga.) Fire Department, our department fought fire on federal property many times, such as the C-130 crash at Dobbins Air Force Base or any number of woods fires at the Kennesaw Mountain National Battlefield. Although we delivered the service, we never knew that we could submit a claim for a portion of those costs.

Yes, it's true. If your fire department provides firefighting services to a federally owned office, base, installation, building, forest or other property holding, your department may be eligible to obtain reimbursement for certain costs. Reimbursement is available only if fire on federal property has been fought and the department has sustained certain kinds of losses.

This is not a grants program, and it's not authorization for federal agencies to enter into contracts with local fire agencies. In most cases, fire protection must be provided at no charge to federal property, as long as it isn't under federal-exclusive jurisdiction and is within the area over which a department normally provides protection.

The information necessary to support a claim can be described by answering five basic questions: who, what, when, where and how.

Who? Only the fire department may be claimants. Neither cities nor private citizens can submit claims unless they're acting on behalf of the fire department. Eligible fire departments include career, combination and volunteer, as well as public or private non-profits. This issue is predicated on the claimant organization consisting of personnel, apparatus and equipment with the purpose of protecting property and maintaining the safety and welfare of the public from fire.

When? Claimants have only 90 days after the fire in which to submit a claim. This is important. Claims submitted after 90 days do not meet the requirement for consideration.

Where? Claims may be submitted only for the costs incurred firefighting on federal property, which is defined as property the federal government holds title to. This doesn't include property rented by the government.

What? Reimbursement is available for direct expenses and direct losses that are additional firefighting costs over and above normal operating costs. The costs and losses that can be reimbursed include: loss or damage to equipment and/or apparatus based on the depreciated, not replacement, value; fuel expended; repair costs; and overtime pay. No reimbursement is available for costs related to employee deaths and injuries, depreciation, normal maintenance, ordinary salaries, and administrative activities.

Claimants may submit their costs in terms of set rates for vehicle usage, based on time and mileage. This is acceptable if the rate is consistent with the fire department's usual accounting and as long as each element of the charge would be reimbursed if charged separately when delivering the service.

How? The regulation indicates what must be part of a complete claim. It requires such information as the fire report, proof of federal ownership and information on mutual aid agreements. Contact information for both the fire department and the affected local federal official should be provided in case additional information is needed.

The usfa processes only about 12 claims for reimbursement annually, which means that either federally owned property has a superior fire prevention record or that few in the fire service know about this program. I personally think it's the latter.

Part of the usfa's responsibility is assisting the nation's fire service in taking advantage of programs designed to assist in fulfilling their duties. Although such programs are few and far between, this is one of them. In 1974, your elected officials displayed their appreciation of local fire services through the creation of this program. Take advantage of their generosity.

The best source for information about cdbgs is hud's Web site at , which lists the state offices and field offices where departments can obtain contact information. Research publications and other reports are available by calling 800-245-2691.

Departments can also use their own networks to find out if a neighboring agency has pursued or received cdbgs. They can be a tremendous help because of their prior experience with the process.

For more information about Mercer Fire Department's experience with cdbgs, contact Byron Fiedler at the Mercer Fire Department, 968 Eighth Ave. N.W., Mercer, N.D. 58559, .

To learn about Palomar Mountain Volunteer Fire Department's and San Diego County's experiences with cdbg, contact Chief Karl Bauer at Palomar Mountain Fire Department, P.O. Box 235, Palomar Mountain, Calif. 92060, .

For more information about Bonita, La., contact Richard Polk, Ward 10 Fire Protection District #1, 15265 Lake Shore Drive, Bonita, La. 71223.