Community Development Block Grant (CDBG)
The Community Development Block Grant (CDBG) Entitlement Program provides annual grants on a formula basis to entitled cities and counties to develop viable urban communities by providing decent housing and a suitable living environment, and by expanding economic opportunities, principally for low and moderate-income persons. The program is authorized under Title one of the Housing and Community Development (HUD) Act of 1974, Public Law 93-383, as amended; 42 United States Code-5301 et seq.
HUD awards grants to entitlement community grantees to carry out a wide range of community development activities directed toward revitalizing neighborhoods, economic development, and providing improved community facilities and services.
Entitlement communities develop their own programs and funding priorities. However, grantees must give maximum feasible priority to activities which benefit low- and moderate-income persons. A grantee may also carry out activities which aid in the prevention or elimination of slums or blight. Additionally, grantees may fund activities when the grantee certifies that the activities meet other community development needs having a particular urgency because existing conditions pose a serious and immediate threat to the health or welfare of the community where other financial resources are not available to meet such needs. CDBG funds may not be used for activities which do not meet one of these national objectives.
CDBG funds may be used for activities which include, but are not limited to:
- Acquisition of real property
- Activities relating to energy conservation and renewable energy resources
- Construction of public facilities and improvements, such as water and sewer facilities, streets, neighborhood centers, and the conversion of school buildings for eligible purposes
- Provision of assistance to profit-motivated businesses to carry out economic development and job creation/retention activities
- Public services, within certain limits
- Rehabilitation of residential and non-residential structures
- Relocation and demolition
Each activity must meet one of the following national objectives for the program:
- Address community development needs having a particular urgency because existing conditions pose a serious and immediate threat to the health or welfare of the community for which other funding is not available
- Benefit low- and moderate-income persons
- Prevention or elimination of slums or blight
Generally, the following types of activities are ineligible:
- Acquisition, construction, or reconstruction of buildings for the general conduct of government, Political activities, certain income payments, Construction of new housing (with some exceptions), Eligible Beneficiaries
- Over a 1, 2, or 3-year period, as selected by the grantee, not less than 70% of CDBG funds must be used for activities that benefit low- and moderate-income persons.
- HUD does not provide CDBG assistance directly to individuals, businesses, nonprofit or organizations or other non-governmental entities. If you are interested in participating in this program, you need to contact your local municipal or county officials to find out how the program operates in your area. Participation requirements may differ from 1 grantee to another.