Description

The Community Development Block Grant(CDBG) program is a federally funded formula block grant providing direct funding to entitlement communities, which are generally metropolitan cities and urban counties. The money must be used for the prevention and elimination of slums, the benefit of low-to-moderate-income families, and other community development needs. A wide range of activities are included in the program objectives, including revitalization of neighborhoods, economic development, and providing improved community facilities and services.

Entitlement areas which are cities with populations more than 50,000 and counties with populations greater than 200,000 receive direct funding from the federal government. In some cases cities with populations with less than 50,000 may be included (cities that have been designated the central city in an MSA.) HUD determines the amount given to each entitlement community based on a statutory formula that takes into account poverty levels, population, and the need for housing and other community development projects.

For areas that do not meet the population criteria for entitlement communities, 49 states have elected to participate in the State Administered CDBG program (Hawaii does not participate.) States then are responsible for carrying out the program objectives in non-entitlement communities. HUD distributes funds to each state based on a statutory formula as mentioned above.

Eligible Activities

As mentioned, CDBG funds can be used for a wide-range of activities that include but are not limited to:

Acquisition of real property;

Relocation and demolition;

Construction of public facilities and improvements, such as water and waste facilities;

Planning activities;

Infrastructure (streets, sidewalks, water systems, sewar)

Rehabilitation of residential and non-residential structures (including manufactured homes).

Compliance Issues and Application Process

Each year entitlement communities must submit to HUD a "Consolidated Plan" which is the jurisdiction’s comprehensive document identifying the use planned for the requested funds. States are required to certify as well that they have a plan for distribution of funds, and that they have consulted with the local units of government that are the intended recipients of the funds.

HUD does not provide funding directly to citizens. If you are interested, contact your local municipal or county economic development office for more information, or your respective state agency.