COMMUNITY DEVELOPMENT BLOCK GRANTS PROGRAM

The Community Development Block Grant program (CDBG) helps local units of government realize their potential by providing funds necessary to ensure basic community services, environmental quality and economic opportunities for their residents. The state CDBG Program makes funds available to local units of government, with the exception of entitlement cities, that show a genuine need for specific projects and can meet the program’s state and federal eligibility requirements. In accordance with the Community Development Act of 1974, as amended, project activities must meet at least one of the following national objectives:

  • Benefit low- and moderate-income persons;
  • Aid in the prevention or elimination of slums or blight;
  • Meet urgent needs because existing conditions pose a serious and immediate threat to the health or welfare of the community and other financial resources are not available to meet such needs.

A local unit of government may apply for CDBG funds in the Public Facilities and Economic Development categories.

The Public Facilities category makes available funding for public improvements such as water, wastewater, drainage, streets and certain public buildings. This category includes a regular competition for funds as well as Small Government and Emergency.

Some Public Facilities projects may be funded under the stringent Urgent Needs/Emergencies national objective. An Urgent Needs/Emergencies project must prove a particular urgency because existing conditions pose a serious and immediate threat to the health or welfare of the community and meet other criteria such as the date of occurrence of the emergency condition.

The Economic Development category provides funding to the local units of government for eligible infrastructure improvements such as water, sewer and access roads in support of business start-ups and expansions. Job creation is key to CDBG-assisted economic development.

CDBG Economic Development Program

The CDBG Economic Development Grant Program is available to fund publicly owned infrastructure. Funding from this program can be used by municipalities and counties to assist with the location, expansion or retention of businesses. Usage of the funds must be directly related to the construction, renovation or expansion of industry.

Examples of Eligible Projects

  • Drainage systems
  • Water and sewer systems
  • Roads, bridges and rail spurs
  • Buildings (rehabilitation/expansion)

Program Facts

Job creation is the goal of the Community Development Grant Economic Development Program. CDBG requires that at least 51% of the jobs created must be made available to persons of low and moderate income as determined by the U.S. Department of Housing and Urban Development. Industries that are typically eligible under this program include:

  • Manufacturers
  • Warehouses and distribution centers
  • Research and development facilities
  • Telecommunications and data processing facilities
  • National or regional headquarters

Municipalities and counties must apply on behalf of industry based on the public infrastructure needs of the project. The Community Development Block Grant Economic Development Program provides for a maximum grant amount per project of $20,000 per job or up to $2,500,000.

Upon review, the Community Services Division will make a decision about whether or not to invite an application. Only invited applications will be considered due to the limited amount of funds available. The letter inviting an application will state the amount of funds that may be requested.

CDBG Public Facilities

The Community Development Block Grant Program (CDBG) is a grant program that is available to fund publicly owned infrastructure for community-based projects. Funding from this program can be used by municipalities and counties.

Examples of Eligible Projects

  • Drainage systems
  • Water and sewer systems
  • Roads and bridges
  • Buildings

Program Facts

CDBG requires that at least 51% of the persons benefited must be persons of low and moderate income as determined by the U.S. Department of Housing and Urban Development.

Municipalities and counties are awarded grants based on a competitive process. The Community Development Block Grant Public Facilities Program provides for a maximum grant amount per project of $600,000 for cities and counties with a population greater than 3,500 people and $450,000 for cities and counties with a population under 3,500.

Submission Date

Applications are taken annually and awarded on a competitive basis. Fund availability is determined annually from the One Year Action Plan.

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