Community Development Block Grants (CDBG)
Federal Agency
Sub-Department
Community Planning and Development
Purpose
To develop viable urban communities by providing decent housing, a suitable living environment, and expand economic opportunities for low- and moderate-income persons.
Applicant and/or Project Eligibility Requirements
CDBG funds may be used for activities that include, but are not limited to: acquisition of real property, relocation and demolition, rehabilitation of residential and non-residential structures, construction of public facilities and improvements, such as water and sewer facilities, streets, neighborhood centers, and the conversion of school buildings for eligible purposes, public services, within certain limits, activities relating to energy conservation and renewable energy resources, provision of assistance to profit-motivated businesses to carry out economic development and job creation/retention activities.
Decarbonization Considerations
CDBG funds remain one of the most versatile and well-known funding streams utilized by state and local governments. The ability to acquire, develop, rehabilitate, relocate real property assets in conjunction with eligibility to use funds for energy and renewable energy creates a vital, recurring and dependable source of public funds for physical assets. Local and state program administrators have significant opportunity to influence and guide funding towards: new construction of public facilities that with net-zero energy performance and resilience systems; development and implementation of energy efficiency programs for municipal buildings and more broadly to commercial and residential sectors; investment in clean energy projects serving municipal operations and essential community services; and workforce development and job training programs surrounding community solar and other renewable energy resources
Equity Considerations
A grantee must develop and follow a detailed plan which provides for, and encourages, citizen participation and which emphasizes participation by persons of low- or moderate-income, particularly residents of predominantly low- and moderate-income neighborhoods, slum or blighted areas, and areas in which the grantee proposes to use CDBG funds.
Helpful Tips
Each activity must meet one of the following national objectives for the program: benefit low- and moderate-income persons, prevention or elimination of slums or blight, or 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.
Other Notes
See here for FY23 allocations: https://www.hud.gov/program_offices/comm_planning/budget/fy23 HUD has published a Proposed Rule which would enable much needed revisions and updates to the requirements governing the Community Development Block Grant (CDBG) and Indian CDBG (ICDBG) programs. See here for more details: https://www.federalregister.gov/documents/2024/01/10/2024-00039/submission-for-community-development-block-grant-program-consolidated-plans-and-indian-community