Community Development Block Grants/Entitlement Grants
Program Funding
Annual program obligations reported to SAM.gov.
Program Objective
The primary objective of this program is the development of viable urban communities by providing decent housing, a suitable living environment, and expanding economic opportunities, principally for persons of low- and moderate-income. Each activity funded must meet one of the program's National Objectives by: Benefiting low- and moderate-income families; aiding in the prevention or elimination of slums or blight; or meeting 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.
Eligibility
Eligible Applicants
- U.S. Territory Government
- Municipality/Township Government
- County Government
Recipients are cities in Metropolitan Areas designated by OMB as a central city of the Metropolitan Area; principal cities of Metropolitan Areas with populations of less than 50,000; other cities over 50,000 in population in Metropolitan Areas; and qualified urban counties of at least 200,000 (excluding the population in entitlement cities located within the boundaries of such counties) are eligible to receive CDBG entitlement grants determined by a statutory formula.
Beneficiaries
- Unrestricted by Individual Type
- Unrestricted by Entity Type
The principal beneficiaries of CDBG funds are low- and moderate-income persons (generally defined as a member of a family having an income equal to or less than the Section 8 low income limit established by HUD). The recipient must certify that at least 70 percent of the grant funds received during a 1, 2, or 3-year period, that it designates, are expended for activities that will principally benefit low- and moderate-income persons.
How to Apply
Award Procedure
HUD will provide funds based on the formula allocations after the grantee submits its Consolidated Plan, annual action plan and Certifications.
HUD will review plan submissions for completeness and consistency with the purposes of the Act, within 45 days of receipt from a grantee.
Program details & compliance
Description
The overall CDBG program objective is to develop viable urban communities by providing decent housing, a suitable living environment, and expanding economic opportunities, principally for persons of low and moderate income. Funds made available under an emergency appropriation on March 27, 2020, known as CDBG-CV, are to be used similarly, but specifically to prevent, prepare for, and respond to coronavirus.
Mission Categories
Primary: Construction, Renewal and Operations
Other categories:
Economic DevelopmentHomebuying, HomeownershipPublic AssistanceConstruction Rehabilitation
Use of Funds
Allowed Uses
Recipient communities may undertake a wide range of community-based activities directed toward neighborhood revitalization, economic development, and community services, facilities, and improvements. Entitlement communities develop their programs and set their funding priorities in conformance with the statutory standards, program regulations, and other federal requirements. Specific activities that can be carried out with Community Development Block Grant (CDBG) funds include acquisition of real property; relocation; clearance and demolition; rehabilitation of residential and nonresidential structures; provision of public facilities and improvements, such as water and sewer facilities (which require reviews by the State single point of contact or a Regional Planning Agency in accordance with Executive Order 12372), streets, and neighborhood centers. Within program limitations, CDBG funds can also pay for public services. Recipients may provide assistance to microenterprises or other for-profit entities when the recipient determines that such assistance is appropriate to carry out an economic development project. Community-based development organizations may carry out neighborhood revitalization, community economic development, or energy conservation activities. Each CDBG eligible activity must meet one of three national objectives: benefit low- and moderate-income persons, aid in the prevention or elimination of slums or blight, or meet other community development needs having a particular urgency that the grantee is unable to finance on its own.
Restrictions
Recipients may only carry out eligible activities as listed in 24 CFR 570.201-207 or the statute. Recipients may contract with other local agencies or nonprofit organizations to carry out part or all of their programs. Community-based development organizations may carry out neighborhood revitalization, community economic development or energy conservation projects to further achieve the national objectives of the CDBG program. All eligible activities must either benefit low-and moderate-income persons, aid in the prevention or elimination of slums or blight, or meet other community development needs having a particular urgency that the grantee is unable to finance on its own. Entitlement communities develop their own programs and funding priorities as long as programs/activities conform to the statutory standards and program regulations.
Required Documentation
Recipients must certify they will meet program requirements and applicable federal requirements.
Reporting & Compliance
Applicable 2 CFR 200 Subparts
- Subpart B — General Provisions
- Subpart C — Pre-Federal Award Requirements
- Subpart D — Post-Federal Award Requirements
- Subpart E — Cost Principles
- Subpart F — Audit Requirements
Formula
Entitlement grant amounts are determined by formula