Community Development Block Grants/State’s program and Non-Entitlement Grants in Hawaii

Thirty percent of the funds available for distribution under each annual appropriation for the CDBG program is allocated among the States and Puerto Rico for nonentitlement areas, areas not designated as metropolitan cities or part of urban counties. All States except Hawaii administer these CDBG funds for nonentitlement areas. In Hawaii, the state's share of these funds is awarded by HUD to the three non-entitlement counties by formula. States are required to distribute CDBG funds to units of general local government, such as counties and towns, for community development activities funded by the State. Specific activities that can be carried out with block grant funds include: Acquisition, rehabilitation or construction of certain public works facilities and improvements, such as streets, water and sewer facilities, neighborhood centers, recreation facilities, and other public works; demolition and clearance; rehabilitation of public and private buildings including housing; code enforcement; relocation payments and assistance; economic development; planning activities; certain public services with some restrictions; and administrative expenses. The projected use of funds must align with one of the three national objectives. Communities receiving CDBG funds may select subgrantees to execute approved projects, which could include neighborhood-based nonprofit organizations, local development corporations, or other organizations addressing nonentitlement needs. Grant recipients may assist for-profit entities if they support an appropriate economic development project. However, communities cannot construct or rehabilitate facilities for government operations or provide housing allowances. Each State may use a limited portion of its grant to administer the program, with a matching requirement, and to give technical assistance to local governments and nonprofit recipients without a matching requirement.
The CDBG-CV program provides grants to states, insular areas, and local governments to prevent, prepare for, and respond to the spread of COVID-19.
The RHP provides funding for states and the District of Columbia to provide stable, transitional housing for individuals in recovery from a substance use disorder. The funding covers a period of not more than two years or until the individual secures permanent housing, whichever is earlier.

Activities must meet the public benefit standards; the overall benefit to low- to moderate-income persons; the maximum allowable costs for administration, technical assistance, and overall planning, management and administration; and the maximum allowable costs for public service activities, pursuant to the Housing and Community Development Act.

To be eligible, costs must be necessary and reasonable for the proper accomplishment of the work; be allocable in accordance with the cost principles; conform to the limitations set forth in the grant agreement, be consistent with recipient and subrecipient policies and procedures; and be adequately documented.