Community Development Block Grant (CDBG) Programs

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Community Development activities include many different programs that provide assistance to a wide variety of grantees. Begun in 1974, the Community Development Block Grant (CDBG) is one of the oldest programs in HUD. The CDBG program provides annual grants on a formula basis to many different types of grantees through several programs like:

	Entitlement Communities The program provides annual grants on a formula basis to entitled cities and counties to develop viable urban communities by providing decent housing and a suitable living environment, and by expanding economic opportunities, principally for low- and moderate-income persons.
	State Administered CDBG States participating in the CDBG Program award grants only to units of general local government that carry out development activities. Annually each State develops funding priorities and criteria for selecting projects.
	Section 108 Loan Guarantee Program (Section 108 Program) Community Development Block Grant (CDBG) entitlement communities are eligible to apply for a guarantee from the Section 108 Loan Guarantee program. CDBG non-entitlement communities may also apply, provided that their State agrees to pledge the CDBG funds necessary to secure the loan. Non-entitlement applicants may receive their loan guarantee directly or designate another eligible public entity such as an industrial development authority, to receive it and carry out the Section 108 assisted project.
	HUD Administered Small Cities HUD's Hawaii State Office at Honolulu directly administers the CDBG program for non-entitlement areas in the State of Hawaii.
	Insular Areas The Insular Areas CDBG program provides grants to four designated areas: American Samoa; Guam; Northern Mariana Islands; and the Virgin Islands.
	Disaster Recovery Assistance HUD provides flexible grants to help cities, counties, and States recover from Presidentially declared disasters, especially in low-income areas, subject to availability of supplemental appropriations.
	Colonias Texas, Arizona, California and New Mexico set aside up to 10 percent of their State CDBG funds for use in colonias.

Another program, Renewal Communities/ Empowerment Zones/ Enterprise Communities (RC/EZ/EC) is an innovative approach to revitalization, bringing communities together through public and private partnerships to attract the investment necessary for sustainable economic and community development.

HUD determines the amount of each grant by a formula which uses several objective measures of community needs, including the extent of poverty, population, housing overcrowding, age of housing and population growth lag in relationship to other metropolitan areas.

Citizen Participation
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. The plan must provide citizens with reasonable and timely access to local meetings, an opportunity to review proposed activities and to review program performance; provide for timely written answers to written complaints and grievances; and identify how the needs of non-English speaking residents will be met in the case of public hearings where a significant number of non-English speaking residents can be reasonably expected to participate.

Eligible Activities
Over a 1, 2, or 3 year period selected by the grantee not less than 70% of the CDBG funds must be used for activities that benefit low- and moderate-income persons. All activities must meet one of the following national objectives for the program: benefit low- and moderate-income persons, prevention or elimination of slums or blight, community development needs having a particular urgency because existing conditions pose a serious and immediate threat to the health or welfare of the community.