CDBG - Community Development Block Grant

On August 22, 1974, President Gerald R. Ford signed a law creating one of HUD’s hallmark programs – the Community Development Block Grant (CDBG) Program. Title I of the Housing and Community Development Act of 1974 merged seven individual competitive grant programs into a block grant providing local communities the flexibility to decide for themselves how best to meet their own community development needs.

For the next 40 years, thousands of cities, urban counties and rural communities have come to rely upon this critical resource, investing $144 billion to undertake a wide variety of activities from improving public facilities to producing affordable housing. Each year, CDBG funds are distributed to state and local governments according to their population, poverty, and other housing variables.

CDBG’s impact can be measured in every corner of the U.S. and in the lives of millions of Americans, 95% of whom are low- to moderate-income citizens. Last year alone, the program allowed state and local governments to help nearly 28,000 individuals to find permanent employment or to keep the full-time jobs they have. CDBG also supported the rehabilitation of nearly 95,000 homes and financed public improvement projects that benefitted an estimated 3.3 million residents in communities from coast to coast.

http://www.onecpd.info/onecpd/assets/File/fy2014-formula-allocations-ct.xlsx 

The Community Development Block Grant Program - Fact Sheet

Basic Program Components

• The CDBG Program is authorized by Title I of the Housing and Community Development Act of 1974. The funds are a block grant that can be used to address critical and unmet community needs including those for housing rehabilitation, public facilities, infrastructure, economic development, public services, and more.
• Primary objective is to develop viable urban and rural communities, by expanding economic opportunities and improving the quality of life, principally for persons of low and moderate income.
• Since 1974, it has invested $144 Billion in communities nationwide.
• Appropriation level has varied over the 40 year program history – (3.10 B for FY 2014).
• Individual Community determines the need and use of funds.
• Each year approximately 95% of funds are invested in activities that primarily benefit low and moderate income persons.
• For FY 2014 there are 1220 grantees including cities, counties, states, and insular areas, and non-entitlement counties in Hawaii. However, potential reach is to every community either directly or indirectly—more than 7,250 local governments have access to funding.
• CDBG is an important catalyst for economic growth- helping local officials leverage funds for community needs.
2013 CDBG Program Accomplishments
• Nearly 28,000 Americans found new permanent jobs or were able to retain their jobs at businesses supported by CDBG economic development activities;
• More than 94,300 housing units received some level of housing rehabilitation assistance;
• More than 7,250 local governments, including more than 2,500 rural communities, participated in CDBG through the entitlement, urban county, or state programs; and
• More than 9.8 million people live in areas which benefited from CDBG-funded public service activities and almost 3.3 million live in areas which benefited from CDBG-financed public improvements.

Historic Program Outcomes by Category

Job Creation and Retention
o From fiscal year 2004-2013, CDBG economic development activities have directly created or retained more than 421,183 permanent jobs.
o Between fiscal years 2007-2013 CDBG helped more than 232,000 businesses expand economic opportunities for our country’s most vulnerable citizens.

Public Facilities and Public Services
o CDBG grantees historically expend one-third of their funds annually on public improvements.
o CDBG has improved public facilities that benefitted more than 33.7 million people between fiscal years 2005 and 2013. These improvements assist in providing the critical elements for suitable physical environments including sanitary water and sewer systems, safe streets and transit-ways, improved drainage systems, and other improvements that support our communities and help grow local economies.
o Up to 15 percent of CDBG funds can also be used by local governments on important public services. These investments assist the most vulnerable populations in a community, including children, the homeless, and victims of domestic violence. For low- and moderate-income families, these are life-changing services.
Housing Activities
o Grantees historically spend approximately one quarter of their CDBG funds for housing activities, with the most significant activity being owner-occupied rehabilitation.
o From fiscal year 2004-2013 more than 1.3 million homes have been rehabilitated for low- and moderate-income homeowners and renters
o In fiscal year 2013, more than 94,000 households received housing assistance, ranging from minor emergency housing repairs enabling elderly and infirm residents to remain in their own homes to weatherization improvements that result in more affordable energy bills.

The Community Development Block Grant (CDBG) Program- Frequently Asked Questions

1. What is the overall mission of the Community Development Block Grant (CDBG) Program?

The CDBG program, authorized by Title I of the Housing and Community Development Act of 1974, 
provides annual grants to cities, counties and states to develop strong communities by providing 
decent housing, a suitable living environment, and expanding economic opportunities, principally 
for low- and moderate-income persons. CDBG eligible activities are initiated and developed at the 
state and local level based upon a community’s needs, priorities, and benefits.


2. What are the requirements for the use of the CDBG funds?

Each grantee receiving CDBG funds is free to determine what activities it will fund as long as 
certain requirements are met, including that each activity is eligible and meets one of the 
following national objectives: benefits persons of low and moderate income; aids in the prevention 
or elimination of slums or blight; or meets an urgent development need which is defined as posing a 
serious and immediate threat to the health or welfare of the community in the past 18 months, and 
that the grantee is unable to finance on its own nor with other funding sources. Other Federal 
requirements such as environmental, labor standards, fair housing, nondiscrimination, also apply to 
the use of CDBG funds.


3. What is the overall appropriation level for this program and how much has been invested in 
communities since the program’s authorization in 1974?

The appropriation level has varied over the 40 year program history. The level is $3.10 B for FY 
2014. Since 1974, CDBG has invested $144 billion in communities nationwide.


4. How many grantees across the nation will receive funding this year, Fiscal Year 2014?

There are currently 1,220 CDBG grantees that are receiving funding throughout the United States 
directly from HUD including cities, counties, states, insular areas, and non-entitlement counties 
in Hawaii. However, the potential reach is to every community either directly or indirectly—more 
than 7,250 local governments have access to funding.


5. Does CDBG fund the local government, organizations or individuals?

CDBG funds states, metropolitan cities and urban counties directly. Organizations and individuals 
cannot receive funds directly from HUD, but can apply for funding through their local government 
agency.


6. Can citizens participate in the planning/decision-making process around the use of CDBG funds?

CDBG-funded projects have a better chance of success when citizens are involved from the beginning. 
The CDBG law requires that 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, information, and records 
related to the grantee's proposed and actual use of funds.


7. What types of activities does the CDBG program fund?

CDBG funds 28 eligible activities that include infrastructure, economic development projects, 
installation of public facilities, community centers, housing rehabilitation, public services, 
clearance/acquisition, microenterprise assistance, code enforcement, and homeowner assistance, to 
name a few.


8. What types of activities are most frequently funded with CDBG monies?

Historically, CDBG grantees expend one-third of their funds on public facilities and improvement 
projects. CDBG has improved public facilities that benefitted more than 33.7 million people 
between fiscal years 2005 and 2013. Infrastructure projects such as sewer systems, sanitary water, 
safe streets and transit-ways, improved drainage systems, community centers and public parks, and 
other improvements that support our communities and help grow local economies.


9. How Does the CDBG Program Support Economic Growth and Recovery?

From fiscal year 2004 to fiscal year 2013, CDBG economic development activities have directly 
created or retained more than 421,183 permanent jobs. In addition, grantees provide financial 
assistance to businesses as loan and grants and the recipients use the CDBG assistance to expand 
economic opportunities and create permanent jobs, primarily for low and moderate income Americans. 
Between fiscal years 2007-2013, CDBG helped more than 232,000 businesses expand economic 
opportunities for our country’s most vulnerable citizens.


10. I need my home rehabilitated? Will CDBG pay for that?

You will need to contact your local grantee to find out if the grantee is using CDBG funds for 
housing rehabilitation and for any program requirements.


11. How many homes have been rehabilitated using CDBG funds?

From fiscal year 2004-2013, more than 1.3 million homes have been rehabilitated for low- and 
moderate-income homeowners and renters. In Fiscal year 2013 alone, more than 94,000 households 
received CDBG funding for some level of housing rehabilitation assistance ranging from emergency 
repairs to enable elderly and infirm residents to remain in their own homes to weatherization 
improvements that result in more affordable energy bills.


12. Can you leverage other funds with CDBG dollars and how is this done?

CDBG funds can be leveraged with other Federal, state, local or private funds to increase the 
impact of the funds. Facing local budget shortfalls, CDBG funding remains a crucial source of 
funding that helps communities leverage funds for key infrastructure and economic development 
projects. On projects where leveraging was reported for the fiscal years of 2010-2012, grantees 
reported that every dollar of CDBG funds leveraged an additional $4.07 of other funds.


13. How does CDBG’s Section 108 Program work with economic developers who want to leverage jobs 
with other funds and to create jobs?

The Section 108 Program is the loan guarantee provision of the Community Development Block Grant 
(CDBG) program that provides states and communities with a source of financing for economic 
development, housing rehabilitation, public facilities, and large-scale development projects. This 
makes it one of the most important public investment tools that HUD offers to states and local 
governments. It allows them to transform a small portion of their CDBG funds into federally 
guaranteed loans large enough to pursue economic revitalization projects that can renew entire 
neighborhoods.


Such public investment is often needed to inspire private economic activity, providing the initial 
resources or simply the confidence that private firms and individuals may need to invest in 
distressed areas. Section 108 loans are not risk-free, however; local governments borrowing funds 
guaranteed by Section 108 must pledge their current and future CDBG allocations to cover the loan 
amount as security for the loan. For more information about the Section 108 program go to: 
https://www.onecpd.info/section-108/



14. How do I contact a CDBG grantee to find out if funding is available or to support a project 
where I live?

The following link provides a listing of all the CDBG grantees that currently receive funding 
directly from HUD:
http://portal.hud.gov/hudportal/HUD?src=/program_offices/comm_planning/about/budget/budget14

15. How can a private citizen find out the projects that have received CDBG
funding in their community?

Interested persons can check the CDBG grantee’s website for activities that were funded that 
program year and in some cases, in prior years. Please see the website below for the grantee 
contact information: 
http://portal.hud.gov/hudportal/HUD?src=/program_offices/comm_planning/communitydevelopment/ 
programs/contacts


16. Where can I learn more about the CDBG Program?

To learn more about the Community Development Block Grant Program, click on the following links: 
https://www.onecpd.info/cdbg-entitlement/
https://www.onecpd.info/cdbg-state/