Community Development Block Grant (CDBG)

The Community Development Block Grant (CDBG) is appropriated annually by Congress in the form of a grant to each state and some localities.

There are three national objectives, of which at least one must be addressed by the program:

  1. Benefit low- and moderate-income people
  2. Eliminate or prevent slums and blight
  3. Meet an urgent community need

At least 70 percent of CDBG funds must be used for the welfare of low- and moderate-income persons by stimulating better housing and community and economic development.

The following activities may be addressed by CDBG funds:

  • Housing rehabilitation
  • Housing construction
  • Purchase of land and/or buildings
  • Building public facilities, such as homeless shelters
  • Building neighborhood centers
  • Certain funds for assisting persons displaced due to CDBG projects
  • Modifying buildings so that they are accessible to the elderly and/or handicapped
  • Certain limited public services, such as vocational services for people with disabilities

HUD establishes a formula for allocating the disbursement of funds based on size of "entitlement communities." Factors such as extent of poverty, population size, housing, overcrowding, age of housing, and population growth rate are considered. Funds may be disbursed to rural areas as well. Each "entitlement community" must also have a HUD-approved Consolidated Plan (ConPlan), depicting long-range plans and trends and how CDBG dollars will be used.

Click here for the HUD link to determine income status.