Community Development Block Grants/Entitlement Grants

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

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.

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.

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.

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.

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.

Program of assistance is for an annual activities, but activities generally may be continued beyond one year until they are deemed completed.

Executive Order 12372 is applicable only where a recipient proposes to use funds for the planning or construction (reconstruction or installation) of water or sewer facilities.

HUD will provide funds based on the formula allocations after the grantee submits its Consolidated Plan, annual action plan and Certifications.

For formula grants in the 2026 fiscal year, Annual Action Plans associated with the Consolidated Plan must be submitted based on the grantee's program year, but no earlier than the date allocations are announced and no later than August 16, 2026.

HUD will review plan submissions for completeness and consistency with the purposes of the Act, within 45 days of receipt from a grantee.

Every 3 to 5 years, localities submit a new Consolidated Plan. For each year of a Consolidated Plan, localities submit an Annual Action Plan and program certifications.

Administrative appeals process followed if entitlement grant funds are withheld or reduced, for reasons other than timely performance, or repayment proposed for non-compliance or non-performance.