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

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. Additional funds, for the Recovery Housing Program, made available beginning when the fiscal year 2020 annual formula appropriation was passed, were for activities authorized under Section 8071 of the SUPPORT for Patients and Communities Act.

Forty-nine State governments and the Commonwealth of Puerto Rico receive funds from HUD under this program. The District of Columbia is funded under the CDBG Entitlement Program. The State of Hawaii does not participate and HUD allocates the state's share of funds to the three Hawaii non-entitled counties. Funds are allocated to each state based on a statutory formula. States must distribute the funds to units of general local government in nonentitlement areas. Recovery Housing Program funds are allocated according to a provision and funding formula separate from the Housing and Community Development Act funding formula and that does not include every State.

The principal beneficiaries of CDBG funds are low- and moderate- income persons. For non-metropolitan areas, low- and moderate- income is generally defined as 80 percent of the median income for non-metropolitan areas of the State or of the county, whichever is higher, adjusted for family size. For eligible localities in metropolitan areas, low- and moderate-income is generally defined as 80 percent of the median income for the metropolitan area, adjusted for family size. HUD does not provide CDBG assistance directly to individuals, businesses, nonprofit organizations, or other non-governmental entities. This assistance is provided through state and local governments.

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.

Assistance is provided to States and non-entitlement counties in Hawaii on an annual basis. Individual States may impose time limitations on the implementation of grants to recipients.

States must submit a Consolidated Plan meeting the requirements of 24 CFR Part 91 to HUD Field Office. 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 after the State or non-entitled Hawaii county submits its Consolidated Plan, annual action plan and Certifications.

For formula grants in the 2025 fiscal year, Annual Action Plans associated with the Consolidated Plan must be submitted based on a grantee's program year, but 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.

The procedure is described in regulations (24 CFR Part 570 Subpart I for states and 24 CFR Part 570 Subpart O for non-entitlement counties in Hawaii).