Community Development Home Page

Doing Business with Community Development

Community Development  >  Doing Business with Community Development  > Funding and Financing Opportunities  > Community Development Block Grant (CDBG) funding

General CDBG Program Requirements

While there are many aspects to consider when selecting potential CDBG program activities, three key questions need to be asked and answered in order to determine if CDBG funds may be used:

Step 1 - Does the activity fit one of the categories listed as an eligible activity?

• Acquisition of Real Property
• Disposition of Real Property
• Public Facilities and Improvements
• Clearance/Demolition
• Public Services
• Relocation
• Loss of Rental Income
• Privately-owned utilities
• Rehabilitation
• Construction of Housing
• Code Enforcement
• Special Economic Development Activities
• Microenterprise Assistance
• Homeownership Assistance
• Planning and Capacity Building
• Other Miscellaneous Activities (i.e., Accessibility Improvements, Technical Assistance, Housing Assistance, etc.)

Step 2 - Does the activity fall within a category of explicitly ineligible activities, despite its apparent inclusion in an eligible activity category?

• Buildings or portions thereof, used for the General Conduct of Government
• General Government Expenses
• Political Activities
• Purchase of Equipment
• Furnishings and Personal Property
• Operating and Maintenance Expenses
• New Housing Construction
• Income Payments

Step 3 - Does the proposed activity meet one of the National Objectives of the CDBG program?

• Benefiting low- and moderate-income persons
• Preventing or eliminating slums or blight
• Meeting an urgent community development need

Additional things to consider:

• CDBG funds are intended to be used to start a new program/project, expand an existing program/project, or fund a new service of the program/project.
• CDBG funds are NOT intended to be used to fund the on-going expenses of an existing program/project.
• The County is required to ensure that a minimum of 70% of the funds are used to benefit low- and/or moderate-income persons.
• Proposed project/program costs of the activity must be necessary and reasonable, and conform to HUD requirements.
• HUD limits the amount of the grant that can be used to fund public services and/or planning projects.
• The County must ensure that funds are awarded in such a manner as to meet the goals and objectives outlined in the Consolidated Plan.