The Community Development Block Grant

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Arkansas Community & Economic Development Grant Program

Community Development Block Grant (CDBG) in 3 minutes

Community Development Block Grant States Program for Small CitiesJuly 1, 2022 June 30, 20232023 Allocation: $18,438,878

Guidelines and Application

Complete information regarding each programs application and selection criteria will be made available online. Application guidelines will provide specific details on the application questions, deadlines for completing applications, threshold requirements, and any other necessary items. Application workshops will be held throughout the program year.

1. Guidelines

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Applications for the FY2021-2022 Community Development Block Grant are now closed. Questions regarding the status of your CDBG application can be directed to the Clay County Community Services Department through the following methods: By phone at 529-4256, between the hours of 8:30 a.m. and 4:30 p.m., Monday through Friday, excluding.

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The City of Montgomery is an entitlement city in its twenty-third year of participation in the U.S. Department of Housing and Urban Development CommunityDevelopmentBlockGrant Program. During this time, approximately $67 million has been awarded to the City. The grant funds have assisted extremely low, very low, and low-income.

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What Is A Community Development Block Grant

The Community Development Block Grant program provides federal funding for projects to improve the quality of life for people with low or moderate incomes, revitalize urban centers, and address the urgent health and safety needs of low-income communities. The CDBG program has been continuously administered by the U.S. Department of Housing and Urban Development since 1974, making it one of HUDs longest-running community improvement and housing affordability programs.

Must Community Development Block Grant Projects Be Completed In A Certain Amount Of Time

Hilltown Community Development Block Grant fully funded

Essentially, yes. To ensure rapid and effective use of CDBG funds, HUD annually assesses the progress of each CDBG project using a timeliness test. HUD determines timeliness 60 days before the end of the CDBG program year by comparing the total amount of a projects outstanding line of credit to its annual budgeted amount. If the ratio exceeds 1.5, HUD deems the project “untimely.”

The first time a CDBG project is untimely, it has 12 months to correct its spending and advance the project. If there is a second finding of untimeliness that does not fall within one out of two exceptions, HUD reduces the line of credit to bring the credit/budget ratio back to 1.5. The only allowable exceptions are if:

  • At the time of the second timeliness measurement, the program was spending money at a rate that would bring it into compliance before the subsequent annual measurement.
  • The failure arose from circumstances out of the CDBG recipients control.
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    Cdbg Entitlement Program Eligibility Requirements

    The Community Development Block Grant Entitlement Program provides annual grants on a formula basis to entitled cities and counties to develop viable urban communities by providing decent housing and a suitable living environment, and by expanding economic opportunities, principally for low- and moderate-income persons. The program is authorized under Title 1 of the Housing and Community Development Act of 1974, Public Law 93-383, as amended 42 U.S.C. 5301 et seq.

    HUD awards grants to entitlement community grantees to carry out a wide range of community development activities directed toward revitalizing neighborhoods, economic development, and providing improved community facilities and services.

    Entitlement communities develop their own programs and funding priorities. However, grantees must give maximum feasible priority to activities which benefit low- and moderate-income persons. A grantee may also carry out activities which aid in the prevention or elimination of slums or blight. Additionally, grantees may fund activities when the grantee certifies that the activities meet other community development needs having a particular urgency because existing conditions pose a serious and immediate threat to the health or welfare of the community where other financial resources are not available to meet such needs. CDBG funds may not be used for activities which do not meet one of these national objectives.

    Eligibility For Community Development Block Grants

    Private companies, nonprofit organizations, and individuals are not eligible for CDBG funds. Instead, CDBG applicants must fall into one of the following categories:

    • Principal cities of the 384 metropolitan statistical areas
    • Other metropolitan cities with populations of 50,000 or more
    • Qualified urban counties with populations of 200,000 or more
    • States and insular areas

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    Employment Or Job Activities

    These are activities that result in the creation or retention of permanent jobs. These activities can address well-known disparities in career opportunities for traditionally underrepresented minority groups. To qualify, low- to moderate-income persons must hold at least 51% of the associated jobs on a full-time equivalent basis, or the positions must be available to them.

    Community Development Block Grant

    $475K available in Community Development Block Grants

    The Community Development Fund awards grants to communities throughout the Commonwealth. This program helps eligible cities and towns to meet a broad range of community development needs in housing, infrastructure, revitalization, economic development and public social services. It supports CDBG eligible activities and encourages applicants to develop coordinated, integrated and creative solutions to local problems.


    Municipalities were selected to be Mini-Entitlement communities through on a formula calculation based on a high statistical indication of need, poverty rate and size.

    DHCD announced a NOFA on 5/15/20 through CommBuys for State CDBG-CV funds. The NOFA and additional documents are attached below. Applications are due by close of business June 12, 2020. DHCD will continue to accept applications after this date with first consideration for those submitted by June 12. Application decisions are expected within 1-2 weeks of submission.

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    Caper Draft For Public Comment

    The Consolidated Plan Advisory Board has prepared the Consolidated Annual Performance and Evaluation Report for the Program year July 1, 2021 through June 30, 2022. The draft of the report is available for public review and comment and may be viewed here.

    The CAPER is the annual review of the States performance in meeting the goals and objectives identified in the 2020-2024 Consolidated Plan and Program Year 2021 Annual Action Plan. Note that the CAPER also includes the State CDBG Performance and Evaluation Report for the Arkansas Community Development Block Grant Program . Written comments may be addressed to Arkansas Economic Development Commission, Grants Division, 1 Commerce Way, Suite 601, Little Rock, Arkansas 72202, or emailed to Jean Noble at Comments will be accepted between 8:00 AM September 11, 2022, and 5:00 PM, September 26, 2022. Any comments received will be summarized and incorporated into the CAPER.

    The PR28 IDIS Activity Summary is required per HUD Notice CPD-21-11. Because of its length, it is provided as an electronic file to the Little Rock HUD Field Office and can be viewed here.

    Community Development Block Grant Program

    CDBG partners with rural cities and counties to improve the lives of their low- and moderate-income residents through the creation and expansion of community and economic development opportunities in support of livable communities.

    HUD Objective: The primary federal objective of the CDBG program is the development of viable urban communities by providing decent housing and a suitable living environment and through expanding economic opportunities, principally, for persons of low- and moderate-income. Persons of low and moderate income are defined as families, households, and individuals whose incomes do not exceed 80 percent of the county median income, adjusted for family or household size.

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    Community Development Block Grant Policy Committee

    The CDBG Policy Committee is comprised of 7 elected officials, one from each of the 7 Association of Governments . The policy committee meets 2 â 3 times per year to approve program policy changes and updates. These policies are published in the CDBG Application Policies and Procedures book and also the CDBG Grantee Handbook. Click here for further information, meeting agendas and minutes.

    Fiscal Year 2022 Funding Opportunities Forecast

    Event Calendar List View

    The Department of Housing and Urban Development NOFA Forecast list below identifies competitive grant opportunities that may be available for Fiscal Year 2022. The inclusion or exclusion of an opportunity in the listing below does not constitute a guarantee that a specific opportunity will become available or not be available. Forecast opportunities are subject to change based on enactment of Congressional appropriations and other considerations.

    When funding is available, HUD will issue a Notice of Funding Opportunity , which will be published on and HUDs Funds Opportunities webpage will be updated to indication NOFO has been published. Each NOFA will provide guidance on how to apply for funding.

    Office of Community Planning and Development

    • Community Compass Technical Assistance and Capacity Building Program
    • Section 4 Capacity Building for Community Development and Affordable Housing Program
    • FY22-23 Rural Capacity Building for Community Development and Affordable Housing Program
    • Self-Help Homeownership Opportunity Program
    • Continuum of Care
    • Supplemental NOFO for Continuum of Care to Address Unsheltered and Rural Homelessness
    • Veterans’ Home Rehabilitation Program

    Office of Fair Housing and Equal Opportunity

    Office of Healthy Homes Lead Hazard Control

    Office of Housing

    Office of Policy Development and Research

    Office of Public and Indian Housing

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    Relations With Other Programs

    The CDBG shares some features of the Urban Development Action Grants . UDAG, along with urban renewal and other previous federal attempts to alleviate poverty and blight in US cities, was criticized as being a “top-down” approach. For these programs, federal planners would dictate how and where funds were spent. In contrast, CDBG was constructed to be a “bottom-up” approach.

    In order to receive CDBG funds, applicants must identify urgent needs of the community, and solicit project ideas and plans from citizens and local organizations that address those needs. Thus, the CDBG program represents a significant shift in how the federal government addresses poverty and blight. Some researchers argue that because CDBG is a bottom-up program it is significantly more successful than previous programs. Others have said CDBG’s scope of allowed activities is too broad, making it difficult to measure program performance.

    Community Development Block Grants

    The goals of the Alaska Community Development Block Grant Program are to provide financial resources to Alaskan communities for public facilities and planning activities which address issues detrimental to the health and safety of local residents and to reduce the costs of essential community services. The program may also fund Special Economic Development activities which result in the creation of jobs for low and moderate income persons.

    CDBG competitive grants are single-purpose project grants maximum of $850,000 per community. There are three basic funding categories: community development, planning and Special Economic Development.

    CDBG programs utilize the resources of the Community Development Block Grant program funded by the U.S. Department of Housing and Urban Development . Approximately $2.5 million is available for competitive grants for the Federal Fiscal Year 22 grant cycle.

    Any Alaskan municipal government is eligible to apply for the grants. Non-profits may apply as co-applicants for these pass-through funds. In a typical year, applications are distributed to municipalities in late fall, and awards are made the following spring. Federal regulations require 51 percent of the persons who benefit from a funded project must be low and moderate income persons as defined by HUD.

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    What Is The Community Development Block Grant Program

    • The Community Development Block Grant program provides funding on an annual basis for local projects that address a variety of housing, public service, and community development needs.
    • Eligible applicants for CDBG funds include local nonprofit organizations and local government entities in Loudoun County or those mainly serving Loudoun County residents.
    • Organizations within the community can compete for these funds through an annual application process.
    • Proposed projects should address the goals of the CDBG program, which include providing affordable housing opportunities, revitalizing neighborhoods, renovating substandard housing, providing public services and expanding economic development opportunities, primarily for persons of low and moderate income.
    • The funds must be used based on guidelines outlined by the U.S. Department of Housing and Urban Development.

    Training And Technical Assistance

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    HCD recently created a playlist on HCD’s main YouTube channel that contains recordings of trainings and workshops on a variety of topics. Please visit the CDBG Workshops and Trainings Playlist to see the full list of trainings available.

    Weekly Office Hours: Wednesday Mornings at 10:00 AM. Registration is required. Please go to 2022 CDBG Office Hours Zoom Registration to register .

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    Eligible Activities To Meet National Objectives

    • Public Facilities and Improvements: acquisition, construction, or rehabilitation of municipally-owned facilities, except as noted below and facilities used by the public such as homeless shelters, domestic violence shelters, halfway houses, group homes, temporary shelters for disaster victims, and handicap accessibility improvements at those facilities.
    • Public Services programs that assist eligible populations with services such as job training and employment, child care, health care, drug abuse, education, fair housing, energy conservation, recreation, and crime prevention .
    • Removal of Architectural Barriers: special projects to increase accessibility for those with disabilities.
    • Housing: projects involving acquisition, construction, rehabilitation, energy conservation, water conservation, housing program delivery costs, and code enforcement.
    • Historic Preservation: not eligible except for buildings utilized for the general conduct of government.
    • Economic Development: acquisition, construction, rehabilitation of commercial or industrial buildings or structures, assistance to for-profit and non-profit entities necessary and appropriate, special or community economic development activities that provide a public benefit, loans/grants, job creation/retention, job training, micro-enterprise assistance.

    Public Facilities And Services

    The availability of adequate public infrastructure and services is a crucial aspect of community development. Using CDBG funds, grantees can build new public facilities such as community centers and special-needs facilities or improve existing facilitiesfor example, by improving accessibility for physically disabled community residents.

    CDBG grantees may also use funds to address community economic, health, and welfare needs through investment in public services. Job-training programs, employment services, substance-abuse treatment programs, child care services, and crime prevention are just some of the services eligible for CDBG funds.

    Public services can account for no more than 15% of the total annual community development block grant allocation.

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    Travis County Cdbg Service Area Map

    The Travis County CDBG Service Area includes all of unincorporated Travis County* and several other jurisdictions, which vary between program years, as follows:

    • For projects receiving PY19 funding : All of unincorporated Travis County and all areas of San Leanna and Webberville.
    • For projects receiving PY20 funding: All of unincorporated Travis County and all areas of Creedmoor, Lago Vista, San Leanna, Webberville, and West Lake Hills.
    • For projects receiving PY21 & PY22 funding: All of unincorporated Travis County and all areas of Bee Cave, Creedmoor, Lago Vista, San Leanna, Webberville, and West Lake Hills.

    You can also view an interactive version of the map, which is searchable by address or zip code, and includes data showing the concentrations of low-to-moderate income population, race & ethnicity data, and Commissioner Precincts.

    Potential To Decrease Disparities: Supported By Some Evidence

    Brittney Smith, MSW

    There is some evidence that Community Development Block Grants reduce disparities in neighborhood quality and housing stability between urban communities with high and low incomes2, 5. Specifically, higher CDBG spending per resident living in poverty is associated with increases in the number of businesses and mortgage approval rates in urban communities5. More research is needed to confirm how CDBGs impact disparities in community development.

    CDBGs are recommended to help reduce disparities in well-being between neighborhoods20. The Community Development Block Grant CARES Act program focuses on improving equity in response to the disproportionate impact of the COVID-19 pandemic on the health conditions of communities composed of people of color with lower incomes21. However, CDBG funds are not always used equitably, and in some cases, there have been funding misallocations that result in greater benefits to residents with higher incomes than those with lower incomes22. Experts suggest that program funds should be allocated with greater consideration for who benefits the most22.

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    Ineligible Communities And Counties

    Entitlement cities of Salt Lake, Provo, Orem, Ogden, Layton, Logan, Clearfield, Sandy, St. George, Taylorsville, West Jordan, West Valley, Lehi and the urban counties of Utah, Salt Lake and Davis have similar programs designated for their areas and are not eligible for the State Small Cities Community Development Block Grant Program. These cities and counties are funded directly by HUD.

    How Do Community Development Block Grant Recipients Prove They Are Meeting National Goals

    CDBG grantees must provide reports on the impact of their projects. HUD requires that grantees provide reporting in several key areas:

    • How much money they obtain and use from other federal, state, local, and private sources for each CDBG activity
    • The number of persons, households, or businesses affected by the CDBG funds
    • The income level for persons or households by 30%, 50%, or 80% of the area’s median income. For CDBG activities with specific requirements about the number of low- to moderate-income persons or households receiving benefits from the project, reporting should include both the total number and the number of low- to moderate-income recipients.
    • For limited clientele projects focused on issues such as race, ethnicity, or disability, grantees must report the relevant data.

    There are 18 additional performance criteria that potentially apply, depending on the type of CDBG activity.

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    What Happens If A Community Development Block Grant Project Makes Money

    In certain situations, the recipients of a CDBG grant may generate income from their investment of CDBG funds. Program income may be generated from the sale, rental, or lease of property acquired using CDBG funds. If a grantee and its sub-recipients receive more than $25,000 in a single year, all of these receipts count as program income.

    Grantees generally must use program income before taking any additional funds from the CDBG line of credit. The calculation of program income includes several exclusions and can be somewhat complicated.

    It is important to note that though it is acceptable to charge fees for using a public facility constructed or improved with CDBG funds, there are limits. The fees must be reasonable and cannot defeat the purpose of the CDBG by preventing low- to moderate-income individuals from accessing the facility.

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