Community Development Block Grant Program (CDBG)

Community Development Block Grant Program (CDBG)

Program Overview

The Community Development Block Grant (CDBG) program provides resources for neighborhood improvement needs. The CDBG program was established by the Housing and Community Development Act of 1974. The program is one of the longest run programs by the U.S. Department of Housing and Urban Development (HUD). The CDBG program provides 1,209 annual grants to local and State governments. These funds are used to ensure decent affordable housing, to provide services to the most vulnerable in our communities, and to create jobs through the expansion and retention of businesses. CDBG funds can provide financing for infrastructure (for example, roads and sidewalks), housing, economic development, public service, real property acquisition, and administrative costs. Important terms to understand regarding the CDBG program are “entitlement” and “non-entitlement” communities. Entitlement communities are central cities[1] of Metropolitan areas and urban counties.[2] Non-entitlement communities are small cities and non-urban areas.[3] There are nine CDBG program areas, including the Neighborhood Stabilization Program (NSP) which revitalizes areas by buying and renovating foreclosed homes (see NSP fact sheet).

CDBG Requirements

Recipients of CDBG funds must not spend less than 70 percent of CDBG funds on activities that benefit low- and moderate-income persons (i.e. their income may not exceed 50 percent or 80 percent respectively, of the area median income). Each activity must meet one of the following: benefit low and moderate income persons, prevent or eliminate slums or blight, or address community development needs having a particular urgency because existing conditions pose a serious and immediate threat to the health or welfare of the community for with other funding is not available. Recipients of CDBG funds must also develop and follow a detailed plan that provides for and encourages citizen participation.

CDBG Recovery Funds (CDBG-R)

CDBG-R funds are CDBG funds that are distributed by the American Recovery and Reinvestment Act (ARRA). CDBG-R projects were appropriated $1 billion in funding under ARRA. The difference between CDBG funds and CDGB-R funds is that CDBG-R funds are to support projects that generate jobs in the near future

and create a foundation for future economic growth. HUD has announced that CDBG-R funds will be distributed in the following manner:

• Public Facilities and Improvements – 55% (20% water and sewer; 20% streets and roads; 15% public facilities)
• Housing:15%
• Public Services :10%
• Economic Development:10%
• Administration:10%

New YorkState Context

The State of New York has been awarded $12.9 million in CDBG-R funds for non-entitlement communities in 2009. New York City received $48,315,183 in CDBG-R entitlement funds. The deadline to apply for CDBG-R funds in New York was April 2009.

The New York office of Community Renewal is responsible for determining who receives CDBG funds.

Allocation of CDGB-R Funds for New York

* Source

Discussion Questions

1) Can CDBG funds be used to benefit your community? If so, how?

2) Have you seen the CDBG funds already distributed benefiting your community?

3) How can we organize around fair distribution and use of CDBG funds?

Resources and Contacts

Resources

HUD Community Development Program Website

HUD.gov’s CDBG Recovery Website

New York’s CDBG Recovery Overview

New YorkState Division of Housing and Community Renewal

HUD’s ARRA CDGB Plan

Contacts

Call the office of Community Renewal if you have any questions about how CDBG funds are being distributed in New YorkState

Joe Rabito, Director

New YorkState Office of Community Renewal

HamptonPlaza

38-40 State Street, 9th Floor

Albany, New York12207

Phone: (518) 474-2057

For contact information for entitlement cities, counties, and towns in New YorkState please to go:

[1] Central cities of Metropolitan Statistical areas are identified by the Census. Central cities are the largest cities in each metropolitanpopulation of at least 50,000.

[2] Urban counties are counties with a population of 200,000 or more.

[3] Small cities are cities with populations less than 50,000.