The Community Development Block Grant (CDBG) program provides flexible funding to carry out a wide range of community development activities directed toward neighborhood revitalization, economic development, and improved community facilities/services. Beginning in 1974, the CDBG program is one of the longest continuously run programs at HUD. All CDBG-funded activities must meet one of the following national objectives: (1) Benefit low- and moderate-income persons; (2) Aid in the prevention or elimination of slums and blight; or (3) Meet certain community development needs having a particular urgency.
In California, CDBG funds may be utilized to address construction or renovation of various infrastructure projects such as water, wastewater and solid waste facilities, streets, and flood control projects; construction or improvements of a range of community facilities such as senior, health and social services centers; expansion of public services to serve low-income persons; creation of new jobs through small business loans or infrastructure improvements; and various affordable housing projects including home reconstruction, rehabilitation or repair programs.
Funding is divided into the following categories:
- Community Development Allocation (CD) - Activities include Community Development, Native American, Colonia, Planning and Technical Assistance
- Economic Development Allocation (ED) - Programs include:
- Over-the-Counter (OTC) - Creation or retention of jobs for low-income workers. May include loans or loan guarantees to businesses for construction, on-site improvements, equipment purchase, working capital and site acquisition. May also include loans for business start-ups, grants for publicly-owned infrastructure and loans or grants for small business incubators.
- Enterprise Fund - Loans to businesses for working capital, land acquisition, equipment purchase, inventory purchase, debt restructuring and other direct assistance. Grants to support businesses by providing water and sewer services, access roads and other public facilities. Microenterprise funds may provide credit, general support (i.e., childcare, transportation, etc.) or technical assistance for persons developing microenterprises.
- Business Assistance
- Microenterprise Assistance
- Planning and Technical Assistance - Studies and plans for economic development activities that meet CDBG national objectives and provide principal benefit to low-income persons.
- Disaster Recovery Initiative (DRI) / Disaster Recovery Enhancement Fund (DREF)
- Colonia Set-Aside
- Native American Tribe Set-Aside
For FY23:
This is a limited NOFA. Funding will only be made available to shovel ready Projects from the OTC waitlisted Projects (Waitlist) submitted under the 2019-2020 NOFA.
- Waitlist will have 60 days from the application open date to submit a complete application.
- After the 60-day period, the application will close, and no additional applications or changes will be accepted.
- Awards will be made on a first-come, first-served basis.
- Applicants will only be allowed to apply for up to the originally applied for amount of funds. Any cost increases must be covered by other funding sources or the scope must be reduced to fit within the available budget.
- All Applicant Projects must pass threshold, including sufficiently demonstrating readiness as detailed in the threshold section of this NOFA.
- There is expected to be sufficient funding available to fund all waitlisted projects, but projects will only be funded if they meet threshold requirements prior to the application deadline.
Successful 2020 applicants may be viewed at: https://www.hcd.ca.gov/grants-funding/active-funding/cdbg/docs/CDBG_CV2_3_Awards_Rounds_1_%202.pdf