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
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