Community and Economic Development Division
The Community and Economic Development Division is home to several diverse ADECA programs that assist communities across Alabama to complete vital projects that improve the quality of life. These programs include the Community Development Block Grant program, which is one of the more popular and well-known grant programs in Alabama.
Community Development Block Grants
Through Gov. Kay Ivey, ADECA awards Community Development Block Grants to assist Alabama municipalities and counties with projects that create jobs, address traditional infrastructure needs, and enhance the quality of life. The funds are made available to the state by the U.S. Department of Housing and Urban Development.
The majority of CDBG awards are used for road, water and sewer projects as well as the removal of blight and slum conditions.
Annual competitive grants are awarded in several categories, including small cities (populations of 3,000 and below), large cities (populations of 3,001 and above), counties (projects mainly in unincorporated areas), community enhancement (special pro-jects beyond infrastructure), and planning grants (to help municipalities map out goals and plans).
In 2025, Gov. Ivey awarded nearly $5 million in CDBG Economic Development funds for 14 projects. Among those projects was a $400,000 grant to the city of Andalusia to help Conecuh Sausage Co. Inc, an Alabama food icon, construct a 102,000-square-foot food manufacturing plant. CDBG funds were used to provide sewer and water services to the plant, which employs 50 people. See the video below:
Another CDBG program, used sparingly, is the urgent need fund. This fund assists communities with emergency situations like road or bridge washouts and collapses and urgent water failures that need immediate assistance.
In 2025, Governor Ivey awarded the city of Scottsboro a $600,000 urgent need CDBG to reroute a damaged storm drainage pipe that was causing flooding in the downtown area.
When major disasters strike, CDBG funds can be specially appropriated at the federal level. In recent years, Alabama has received storm relief funding for Selma, Dallas County and Autauga County following tornado-related damage in 2023. ADECA has received about $18 million which will be used to provide single-family housing repair and reconstruction through the Home Recovery Alabama Program – Tornado Recovery. The program opened for applications in November 2025.
Other CED Programs
Emergency Solutions Grant Program
In 2025, Governor Kay Ivey awarded $2.7 million in Emergency Solutions Grants to aid in the fight against homelessness in Alabama.
The funds, from the U.S. Department of Housing and Urban Development, were awarded to 11 local governments and nonprofit agencies to provide housing and related services to individuals experiencing homelessness or at risk of homelessness, including victims of abuse who must leave their homes to protect them-selves and their children.
Healthy Food Financing Program
The Healthy Food Financing Program was established by the Alabama Legislature to assist Alabamians who lack ready access to grocery stores or food stands in both rural and urban environments where they can buy fresh and healthy foods.
Projects awarded by the program include food trucks, pantries, neighborhood grocery stores and fruit and vegetable stands. Recently, Healthy Food grants were awarded to the Madison County Commission in support of a 26-acre community garden and distribution center where local residents and students at Alabama A&M University assist people in growing fresh vegetables.
A Healthy Foods award to the Madison County Commission helped to establish a community vegetable garden with help from volunteers and Alabama A&M University.
State Legislative Appropriation Grants
Each year, the Alabama Legislature appropriates funds to be awarded cities, towns and nonprofit organizations for various projects. Those funds are housed at ADECA until awarded.
In 2025, the Legislature provided funds to the Alabama Association of Regional Councils to assist local governments with identified needs. Funds generally go to projects like infrastructure needs, park upgrades, renovation of historic buildings and law enforcement equipment.
Office of Minority Business Enterprises
The office provides certifications to qualified women- and minority-owned businesses. Certification can help in allowing business-es to compete for government-related contracts.
To be eligible, business owners must apply and submit required documentation for review. OMBE updated its policies and procedures in 2024. Since that time, 66 certificates have been awarded.
Housing Opportunities for Persons with AIDS
This program provides housing assistance and supportive services to low-income individuals affected or disabled by HIV/AIDS as well as their families. HOPWA ensures those receiving the services have access to necessary medical care and services.
Next: Federal Initiatives and Recreation Division
