The Community Development Block Grant program is funded by the U.S. Department of Housing and Urban Development (HUD), and the State of Alabama has administered the program since 1982.
The program is available to all non-entitlement communities (those not receiving direct funds from HUD) that meet applicable thresholds.
All projects must meet one of the three national objectives:
- Benefit at least 51% low and moderate income persons
- Aid in the prevention or clearance of slum and blight
- Meet an urgent need
The State is required to write an action plan each year for approval by HUD that shows how the State intends to distribute the funds. Since the beginning, Alabama has distributed the majority of funds through competition among communities.
Types of Program Funds
- Competitive Fund
- Community Enhancement Fund
- Planning Fund
- Economic Development Fund
ADECA annually awards CDBG money for the Large City, Small City and County categories. Applicants are scored based on several competitive factors including community need, cost efficiency, appropriateness and impact. Applications deadlines are announced during the annual workshop in the first quarter of the year.
Competitive categories are:
- Small City Fund (3,000 or less population)
- Large City Fund (>3,000 population)
- County Fund
The Small City and County funds both have ceilings of $350,000. The Large City fund has a ceiling of $450,000.
- Water and sewer extensions and rehabilitation
- Housing rehabilitation
- Neighborhood & downtown revitalization
- Street and drainage improvements
Community Enhancement Fund
This fund is available to all eligible communities to use for projects that address quality of life issues. Application deadline is announced during the annual workshop in the first quarter of the year.
Grant Ceiling: $250,000
- Fire protection
- Senior citizens centers
- Community centers
- Boys & girls clubs
- Recreational facilities, etc.
CED administers a small Planning Fund that allows communities to develop communitywide comprehensive plans and downtown revitalization plans.
Economic Development Fund (ED)
The ED Infrastructure Fund is available to all eligible communities for projects supporting the creation or retention of jobs. Applicants for ED assistance should have a commitment from the business to create or retain 15 or more jobs. The business should fall within the SIC codes 20-39 or provide a significant economic benefit. Projects must not include intrastate relocation. The program is available on a continuous funding cycle. A 20 percent local match is required, and construction cannot begin prior to grant award or release of environmental conditions.
Grant Ceiling: $200,000 (can be waived)
Typical activities: water, sewer, or road improvements; rail spurs, docks, etc.
- Economic Development Incubator ($250,000)
- Economic Development Float Loans ($10 million)