CDBG FAQ

What is CDBG?

The Community Development Block Grant (CDBG) is a program offering funding to towns, cities and counties through the U.S. Department of Housing and Urban Development (HUD). Grants are not provided to individuals or entitlement communities, and must meet a National Objective.

Many questions can be answered in the Application Manual.

Who can apply?

Communities consisting of small/large towns or cities, and counties. Individuals are not eligible nor are entitlement communities.

What are the Non-Entitlement Communities?​

CDBG funds cannot be awarded to entitlement communities as follows: Anniston, Auburn, Bessemer, Birmingham, Decatur, Dothan, Florence, Gadsden, Hoover, Huntsville, Mobile, Montgomery, Opelika, and Tuscaloosa, and the counties of Jefferson and Mobile. Please contact local or county economic development offices for funding opportunities.

What are the three National Objectives to be met?

1. LMI – To benefit low and moderate income persons, of which at least 51% must be from low and moderate income households, except for single family housing activities which must benefit 100% low and moderate income households;

2. Slum and Blight – To aid in the prevention or elimination of slums and blight; or,

3. Urgent Need – To meet other urgent community needs posing a serious and immediate threat to the health or welfare of the community where other financial resources are not available.

What are the three Performance Goals?

1. Create suitable living environments;

2. Provide decent affordable housing;

3. Create economic opportunities.

Community Must show ability to achieve or improve one of the three outcomes:

1. Improve availability or accessibility of units or services;

2. Improve affordability of housing or other services;

3. Improve sustainability by promoting viable communities.

What types of grants are available?

Complete information can be found in the Application Manual.

How much are the awards?

Please see the Application Manual or download the PY 2015 CDBG Action Plan.

Who decides funding amount each year and when?

HUD determines the amount awarded each year to CBDG, which is then allocated to the different types of Funds, State Administration/Planning, and State Technical Assistance.

How often and when are the awards made?

HUD announces the awards to each year, usually in the spring. No applications can be accepted or funding awarded prior to this time and not until CDBG has complied with HUD guidelines for awarding funding.

How do I apply?

For Application guidelines and forms, please see the Application Manual

Where do I find information on Grant Management?

Please see the Application Manual Tab 2 for more information or download the CDBG Management Firms and CDBG Planning Firms.

What happens to any leftover funds – is that money available?

Any leftover funds are typically awarded during the yearly grant application process by transferring remaining monies from one fund to another that needs a small amount to allow a project to be funded. Only Economic Development money is awarded throughout the year.

Is a community eligible if it repaid funds to CDBG for a project that did not materialize?

Most likely the community can still apply for future funding, but please confer with the Division Chief for your community’s particular situation.

Our Town/City has concerns with the way our grant is being managed. What do we do?

Please consult your CDBG Program Supervisor to determine the best resolution.

Our Town/City just closed out a project earlier this year. Are we eligible for current funding?

Community should be as the project was closed by CDBG as of March 31 of that year. Please consult your program supervisor if unsure of the date it was closed. Also, there is a threshold table in the Application Manual (Tab 1) for other exceptions.

Our Town/City has a Disaster or NSP project open. Are we eligible for current CDBG funding?

Open Disaster or NSP projects do not prohibit communities from applying for the current competitive CDBG grant year. If there is a concern, please consult your program supervisor.

My Grant Management firm is not included with CDBG. How can I get it listed?

Please use the contact document page to email the Administrative Assistant to be added to the list found in the CDBG Management Firms and CDBG Planning Firms.

Where do I find allowable Administrative Costs for a grant?

Download this PDF Doc or please see the Application Manual Tab 2 for more information.

Where do I find approved fees for Professional Engineering Services for a grant?

Please see the Application Manual Tab 2 for more information.