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 Wisconsin, 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.
Funds are divided into the following program categories:
- Public Facilities Program (CDBG-PF) - These funds help support infrastructure and facility projects for communities. Some examples of eligible projects include improvements, repairs, or expansions of streets, drainage systems, water and sewer systems, sidewalks, and community centers.
- Economic Development Program (CDBG-ED) - These funds help support local governments to assist businesses to create or retain jobs for individuals with low and moderate incomes. Examples of eligible projects include: business loans to expand facilities or purchase equipment, specialized employee training, or business infrastructure projects.
- Public Facilities-Economic Development Program (CDBG-PFED) - These funds help support public infrastructure projects that support business expansion or retention. Examples of eligible applications include: new or improved water & sewer service and streets that result in business expansion and job opportunities for low- and moderate-income individuals.
- Planning Program (CDBG-PLNG) - These grant funds support community efforts to address improving community opportunities and vitality. Some examples of eligible projects include the development of comprehensive plans, community development plans, and small area and neighborhood plans.
- CDBG Emergency Assistance Program (CDBG-EAP) -This grant fund program assists communities recover from a recent natural or manmade disaster. Eligible activities include repair of disaster related damage to dwellings, assistance to purchase replacement dwellings, and repair and restoration of public infrastructure and facilities.
- CDBG Rural Economic and Area Development Initiative (CDBG-READI) - Grant funds are awarded to local governments that intend to grant funds to certified Community Development Organizations for economic, housing and job training projects that benefit low- and moderate income individuals. Eligible projects must include both an economic development component as well as a housing component. Applicants are encouraged to include a job training component as well.
- CDBG Affordable Housing - These grant funds help communities improve and expand the supply of affordable housing for low- to moderate-income families through no-interest, deferred loans. Eligible activities include housing rehab and homeownership assistance.
2021 awards are available to view here: https://doa.wi.gov/DECHR/CDBG%202021%20Awards_7-23-21.pdf.
Numerous activities are not eligible for CDBG funding. They include but are not limited to debt payment, operation and maintenance expenses, purchase of equipment, construction activities related to the general operation of government (i.e., city hall renovations unless for the sole purpose of accessibility) and any activity that does not meet one of the three HUD national objectives listed under the CDBG description.