Funding to help metropolitan cities and urban counties meet their housing and community development needs.

Nature of Program: Provides annual grants on a formula basis to entitlement communities to carry out a wide range of community development activities directed toward neighborhood revitalization, economic development, and improved community facilities and services. Entitlement communities develop their own programs and funding priorities and consult with local residents before making final decisions. All CDBG activities must meet at least one of the following national objectives: benefit low- and moderate-income persons; aid in the prevention or elimination of slums and blight; or meet certain urgent community development needs. Some of the activities that can be carried out with community development block grant funds include the acquisition of real property; rehabilitation of residential and nonresidential properties; provision of public facilities and improvements, such as water and sewer, streets, and neighborhood centers; public services; clearance; homeownership assistance; and assistance to for-profit businesses for economic development activities.

To receive its annual CDBG entitlement grant, a grantee must develop and submit to HUD a Consolidated Plan (which is a jurisdiction's comprehensive planning document and application for funding under the following Community Planning and Development formula grant programs: CDBG, HOME Investment Partnerships, Housing Opportunities for Persons With AIDS (HOPWA), and Emergency Solutions Grants (ESG)). In its Consolidated Plan, the jurisdiction must identify its planned use of funds and the goals for these programs and for affordable housing. The goals then serve as the criteria against which HUD evaluates a jurisdiction's performance under the Plan. Also, the Consolidated Plan must include several required certifications. The CDBG program requires additional certifications, including that not less than 70 percent of the funds expended over a period specified by the grantee, not to exceed 3 years, and must be used for activities that benefit low- and moderate-income persons.

Grantee Eligibility: Metropolitan cities and urban counties are eligible to receive annual grants. Metropolitan cities are principal cities of Metropolitan Statistical Areas (MSAs) or other cities that have populations of at least 50,000. Generally, urban counties are counties within MSAs that have a population of 200,000 or more (excluding the population of entitlement cities within their boundaries).

Funding Distribution: From each year's CDBG appropriation that is available for formula distribution, 70 percent is allocated to metropolitan cities and urban counties. Each entitlement grant amount is determined by statutory formula, which uses several objective measures of community need, including poverty, population, housing overcrowding, age of housing, and growth lag.

Legal Authority: Title I, Housing and Community Development Act of 1974 (42 U.S.C. 5301 et seq.) (Public Law 93-383, approved August 23, 1974). Regulations are at 24 CFR part 570.

Information Sources: Local officials and HUD field offices.

On the Web: https://www.hudexchange.info/cdbg-entitlement/

Current Status: Active.