Funding to help U.S. territories meet their housing and community development needs.
Nature of Program: Provides annual grants to four U.S. territories to carry out a wide range of
community development activities directed toward neighborhood revitalization, economic
development, and improved community facilities and services.
Insular areas 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. The
activities that can be carried out with community development 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;
clearance, demolition and removal of buildings and improvements; homeownership assistance;
and assistance to for-profit businesses for economic development activities. No less than 70
percent of the funds expended over a period specified by the grantee, not to exceed 3 years, must
be used for activities that benefit low- and moderate-income persons.
Grantee Eligibility: American Samoa, Guam, the U.S. Virgin Islands, and the Commonwealth
of the Northern Marianas Islands are eligible recipients. (The Commonwealth of Puerto Rico
receives funding under the State CDBG program.)
Funding Distribution: Under Section 106(a)(2) of the Housing and Community Development
Act of 1974, $7 million of the annual CDBG appropriation is allocated for grants to insular areas.
Legal Authority: Title I, Housing and Community Development Act (HCDA) of 1974
(42 U.S.C. 5301 et seq.) (Public Law 93-383, approved August 22, 1974).
Regulations are at 24 CFR part 570.
Information Sources: Local officials and HUD field offices.
On the Web:
https://www.hudexchange.info/programs/cdbg-insular-areas/
Current Status: Active.
