What Community Development Block Grants Are

A Community Development Block Grant (CDBG) is federal money that goes to cities and counties to pay for local projects — housing repair, infrastructure, job training, or services for low-income residents. The U.S. Department of Housing and Urban Development (HUD) distributes the money, but your city or county decides what to fund and who receives it. You do not send money to the federal government; you work with your local CDBG administrator, usually in the planning or community development department.

The program has existed since 1974 and operates in most cities with populations over 50,000, plus many smaller towns that choose to participate. Each jurisdiction sets its own rules about what projects get funded and how residents can benefit. This means the same grant program works differently depending on where you live.

CDBG money typically goes toward projects rather than direct payments to individuals. A city might use it to repair homes for elderly residents, build a community center, or fund a job training program. If you benefit, it is usually because you live in a neighborhood the city has chosen to invest in, or because you meet income limits for a specific program the grant is funding.

Key Takeaways

  • CDBG funds come from the federal government but are managed by your city or county, so the projects funded and rules for participation vary by location.
  • Most CDBG money goes toward neighborhood improvements, housing, or services rather than direct cash payments to individuals.
  • To find out what your area is funding, contact your city or county planning department, community development office, or check the jurisdiction's website for the annual CDBG plan.
  • Income limits explore to many CDBG-funded programs, usually set at 50 to 80 percent of the area median income depending on the project type.
  • Projects funded through CDBG are public information, so you can see what was approved and what is coming next in your community.

How CDBG Money Gets Distributed in Your Community

HUD sends CDBG funds to entitlement communities — cities and counties that meet population thresholds — on a formula based on population, poverty rate, and housing age. A city with 100,000 people and high poverty gets more than a city of the same size with lower poverty. The money arrives as a lump sum that the jurisdiction must spend according to federal rules, but the choice of what to fund is local.

Each year, your city or county publishes a Consolidated Plan or Annual Action Plan that lists what CDBG projects will be funded that year. This document is public and usually available on the city or county website under planning, community development, or housing. The plan shows dollar amounts, project descriptions, and sometimes the neighborhoods or populations that will benefit.

Before the plan is final, the jurisdiction holds public hearings where residents can comment on proposed projects. If you want to know what is being planned in your area, these hearings are where you can speak. The timing varies by location, but most jurisdictions hold them in spring or early summer before the fiscal year begins.

Types of Projects CDBG Funds

CDBG money must benefit low- and moderate-income people, prevent or eliminate slums, or meet urgent community needs. Within those rules, projects vary widely. Common uses include home rehabilitation (grants or loans to repair housing), infrastructure (water lines, streets, parks in low-income neighborhoods), economic development (small business loans or job training), and social services (childcare, senior programs, homeless services).

Housing rehabilitation is one of the largest uses of CDBG funds. A city might offer grants to homeowners in a designated neighborhood to repair roofs, replace windows, or fix plumbing. These are usually limited to people below a certain income level, often 50 to 80 percent of area median income. The city sets the income cap and the repair priorities.

Infrastructure projects funded by CDBG include sidewalk repair, street resurfacing, water system upgrades, and park improvements in low-income areas. These benefit the neighborhood as a whole rather than individuals, but they improve living conditions for residents who cannot afford to move.

Social services funded through CDBG include job training programs, youth services, senior meal programs, and homeless prevention. These are often run by nonprofits that receive CDBG grants from the city. If you use a service at a nonprofit, that organization may be CDBG-funded, though it is not always obvious from the outside.

Income Limits and Who Can Benefit

Most CDBG-funded programs have income limits. The threshold depends on the project type and your area's median income. For housing rehabilitation, the limit is often 80 percent of area median income. For some services, it may be 50 percent. A family of four in a high-cost area might have a limit of $80,000 or more; in a lower-cost area, it might be $50,000.

To find the income limit for a specific program, ask the organization running it or check your city's CDBG plan. The plan lists each project and its income threshold. Area median income is calculated by HUD and published each year; your city or county can tell you what it is for your location.

Some CDBG projects do not have individual income limits because they benefit entire neighborhoods. A street repair project helps everyone on that street regardless of income. A park renovation benefits the community. These projects still must be in areas where at least 51 percent of residents are low- or moderate-income, but you do not have to prove your own income to benefit.

How to Find Out What CDBG Is Funding in Your Area

Start with your city or county planning or community development department. Call or visit the website and ask for the current CDBG plan or Consolidated Plan. Most jurisdictions post these documents online. The plan lists all projects, funding amounts, and timelines.

If you are looking for a specific type of help — housing repair, job training, childcare — ask the department which CDBG-funded programs offer it. They can tell you the income limits, how to contact the organization running the program, and what documents you will need.

Your city or county may also have a CDBG coordinator or community development director who can answer questions about current and upcoming projects. This person can explain what neighborhoods are targeted for investment and when new programs will start.

If you cannot find information online or by phone, contact your city council member or county supervisor. They have access to CDBG plans and can direct you to the right department. Many jurisdictions also hold community meetings to discuss CDBG projects, especially before major investments in a neighborhood.

CDBG Funding for Housing Repair and Home Improvement

Housing rehabilitation is one of the largest CDBG uses. Cities offer grants or low-interest loans to homeowners to repair homes. The work might include roof repair, foundation work, electrical or plumbing updates, weatherization, or accessibility improvements for elderly or disabled residents.

To participate in a housing rehabilitation program, you typically must own and live in the home, meet the income limit (usually 50 to 80 percent of area median income), and live in a neighborhood the city has designated for the program. The city may also prioritize certain repairs — for example, health and safety issues before cosmetic work.

The process usually involves getting the home inspected, getting bids for the work, and having the city approve the contractor. The city may do the work itself, hire a contractor, or give you money to hire one. Grants do not have to be repaid; loans may have favorable terms like zero interest or deferred repayment.

CDBG Funding for Job Training and Economic Development

CDBG money funds job training programs, small business loans, and microenterprises for low-income workers. A city might fund a nonprofit that teaches construction skills, healthcare certifications, or information technology. Another might offer small business loans to entrepreneurs who cannot get traditional bank financing.

These programs are usually run by nonprofits or workforce development agencies. To participate, you typically must meet income limits and live in the jurisdiction. Some programs target specific populations — youth, displaced workers, people with disabilities — so check whether a program fits your situation.

Job training programs funded by CDBG often include supportive services like childcare, transportation, or stipends while you train. This makes it possible to participate even if you cannot afford to lose income while learning a new skill.

Frequently Asked Questions

Can I get CDBG money directly, or does it only fund projects?

Most CDBG money funds projects and programs rather than direct payments. However, if you participate in a CDBG-funded program — a housing repair grant, job training, or service — you benefit directly. The money goes to the project, but you receive the service or improvement.

How do I know if my neighborhood is may be able to access for CDBG funding?

Ask your city or county planning department which neighborhoods are designated for CDBG investment. Most jurisdictions target areas where at least 51 percent of residents are low- or moderate-income. Your address and the current year's plan will tell you whether your neighborhood is included in upcoming projects.

What if my city does not have a CDBG program?

Cities under 50,000 population can participate in CDBG through a state program called the Community Development Block Grant for Non-Entitlement Communities. Contact your state housing or community development agency to find out whether your area participates and what programs are available.

Do I have to repay CDBG money if I receive a housing grant?

Grants do not have to be repaid. Some cities offer CDBG-funded loans for housing repair, which do require repayment, but the terms are usually better than a bank loan — lower interest or no interest, and longer repayment periods. Ask whether the program you are considering is a grant or a loan before you start.

How often does CDBG funding change?

CDBG plans are updated annually. Projects that were funded one year may not be funded the next, and new projects may start. Check your city or county website each year to see what is being funded. If you are interested in a specific program, ask when it will be available again if it is not currently active.