Guide to Financing Supportive Housing:
Department of Housing and Urban Development-Community Development Block Grants (CDBG)

INTRODUCTION
PROGRAM DESCRIPTION
REGULATIONS/GUIDELINES
ADMINISTRATIVE AGENCIES
ELIGIBILITY INFORMATION
GRANT/LOAN TERMS
APPLICATION PROCESS
CFDA CODE
AUTHORIZING LEGISLATION/STATUTE
ADDITIONAL RESOURCES

The Community Development Block Grant (CDBG) program provides broad funding to entitlement communities (cities and urban counties) and to states/small cities.  Funds can be used for acquisition and rehabilitation (and new construction when sponsored by a “community-based development organization”).  Housing is only one of the numerous eligible community development activities, and supportive housing is one potential use.  However, given the availability of funding targeted at housing for the homeless (e.g., McKinney Act), most localities are likely to use CDBG for other types of housing or for other revitalization efforts.  Given the broad definition of eligible uses – benefit to low- and moderate-income people and the elimination or prevention of slums or blight – local governments often use these dollars for infrastructure improvements and other non-housing activities.  Priorities for the use of CDBG are established through the Consolidated Plan process.

Since this program is not frequently used for supportive housing development, supportive housing providers do not need to delve too deeply into the program specifics.

TYPE OF ASSISTANCE            

• Formula to jurisdiction
• Both the states and the entitlement communities establish their own process for awarding of  CDBG funds, typically through a competitive application process. 

CDBG Regulations: http://www.hud.gov/offices/cpd/communitydevelopment/rulesandregs/regulations/index.cfm

HUD CDBG Guidebook: http://www.oup.org/files/cdbgguide.pdf

Department of Housing and Urban Development, Office of Community Planning and Development, Office Block Grant Administration  (202) 708-1577  http://www.hud.gov/offices/cpd/communitydevelopment/programs/index.cfm

Eligible Target Populations:

Grantees must use at least 70% of CDBG funds for activities that principally benefit low- and moderate-income persons (those earning no more than 80% of area median income).

Eligible Projects/Programs:

• Emergency Shelter
• Transitional Housing
• Permanent Supportive Housing
• Support Services Programs

Note: CDBG can be used for a wide range of non-housing facilities and activities as well (i.e. community facilities, playgrounds, infrastructure, social services, etc.)

Eligible Use of Funds and Use Restrictions:

CDBG funds may be used for a range of activities directed toward neighborhood revitalization, economic development and provision of improved community facilities and services.  Eligible uses that relate to supportive housing include:

• Hard and soft costs of acquisition, rehabilitation and in limited circumstances, new construction
• Support services
• Administrative costs

Eligible Applicants/Sponsors:

States and entitlement communities are eligible to receive a Federal allocation of CDBG funds. 

Entitlement communities are: communities with 50,000 or more residents, other local governments designated as central cities of metropolitan areas, and urban counties with populations of at least 200,000. 

A separate component of CDBG – the State CDBG Program – provides funding to State governments.  State programs must sub-grant to projects in non-entitlement communities (rural areas and/or communities with less than 50,000 people).

There are currently over 90 CDBG entitlement communities in California, Arizona and Nevada.  These states each operate a state CDBG program that allocates funds to non-entitlement communities.  

Minimum/Maximum Awards:  N/A

Average Awards: N/A

Term of Awards:

• Grants for development activities are awarded on a one-time basis
• Grants for support services are awarded for a one-year term and may be renewed.

Matching Requirements:

There are no match requirements.

Formula:  The formula determining the amounts each entitlement community or State will receive is based on such factors as poverty and poor housing conditions.   

Each state and entitlement community establishes its own competitive process for awarding of CDBG funds to sub-grantees.  States and entitlement communities receive their allocation of funds on an annual basis.   They must submit a Consolidated Plan to HUD in order to receive the CDBG funds for which they are eligible.   

AUTHORIZING LEGISLATION/STATUTE

Housing and Community Development Act of 1974, Title I, as amended, Public Law 93-383

HUD Guidebook (links to OUP site)

HUD Community Development Library http://www.hud.gov/offices/cpd/communitydevelopment/library/index.cfm

A series of publications on the use of CDBG program funds can be ordered from Community Connections at:  1-800-998-9999 or at http://www.comcon.org/

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