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Community Development Block Grants/Small Cities Program

Published on AidPage by IDILOGIC on Jun 24, 2005

Administered by:

Possible uses and use restrictions...

Small Cities develop their own programs and funding priorities. Activities eligible under the Housing and Community Development Act of 1974 may be carried out. These include: acquisition, rehabilitation or construction of certain public works facilities and improvements; clearance; housing rehabilitation; code enforcement; direct assistance to expand homeownership among persons of low- and moderate-income; relocation payments and assistance; administrative expenses; economic development; completing existing urban renewal projects; and certain public services with some restrictions. Grant recipients (Small Cities/Counties) may select subgrantees to carry out neighborhood revitalization or community economic development projects in furtherance of CDBG objectives. Such subgrantees may include: Neighborhood-based nonprofit organizations; local development corporations; Small Business Investment Companies; or other nonprofit organizations serving the development needs of nonentitlement areas. Grant recipients may provide assistance to for-profit entities when the recipient determines that the provision of such assistance is appropriate to carry out an economic development project. Communities are restricted from constructing or rehabilitating public facilities for the general conduct of government and from making housing allowances or other income maintenance-type payments. The projected use of funds must be developed to give maximum feasible priority to activities which benefit low- and moderate-income persons or aid in the prevention or elimination of slums or blight. The projected use of funds may also include activities that the applicant certifies are designed to meet other community development needs having a particular urgency because existing conditions pose a serious and immediate threat to the health or welfare of the community where other financial resources are not available to meet such needs. The aggregate use of CDBG funds must ensure that not less than 70 percent of the funds received benefit persons of low and moderate income.