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Community Development Block Grant (CDBG) in 3 minutes

Community Development Block Grant (CDBG) in 3 minutes


This is a story about one way local governments
get funding for community development. Here’s Big City. Big City is in a major metropolitan area.
A lot of people live there. Big City has problems they need money to fix. Their roads are bad.
One of their neighborhoods has a lot of abandoned homes. Some of the buildings downtown are
deteriorating. There aren’t enough jobs. Working class families have a hard time finding places
to live that they can actually afford. Here’s Small Town. Small Town has the exact
same problems. For both Big City and Small Town, the problems
are so large there just isn’t any way for the local government to pay for solutions
on its own. That’s where Community Development Block Grant
(or CDBG) funding comes in. This is money from the federal government. Of course, the government isn’t giving funding
away for just anything. They say CDBG must go toward community development and at least
70% has to benefit people with low or moderate incomes. The rest of the funding can be used
for blight elimination or disaster relief regardless of income. Big City says, “We can fix the bad roads in
low income neighborhoods, eliminate blight, improve buildings everyone uses, build some
affordable housing, and create jobs, so let’s apply for CDBG.” Because of their size and metropolitan status,
Big City is actually entitled to CDBG funding. To get the money set aside for them, they
send HUD something called a “Consolidated Plan” that says how they plan to use CDBG
money to benefit low and moderate-income people living in Big City. Small Town is not entitled to funding like
Big City. Small Town actually has to apply to the state government for CDBG funding,
and their project has to fit into the community development goals the state chooses. Funding
is competitive, so Small Town might not get anything. Big City and Small Town apply, and they both
get funding. Now if they want, they can subgrant CDBG funds to local organizations that specialize
in community and economic development. That’s the Community Development Block Grant
program in a nutshell. For technical information and application guidelines, visit hud.gov,
or look around your state government’s website to see which agencies administer CDBG funding.

4 comments on “Community Development Block Grant (CDBG) in 3 minutes

  1. good riddance, totally wasted money thanks to corruption. Leave this stuff to Chip and Joanna Gaines and get the government OUT of it.

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