HUD annually allocates CDBG grants funds to four designated areas: American Samoa; Guam; Northern Mariana Islands; and the U.S. Virgin Islands. The funds are allocated in proportion to the populations of the eligible Territories. The program is administered by HUD's Field Offices in Puerto Rico and Hawaii. HUD's role under the CDBG program is to ensure grantee compliance with Federal laws, regulations and policies.

CDBG funds may be used for activities which include, but are not limited to:

• Acquisition of real property
• Relocation and demolition
• Rehabilitation of residential and non-residential structures
• Construction of public facilities and improvements, such as water and sewer facilities, streets, neighborhood centers, and the conversion of school buildings for eligible purposes
• Public services, within certain limits
• Activities relating to energy conservation and renewable energy resources
• Provision of assistance to nonprofit and profit-motivated businesses to carry out economic development and job creation/retention activities

Each activity must meet one of the following national objectives for the program: benefit low- and moderate-income persons, prevention or elimination of slums or blight, or address community development needs having a particular urgency because existing conditions pose a serious and immediate threat to the health or welfare of the community for which other funding is not available. A need is considered urgent if it poses a serious and immediate threat to the health or welfare of the community and has arisen in the past 18 months.

Generally, the following types of activities are ineligible:

• Acquisition, construction, or reconstruction of buildings for the general conduct of government
• Political activities
• Certain income payments
• Construction of new housing (with some exceptions)

Over a 1, 2, or 3-year period, as selected by the grantee, not less than 70 percent of CDBG funds must be used for activities that benefit low- and moderate-income persons.

HUD does not provide CDBG assistance directly to individuals, businesses, nonprofit or organizations or other non-governmental entities. If you are interested in participating in this program, contact a grantee to find out how the program operates in your area. Participation requirements may differ from one grantee to another.

Find out who administers the CDBG Program in your area.

If a grantee cannot answer your questions, contact the Honolulu Field Office or San Juan (Caribbean) Field Office. Note that the grantee administers the program and determines which projects receive funding.

In order to receive CDBG funds, insular areas must submit a Consolidated Plan or an abbreviated Consolidated Plan to a HUD field office:

• U.S. Virgin Islands: San Juan (Caribbean) Field Office;
• All others: Honolulu Field Office.

The Consolidated Plan is a jurisdiction's comprehensive planning document and application for funding under the following Community Planning and Development formula grant programs: CDBG, Emergency Solutions Grants (ESG), HOME Investment Partnerships (HOME), and Housing Opportunities for Persons with AIDS (HOPWA). The Consolidated Plan is carried out through Annual Action Plans which must contain the required certifications, description of CDBG eligible activities to be funded, and timetables for completing the projects.

As a part of the Consolidated Planning process, CDBG grantees must develop and follow a detailed plan which provides for, and encourages, citizen participation and which emphasizes participation by persons of low- or moderate-income, particularly residents of predominantly low- and moderate-income neighborhoods, slum or blighted areas, and areas in which the local government proposes to use CDBG funds. The plan must:

• Provide citizens with reasonable and timely access to local meetings, information, and records related to the grantee's proposed and actual use of funds
• Provide for public hearings to obtain citizen views and to respond to proposals and questions at all stages of the community development program, including at least the development of needs, the review of proposed activities, and review of program performance
• Provide for timely written answers to written complaints and grievances
• Identify how the needs of non-English speaking residents will be met in the case of public hearings where a significant number of non-English speaking residents can be reasonably expected to participate

In May 2012, HUD introduced the eCon Planning Suite, including the Consolidated Plan template in IDIS OnLine and the CPD Maps website. By creating a more cohesive planning and grants management framework and providing better data and a tool for analysis, the eCon Planning Suite supports grantees and the public to assess their needs and make strategic investment decisions. HUD grantees are now required to submit their Consolidated Plan and year one Annual Action Plan using the Consolidated Plan template in IDIS OnLine. If grantees have an approved multi-year Consolidated Plan, they are not required to use IDIS to submit their Annual Action Plan until the next multi-year strategy is due.

Content current as of September 6, 2024.