The Community Development Block Grant (CDBG) Program provides annual grants on a formula basis to states, cities, and counties to develop viable urban communities by providing decent housing and a suitable living environment, and by expanding economic opportunities, principally for low- and moderate-income persons. The program is authorized under Title 1 of the Housing and Community Development Act of 1974 (HCD Act); Public Law 93-383, as amended; and 42 U.S.C. 5301 et seq. The Omnibus Budget Reconciliation Act of 1981 amended the HCD Act to permit states to administer the CDBG program. There are 50 states participating in the program, including Puerto Rico which is defined as a state under the HCD Act. The State of Hawaii elected to not participate as a state, instead the Counties of Maui, Kaui, and Hawaii each receive direct CDBG awards from HUD.

The State CDBG program was designed to reinforce several important values and principles of community development:

  • CDBG’s flexibility empowers people and communities to design and implement strategies tailored to their own needs and priorities.
  • CDBG’s emphasis on consolidated planning expands and strengthens partnerships among all levels of government and the private sector in enhancing community development.
  • CDBG’s technical assistance activities and set-aside for grantees builds the capacity of these partners.

HUD makes annual awards of State CDBG funds; and each State then make awards to non-entitlement units of general local government (UGLGs) such as towns, cities and counties that are not directly funded by HUD under the Entitlement CDBG program. The non-entitlement UGLGs then carry out activities using municipal staff, contractors, non-profit organizations, and even provide grants or loans to businesses.

State CDBG Resources



Content current as of May 6, 2024