Community Development Block Grant (CDBG) Program

Agency: Department of Housing and Community Development

Program: Community Development Block Grant (CDBG) Program

Program Description: The various allocations under this program consist of:

General and Native American Allocation: Grants are available for a variety of community development projects which principally benefit low and moderate income persons or households (TIG). The following are the key activity areas for which funds are available: a) housing rehabilitation, b) housing acquisition, c) housing new construction, d) public works, e) community facilities & public services, f) economic development, and g) planning and technical assistance.

Economic Development Allocation Enterprise Fund: Grants of up to $500,000 are available to capitalize local revolving loan funds to provide loans to businesses to promote business expansion and result in the creation and/or retention of permanent private sector jobs. Lending criteria is determined at the local level. Program operators can tailor loan terms and conditions to meet the financial needs of each business. Loan assistance and public infrastructure improvements must result in jobs being created or retained.

Economic Development Allocation Over the Counter: Grants of up to $500,000 to capitalize a local business loan or finance a public infrastructure project which will promote business expansion and result in the creation and/or retention of permanent private sector jobs. Eligible uses of funds include business loans and grants to cities and towns. Business loans can be made for the following purposes: a) purchase of land and existing improvements, b) construction and rehabilitation of buildings and leasehold improvements, c) purchase of equipment, inventory, furniture, fixtures, materials and supplies, and d) working capital. Grants to cities and counties can be provided for publicly owned infrastructure improvements and business incubators.

Planning and Technical Assistance Allocation (P/TA): P/TA grants are available for both General and Economic Development activities. Grants are intended to help communities move projects from the idea stage to reality. A total of $70,000 is available annually to each eligible community - $35,000 on the economic development side and $35,000 on the general side. Typical activities/projects include the following: business development feasibility studies, business attraction and retention plans, housing needs studies, marketing studies, social service needs assessments, technical assistance for specific businesses, and infrastructure needs assessments.

Eligibility: In general, incorporated cities under 50,000 in population and counties with an unincorporated area population of under 200,000 persons are eligible to participate in the State CDBG Program. Eligible cities and counties may apply for funds under each Program component. (Several exceptions apply. Check with CDBG representatives to see if these exceptions apply to your jurisdiction.) For the Native American Allocation, only eligible cities and counties may apply for these funds on behalf of these non-recognized communities. Eligible jurisdictions may apply for these funds in addition to any other CDBG application submitted during a given program year without invoking the program funding caps.

Funding Information: Included in program descriptions above.

Timelines: The following are the approximate dates for release of notices of funding availability (NOFA) and applications submission for the primary CDBG programs.

NOFA January 1

Applications Due April 10

NOFA July 15

Applications Due

Enterprise Fund September 30

Over the Counter Continuous (Applications are accepted on a continuous basis starting with the release of the NOFA. Awards are made based on merit until the yearly funding allocation is exhausted.)

NOFA May 15

Application Due 5:00 p.m. on the last working day of each month. (Applications are accepted on a continuous basis starting with the release of the NOFA. Awards are made based on merit until the yearly funding allocation is exhausted.)

Contacts:

Cindy Cavanaugh, Program Manager phn (916)445-6000

General and Native American Allocation fax (916)322-2904

Housing and Community Development int www.housing.hcd.ca.gov/

1800 3^rd Street

Sacramento, CA 95814

John Turner, Program Manager same as above

Economic Development

Housing and Community Development

1800 3^rd Street

Sacramento, CA 95814