Community Development Block Grant Program

The Community Development Block Grant Program is administered in California by the Department of Housing and Community Development. This program is designed to partner with rural cities and counties to address the needs of low- and moderate-income residents by supporting initiatives that expand community and economic development opportunities. It operates under the federal framework established by the U.S. Department of Housing and Urban Development, which defines the program’s primary objective as fostering viable communities through the provision of decent housing, a suitable living environment, and expanded economic opportunities. The program provides grants to non-entitlement jurisdictions, which are defined as cities with populations under 50,000 and counties with populations under 200,000 in unincorporated areas that do not participate in HUD’s entitlement program. In addition, non-federally recognized Native American communities and Colonia, as identified in the National Affordable Housing Act of 1990, may apply in partnership with eligible jurisdictions. The assistance type is structured as grants that vary based on annual allocations and specific activity limits, and all funded projects must meet at least one of three national objectives: benefit low- and moderate-income persons, aid in eliminating slums or blight, or address an urgent need. Funding can be used across a broad set of eligible activities. Community development and housing initiatives may include rehabilitation of single- or multi-family housing, assistance for homeownership, rental housing acquisition, or support for new construction. Public improvement projects such as water, wastewater, gas, and electric utility services are eligible, as are community facilities like day care centers, domestic violence shelters, community centers, medical and dental clinics, and fire stations. Public service activities may include staffing and operating costs tied to community facilities. In addition, planning and technical assistance grants can support feasibility studies, community plans, and infrastructure strategies that serve low-income populations. The program also supports economic development activities through an Enterprise Fund structure, which provides grants that jurisdictions may use to establish local loan funds for small businesses and microenterprises. These loans can support working capital, land or equipment acquisition, inventory, and other direct assistance. Funds may also be directed to infrastructure that enables business operations, such as roads, water, and sewer services. Microenterprise funds can provide both financial assistance and supportive services like childcare or transportation for entrepreneurs. CDBG funding in California has also incorporated supplemental allocations such as CDBG-CV, which was funded under the CARES Act to address economic and housing impacts of the COVID-19 pandemic. While this specific funding round is no longer active, it illustrates the program’s ability to adapt federal objectives to state and local needs. Applicants are expected to comply with program requirements and reporting obligations outlined in the state’s Grants Management Manual. Applications are submitted through the Department of Housing and Community Development in response to annual Notices of Funding Availability. Applicants must demonstrate compliance with program objectives, provide documentation of need, and submit proposals for eligible projects. The department provides office hours and resources for technical support, and recipients must adhere to reporting and compliance standards. Contact information is available through the department’s Sacramento offices, including the Division of Codes and Standards, and through the official program email. The program operates on a recurring annual basis tied to federal allocations, with application windows announced by the department each year.