CDBG Community Improvement Grants

The Community Development Block Grant (CDBG) Program, administered by the Virginia Department of Housing and Community Development (DHCD), provides critical support to eligible local governments to address significant community development challenges. Established in 1982, the program is federally funded through the U.S. Department of Housing and Urban Development (HUD) and is designed to benefit communities with the most pressing needs. The program targets projects that directly benefit low- and moderate-income (LMI) persons, help eliminate slums and blight, or respond to urgent needs stemming from imminent threats to community health or safety. The program's foundation lies in equitable resource allocation, community engagement, and strategic investment in infrastructure, housing, economic development, and essential services. The CDBG Program for 2025–2026 is structured into three core sub-programs: Planning Grants, Project Grants, and Urgent Need Grants. Project Grants comprise four main types: Economic Development, Infrastructure, Housing Rehabilitation, and Public Services. Economic Development projects further include job creation/retention and business district revitalization. Infrastructure projects focus on water and wastewater improvements, housing production infrastructure, and community service facilities such as health clinics or daycare centers. Housing Rehabilitation efforts aim to bring LMI-occupied housing units into compliance with DHCD standards, while Public Service grants address immediate community needs like childcare, health services, and food security programs, without involving construction activities. Funding ceilings vary by project type and whether the application is submitted by one locality or two in partnership. For instance, Housing Rehabilitation projects have a maximum award of $1,250,000 with $125,000 for project delivery costs, while Public Services projects may receive up to $250,000 for one locality or $500,000 for two localities. Infrastructure awards for water/sewer activities can reach up to $3.5 million for joint applications. Notably, all Public Service projects must provide quantifiable enhancements or entirely new services and are limited to two consecutive funding cycles with a one-cycle pause before reapplication. Projects in all categories are evaluated on readiness, community engagement, impact, and cost-effectiveness. Match requirements are not universally mandated but may be expected depending on project scope and funding level. Eligibility is limited to non-entitlement units of local government within Virginia, including cities, counties, and eligible towns as defined in Appendix A of the program guidelines. While only local governments may apply directly, they can contract with nonprofit organizations, Planning District Commissions (PDCs), or other qualified entities to carry out project activities. Localities are encouraged to first apply for Planning Grants to refine their project concepts and improve competitiveness. Planning Grants are available from June 16 to October 16 annually or until funds are exhausted, with reviews occurring quarterly. Technical assistance is strongly encouraged, and DHCD offers staff feedback on letters of interest and draft applications during January of each year to strengthen submissions. The application process is conducted via DHCD's Centralized Application and Management System (CAMS). Project Grant applications for the competitive cycle must be submitted by 11:59 PM on August 26, 2025. Urgent Need Grants operate on a rolling basis with applications due on the 15th of each month starting July 15, 2025. Planning Grant applications are also open from June through October, with quarterly review windows. Each application must include detailed narratives, budgets, cost estimates, maps, public hearing documentation, demographic data, and appropriate certifications. For housing-related activities, pre-inspection data and detailed cost estimates are required. Key contacts for the program include Kathi Boatright ([email protected], 276-274-8453) for the Abingdon Office and Joanne Peerman ([email protected], 804-371-7071) for the Richmond Office. General inquiries can be directed to [email protected]. Program resources including the Application Guidelines, Program Design Manual, and planning documents are available through DHCD’s website. All interested applicants should initiate early engagement with DHCD and begin compiling required documentation to ensure a complete and competitive submission. The program is issued annually, and applications not funded in the current round may resubmit in future cycles, provided public engagement and scope updates are conducted as required.

Apply for a planning grant first; Engage DHCD staff in January for technical feedback to strengthen application; Ensure housing inspections and cost estimates are current and well documented.