New York State Community Development Block Grant (NYS CDBG) Program 2025

The New York State Community Development Block Grant (NYS CDBG) Program is administered by the Housing Trust Fund Corporation (HTFC) through its Office of Community Renewal (OCR). This program is funded by the U.S. Department of Housing and Urban Development (HUD) and allocates federal CDBG funds to New York State for distribution to eligible local governments. The 2025 funding round will distribute approximately $40 million through a combination of competitive and open-round applications to support a variety of community development initiatives that benefit low- and moderate-income (LMI) persons. The overarching goal of the NYS CDBG Program is to foster viable communities by supporting activities that provide decent housing, enhance living environments, and expand economic opportunities for LMI individuals. Eligible project categories include public infrastructure, public facilities, community planning, economic development through stand-alone business assistance or microenterprise support, and imminent threat response. These funds may support projects such as water and sewer improvements, broadband installation, facility accessibility upgrades, community planning studies, and small business development initiatives. Certain infrastructure projects with co-funding from other state or federal sources are eligible for higher funding ceilings. Eligibility is limited to non-entitlement units of general local government in New York State, including counties, towns, cities, and villages that are not classified as metropolitan cities, urban counties, or tribal governments designated as Entitlement Communities. Joint applications are allowed where multiple eligible governments are addressing a shared issue, but must not be for administrative convenience only and must adhere to citizen participation requirements individually. The application process for 2025 is bifurcated: competitive applications for Public Infrastructure opened May 19, 2025, and are due by July 31, 2025, at 4:00 PM. All other categories operate on a rolling, open-round basis from May 19 through October 31, 2025. These open-round categories require a two-step process: submission of a pre-application to assess eligibility and readiness, followed by an invitation to submit a full application. Applicants must conduct a public hearing prior to submission and complete forms including budget, project schedule, certifications, and more. Pre-application materials and instructions are accessible via the CDBG website. Evaluation criteria include four weighted components: Need (20%), Impact (20%), Administrative Capacity (30%), and Commitment and Readiness (30%). A minimum of 65% total and 60% in capacity must be achieved for consideration. Public infrastructure projects may request an extended term of up to 37 months if ready to bid within 12 months; otherwise, most contracts are limited to 25 months, with community planning capped at 13 months. Technical assistance is available through OCR via email at HCR_CFA@hcr.ny.gov or by phone at 518-474-2057. Compliance requirements include adherence to NEPA and SEQRA environmental review procedures, Davis-Bacon wage standards for construction, Section 3 workforce inclusion mandates, and the Build America Buy America Act (BABA). Additional requirements span procurement rules, program income tracking, lead-based paint mitigation, nondiscrimination, fair housing obligations, and Smart Growth consistency. Eligible recipients must also be registered with SAM.gov and have a Unique Entity ID (UEI).

Submit early; initiate environmental review promptly; ensure documentation of need and cost estimates.