Community Development Block Grant

The City of Gilroy’s Community Development Block Grant (CDBG) is a federally funded initiative aimed at fostering community development, enhancing affordable housing, and improving public infrastructure and services for low- and moderate-income (LMI) residents. Administered by the City’s Housing and Community Services Division, this grant program is part of a larger federal initiative under Title 1 of the Housing and Community Development Act of 1974. Each year, the U.S. Department of Housing and Urban Development (HUD) allocates CDBG funds to eligible cities such as Gilroy, which then disburses the funding locally through a structured and strategic process to qualified nonprofit organizations and service providers. The purpose of the CDBG program is to develop viable urban communities by providing decent housing, a suitable living environment, and expanded economic opportunities for LMI individuals. Funded activities are expected to align with the goals of the City’s Consolidated Plan and Annual Action Plan, both of which outline strategies to address local housing and non-housing community development needs. These include homelessness prevention, home rehabilitation, public facility improvements, and support for social service agencies. The City evaluates applications based on their alignment with these community priorities and compliance with HUD regulations. For Program Year (PY) 2026–2027, applications are being accepted from eligible nonprofit organizations through a Notice of Funding Availability (NOFA) process. Applications must be submitted by 5:00 PM on March 2, 2026, and funded projects must be carried out between July 1, 2026, and June 30, 2027. Applicants are expected to propose programs that serve LMI residents within Gilroy city limits and address at least one priority from the City’s 2025–2030 Consolidated Plan. The application process includes completion of the CDBG Application and reference to the Application Packet, both of which are publicly available through the City’s website. To support transparency and community participation, a virtual public hearing is scheduled for February 17, 2026, at 6:00 PM. During this session, City staff will review the NOFA details, explain the application process, and present results from the previous year’s Consolidated Annual Performance and Evaluation Report (CAPER). Spanish translation services are available upon request. All interested applicants and community members are encouraged to attend the hearing. Evaluation criteria are expected to include the project’s benefit to LMI individuals, consistency with City planning documents, organizational capacity, past performance, and compliance with CDBG regulations. The application materials provide further specifics on required documentation and submission steps. While there is no indication of a pre-application phase or requirement for a Letter of Intent, applicants are advised to thoroughly review all guidance documents and attend the public hearing for clarification. Key contact information for the program includes the Housing & Community Services Division at 7351 Rosanna Street, Gilroy, CA 95020, with staff available Monday through Thursday from 8:30 AM to 4:30 PM. Inquiries may be directed to 408-846-0451 or via the City's housing email. Future updates, as well as the application forms, will be made available through the City of Gilroy’s official website. This grant opportunity recurs annually, and the City submits its Annual Action Plan to HUD by May 15 each year, with CAPER reports due by September 30.