Alabama Community Development Block Grant (CDBG) - Planning Fund

The Planning Fund under the Community Development Block Grant (CDBG) program is administered by the Alabama Department of Economic and Community Affairs (ADECA). This grant initiative is part of Alabama’s implementation of the federally funded CDBG program from the U.S. Department of Housing and Urban Development (HUD), which the state has been managing since 1982. ADECA’s Community and Economic Development (CED) Division oversees this Planning Fund with the goal of fostering long-term strategic development in non-entitlement communities throughout Alabama. These are communities that do not receive direct CDBG allocations from HUD and therefore depend on the state's distribution of funds for local development support. The Planning Fund specifically provides assistance to eligible communities in developing comprehensive community-wide and downtown revitalization plans. These plans are essential in guiding sustainable development, enabling municipalities to make informed infrastructure, housing, and community development decisions. The fund is designed to address gaps in planning capacity at the local level and supports the foundational work that enables communities to compete effectively for implementation funding in later stages of project development. The fund's scope does not include direct construction or capital improvements but instead focuses on the preparatory work necessary to identify needs, set priorities, and structure future grant applications. Projects supported through the Planning Fund must align with one or more of the three national CDBG objectives: benefiting low- and moderate-income individuals, aiding in the prevention or elimination of slums and blight, or addressing urgent community needs. Applications are evaluated based on how well they propose to use planning to meet these objectives. Planning activities must produce tangible outcomes such as a formalized strategic plan, feasibility studies, or comprehensive assessments that will ultimately feed into actionable development proposals. Eligible applicants include non-entitlement communities across Alabama. These applicants must demonstrate how their planning project will address pressing community development challenges and meet at least one of the HUD-mandated objectives. While specific deadlines and application procedures are announced annually at the ADECA-hosted CDBG application workshop, applicants are typically required to follow detailed state guidance including submission of an application narrative, a proposed budget, and evidence of community engagement or stakeholder support. There is no specific dollar ceiling stated for the Planning Fund in the available public documentation, distinguishing it from other CDBG categories like the Competitive or Enhancement Funds which have set caps. This ambiguity suggests that awards may vary based on the scope and scale of proposed planning activities, and possibly depend on the total program funding available for the year. Local match requirements, if any, are not clearly defined in the current materials and would likely be clarified in the annual CDBG application manual or workshop materials. Interested applicants are encouraged to contact ADECA’s Community and Economic Development Division directly at (334) 242-0492 for technical assistance and to confirm application details. The program is guided by an annual HUD-required state action plan that outlines fund distribution priorities and must be approved by HUD before funds are released. For updated application instructions, submission windows, and specific eligibility details, potential applicants should consult ADECA’s CDBG resources or attend the annual CDBG workshop, generally held in the first quarter of each year.