Community Development Block Grant

The Community Development Block Grant (CDBG) Public Service Activities program for fiscal year 2026-2027 is administered by the City of Kannapolis, North Carolina. This program is part of the City’s annual allocation from the U.S. Department of Housing and Urban Development (HUD), specifically aimed at enhancing the well-being of low and moderate-income (LMI) residents. Through CDBG funding, the City can invest in a variety of public service initiatives that contribute to a suitable living environment, support neighborhood revitalization, and promote economic opportunities for underserved populations. The CDBG Public Service Activities program allows nonprofit organizations to apply for a sustaining grant of up to $5,000 for core operational expenses. These include overhead costs such as rent, utilities, salaries for executive directors, and essential communication expenses. To be eligible, an organization must be a registered 501(c)(3) nonprofit providing an essential service to the Kannapolis community—services which the City might otherwise need to provide directly at a greater cost. Only one application per nonprofit project is permitted, and all applications must be typed and submitted via email to the designated city contact. It is the applicant’s responsibility to confirm receipt. Eligible activities under this funding include services such as job training, crime prevention, child care, health services, substance abuse counseling, fair housing education, and support for senior citizens and homeless populations, among others. Funds can be used for staff salaries, program materials, facility operations, and leases. Ineligible activities include direct income payments to clients unless paid to providers and limited to no more than three consecutive months. Political activities and religious proselytizing are also explicitly disallowed. Faith-based organizations may apply, provided their services are nonsectarian and open to the broader public. To qualify for funding, applicants must ensure that their activities serve LMI residents as defined by HUD, based on area median income thresholds. Qualifying activities must either benefit residents in areas where at least 51% are LMI or directly serve individuals who meet income eligibility criteria. Agencies are required to demonstrate how they verify income eligibility using documentation such as pay stubs, tax returns, or social security statements. Applications will be evaluated on completeness, eligibility under HUD guidelines, adherence to CDBG objectives, community need, impact potential, and the agency’s experience. After submission by March 31, 2026, applications undergo staff review in April and a public presentation to the Community Improvement Commission in May. Recommendations are made to the City Council by mid-June, and award decisions are expected by July. The grant performance period runs from July 1, 2026 to June 30, 2027. Projects must expend funds within this timeframe; expenses outside this window require prior approval. Subrecipients are required to maintain project records for a minimum of three years and file quarterly reports on expenditures and beneficiary demographics. Reimbursement is based on actual expenditures, and appropriate documentation, such as paid invoices and receipts, must be submitted. Grant recipients must also be prepared to submit audited financial statements, an organizational chart, board lists, and other documents upon request in late May or June. Agencies failing to comply with reporting or fund use requirements may be disqualified from future funding cycles.

Ensure application completeness, demonstrate eligibility per HUD guidelines, and show clear impact on low/moderate-income populations.