Community Development Block Grant (CDBG)

Summary


Community Development Block Grant (CDBG) funds are received from the U.S. Department of Housing and Urban Development (HUD) on an annual basis to revitalize neighborhoods, expand affordable housing and economic opportunities, and/or improve community facilities and services, principally to benefit low and moderate income persons.


Purpose


CDBG provides a flexible source of funding to develop viable urban communities by providing decent affordable housing, creating suitable living environments, and expanding economic opportunities for low and moderate income persons. The city, with the participation of local citizens, allocate resources toward projects that qualify as meeting one or more of the following three broad national objectives set by Congress:
  • Aid to prevent or eliminate slums and blight
  • Benefit low and moderate income persons
  • Meet other community development needs in an urgent situation

Eligible Applicants


CDBG funds are awarded to city departments, other public agencies, public and private nonprofit entities, and for-profit entities to carry out eligible housing and community development projects within the boundaries of the City of Hampton

Eligible Clientele


Projects receiving assistance must serve low and moderate income persons (generally defined by HUD as members of a family earning no more than 80% of the area median income) and/or prevent or eliminate slums and blight.

Activities that benefit low and moderate income persons can address this objective by:
  • Serving low and moderate income areas
  • Serving low and moderate income clientele

An activity to prevent or eliminate slums and blight, generally consists of a project that provides a benefit to the service area and the area must be designated by the city as a slum, blighted, or deteriorated area. Activities assisted must address one or more conditions which contributed to the deterioration of the area.

Eligible Activities


  • The following is a list of eligible activities within the CDBG program:
  • Activities related to housing
  • Public facilities
  • Clearance and Demolition
  • Code Enforcement
  • Disposition
  • Activities related to public services

Ineligible Activities


  • The following is a list of ineligible activities within the CDBG program:
  • Buildings for the general conduct of government (e.g., city hall)
  • General government expenses
  • Political activities
  • Purchase of construction equipment or furnishings and personal property
  • New housing construction, except under certain conditions or when carried out by the Community Based Development Organization (CBDO)
  • Income payments.