HUD Community Development Programs

Community Development Block Grant Program Areas

Entitlement Communities
The CDBG entitlement program allocates annual grants to larger cities and urban counties to develop viable communities by providing decent housing, a suitable living environment, and opportunities to expand economic opportunities, principally for low- and moderate-income persons.

State Administered CDBG
Also known as the Small Cities CDBG program, States award grants to smaller units of general local government that carry out community development activities. Annually, each State develops funding priorities and criteria for selecting projects.

Section 108 Loan Guarantee Program
CDBG entitlement communities are eligible to apply for assistance through the section 108 loan guarantee program. CDBG non-entitlement communities may also apply, provided their State agrees to pledge the CDBG funds necessary to secure the loan. Applicants may receive a loan guarantee directly or designate another public entity, such as an industrial development authority, to carry out their Section 108 assisted project.

HUD Administered Small Cities
The HUD Honolulu Office directly administers the CDBG program for non-entitlement communities in the State of Hawaii.

Insular Areas
The Insular Areas CDBG program provides grants to four designated insular areas: American Samoa; Guam; Northern Mariana Islands; and the Virgin Islands.

Disaster Recovery Assistance
HUD provides flexible grants to help cities, counties, and States recover from Presidentially declared disasters, especially in low-income areas, subject to availability of supplemental appropriations.

Neighborhood Stabilization Program
HUD provides grants to communities hardest hit by foreclosures and delinquencies to purchase, rehabilitate or redevelop homes and stabilize neighborhoods.

Colonias
Texas, Arizona, California, and New Mexico set aside up to 10 percent of their State CDBG funds for improving living conditions for colonias residents.

Renewal Communities/ Empowerment Zones/ Enterprise Communities (RC/EZ/EC)
This is a program that uses an innovative approach to revitalization, bringing communities together through public and private partnerships to attract the investment necessary for sustainable economic and community development.

Economic Development

Renewal Community/ Empowerment Zone/ Enterprise Community (RC/EZ/EC) Initiative
The RC/EZ/EC Initiative is vital to development in more than 100 distressed urban and rural areas nationwide. The Initiative, through a combination of innovative tax incentives, federal grants, and partnerships with government, for-profit and non-profit agencies, has opened new businesses and created jobs, housing, and new educational and healthcare opportunities for thousands of Americans.

Brownfields Economic Development Initiative (BEDI)
The BEDI provides grants on a competitive basis to local entitlement communities. Non-entitlement communities are eligible as supported by their state governments. BEDIs must be used in conjunction with loans guaranteed under the Section 108 Program. Communities fund projects with the BEDI grants and the 108 guaranteed loan financing to clean up and redevelop environmentally contaminated industrial and commercial sites, commonly known as "brownfields."

Rural Housing and Economic Development (RHED)
Enacted in 1999, RHED provides grants on a competitive basis principally to non-profit organizations to support capacity building, housing, and economic development programs.

Section 108 Loan Guarantee Program (Section 108 Program)
Community Development Block Grant (CDBG) entitlement communities are eligible to apply for a guarantee from the Section 108 Loan Guarantee program. CDBG non-entitlement communities may also apply, provided that their State agrees to pledge the CDBG funds necessary to secure the loan. Non-entitlement applicants may receive their loan guarantee directly or designate another eligible public entity such as an industrial development authority, to receive it and carry out the Section 108 assisted project.

Section 4 Guarantee Recovery Fund
Section 4 is a loan guarantee provision authorized under the Church Arson Prevention 4 Act of 1996 (the Act). It authorizes a Loan Guarantee Recovery Fund to provide certain nonprofit organizations with a source of financing to rebuild property damaged or destroyed by acts of arson or terrorism.

Congressional Grants
Congressional Grants are authorized each year in the annual HUD appropriation and accompanying conference report. Congress authorizes a specific level of funding to a designated grantee, to undertake a particular activity cited in the appropriation or conference report. Only those entities desginated by Congress may apply for funds. Unsolicited applications are not accepted.

Youthbuild
This program was transferred to the U.S. Department of Labor for programs funded with Fiscal Year 2007 and later. Youthbuild provides grants on a competitive basis to non-profit organizations to assist high-risk youth between the ages of 16-24 to learn housing construction job skills and to complete their high school education. Program participants enhance their skills as they construct and/or rehabilitate affordable housing for low- and moderate-income persons.

Economic Development Initiative (EDI)
This program has not been funded since FY 2001. The EDI provides grants on a competitive basis to entitlement communities. Non-entitlement communities are eligible as supported by their state governments. EDIs must be used in conjunction with loans guaranteed under the Section 108 Program to enhance the feasibility of economic development and revitalization projects financed with Section 108 Loan Guarantee funds. No new grants are being awarded.