The Community Development Block Grant Program (CDBG) provides grants on a formula basis to states, cities, and counties to develop improved urban communities by providing decent housing and a suitable living environment and by expanding economic opportunities for low- and moderate-income persons.

Eligible Uses

CDBG funds may be used for acquisition of real property, relocation and demolition, rehabilitation of residential and non-residential structures, constructing and improving public infrastructure, providing public services, activities related to energy conservation and renewable energy resources, and providing economic development. 

Projects must meet one of the following objectives: (1) benefit low- and moderate-income persons, (2) prevention or elimination of slums or blight, (3) or address community development needs having a particular urgency because existing conditions pose a serious and immediate threat to the health or welfare of the community for which other funding is not available.

Generally, the following projects are ineligible: acquisition, construction, or reconstruction of buildings for the general conduct of government; political activities; certain income payments; construction of new housing (with some exceptions).

Eligible Recipients

Eligible recipients include:

  • Principal cities of Metropolitan Statistical Areas (MRAs)
  • Metropolitan cities with populations of at least 50,000
  • Qualified urban counties with populations of at least 200,000 (excluding the population of entitled cities)
  • States and insular areas

Eligibility is based on U.S. Census Bureau data and metropolitan area delineations published by the Office of Management and Budget.

Approx Annual Funding Amount

The funding fluctuates year to year. Approximately $3 billion was made available in 2022.

Cost Share Requirements

There are no cost share requirements.

Application Cycle

Funding recommendations for applications are generally made late March to early April. Planning grants are funded for a 12-month period and construction grants are funded for a 24-month period.


HUD Local Office Directory

Other Info

This program is covered under the Justice40 Initiative.