HOUSING REHABILITATION AND/OR DEMOLITION
$300,000
Funding Limit
MATCH
The community must match the cost of the environmental review
NEIGHBORHOOD DEVELOPMENT
$500,000
Funding Limit ($300,000 for housing rehabilitation and/or demolition and $200,000 for infrastructure)
MATCH 50%
The community must match 50% of the infrastructure portion (up to $200,000) and the cost of the environmental review for the housing portion
Qualify
SEE IF YOUR COMMUNITY QUALIFIES
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2025 Guidelines Coming Soon!
One million dollars has been set aside for the Housing Grant program in 2025. Communities can receive up to $300,000 for housing rehabilitation and /or demolition, and up to an additional $200,000 for neighborhood development for a total of $500,000 allowed for housing and infrastructure.
This program funds housing improvement projects to benefit low- to moderate-income households in a target area. If the community selects to include demolition the national objective is slum and blight.
Grant applications are evaluated for funding based on project need, readiness, impact, sustainability and matching funds source and availability.
Key considerations include:
Communities may apply for multiple CDBG categories but can only be awarded up to two projects total, with no more than one from a major category. Major categories include: Community Facilities: Large/Small, Blueprint to Build, Water and Sewer Infrastructure, and Regional Water Implementation. For example, a city can submit applications for a Housing Rehabilitation and a Community Facilities: Large Grants project. However, a city cannot apply for both a Large and Small Community Facilities project.
The local government must hold two public hearings to demonstrate that reasonable efforts have been undertaken to ensure involvement of citizens or citizen organizations throughout all stages of the program. A notice about the hearing must be published in a local newspaper with the widest circulation, and it must appear at least 5 full days before the hearing—not counting the day it’s published or the day of the hearing itself. These hearings must be held at a time and location convenient to potential or actual beneficiaries, with accommodations for non-English speaking residents and persons with disabilities. A sample public hearing notice is included in program guidelines.
First Public Hearing: Must be held at least 15 days before the CDBG application is submitted, and no earlier than 120 days. The purpose of the hearing is to inform citizens about the proposed project, including its location, total cost, activities, and beneficiaries. Community members must be given a chance to suggest other project ideas and share their input, and the local governing body should carefully consider this feedback before submitting the application. The total project funding and CDBG amount requested must match what appears in the public hearing notice.
Second Public Hearing: Must be held at the conclusion of the project, prior to close out to inform citizens of the project’s successful or unsuccessful completion, and to obtain input on the grantee’s performance.
Yes, all CDBG-funded projects are federally required to have an environmental review. The Environmental Determination of Level of Review form must be submitted with the application. This will inform Commerce as to what level of environmental review you will undertake for your project if awarded.
Post-award, the city or county must conduct a full environmental review of the project, even for small projects that don’t require construction. This responsibility cannot be delegated and the cost to conduct the review must be paid with local funds. Project activities may not begin until after Commerce issues the environmental release of project funds.
The community must match the cost of the environmental review for housing applications.
Yes, it can but at least 10% of the match must be cash.
Community Showcase Map
See other communities that have received funding in past years
Qualify
LMI help The Community Development Block Grant (CDBG) program requires that each CDBG funded activity must either principally benefit low- and moderate-income (LMI) persons, aid in the prevention or elimination of slums or blight, or meet a community development need having a particular urgency.
Persons in Family |
LMI Family Income Limit* |
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1 | |
2 | |
3 | |
4 | |
5 | |
6 | |
7 | |
8 |
*LMI calculations are from the 2020 Census and LMI by household are from 2024 HUD Section 8. Final LMI will be confirmed upon application review.
Find Assistance
Assistance from a professional with CDBG grant experience can help you streamline and strengthen your application. Some or all of the costs to engage help can be covered by your award.
Find Pros in Your AreaApplication
Housing Application Checklist and Forms (.pdf) Housing Application Log (.pdf) Budget Page (.xls) view all resources ApplicationApplication Deadline: November 14, 2025, or until funds are depleted
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