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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.

Citizen participation is a required component of the CDBG program. Any local government applying for CDBG funds must provide citizens with reasonable opportunities to participate in the planning and development of applications, especially residents of proposed project areas. Citizens must be provided adequate and timely information so they can be meaningfully involved in important decisions.

Public Hearing Timeline
The purpose of the initial public 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 initial public hearing must be held at least 15 FULL days before the CDBG application is submitted, and no earlier than 120 days. The total project funding and CDBG amount requested must match what appears in the public hearing notice.

Public 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. Records of these efforts must be part of the grant files, including the public hearing notice, affidavit of publication, record of posting, public hearing attendance log, public hearing minutes, any written complaints and grantee response, and any other documented efforts to involve citizens throughout all stages of the project.

Requirements to Publish a Public Hearing Notice
A notice about the hearing must be published at least 5 FULL days in advance (but no more than 20 days) in advance to allow citizens the opportunity to schedule their attendance. The day that the public hearing notice is first advertised and the day of the public hearing do NOT count towards the minimum 5 day period.

Notices must be published in a local newspaper having the widest general circulation in the community or on the government website that is accessible to persons with disabilities or Limited English Proficiency. Applicants must also make every effort to inform those who might not be reached through the newspaper notice or website that the public hearing is to be held. Such efforts might include the distribution of leaflets, posting notices on bulletin boards at town hall, social media channel announcements, notices to local organizations, clubs, and churches, and/or personal contact.

Since the applicant will not know the specific homes to be rehabilitated or demolished at application, the city must conduct a Tier II environmental review if awarded. There are laws and authorities that cannot be reviewed without the specific home (location) and those laws and authorities will be reviewed once the home has been identified. This Tier II review will consult with the State Historic Preservation Office (SHPO).

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 city must pay the cost of the environmental review. For rental units, the landlord is required to contribute 25% toward rehabilitation costs for their unit(s) only.