COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM

The Community Development Block Grant (CDBG) program works to ensure decent affordable housing for all, and to provide services to the most vulnerable in our communities, to create jobs and expand business opportunities. CDBG helps local governments tackle the most serious challenges facing their communities.

The annual appropriation for CDBG is split between states and local jurisdictions called "entitlement communities." Entitlement communities are centeral cities of Metropolitan Statistical Areas (MSAs); other metropolitan cities with populations of at least 50,000; and qualified urban counties with populations of at leaset 200,000 (excluding the population of entitled cities). States distribute the funds to localities who do not qualify as entitlement communities.

HUD determines the amount of each grant by a formula which uses several objective measures of community needs, including the extent of poverty, population, housing overcrowding, age of housing and population growth lag in relationship to other metropolitan areas.

Funds relating to farmers' markets can be applied for under several programs wihtin the CDBG program. Some examples are:

Entitlement Communities
The program provides annual grants on a formula basis to entitled cities and counties to develop viable urban communities by providing decent housing and a suitable living environment, and by expanding economic opportunities, principally for low- and moderate-income persons.

State Administered CDBG
States participating in the CDBG Program award grants only to units of general local government that carry out development activities. Annually each State develops funding priorities and criteria for selecting projects.

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.

Funding
In FY 2002, $5 million in grants were awarded under this program. In FY 2003, $4.9 million was enacted, and in FY 2004, $4.7 million has been bugeted

To find out more about this program, including information on applying for a grant go to: http://www.hud.gov/offices/cpd/communitydevelopment
/programs/index.cfm