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Title I of the Housing and Community Development Act of 1974 (Public Law 93-383) created a new community development block grant funding program which became effective January 1, 1975. This new arrangement replaced eight former categorical grant and loan programs under which grantees competed nationally for funds in specific project categories, including urban renewal; neighborhood development program grants; open space, urban beautification, and historic preservation grants; public facilities loans; water and sewer and neighborhood facilities grants; and Model Cities supplemental grants.
Under the Community Development Block Grant (CDBG) program, instead of applying for individual grants and loans, a grantee is able to develop a flexible, locally designed comprehensive community development strategy in order to address the program's primary objective: "...development of viable urban communities, by providing decent housing and suitable living environment and expanding economic opportunities principally for persons of low and moderate income" (Sec. 570.2).
The funding allocation of the CDBG program is based on a statutory formula which assures each entitlement grantee an annual sum of money to carry out its community development program. An entitlement grantee is a metropolitan city (the central city of a metropolitan area or a city with a population of 50,000 or greater) or an urban county. Under the law, 70 percent of the annual distribution of funds is reserved for entitlement communities. In order to receive its allocation of funds, a community must submit to the Department of Housing and Urban Development (HUD) a Consolidated Plan.
Within certain federal limitations (and state limitations under certain state-administered non-entitlement programs), localities have complete decision-making power over how and where the block grant is to be spent. There is no federal project-by-project approval process as in the past.
Since 1974, Title I has undergone some significant revisions. The Housing and Community Development Act of 1977 (Public Law 95-128) introduced a dual funding allocation formula, which was designed to benefit the older cities of the Northeast and
The Cranston-Gonzalez National Affordable Housing Act of 1990 required grantees to increase the use of their funds for activities benefiting low- and moderate-income persons over a three-year period to 70 percent.
You may sign up to receive notices of funding opportunities by e-mail by clicking here.
Michael Shiroma, 768-7751 or firstname.lastname@example.org
|Last Reviewed: Thursday, May 03, 2012|