Community Development Block Grant (CDBG)

Overview

 The City of Homestead’s Community Development Block Grant Program was established to address local housing and community development needs. Funds are provided through the federal Community Development Block Grant (CDBG) program. First created by Congress in 1974, block grant funds are provided by the U.S. Department of Housing and Urban Development (HUD) and may be used to support a wide range of housing and community development projects. The purpose of the CDBG program is:

to develop viable urban communities by providing decent housing and a suitable living environment and expanding economic opportunities, principally for person of low and moderate income. 

The program has been operated locally since 2008 when the City’s population reached 50,000, qualifying the City to receive CDBG funds directly from HUD.

The program is planned and controlled locally, although compliance with federal regulations is required. The City of Homestead’s Finance Department is responsible for administering the CDBG Program. All policies relevant to program implementation, as well as final approval of the application for funds, must be approved by the Homestead City Council.

CDBG funds can be used for a variety of activities in the City. The source of the CDBG program is Title I of the Housing and Community Development Act of 1974, as amended. Its primary objective is the development of viable urban communities, which is achieved by providing decent housing, a suitable living environment, and expanding economic opportunities. Any activity funded with CDBG funds must meet two primary tests:

The activity must meet one of the following national Objectives: Benefit to Low Income Persons, Elimination of Slum and Blight, or Meet an Urgent Need. The vast majority of projects are funded based on the first National Objective—Benefit to Low Income Persons. The second, Elimination of Slum and Blight, is generally targeted to areas of designated blight, and the third, Urgent Need, is reserved for disasters where no other means of funding are available to address an immediate need that threatens health and safety (e.g., hurricanes, fires, floods).

Once it has been determined that an activity meets a national objective, the activity must be determined to be eligible. HUD lists eligible activities, and each activity is coded to correspond to HUD’s reporting system. Activities that do not appear on the list of eligible activities may not be funded with CDBG funds, even if they may meet a National Objective. A listing of eligible activities can be found in the Code of Federal Regulation 24 CFR 570.201.

Browse through the documents to learn about all that goes on with the Community Development Block Grant (CBDG). For any questions or comments about the documents listed below, call us at (305) 224-4547.