The Community Development Block Grant (CDBG) Program is a federal program of grants to local governments, administered by the U.S. Department of Housing and Urban Development (HUD). The Housing and Community Development Act of 1974 established CDBG as a replacement for a variety of federal urban renewal, housing, and neighborhood development programs. CDBG was the first of the federal block grant programs.

In Marin County, all eleven cities have signed cooperation agreements to participate with the County government in a single joint CDBG program. This qualifies Marin County as an "urban county," giving us an annual grant allocation established by formula. Marin County administers the CDBG program for all eleven cities, as well as the unincorporated parts of the County. Both government agencies and nonprofit organizations are eligible for funding.

2. What types of projects can get CDBG funds?

CDBG funds can be used for three general types of projects that assist low-income people: housing, capital, and public service projects.

Housing:

Eligible housing activities include housing rehabilitation, acquisition of existing housing, acquisition of sites for housing construction, off-site improvements needed for housing development, and fair housing services, and housing planning and predevelopment costs. While CDBG funds can support housing development by paying for property acquisition, or off-site improvements, or for predevelopment expense. CDBG funds cannot ordinarily be used directly for housing construction itself or for predevelopment expenses. Types of housing projects we've funded include low-cost rental and ownership housing, senior housing, group homes, housing for people with physical and mental disabilities, homeless shelters, owner-built housing, and shared housing.

Capital:

Eligible capital projects include most types of public facilities and community facilities, such as community centers, senior centers, centers for people with disabilities, day care centers, parks, recreation facilities, public works, buildings that house public services, and removal of architectural barriers which limit accessibility. This category also includes economic development activities.

Public Services:

We are permitted to spend up to 15% of our CDBG funds on public services, which are very broadly defined. Some of the public service projects we've funded include day care programs for children and seniors, transportation for special needs groups, counseling programs, social service referrals, senior services, employment assistance, emergency food, educational services, and medical services. However, CDBG funds may not be used to replace cutbacks in local government support for public services. CDBG public service funds should be used for the direct delivery of services, and not for overhead or administration.

3. But isn't this a program for low-income people?

Yes, even if a project fits one of the eligible categories, it must also pass the low-income benefit test. Most projects qualify if at least 51% of the users will be low-income, as defined by HUD. The income limit for a single-person household is $63,350, and for a family of four it is $90,500. A project meets the standard if at least 51% of the beneficiaries have incomes below the limit, or if it benefits a neighborhood with a high percentage of low-income people.

For housing, if a structure contains two dwelling units, at least one must be occupied by a low-income household. If a structure contains more than two units, at least 51% of the units must be occupied by low-income households. For example, a four-unit building must have three units occupied by low-income households. For this calculation, adjacent rental (not owner-occupied) buildings under common ownership and management may be treated as a single structure. For new construction of multi-family non-elderly rental housing, the requirement is reduced to 20%. Rents for low-income units may not exceed 30% of the tenant's income.

If a project gives scholarship assistance to low-income people, we count only those who actually receive assistance. Facilities and accessibility improvements for the elderly or for people with disabilities are automatically eligible. As a substitute for low-income benefit, projects may also qualify if they eliminate slums or blight or meet emergency needs, but the regulations make it extremely difficult to qualify under these categories.

CDBG Income Limits (and can also be downloaded as a pdf file here):

4. I'm still not sure if my project is eligible.

Call us! We encourage all potential applicants to contact the CDBG staff before submitting an application. There are many more eligibility requirements than we could summarize here. Generally, construction expenses for new housing, predevelopment costs for housing, furnishings, maintenance, and income payments are ineligible, but there are exceptions. Staff can tell you whether your project, or a part of your project, is eligible.