June 1, 2026
Understanding Community Development Block Grant Programs
The Community Development Block Grant (CDBG) program is one of HUD's longest-running and most flexible funding sources for community development. Administered by HUD's Office of Block Grant Assistance, CDBG provides annual grants to states, cities, and counties to develop viable urban communities through decent housing, suitable living environments, and expanded economic opportunities.
What is CDBG?
Authorized under Title I of the Housing and Community Development Act of 1974, CDBG is a formula grant program that allocates funds based on community need, including poverty rates, population, housing overcrowding, and age of housing. The program's hallmark is flexibility — grantees have broad discretion to determine which activities to fund, as long as those activities meet one of three national objectives.
Eligible Activities
CDBG funds can support a wide range of community development activities, including:
- Housing rehabilitation: Repair and improvement of owner-occupied and rental housing, particularly for low- and moderate-income households
- Public infrastructure: Water and sewer improvements, street construction, sidewalks, drainage, and neighborhood facilities
- Public services: Job training, childcare, health services, crime prevention, and senior services (limited to 15% of grant)
- Economic development: Commercial rehabilitation, micro-enterprise assistance, and job creation activities
- Planning and administration: Up to 20% of grant for program administration and planning activities
National Objectives
Every CDBG-funded activity must meet at least one of three national objectives:
- Benefit low- and moderate-income (LMI) persons: At least 70% of CDBG funds must be used for activities that benefit LMI households
- Prevent or eliminate slums or blight: Addressing deteriorated properties, spot blight, or area-wide blight conditions
- Address urgent community needs: Responding to natural disasters, public health emergencies, or other imminent threats to health or safety
How Funds Flow
CDBG funds flow through two main channels:
- Entitlement Communities: Central cities of Metropolitan Statistical Areas, other metropolitan cities with populations of 50,000+, and qualified urban counties receive direct formula allocations from HUD
- State-Administered CDBG: For non-entitlement areas (smaller communities and rural areas), HUD allocates funds to states, which then administer competitive or formula-based sub-grant programs
- Subrecipients: Both entitlement communities and states may sub-grant CDBG funds to local nonprofits, community-based organizations, and other subrecipients for project implementation
Central Texas Context
In Central Texas, CDBG funds support a range of community development priorities. Larger entitlement communities in the region receive direct allocations, while smaller cities and rural areas access funding through the Texas Department of Agriculture's state-administered CDBG program. Communities in Bell County, Coryell County, and surrounding areas have used CDBG for water system improvements, housing rehabilitation, and public facility upgrades.
How to Apply
The CDBG application process follows the Consolidated Planning cycle:
- Consolidated Plan: A five-year strategic plan identifying community needs, priorities, and goals
- Annual Action Plan: A one-year plan detailing how CDBG funds (along with HOME, ESG, and HOPWA) will be spent
- CAPER: The Consolidated Annual Performance and Evaluation Report, submitted at the end of each program year
For entitlement communities, public hearings and comment periods are required as part of the planning process. For state-administered CDBG, applications are submitted through the state's competitive or formula allocation process.
Learn More
For official program guidance, visit the HUD Exchange CDBG page. Funding opportunities are posted on Grants.gov. For Texas state-administered CDBG, see the Texas Department of Agriculture website.
This post is for informational purposes and does not constitute legal or financial advice. Program details are subject to change. Consult HUD and your local grant administrator for current guidance.