The Community Development Block Grant (CDBG) program provides flexible funding to carry out a wide range of community development activities directed toward neighborhood revitalization, economic development, and improved community facilities/services. Beginning in 1974, the CDBG program is one of the longest continuously run programs at HUD. All CDBG-funded activities must meet one of the following national objectives: (1) Benefit low- and moderate-income persons; (2) Aid in the prevention or elimination of slums and blight; or (3) Meet certain community development needs having a particular urgency.
In Arizona, CDBG funds may be utilized to address construction or renovation of various infrastructure projects such as water, wastewater and solid waste facilities, streets, and flood control projects; construction or improvements of a range of community facilities such as senior, health and social services centers; expansion of public services to serve low-income persons; creation of new jobs through small business loans or infrastructure improvements; and various affordable housing projects including home reconstruction, rehabilitation or repair programs.
Funding is divided into three categories:
- Regional Account (RA) - RA funds are distributed on a non-competitive basis to regional, non-metropoitan Councils of Government (COGs). Communities within each COG should submit their CDBG project in advance to have it be considered in a multi-year schedule of distribution. This category is 75% of the annual CDBG allocation to Arizona.
- State Special Project (SSP) Account - SSP funds are distributed on a competitive basis for all activities that are ready to begin implementation immediatel. This means all environmental review requirements are completed, land control is secured, planning, design, and permitting are complete, and all other related up front issues resolved. This category is 15% of the annual CDBG allocation to Arizona.
- Colonia Set-Aside - Colonia set-aside funds are distributed on a competitive basis once every two years. Funds may be used for projects that address the lack of basic infrastructure or safe and sanitary housing in AZ colonias. The current list of those Colonias who have been certified as eligible to participate in the competitive Colonias Set Aside application round is posted on the Department's website on the Community Development and Revitalization page. This category is 10% of the annual CDBG allocation to Arizona.
For more information on eligible projects within these program categories, see the CDBG Program Handbook at: https://housing.az.gov/sites/default/files/documents/files/FINAL%202020%20CDBG%20Application%20Handbook%20REV.%20March%202020.pdf.