Additional Program Information

Nature of Program
HUD awards grants to entitlement community grantees, such as Marysville, to carry out a wide range of community development activities directed toward revitalizing neighborhoods, economic development, and providing improved community facilities and services.

Entitlement communities develop their own program and funding priorities. However, grantees must give maximum feasibility priority to activities which benefit low and moderate income persons. A grantee may also carry out activities which aid in the prevention or elimination of slums or blight. Additionally, grantees may fund activities when the grantee certifies that the activities meet other community development needs having a particular urgency because existing conditions pose a serious and immediate threat to the health or welfare of the community where other financial resources are not available to meet such needs. CDBG funds may not be used for activities which do not meet these broad national objectives.

FY2015 Income Limits, as determined by HUD, can be found here. For the CDBG program, moderate income is defined at or below 80% of Area Median Income (AMI) but greater than 50% AMI; low income is defined at or below 50% of AMI.

Activities
Eligible Activities
CDBG funds may be used for activities which include, but are not limited to:
  • Acquisition of real property
  • Relocation and demolition
  • Rehabilition of residential and non-residential structures
  • Construction of public facilities and improvements, such as water and sewer facilities, streets, neighborhood centers, and the conversion of school buildings for eligible purposes
  • Public services within certain limits
  • Activities relating to energy conservation and renewable energy resources
  • Provisions of assistance to profit-motivated businesses to carry out economic development and job creation/retention activities
National Objectives
Each eligible activity must meet one of three national objectives:
  • Benefit to low and moderate income persons
  • Aid in the prevention or elimination of slums or blight
  • Meet a need having a particular urgency such as earthquakes or flood disasters
Ineligible Activities
Generally, the following types of activities are ineligible:
  • Acquisition, construction, or reconstruction of buildings for the general conduct of government
  • Political Activities
  • Certain income payments
  • Construction of new housing by units of general local government