Community Development

Kentucky Small Cities Community Development Block Grant (CDBG) Program

The Kentucky Department for Local Government (DLG) to administers approximately $26 million annually from the U.S. Housing and Urban Development’s Community Development Block Grant (CDBG) program. Funds are designated for the following program areas:

Housing Program
The Housing program works to fund projects designed to develop decent, safe, sanitary, and affordable housing.  As part of the Commonwealth’s allocation from the CDBG program, these projects have been allocated $5,918,626 for 2008 with the maximum amount of $1,000,000 of CDBG funding per project.

Who can Apply:  All cities and counties are eligible to apply for the funds with the exception of entitlement communities.

*For more information see the Community Development Block Grant Program Guidelines or contact Barry Johnston.

Communities Program and Renaissance Branch

The Communities program is designed to provide funds for community development projects that address human service needs, such as senior centers, crisis centers, and facilities that provide services to low-income persons.  As part of the Commonwealth’s allocation from the CDBG program, these projects have been allocated $4,500,000 for 2008 with the maximum amount of $500,000 of CDBG funding per community. Renaissance on Main projects are also funded and administered under this branch.  Cities that are in the Renaissance on Main Program designated as certified communities may apply for CDBG Renaissance funding.  As part of the Commonwealth’s allocation from the CDBG program, these certified cities may apply for the maximum CDBG funding amount of $500,000 per project.  The project must be within the applicant’s designated Renaissance area.

Who can Apply:  All cities and counties are eligible to apply for the funds with the exception of entitlement communities.

*For more information see the Community Development Block Program Guidelines or contact Joanna Davis Shake.

Public Facilities

The Public Facilities Branch provides funding to primarily develop Kentucky’s water and wastewater systems.
As part of the Commonwealth's allocations from the CDBG program, these projects have been allocated $7,000,000 for 2008 with the maximum amount of $1,000,000 of CDBG funding per community. Self Help grants (maximum amount of $250,000 per project) are funded under this branch.

*For more information contact Joanna Davis Shake.

Economic Development

The Economic Development Branch works to fund development activities that create or retain jobs principally benefiting low and moderate income (LMI) persons.  Additional goals provide for the training and provision of human services that allow for the professional advancement of LMI persons.  As part of the Commonwealth’s allocation from the CDBG program, these projects have been allocated $7,500,000 for 2008 with up to $1,000,000 of CDBG funding per community.  Micro-enterprise Development grants (maximum amount of $50,000 per community) are also funded from this branch.

There are three areas of the CDBG Economic Development component:

Traditional:  Provides grant assistance to communities for projects which specifically address the creation or retention of jobs through eligible activities.  Funds can be provided to a community to use for specific business/industrial clients.

Non-Traditional:  Allows for the funding of eligible activities benefiting low and moderate income persons not directly related to job creation.

Microenterprise:  Allows for assistance to public and private organizations to enable for the expansion, development or general support for LMI owners of microenterprises businesses or LMI persons seeking to develop a microenterprise business.
Eligible Applicants:  All cities and counties with the exception of designated entitlement areas.  Multi-Jurisdiction Applications may jointly request $2 million provided that the $1 million per jurisdiction is not exceeded.  Multi-Jurisdiction Non-Traditional Economic Development applicants may request up to $500,000 if the $250,000 per jurisdiction is not exceeded.  Multi-Jurisdiction Microenterprise applicants may request up to $100,000 if the $50,000 per jurisdiction is not exceeded.

Recapture:  When a loan or lease is made to an entity, the repayment remains in the local jurisdiction for use toward other economic development projects.  Future utilization of these funds is subject to oversight by DLG.

Program Criteria:  Basic guidelines include limits on the level of CDBG participation proposed in a project.  The CDBG cost should not exceed $20,000 per job.  CDBG participation should be limited to one third of the total project.

Special Requirements:  CDBG funds are federal funds allocated by HUD and must comply with numerous federal regulations such as Davis-Bacon wage rates, procurement standards and environmental review procedures.

*For more information contact Joanna Davis Shake.  Please contact in the early stages of project development.

Community Emergency Relief Fund (CERF)

CERF funds are provided to give communities a means to restore infrastructure or housing that severe weather or natural disasters negatively impact.  As part of the Commonwealth’s allocation from the CDBG program, these projects have been allocated $1,000,000 for 2008 with the maximum amount of $100,000 of CDBG funding per project.

Who Can Apply:  Only communities that have experienced a disaster and have a Declaration of Emergency from the Governor may submit an application for these funds.

Application Process: The application process is open year round

*For more information see the Community Development Block Program Guidelines or contact Joanna Davis Shake.


The U.S. Department of Housing and Urban Development (HUD) funded the Community Development Block Grant (CDBG) program for DLG to provide assistance to communities for use in revitalizing neighborhoods, expanding affordable housing and economic opportunities, providing infrastructure and/or improving community facilities and services.  With the participation of their citizens, communities can devote these funds to a wide range of activities that best serve their own particular development priorities. All project activities must meet at least one of three national objectives:

• benefit to low and moderate income persons 
• prevention or elimination of slums or blight 
• meeting particularly urgent community development needs