Community Development Block Grants - Application Preparation

     The Governor's Office for Local Development (GOLD), Divisions of Grants, administers the federally funded Community Development Block Grant (CDBG) program.  This program works to enhance the quality of life of all Kentucky communities by working through and with city and county governments.  The U.S. Department of Housing and Urban Development (HUD) - funded CDBG program allows GOLD to provide assistance to communities for use in revitalizing neighborhoods, providing infrastructure, expanding affordable housing and economic opportunities, 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, provided that these projects meet at least one of the following three National Objectives:

  1. Benefit low and moderate income persons;
  2. Prevent or eliminate slums and blight; or
  3. Meet other urgent community development needs.

     All cities and counties in Kentucky are eligible to apply for the funds with the exception of Ashland, Bowling Green, Covington, Henderson, Hopkinsville, Lexington/Fayette County, Louisville/Jefferson County, and Owensboro.  These communities receive CDBG funds directly from HUD.  For the 2005 funding cycle GOLD has received $29,291,704 for Community Development Block Grants.  The funding is allocated into the following categories:

Public Facilities $8,216,323
Economic Development $8,216,323
Public Service (Recovery Kentucky) $4,393,755
Housing $3,734,692
Community Projects $3,734,692
Community Emergency Relief Fund $995,919

Economic Development

The U.S. Department for Housing and Urban Development's Community Development Block Grant Program funds economic development projects.  The program funds activities that create or retain jobs principally benefiting low-to-moderate income (LMI) persons.  Additional goals are to provide for the training and provisions of human services that allow for the advancement and upgrade of low-to-moderate income persons.

Assistance can be provided for both for-profit and non-profit companies, as well as to local development and industrial authorities.

Traditional economic development projects provide grant assistance to communities for projects that specifically address the creation of retention of jobs.  Single jurisdiction projects may request up to $1 million; multi-jurisdictional projects may request $2 million.

Non-Traditional economic development projects allow for the funding of eligible economic development activities benefiting low-to-moderate income persons that are not directly related to job creation.  Single-jurisdictional projects may request up $250,000; multi-jurisdictional projects may request up to $500,000.

Micro enterprise projects provide grant assistance to cities or counties to develop training programs and to provide technical assistance to low and moderate income persons who currently own or are interested in starting a commercial enterprise that has five or fewer employees.  Single jurisdiction projects may request up to $50,000.

Infrastructure

The U.S. Department of Housing and Urban Development's Community Development Block Grant Program funds infrastructure projects.

Multi-jurisdictional projects (cities and/or counties sharing a regional project requiring participation from multi-jurisdictions and deriving a mutual benefit) may request $2 million.

Self-help projects may request up to $250,000 per project.

Housing

The Governor's Office for Local Development funds housing projects through the U.S. Department of Housing and Urban Development's Community Development Block Grant program.  The maximum amount for request is $1,000,000 of CDBG funding per project.

Community Projects/Renaissance Kentucky

Community projects provide grant assistance to projects that address human service needs, such as senior citizens centers, crisis centers, and facilities that provide services to low-to-moderate income persons. The maximum amount of CDBG funding per project from a single jurisdiction is $500,000.  Multi-jurisdictional projects may request as much as $1 million.

Renaissance Kentucky - designated Gold and Silver communities may also submit applications for these funds.  The maximum amount of CDBG funding per project is $1,000,000 for a Gold community and $500,000 for a Silver community.

Community Emergency Relief Funds (CERF)

The Community Development Block Grant Program's Community Emergency Relief Fund (CERF) provides communities with means to restore infrastructure or housing that severe weather or other crisis negatively impacts.  Only communities that have experienced a disaster as documented by a Declaration from the Governor may submit applications for these funds.

The maximum amount of funding request is $250,000 per project.

For further information visit: