By Bridgette Stocks on April 24, 2024
Category: Blog

Community Development Block Grant: A catalyst for positive change

Does your neighborhood have at least 51% low-to-moderate income individuals? If so, you may qualify for the Community Development Block Grant (CDBG), a federally funded program to support community development in low-income populations.

This program's stringent eligibility requirements are governed by the Code of Federal Regulations. To qualify, at least 51% of your community's low-and-moderate-income (LMI) population should benefit from development activities funded by the CDBG. These activities are identified through an ongoing process and may address various needs, including: Does your neighborhood have at least 51% low-to-moderate income individuals? If so, you may qualify for the Community Development Block Grant (CDBG), a federally funded program to support community development in low-income populations.

An overview of the CDBG in Illinois, Iowa and Wisconsin

The CDBG program is funded by the Department of Housing and Urban Development (HUD). Participation requirements and eligible activities differ across states and regions. The following table shows how the CDBG program works in Illinois, Iowa and Wisconsin. ​

Community Development Block Grant Program in Illinois, Iowa and Wisconsin

Illinois

Iowa

Wisconsin

  • The program provides federal funding for community-based projects in nonmetropolitan areas.   

  • The program assists with projects such as senior centers, daycare facilities, vocational workshops, stormwater projects and other community services. 

  • The program provides funding to units of general local government that do not receive an annual allocation from HUD. 

  • The program consists of:

 

  1. Housing rehabilitation. A maximum of $650,000 in grant funds or $60,000 per household to improve housing and rehabilitate and retrofit properties.  

 

  1. Public infrastructure. A maximum of $1,500,000 may be requested to improve public infrastructure and eliminate conditions detrimental to public health and safety. 

 

  1. Disaster response. A maximum of $250,000 is available for interim assistance following a disaster. 

 

  1. Economic development. A maximum of $1 million is available for gap financing to assist businesses expanding or locating in the community. 

  • The program consists of:

 

  1. Comprehensive neighborhood revitalization planning fund.

  2. Downtown revitalization fund.

  3. Upper-story housing conversion fund.

  4. Opportunities and threats fund.

  5. Water and sewer fund 

 

  • Funding is based on population: 

 

  1. Areas with a population of 15,000 or more may request up to $800,000. 

  2. Areas with a population from 2,500 to 15,000 may request up to $600,000. 

  3. Areas with a population from 1,000 to 2,500 may request up to $500,000. 

  4. Areas with fewer than 1,000 residents may request up to $300,000.     

  • The program consists of:

 

  1. Disaster recovery. The program offers $15,355,000 in federal assistance to counties affected by severe storms, flooding, landslides, tornadoes and straight-line winds. 

 

  1. Economic development. Eligible projects include business loans to expand facilities or purchase equipment, specialized employee training or business infrastructure projects. Typical awards are $7,000 - $10,000 per job created or retained.  

 

  1. Emergency assistance. Grant funds of up to $500,000 are awarded to address emergency housing, public facilities, infrastructure and business assistance needs. 

 

  1. Planning. Eligible projects include developing comprehensive plans, small area and neighborhood plans and community development plans. 

 

  1. Public facilities economic development. Eligible projects include construction or improvements to water and sewer service and streets that result in business expansion and job opportunities. Grants are capped at $750,000. 

 

  1. Public facilities. Eligible projects include repair and improvements to drainage systems, streets, sidewalks, water and sewer systems, and construction/expansion/ improvement to community centers, libraries, fire stations and senior centers. Projects can receive up to a maximum of $1,000,000. 

 

  1. Small cities housing and revolving loan program. Eligible projects include housing programs that benefit LMI households. 

It is a complex process to determine your community's eligibility, apply for the grant and effectively manage funds in compliance with the requirements. Many communities choose to partner with an expert to successfully navigate the steps. ​

Partner with Fehr Graham to secure Community Development Block Grants​

At Fehr Graham, our professionals have years of experience and expertise in funding solutions for communities across the Midwest and beyond. Our team works closely with regulatory agencies to customize competitive applications to help secure maximum funding for your community. Let's work together to bring opportunities to your community.​

To learn about your community’s eligibility for community development block grant program, contact us or give us a call at 815.235.7643.
Fehr Graham Senior Community Development Specialist Bridgette Stocks serves as the principal contact for all funding-related programs, navigating complicated rules and regulations to secure maximum dollars. She is a vital partner when it comes to strengthening communities to provide resilient and critical infrastructure. Her success speaks for itself – she has secured more than $200 million for Fehr Graham clients. She can be reached at This email address is being protected from spambots. You need JavaScript enabled to view it..