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Community Development Block Grants/State's Program And Non-Entitlement Grants In Hawaii

Program Descriptions

Program Number



Community Development Block Grants/State's Program And Non-Entitlement Grants In Hawaii


Federal Agency




Housing and Community Development Act of 1974,Title I, as amended; Public Law 93-383; 88 Stat. 633; 42 U.S.C. 5301-5321.






The primary objective of this program is the development of viable urban communities by providing decent housing, a suitable living environment, and expanding economic opportunities, principally for persons of low and moderate income. Each activity funded must meet one of the program's National Objectives by: Benefiting low and moderate income families; aiding in the prevention or elimination of slums or blight; or meeting 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.


Types of Assistance

Formula Grants.


Uses and Use Restrictions

Thirty percent of funds available for distribution under each annual appropriation for the Community Development Block Grant (CDBG) program is allocated among the States and Puerto Rico (which is considered to be a state for the State CDBG program) for use in areas which are not a metropolitan city or part of an urban county (nonentitlement areas). All States except Hawaii have elected to administer these CDBG funds for areas that do not receive CDBG entitlement grants (14.218). HUD awards the formula grants to these States under the CDBG/State Program. In Hawaii, HUD awards the state's share of these funds to three non-entitlement counties. States must distribute CDBG funds to units of general local government (counties, towns, etc.) in nonentitlement areas. States develop their own programs and funding priorities. Units of general local government then carry out community development activities funded by the State. Eligible activities are directed toward neighborhood revitalization, economic development, or provision of improved community facilities and services. Specific activities that can be carried out with block grant funds include: Acquisition, rehabilitation or construction of certain public works facilities and improvements, such as streets, water and sewer facilities, neighborhood centers, recreation facilities, and other public works; demolition and clearance; rehabilitation of public and private buildings including housing; code enforcement; relocation payments and assistance; economic development; planning activities; certain public services with some restrictions; and administrative expenses. The projected use of funds must be developed to ensure that all activities will meet one of the three national objectives described under "OBJECTIVES". Communities receiving CDBG funds from a state may select subgrantees to carry out approved projects. Such subgrantees may include: Neighborhood-based nonprofit organizations; local development corporations; Small Business Investment Companies; or other nonprofit organizations serving the development needs of nonentitlement areas. Grant recipients may provide assistance to for-profit entities when the recipient determines that the provision of such assistance is appropriate to carry out an economic development project. Communities are restricted from constructing or rehabilitating public facilities for the general conduct of government and from making housing allowances or other income maintenance-type payments. Each State may use a limited portion of its grant, subject to a matching requirement, to administer the program. Each State may also use a limited portion of its grant, with no matching requirement, to provide technical assistance to local governments and nonprofit program recipients. At least seventy percent of the funds received must benefit low and moderate income persons.


Eligibility Requirements

Applicant Eligibility

Forty-nine State governments and the Commonwealth of Puerto Rico receive funds from HUD under this program. The state of Hawaii does not participate and HUD allocates the state's share of funds to the three Hawaii non-entitled counties. Funds are allocated to each state based on a statutory formula. States must distribute the funds to units of general local government in nonentitlement areas.

Beneficiary Eligibility

The principal beneficiaries of CDBG funds are low and moderate income persons. For non-metropolitan areas, low and moderate income is generally defined as 80 percent of the median income for non-metropolitan areas of the State or of the county, whichever is higher, adjusted for family size. For eligible localities in metropolitan areas, low- and moderate-income is generally defined as 80 percent of the median income for the metropolitan area, adjusted for family size.


The State must certify that with respect to nonentitlement areas the State will: (1) engage in planning for community development activities; (2) provide technical assistance; (3) consult with local officials from nonentitlement areas in determining methods for distributing funds, and (4) each unit of general local government to receive funds must identify its housing and community development needs, the needs of low and moderate-income persons, and the activities to be undertaken to meet such needs. The State must submit a Consolidated Plan and annual action plan, which contains its method of distributing CDBG funds. The State must also certify that (1) it has met the statutory citizen participation requirements, (2) it will conduct its grant in conformance with the Civil Rights Act of 1964 and the Fair Housing Act, (3) all activities will meet one of the three national objectives described under "OBJECTIVES", and (4) it will comply with the other provisions of Title I and all applicable laws. This program is covered under OMB Circular No. A-87.


Application and Award Process

Preapplication Coordination

This program is excluded from coverage under 24 CFR Part 85 and E.O. 12372.

Application Procedure

Each state must submit a Consolidated Plan, an annual action plan and certifications to HUD. The Consolidated Plan and annual action plan cover four major formula-distribution HUD community development programs, including CDBG. The annual action plan must contain the method by which the State will distribute its CDBG funds.

Award Procedure

HUD will provide funds after the State submits its Consolidated Plan, annual action plan and Certifications.


Consolidated Plans may be submitted between November 15 and August 16 of each fiscal year in which the State will administer funds.

Range of Approval/Disapproval Time

HUD will review plan submissions for completeness and consistency with the purposes of the Act, within 45 days of receipt from a State.


The procedure is described in regulations (24 CFR Part 570 Subpart I).



Assistance Considerations

Formula and Matching Requirements

Allocations to States are based on Census data using a dual formula prescribed under Section 106 of the Act. Allocations for each State are based on an amount equaling the greater of the amounts calculated under the two formulas. The factors involved in the first formula are population, extent of poverty and extent of overcrowding, weighted 0.25, 0.50, and 0.25, respectively. The factors involved in the second formula are population, poverty, and age of housing, weighted 0.20, 0.30, and 0.50, respectively. The statistical factors used for fund allocation are (1) total resident population for all places in the nation (2) number of persons with incomes below the poverty level; (3) number of housing units with 1.01 or more persons per room; and (4) age of housing (number of yearround housing units built in 1939 or earlier). The statistical factors for each State are adjusted to reflect only the non-entitled area; that is, the State area excluding metropolitan cities and urban counties. There is no matching requirement for the allocation of funds under the formula. Address questions concerning the formula to the Systems Development and Evaluation Division Rm. 7224, Community Planning and Development, 451 7th Street, S.W. Washington, DC 20410. Telephone: (202) 708-0790.

Length and Time Phasing of Assistance

Assistance is provided to States on an annual basis. Individual States may impose time limitations on the implementation of grants to recipients.


Post Assistance Requirements


Annual performance report covering all programs included in the Consolidated Plan as prescribed at 24 CFR 91.520; SF-272 Federal Cash Transactions Report.


In accordance with the provisions of OMB Circular No. A-133, "Audits of State and Local Governments and Non-Profit Organizations", nonfederal entities that expend $500,000 or more in a year shall have a single audit conducted for that year in accordance with the provisions of the circular.


Records must demonstrate that the State has met the requirements of Title I of the Act.


Financial Information

Account Identification



FY 07 est $1,111,196,000; FY 08 $1,075,929,000; and FY 09 $818,221,000. (NOTE: Amounts reported reflect allocation of new budget authority rather than obligation amounts.)

Range and Average of Financial Assistance

State grant amounts are determined by formula. Of the 50 state grants awarded under the State CDBG program in FY 2008, the average (mean) grant amount was $21,414,231. Grant amounts ranged from $1,982,003 to $71,779,088. The average grant amount in FY 2007 was $22,117,187. These totals do not include Hawaii's allocations awarded to its 3 non-entitled counties. Hawaii's share of the 2008 allocation is $5,217,450.


Program Accomplishments

Accomplishments reported by states in fiscal year 2007 provided 17,492 housing benefits for nonentitlement communities, and created or retained 27,487 jobs.


Regulations, Guidelines and Literature

24 CFR Part 570, 24 CFR Part 91, 24 CFR Part 58.


Information Contacts

Regional or Local Office

Contact the appropriate HUD Field Office listed in Appendix IV of the print edition of this Catalog. Or on the Internet, see: Contact the Honolulu Field Office for the non-entitled Hawaii counties.

Headquarters Office

State and Small Cities Division, Office of Block Grant Assistance, Community Planning and Development, Department of Housing and Urban Development, 451 7th Street, SW., Washington, DC 20410. Telephone: (202) 708-1322; email:

Web Site Address


Related Programs

14.218, Community Development Block Grants/Entitlement Grants
14.225 Community Development Block Grants/Special Purpose Grants/Insular Areas


Examples of Funded Projects

Projects are selected by States.


Criteria for Selecting Proposals

All States are eligible if they meet the requirements outlined in Credentials/Documentation. States are responsible for determining the methods of distribution of funds to their units of general local government in nonentitlement areas.


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