The Department for Local Government (DLG) administers approximately $26 million annually from the U.S. Housing and Urban Development’s (HUD) Community Development Block Grant (CDBG) program.
The CDBG program provides 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
For the 2024 funding cycle, DLG will receive $26,355,588 for distribution. Funds are designated for various program areas including Community Projects, Community Emergency Relief Fund, Economic Development, Housing, Public Facilities Public Services (Recovery Kentucky).
Who Can Apply: All cities and counties are eligible to apply for the funds with the exception of Ashland, Bowling Green, Covington, Elizabethtown, Henderson, Hopkinsville, Lexington-Fayette County, Louisville/Jefferson County Metro Government, and Owensboro. These entitlement communities receive CDBG funds directly from HUD.
Application Process: Please see to the 2024 CDBG Guidelines Handbook and HUD Section 108 Guidelines posted below.
Project Review Criteria: For a project to be funded, a determination must be made regarding project need, reasonability of costs, and overall effectiveness.
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, fair housing/equal opportunity, financial management and acquisition requirements. All requirements are set forth in the CDBG Handbook.
Kentucky's CDBG Consolidated Plan
The Consolidated Plan is the Commonwealth's application and distribution plan for U.S. Department of Housing and Urban Development's (HUD) Office of Community Planning and Development (CPD) Programs (CDBG, ESG, HOME, HOPWA, and HTF). Kentucky Housing Corporation (KHC) and the Department for Local Government (DLG) are the agencies responsible for submission of the plan to HUD.