Community Development Block Grant

A Federal Grant Program

The Community Development Block Grant (CDBG) program was enacted into law as part of the Housing and Community Development Act of 1974.  CDBG is a formula-allocated program that provides grants to eligible grantees, known as Entitlement Communities.  A community qualifies for the program if it a) is a city with a population over 50,000; or b) is an urban county with a population over 200,000.  

The Purpose

The primary purpose of the CDBG program is to benefit low- to moderate-income residents in one of the three following ways:

  • Providing decent, safe, and sanitary housing;
  • Creating a suitable living environment; and/or
  • Creating economic opportunities. 

The Planning Process

Every five years, Entitlement Communities are required to complete a comprehensive community needs assessment and create a five-year strategic plan called a Consolidated Plan.   The assessment addresses topics related to housing and community development, identifying areas most likely to disproportionately affect low- to moderate-income residents.  Community engagement is a significant component of the needs assessment process.  

The Consolidated Plan outlines the community's priority needs and creates goals and anticipated outcomes to be met during the five-year period of performance.  Each year, Entitlement Communities develop an Annual Action Plan that guides the projects and activities to be undertaken during that single year within the Consolidated Plan.  

Within 90 days of completing an Annual Action Plan period of performance, Entitlement Communities submit an annual report called a Consolidated Annual Performance Evaluation Report (CAPER) to HUD.  The CAPER provide an overview of the work completed during the Annual Action Plan period of performance and outlines progress towards meeting five-year goals.  

Learn more about Community Development Block Grants on the McLean County Regional Planning Commission's website.