What is CDBG?

1. What is CDBG?
   
   CDBG stands for Community Development Block Grant. The City of San Jose is awarded funds per year from the U.S. Department of Housing and Urban Development (HUD), and is administered locally by the Housing Department.



2. What is the purpose of the program?
   
   CDBG funds a number of non-profit agencies and other City Departments that provide services to the community while addressing at least one of the following national objectives set by Congress:
   
   
   1. Benefit low- and moderate-income persons;
   2. Address the eradication or prevention of slums and blight; or
   3. Meet a community development need in an urgent situation.



3. What activities are eligible for funding?
   
   There are approximately 30 eligible activities listed in the federal regulations (24 CFR 570) eligible for CDBG funding. These activities can include public services (similar to social services), economic development, housing and capital projects.
   
   Types of projects funded under the eligible activities include but are not limited to:
   
   Public Services:
   
   
   1. Senior
   2. Handicapped
   3. Legal
   4. Youth
   5. Transportation
   6. Substance Abuse
   7. Battered and Abused Spouses
   8. Employment Training
   9. Crime Awareness
   10. Fair Housing Activities
   11. Tenant/Landlord Counseling
   12. Child Care
   13. Health
   14. Abused and Neglected Children
   15. Mental Health
   16. Screening for Lead Based Pain/Lead Hazards
   17. Subsistence Payments
   18. Homeownership Assistance (not direct)
   19. Rental Housing Subsidies
   20. Security Deposits
   
   
   Economic Development:
   
   
   1. Revolving loan fund to assist small business owners develop their business, increase revenues and create jobs for local low-income residents
   2. Small business mentoring and training programs
   3. Small business loan packaging services
   4. Small business office incubators - office space, phones, business address
   5. Child care business development
   
   
   Housing:
   
   
   1. Owner-occupied housing rehabilitation
   2. Rental property housing rehabilitation
   3. Emergency repairs
   4. Accessibility
   
   Capital Projects:
   
   
   1. Construction of playing fields
   2. Park acquisition and development
   3. Neighborhood revitalization - streets, lighting, etc.
   4. Community center renovation
   
   
   
4. What makes a Community Based Organization (CBO) eligible for funding?
   
   At the time of application, an agency must have:
   
   
   1. Incorporation as a non-profit agency and be tax exempt [501 (c) (3)]
   2. Either an audit of the previous fiscal year, or be represented by a qualified fiscal agent
   3. By-laws
   4. A board of Directors
   5. A non-discrimination policy in services and hiring
   6. Written personnel policies and procedures
   
   
   At the time of funding, an agency must have:
   
   
   1. Insurance
   2. A Cost Allocation Plan (CAP) indicating direct and indirect costs.
   
   
   To be competitive, an agency must have:
   
   
   1. Significant other or more leveraged funding, usually 50% or more
   2. A cooperative relationship with other community and city programs
   3. A good fiscal and programmatic track record
   4. A program that supports other city services



5. Are individuals eligible to receive CDBG-funded services?
   
   In general, clientele of the funded agencies are low and moderate-income individuals as defined by HUD guidelines, and must benefit individuals as follows:
   
   
   1. Elderly
   2. Abused spouses
   3. Abused and abandoned children
   4. Homeless
   5. Disabled
   6. Illiterate
   7. Migrant workers
   8. Low-moderate income individual or households
   
   
   However, no money is given directly to individuals, as they are not eligible to submit an application.



6. What is the application process?
   
   Applicants submit applications in either one of two separate project categories:
   
   
   1. Contractual Community Services (CCS) which consist of Public Services and Fair Housing; and
   2. Community Development Improvement (CDI) which consist of Economic Development and Capital projects.
   
   
   Applications and workshops are available usually in October and November and are due in December.
   
   The San Jose City Council, based upon recommendations from the steering committee approves funding allocations in April.
   
   Contracts for selected applicants will be negotiated and prepared after funding.
   
   
7. Who decides the allocation of CDBG funds?
   
   The ultimate decision regarding the allocation of CDBG funds is made by the San Jose City Council. They are advised by the Committee, a group of citizen volunteers who serve a four year term. Staff of the Program and the Committee are supplied by the Housing Department.

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• CDBG Funding Recommendation Cycle



• Housing & Community Development Advisory Commission

Programs : CDBG : CDBG FAQs