Community Development Block Grants (CDBG) aim to create healthy communities by providing funds to improve housing, the living environment, and economic opportunities mainly for persons with low and moderate incomes.
There are a wide array of CDBG-eligible activities, including: loans and grants to landlords, nonprofits, or homeowners to rehab housing; lead-based paint detection and removal; making buildings accessible to those who are elderly or disabled; and public services such as job training or child care.
Every community that receives CDBG must have a public participation plan that describes how funds will help and involve people with low incomes. To make sure low-income households receive the most benefit from this resource, advocates often use this public participation project to organize with low-income communities to demand that projects they favor receive priority.
While the need for housing and other development activities has increased, the funding from Congress has decreased by about 20% over the last five years.
Minnesota affordable housing advocates support an increase in CDBG funds from $3.9 billion (FY09 spending) to $4.5 billion.
November ’09 Update: The Obama Administration has proposed a CDBG increase to $4.45 billion, the House has passed an appropriation of $4.599 billion, and the Senate draft legislation proposes $3.99 billion.
