City of Calhoun Receives $1M Community Development Block Grant

Press Release - 02/25/2019

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FRANKFORT, Ky. (Feb. 25, 2019) – The Department for Local Government (DLG) has announced a $1,000,000 Community Development Block Grant (CDBG) to the City of Calhoun.

The federal funds will aid in the city’s design and construction of a new 400,000-gallon-per-day wastewater treatment plant. The current plant, originally constructed in 1973 and modified in 1979, was not designed to treat phosphorus in the water. As a result, the utility has had to pay approximately $15,000 a year to purchase chemicals needed to bring flows into the required limits, and permit violations have led to enforcement action.

“This project is a large undertaking that has required interagency collaboration,” DLG Commissioner Sandra K. Dunahoo said. “I’m proud that DLG could play a role in this new wastewater treatment plant, which is expected to result in improved service and water quality for nearly 500 households and businesses.”

In addition to the CDBG funding, the city has also secured a $1.9 million grant and a $2 million loan through U.S. Department of Agriculture Office of Rural Development. The total project cost is expected to be roughly $4.9 million.

“Every community across the state and across the country has had to figure out how to address aging water infrastructure in a way that is cost-effective but facilitates the necessary improvements,” Sen. Matt Castlen said. “I’m appreciative of both the Department for Local Government and USDA Rural Development for helping to fund this project.”

“This funding is critical to McClean County’s ability to improve its wastewater infrastructure,” Rep. Jim Gooch said. “Construction of a new wastewater treatment plant will provide a strong boost to the City of Calhoun, and I would like to thank the Department for Local Government for their support for the needs of our rural communities.”

About the Community Development Block Grant Program

The CDBG program, overseen by the U.S. Department of Housing and Urban Development, provides assistance to communities for use in revitalizing neighborhoods, expanding affordable housing and economic opportunities, providing infrastructure and/or improving community facilities and services.

About the Department for Local Government

Funds are administered by DLG, an arm of the Office of the Governor dedicated to supporting local officials and communities. To learn more about CDBG and other grant opportunities available through DLG, visit