Office of Federal Grants
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 2023 funding cycle, DLG will receive $25,726,812 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 go to the 2023 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.
Trainings
- CDBG Re-Certification Training for Certified Administrators- To Be Announced
Program Areas and Allocations
- Community Projects- $5,803,703
- Community Emergency Relief Fund (CERF)- TBD: Amount Based on Need
- Economic Development- $5,005,449
- Housing Program- $3,282,998
- Public Facilities- $8,834,662
- Public Services (Recovery KY)- $2,800,000
Community Projects
The Community program is designed to provide funds for community development projects that address human service needs, such as senior centers, crisis centers, fire stations and facilities that provide services to low-income persons. As part of the Commonwealth's allocation from the CDBG program, these projects have been allocated with the maximum amount of $750,000 of CDBG funding per community.
Who can Apply: All cities and counties are eligible to apply for the funds with the exception of entitlement communities.
Applications Accepted: April 1, 2023 - September 1, 2023.
For more information see the Community Development Block Grant Program Guidelines or contact
Department of Federal Grants.
Community Emergency Relief Fund (CERF)
CERF funds are provided to give communities a means to restore infrastructure or housing that severe weather or natural disasters have negatively impacted. As part of the Commonwealth's allocation from the CDBG program, these projects will be allocated an amount to be determined based on need with the maximum amount of $100,000 of CDBG funding per project.
Who can Apply: Only communities that have experienced a disaster and have a Declaration of Emergency from the Governor may submit an application for these funds.
Applications Accepted: The application submission dates are April 1, 2023 - January 31, 2024.
For more information see the Community Development Block Grant Program Guidelines or contact
Department of Federal Grants.
Economic Development
The Economic Development Branch works to fund development activities that create or retain jobs principally benefiting low and moderate income (LMI) persons. Additional goals provide for the training and provision of human services that allow for the professional advancement of LMI persons. As part of the Commonwealth's allocation from the CDBG program, these projects have been allocated estimate with up to $1,000,000 of CDBG funding per community.
There are two areas of eligibility for CDBG Economic Development funding:
Traditional: Provides grant assistance to communities for projects which specifically address the creation or retention of jobs through eligible activities. Funds can be provided to a community to use for specific business/industrial clients.
Non-Traditional: Allows for the funding of eligible activities benefiting low and moderate income persons not directly related to job creation.
Who can Apply: All cities and counties with the exception of designated entitlement areas. Multi-Jurisdiction Applications may jointly request $2 million provided that the $1 million per jurisdiction is not exceeded. Multi-Jurisdiction Non-Traditional Economic Development applicants may request up to $500,000 if the $250,000 per jurisdiction is not exceeded.
Recapture: When a loan or lease is made to an entity, DLG may allow the repayment to remain in the local jurisdiction for use toward other economic development projects. Future utilization of these funds is subject to oversight and approval by DLG and may be recaptured based on various factors.
Program Criteria: Basic guidelines include limits on the level of CDBG participation proposed in a project. The CDBG cost should not exceed $20,000 per job. CDBG participation should be limited to one third of the total project.
Applications Accepted: Dates will are April 1, 2023 - January 31, 2024.
Department of Federal Grants.
Housing Program
The Housing program works to fund projects designed to develop decent, safe, sanitary and affordable housing. As part of the Commonwealth's allocation from the CDBG program, these projects have been allocated $3,282,998 for 2023 with the maximum amount of $1,000,000 of CDBG funding per project.
Who can Apply: All cities and counties are eligible to apply for the funds with the exception of entitlement communities.
Applications Accepted: Dates are April 1, 2023 - January 31, 2024.
For more information see the Community Development Block Grant Program Guidelines or contact
Department of Federal Grants.
Public Facilities
The Public Facilities Branch provides funding to primarily develop Kentucky's water and wastewater systems. As part of the Commonwealth's allocations from the CDBG program, these projects have been allocated an estimate of $8,834,662 with the maximum amount of $1,500,000 for treatment plants and $1,250,000 for lines/pumps and tanks of CDBG funding per community. Self-help grants (maximum amount of $300,000 per project) are funded under this branch.
Who can Apply: All cities and counties are eligible to apply for the funds with the exception of entitlement communities.
Applications Accepted: Dates are April 1, 2023 - September 1, 2023.
For more information see the Community Development Block Grant Program Guidelines or contact
Department of Federal Grants.
