The Community Development Block Grant (CDBG)is the largest grant that the Office of Community Development offers. It is also the most flexible in its eligible activities, which include: administration, housing, infrastructure and improvements, as well as a variety of other activities. Community Development receives approximately $2.2 million in CDBG funding annually. The CDBG program gives Chattanooga the opportunity to develop viable communities by funding activities that provide decent housing; a suitable living environment; and by expanding economic opportunities, principally for low and moderate income persons. Funds are awarded to carry out a wide range of community development activities directed toward neighborhood revitalization, economic development, and the provision of improved community facilities and services. Though various activities can be undertaken with the use of the funds the funded activity must principally benefit low- and moderate-income persons.
All projects must meet one of the three national objectives of the program:
Benefit low- and moderate- income persons; or
Aid in the prevention or elimination of slums and blight; or
Address needs having a particular urgency.
Projects meeting the low- and moderate- income persons benefit objective must either:
Require income eligibility provisions limiting project benefits to low- and moderate- income persons; or
Restrict project locations to areas predominantly inhabited by low- and moderate- income earning residents
Projects meeting the prevention and elimination of slums and blight must address the conditions which cause slums and blight.Historic preservation projects involving rehabilitation belong to this category.
Projects meeting the urgent needs objective must, in their design, alleviate recent existing conditions (within the past 18 months) that pose threats to the health and welfare of the community.
Examples of eligible CDBG funded activities include:
Property acquisition and disposition – for housing, public facilities, economic development projects.
Homeownership Activities – down payment assistance, principal write-down assistance.
Acquisition, construction, rehabilitation or installation of public facilities and improvements – parks, streets, sidewalks, community centers.
Clearance, demolition and removal of buildings – housing, public and commercial.
Interim assistance to alleviate emergency conditions in areas exhibiting physical deterioration.
Relocation assistance to families and businesses displaced by CDBG activities.
Removal of architectural barriers that restrict the mobility of the elderly and handicapped.
Acquisition, construction and rehabilitation of distribution lines and facilities of private utilities.
New construction of housing, under limited circumstances.
Housing Rehabilitation – rental and single family, including handicapped accessibility, energy efficiency improvements, and emergency repairs.
Code Enforcement.
Historic Preservation.
Economic Development activities – increase job opportunities through job creation, job training, facilities improvements – 24CFR 570.203
Planning and Urban Design activities – neighborhood plans and strategies.
Public Service Programs – provision of new or significantly increased public services - child care, crime prevention, health services, recreational services, employment services, educational programs.
Fair Housing/Predatory Lending Programs
Eligible administrative costs of overall program management, coordination, monitoring, evaluation, and fair housing activities, limited to 20% of the total grant.
