Community Development Block Grants
Enhancing local community housing and environments, expanding economic opportunities
Community Development Block Grant (CDBG) funds are available to local municipal or county governments for projects to enhance the vitality of communities by providing decent housing and suitable living environments and expanding economic opportunities. These grants primarily serve persons of low- and moderate- incomes. State CDBG funds are provided by the U.S. Department of Housing and Urban Development (HUD) to the state of North Carolina. Some urban counties and cities in North Carolina receive CDBG funding directly from HUD.
The Department of Commerce's Office of Community Investment (CI) and Commerce Finance Center (CFC) administer the State of North Carolina's Community Development Block Grant (CDBG) program to local governments in non-entitlement areas. Non-entitlement areas are cities with populations of less than 50,000 (except cities that are designated principal cities of Metropolitan Statistical Areas), and counties with populations of less than 200,000.
The primary statutory objective of the CDBG program is to develop viable communities by providing decent housing and a suitable living environment and by expanding economic opportunities. These grants primarily serve persons of low- and moderate-income, as the State must ensure that at least 70 percent of its CDBG grant funds are used for activities that benefit these persons.
The State typically receives about $45 million in federal CDBG funds annually to go towards various CDBG program categories that have been designed to meet the needs of North Carolina's communities. Local governments may apply for these funds.
All North Carolina small cities are eligible to apply for funds except for 23 entitlement cities that receive funds directly from the U.S. Department of Housing and Urban Development (HUD). These directly-funded cities include: Asheville, Burlington, Cary, Chapel Hill, Charlotte, Concord, Durham, Fayetteville, Gastonia, Goldsboro, Greensboro, Greenville, Hickory, High Point, Jacksonville, Kannapolis, Lenoir, Morganton, Raleigh, Rocky Mount, Salisbury, Wilmington, and Winston-Salem.
All counties, except for the three HUD-designated urban counties of Wake, Mecklenberg, and Cumberland, are eligible to apply for Small Cities CDBG funds. All municipalities in these counties are ineligible except for the Town of Holly Springs in Wake County and the Town of Linden in Cumberland County.
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