Community Development

Community Development activities and programs are designed to strengthen the physical, social, and economic conditions of an area with a view toward making it a more healthful, prosperous, and gratifying place to live.

The Community Development Block Grant program, administered by the Community Resources Department for the City, is an important tool for helping tackle serious challenges facing our community.

The U.S. Department of Housing and Urban Development (HUD) chooses the amount of each grant by using a formula comprised of several measures of community need, including the extent of poverty, population, housing overcrowding, age of housing, and population growth lag in relationship to other metropolitan areas.

FAQs

What is the Community Development Block Grant (CDBG) and what is its purpose?

CDBG is a federal program that provides annual grants on a formula basis to entitled cities and counties to develop viable urban communities by providing decent housing, a suitable living environment and by expanded economic opportunities, principally for persons of low and moderate income.

What is the CDBG grant amount the City gets each year?

The CDBG grant amount the City of Fayetteville receives varies every year. The Department of Housing and Urban Development (HUD) uses one of two established formulas to calculate the allocation amount for each entitlement grantee every year. These formulas take into consideration factors such as population, the number of people with incomes below the poverty level, housing overcrowding and age of housing.

Does the City have to apply for CDBG funds each year from the Department of Housing and Urban Development (HUD)?

No, the City of Fayetteville is an Entitlement Community and automatically receives a CDBG grant each year. However, the City is required by the Department of Housing and Urban Development to submit a consolidated plan every five years, and an Annual Action Plan to HUD in order to spend the funds.

What is an Entitlement Community under CDBG?

Entitlement Communities are:

Principal Cities of Metropolitan Statistical Areas (MSA)
Other metropolitan cities with populations of at least 50,000
Qualified urban counties with populations of at least 200,000 (excluding the population of entitled cities)

How is the City's grant amount determined by the US Department of Housing and Urban Development (HUD)?

The US Department of Housing and Urban Development (HUD) uses one of two established formulas to calculate the allocation amount for each entitlement grantee every year. These formulas take into consideration factors such as population, the number of people with incomes below the poverty level, housing overcrowding, and age of housing.

When is the grant amount announced?

The amount is announced between January and March of the current program year.

What activities are eligible for CDBG funding?

CDBG funds may be used for activities which include, but are not limited to:

Acquisition of real property
Relocation and demolition
Rehabilitation of residential and non-residential structures
Construction of public facilities and improvements, such as water and sewer facilities, streets, neighborhood centers, and the conversion of school buildings for eligible purposes
Public services, within certain limits
Activities relating to energy conservation and renewable energy resources
Provision of assistance to profit-motivated businesses to carry out economic development and job creation/retention activities

What activities are not eligible for CDBG funding?

Generally, the following types of activities are ineligible:

Acquisition, construction, or reconstruction of buildings for the general conduct of government
Political activities
Certain income payments
Construction of new housing by units of general local government

What is the Consolidated Plan?

The Consolidated Plan is the document the US Department of Housing and Urban Development (HUD) requires each entitlement agency to prepare in order to receive HUD funding. A typical Consolidated Plan is normally a 3-year or 5-year plan that identifies local needs in housing and community development and establishes local goals to accomplish utilizing HUD grant funds. The Consolidated Plan also identifies programs to be carried out and resources to be used as implementation strategies.

What is an Annual Action Plan?

The Annual Action Plan, also known as the Consolidated Plan Amendment, is prepared by entitlement communities for the program year. It outlines in more detail what activities will be carried out and how they will be funded. The programmed activities in the Action Plan should help achieve the community's long-term goals identified in the Consolidated Plan.

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