What is a Community Development Block Grant?
A Community Development Block Grant (CDBG) is federal funding distributed by HUD to cities and counties for projects that benefit low-income residents, including affordable housing development, infrastructure improvements, and social services.
The Community Development Block Grant program is a direct funding stream from the U.S. Department of Housing and Urban Development (HUD) that allocates federal money to cities, counties, and states for local projects. Texas municipalities and counties receive annual CDBG allocations based on population, poverty rates, and housing conditions. These grants support a range of activities aimed at benefiting low and moderate-income residents.
In the affordable housing context, CDBG funds finance several types of work. Cities and counties use the money to construct or rehabilitate rental housing, support down payment assistance programs, fund emergency repairs in deteriorating homes, and help develop supportive housing for special needs populations. Community organizations and nonprofits often serve as project partners, administering programs on behalf of local governments.
Beyond housing, CDBG money supports infrastructure like water systems, roads, and community centers in underserved neighborhoods. It also funds social services such as youth programs and job training. The program requires that the majority of funds benefit people earning no more than 80 percent of the area median income. This makes CDBG one of the longest-running and most flexible federal funding sources for affordable housing and community development work in Texas.
Nonprofits and government agencies administering housing programs often combine CDBG funding with other sources to expand their capacity. Understanding CDBG eligibility and project requirements helps communities plan sustainable affordable housing solutions aligned with HUD priorities.