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May 6, 2009

Re: Economic Recovery Update: Community Development Block Grant

Dear Mayor:

The U.S Department of Housing and Urban Development has released application guidance for the Community Development Block Grant program under the Economic Recovery Act. 

Community Development Block Grant (CDBG)
HUD will allocate $1 billion in CDBG grants to nearly 1200 local governments and the states. 

Although CDBG grants allocated under the Economic Recovery Act are very similar to regular CDBG grants, there are some specific differences identified in the guidance below.  For instance, projects involving casinos, aquariums, zoos, golf courses, and swimming pools are prohibited.  Also, local governments must prioritize projects that can award contracts within 120 days of the grant agreement. 

CDBG entitlement municipalities must submit their CDBG applications in the form of a substantial amendment to their program year 2008 action plan to their HUD field office by June 5, 2009.  State applications are due to the HUD field office by June 29.

HUD is also permitting municipalities that have not yet applied for Homeless Prevention and Rapid Rehousing funds under the Economic Recovery Act to combine their applications for both the Homeless Prevention grant and the CDBG grant into a single substantial amendment.  However, cities choosing to do this are required to send their combined application to their HUD field office by May 18.

If you have any questions please contact Jon Moran at (609) 695-3481 ext. 121 or

Very truly yours,


William G. Dressel, Jr.
Executive Director


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