Community Development Block Grant

The Community Development Block Grant program is an entitlement grant program where federal dollars are issued to each of the respective states based on a formula set by HUD. States then allocate the funds to eligible projects either through a grant or loan program. Additionally some larger cities receive direct CDBG allocations for their use from the individual states. Entitlement Cities receive a direct allocation from HUD. Eligible grantees are as follows: principal cities of Metropolitan Statistical Areas (MSAs); other metropolitan cities with populations of at least 50,000; and qualified urban counties with populations of at least 200,000 (excluding the population of entitled cities) are entitled to receive annual grants. HUD determines the amount of each entitlement grant by a statutory dual formula which uses several objective measures of community needs, including the extent of poverty, population, housing overcrowding, age of housing and population growth lag in relationship to other metropolitan areas. As a real estate investor or developer, you can use the CDBG program to fill gaps in your pro-forma, acquire properties, and rehab properties. To find out more about how you can use CDBG and other government programs for your deals, pick up a copy of Government Deal Funding for Real Estate Investors and Developers.