You may be able to find free money for your community development projects. Finding out how your state or city awards community development block grants is worth the time spent on research.
HUD does not make grants directly to citizens or organizations, but you can secure some of these dollars by contacting your local government or your local elected official. As a part of its eligibility process, each local government must send its Consolidated Plan to HUD to identify their areas of concentration for community development that are consistent with the HUD defined priorities - activities that address the needs of low- and moderate-income persons. Although the local governments can use the grants for government administered public service projects, they also use these grants to help citizens to improve their housing and communities.
Local governments have programs designed to provide grants and low-interest loans for home renovation and improvement, storefront renovation and commercial property improvement, emergency and disaster responses, and to pay for projects undertaken by block clubs and other neighborhood groups. In most urban areas, the "community development" or "economic development" departments administer the local governments CDBG programs. Some of these departments contract the process of responding to individual citizens applying for grants to community development corporations. To find out how to reach these authorized local CDBG agents and learn the requirements for applying for grants, you should contact the development departments of your city, county, or state government.
In all instances, the local CDBG agent will require that you document your US citizenship, local residency, and that you meet the income eligibility and any other specific restrictions to qualify for a grant. The CDBG is a one of the most flexible grants available in local communities; allowing local agents to offer a broad range of benefits with varying eligibility requirements. HUD requires that all local governments spend at least 70% of their CDBG for projects that benefit low- and moderate- income persons.
To apply for a grant you should be prepared to document your need for the money. You must produce evidence of income eligibility and you may be required to volunteer information about personal assets and liabilities.
Citizens never have to repay block grants, and there are usually no requirements that the applicant have dollars of his own to put toward the project in order to qualify for the grant. The exceptions may be for a grant made to a block club or neighborhood group, since some local governments use the CDBG as an incentive for groups to take action to improve their communities. When a local government makes a grant on this basis, it may ask the group to match the CDBG dollar for dollar, before it will make the award.
Local governments award some grants as refunds after a homeowner proves that he has made certain improvements to his property and that he qualifies for the program. The income eligibility standards for refund programs may be somewhat higher (allow more income per household). There are also programs designed to be a part of other programs, such as those that award CDBG grants to persons who have qualified for federal supported energy conservation programs to help them acquire energy efficient heating equipment or hot water equipment to assure that the energy conservation measures are effective.
When you make your contact to apply for the CDBG, ask about other grants and programs that may meet your needs.
