Last month, the U.S. Department of Housing and Urban Development (HUD) published a Notice of Proposed Rulemaking in the Federal Register to update regulations for the Community Development Block Grant (CDBG) and Indian Community Development Block Grant Programs (ICDBG). The proposed rule would streamline program requirements, promote economic development and investments in underserved communities, and enable larger, transformative construction projects such as housing rehabilitation, mixed-use development, and infrastructure improvements. These updates would improve the ability of CDBG grantees to implement funding more effectively and efficiently – making it easier for States and localities to use CDBG or Section 108 Loan Guarantee funding to invest in underserved areas. Section 108 allows communities to access up to five times their annual CDBG allocation via low interest loans for eligible activities and is a valuable tool in spurring economic development and job creation. Additionally, if promulgated, the proposed rule would strengthen provisions related to Consolidated Plan, public participation requirements, and the timely expenditure of CDBG funding.
The deadline to submit comments is Monday, March 11.
Click here to view the proposed rule.