The Community Development Block Grant (CDBG) program provides flexible funding to carry out a wide range of community development activities directed toward neighborhood revitalization, economic development, and improved community facilities/services. All CDBG-funded activities must meet one of the following national objectives: (1) Benefit low- and moderate-income persons; (2) Aid in the prevention or elimination of slums and blight; or (3) Meet certain community development needs having a particular urgency.
In Tennessee, CDBG funds may be utilized to address construction or renovation of various infrastructure projects such as water, wastewater and solid waste facilities, streets, and flood control projects; construction or improvements of a range of community facilities such as senior, health and social services centers; expansion of public services to serve low-income persons; creation of new jobs through small business loans or infrastructure improvements; and various affordable housing projects including home reconstruction, rehabilitation or repair programs.
Funds are divided into the following program categories: (1) water line extensions, (2) sewer line extensions, (3) water system improvements, (4) sewer system improvements, (5) housing rehabilitation and (6) community livability. Common community livability projects include rural fire protection, primary health care, drainage or street improvements, and other similar projects related to health and safety conditions in the community.
CDBG Coronavirus Response Supplement (CDBG-CV): As part of the CARES Act, Congress appropriated $5 billion to the U.S. Department of Housing and Urban Development (HUD) for allocation to cities and states through the Community Development Block Grant (CDBG) program. These funds are supplemental to the annual allocations of CDBG the State receives. ECD is in the process of collecting information concerning the needs Tennessee communities due to the direct impacts of COVID-19 and the indirect impacts of policies, procedures, and practices necessary for the response, such as social distancing and stay-at-home orders. The existing Consolidated Plan will be amended to include the CDBG-CV supplemental funds and the programing designed to use these funds.