What is CDBG?
Congress created the Community Development Block Grant (CDBG) program in 1974 to benefit low- and moderate-income persons, prevent and eliminate conditions of slum or blight, and address other urgent community development needs. AEDC has administered the State CDBG program since 1983, when Housing and Urban Development (HUD) moved the administration of the funds to the states. In Arkansas, the CDBG program is also known as the Arkansas Community and Economic Development Program (ACEDP).
Who is eligible?
Eligible applicants include cities and counties with a population of under 50,000 with a low- to moderate-income (LMI) population of at least 51 percent, or for projects which benefit a targeted eligible clientele. Larger entitlement cities receive their own funding and are not eligible for funds from this program. They include Bentonville, Conway, Fayetteville, Fort Smith, Hot Springs, Jacksonville, Jonesboro, Little Rock, North Little Rock, Pine Bluff, Rogers, Springdale, Texarkana, and West Memphis.
Only cities and counties may apply for CDBG grants. Grants cannot be made directly to non-profit or for-profit groups or individuals. However, cities and counties may apply for projects that will benefit non-profit groups, for-profit companies, or LMI persons.
How are the funds distributed?
Each year, the Arkansas Economic Development Commission (AEDC) holds public meetings and hearings across the state to obtain citizen input on community needs. Based on that input, the agency prepares a plan to prioritize and distribute the grant funds that are part of its federal CDBG allocation. A draft of the plan is published and made available for public comment.
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