Community Development Block Grant (CDBG) funds may only be used for projects and activities that meet one of the following national objectives of the program:
- Benefiting low and moderate income persons; or
- Preventing or eliminating slums or blights; or
- Meeting a particularly urgent community development need.
IF ANY OF THE ABOVE CONDITIONS ARE MET, under current guidelines, the City of Rancho Palos Verdes may use CDBG funds for a variety of activities including:
1. Acquisition of Real Property
Example: Acquisition of land, air rights, easements, water rights, rights-of-ways,
building and other real property improvements.
2. Disposition of Real Property
Example: Disposition of real property acquired with CDBG funds through sale,
lease or donation including fees and costs associated with the transfer of
ownership of real property.
3. Public Facilities and Improvements
Example: Parking, streets, curbs, gutters and sidewalks, parks and playgrounds,
shelters for the homeless, water and sewer facilities, flood and drainage
improvements, community, senior and health centers.
4. Acquisition, Reconstruction, Rehabilitation or Installation of Privately-Owned Utilities
Example: Pay the costs of placing underground new or existing power lines owned
by private utilities.
5. Clearance, Demolition, Removal or Building and Improvements, or Movement of
Structure to Other Sites
Example: Demolition of vacant structure and removal of the debris to make a
neighborhood park and playground available to residents in a low/moderate income
6. Public Services
Example: Child care, health care, job training, recreation programs, education programs,
public safety services, fair housing activities, services for senior citizens, services
for homeless persons, drug abuse counseling and treatment, and energy conservation
counseling and testing.
7. Interim Assistance
Example: Improvements to a deteriorating area as a prelude to permanent improvements
or alleviation of harmful conditions where immediate public action is necessary.
8. Relocation Payments and Assistance
Example: Relocation and payments to displaced individuals, families, businesses,
or nonprofit organizations that result from the acquisition of property for CDBG-assisted
9. Loss of Rental Income
Example: Loss of rental income incurred in holding housing units used for the
relocation of individuals and families displaced by CDBG-assisted activities.
10. Removal of Architectural Barriers
Example: Installation of ramps, curb cuts, wider doors, elevators, and physical
modification to buildings, facilities and improvements to make them accessible.
11. Housing Rehabilitation
Example: Financial assistance such as grants and deferred loans for the rehabilitation
of any publicly or privately-owned residential property.
12. New Housing Construction
Example: Funding for housing construction project that has received funding
through a Housing Development Grant (HODAG), or housing to be constructed
by a local development corporation, small business investment company, or
neighborhood-based nonprofit organization.
13. Code Enforcement
Example: Inspections in a low/moderate income neighborhood targeted for
rehabilitation assistance, a neighborhood facility and street reconstruction.
14. Historic Preservation
Example: Rehabilitation, preservation and restoration of historic properties.
15. Commercial or Industrial Rehabilitation
Example: Improvements to the exterior of the building and the correction of
16. Special Economic Development
Example: Loans to pay for the expansion of a commercial business which will
create jobs for low/moderate income persons, or technical assistance to a
business facing bankruptcy.
17. Special Activities by Neighborhood-Based Nonprofit Organizations, Small Business Investment Companies, or Local Development Corporations
Example: Provide grants or loans to carry out a neighborhood revitalization,
community economic development or energy conservation program.
18. Planning and Capacity Building
Example: Comprehensive plans, individual project plans, community development
plans, studies, analysis and data gathering.
19. Program Administration Costs
Example: Payment of costs for overall program management.
Activities and projects that are ineligible for CDBG funding include:
1. Buildings or portions thereof, used for the general conduct of government.
2. General government expenses.
3. Political activities.
4. Purchase of equipment, unless otherwise required for program.
5. Operating and maintenance expenses.
6. New housing construction, except housing of last resort for persons displaced due to a CDBG project, housing to be funded through a Housing Development Grant (HODAG), or housing to be constructed by a local development corporation, small business investment company, or neighborhood-based nonprofit organization.
7. Income payments to an individual or family for items such as food, clothing, housing or utilities.