Community Development Block Grant (CDBG)

Community Development Block Grant (CDBG)

The CDBG Program provides annual grants on a formula basis to the City of Muncie to develop viable urban communities by providing decent housing and a suitable living environment, and by expanding economic opportunities, principally for low- and moderate-income persons. The program is authorized under Title 1 of the Housing and Community Development Act of 1974, Public Law 93-383, as amended 42 U.S.C. 5301 et seq. The program was designed to reinforce several important values and principles of community development:

• CDBG's flexibility empowers people and communities to design and implement strategies tailored to their own needs and priorities.
• CDBG's emphasis on consolidated planning expands and strengthens partnerships among all levels of government and the private sector in enhancing community development.
• CDBG's technical assistance activities and set-aside for grantees builds the capacity of these partners.

• Acquisition of real property
• Relocation and demolition
• Rehabilitation of residential and non-residential structures
• Construction of public facilities and improvements, such as water and sewer facilities, streets, neighborhood centers, and the conversion of school buildings for eligible purposes
• Public services, within certain limits
• Activities relating to energy conservation and renewable energy resources
• Provision of assistance to profit-motivated businesses to carry out economic development and job creation/retention activities

Each activity must meet one of the following national objectives for the program: benefit low- and moderate-income persons, prevention or elimination of slums or blight, or address community development needs having a particular urgency because existing conditions pose a serious and immediate threat to the health or welfare of the community for which other funding is not available. Generally, the following types of activities are ineligible:

• Acquisition, construction, or reconstruction of buildings for the general conduct of government
• Political activities
• Certain income payments
• Construction of new housing (with some exceptions)

Davis-Bacon Related Act (DBRA) - Prevailing Wages

The DBRA apply to projects funded in whole or in part by CDBG funds that involve rehabilitation or new construction of residential property containing 8 or more units that are operated as one rental, cooperative or condominium project. Single-family homeowner properties are excluded from DBRA applicability. 

Search for wage decisions at SAM.gov. 

Section 3 Businesses

Section 3 is designed to provide employment and economic opportunities generated by certain HUD funding to low- and very low-income persons. Since the first of the year, HUD has been working with stakeholders and local businesses to transition to the new Section 3 Rule (24 CFR Part 75). To help Section 3 Recipients transition and find Section 3 Businesses, HUD has most recently been working on updates relating to the Section 3 Business Registry. The update is the new Section 3 Business Registry. The new registry provides businesses the opportunity to self-certify that they meet the new definition of a Section 3 Business. The old registry was cleared out on August 1, 2021 and the new registry went live on August 2, 2021. The Section 3 Business Registry provides a searchable database to assist recipients of certain HUD funding find and provide affirmative outreach to those businesses that self-certify as a Section 3 Business. The database is public and any Section 3 Recipient is able to search and send contracting opportunities to the businesses listed within the database as part of their Section 3 requirements.

Section 3 Guidebook Now Available on HUD Exchange

This Guidebook curates the latest guidance, tools, and resources for implementing and applying Section 3 to HUD funded projects and activities. The Guidebook also helps direct recipients of HUD funding comply with Section 3 of the Housing and Urban Development Act of 1968. The Guidebook begins with the evolution of Section 3 and highlights key differences between the Section 3 former rule and the new final rule. The Guidebook also provides general information on how to apply Section 3 in the field, compliance, complaints, and best practices.