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Community Development Block Grant Program

Community Development Block Grant (CDBG) funds are received from the US Department of Housing and Urban Development (HUD) on an annual basis to revitalize neighborhoods, expand affordable housing and economic opportunities and/or improve community facilities and services, principally to benefit low- and moderate-income persons. The Executive Office of Economic Development administers approximately $5 million in CDBG funds annually.

CDBG provides a flexible source of funding to develop viable urban communities by providing decent affordable housing, creating suitable living environments and expanding economic opportunities for low- and moderate-income persons. The City, with the participation of local citizens, allocates resources toward projects that qualify as meeting one or more of the following three (3) broad national objectives set by Congress:

  1. Benefit low- and moderate-income persons.
  2. Aid to prevent or eliminate slums and blight.
  3. Meet other community development needs in an urgent situation.

Eligible Applicants
CDBG funds are awarded to City departments, other public agencies, public and private non-profit entities and for-profit entities to carry out eligible housing and community development projects within the boundaries of the City of Worcester.

Eligible Clientele
Projects receiving assistance must serve low- and moderate-income persons (generally defined by HUD as members of a family earning no more than 80 percent of the area median income) and/or prevent or eliminate slums and blight.

Activities that benefit low- and moderate-income persons can address this objective by:

  • Serving low- and moderate-income areas.
  • Serving low- and moderate-income clientele.
  • An activity to prevent or eliminate slums and blight - generally consists of a project that provides a benefit to the service area, and the area must be designated by the City as a slum, blighted or deteriorated area. Activities assisted must address one or more conditions which contributed to the deterioration of the area.

Eligible Activities
The following is a list of eligible activities within the CDBG program:

  • Acquisition of Real Property
  • Site Clearance
  • Rehabilitation
  • Publicly Owned Improvements
  • New Construction of Public Facilities
  • Homeownership Assistance
  • Relocation
  • Microenterprise (5 or fewer employees)
  • Disposition
  • Public Services
  • Interim Assistance
  • Loss of Rental Income
  • Code Enforcement
  • Administration Costs

Ineligible Activities
The following is a list of ineligible activities within the CDBG program:

  • Assistance to Buildings Used for the General Conduct of Government
  • General Government Expenses
  • Political Activities
  • Purchase of Equipment
  • Operating and Maintenance Expenses
  • New Housing Construction
  • Income Payments
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