Application
Program Overview & Objectives
Eligibility
Guidelines
How to Apply
Evaluation
Key Dates
Requirements
Workshop Materials
Circulars
Income Surveys
Special Allocations
Implementation

Eligibility

New Hampshire’s CDBG program is offered to eligible cities and counties for a wide range of activities as authorized under Section 105(a) of the Housing and Community Development Act (HCDA) of 1974, as amended. The state annually expects to receive new CDBG funds for distribution to non-entitlement cities and counties for eligible projects. The CDBG funds covered by this Method of Distribution (MOD) include: annual program year funds, unobligated program year funds, any program income received and grant funds recaptured from projects funded in prior grant years. CDFA will manage the competitive award and funding process for eligible projects under this Method of Distribution.

Your city or county is eligible to apply for CDBG funds if:

  • You do not receive CDBG funds directly from HUD. In 2021, the cities of Manchester, Nashua, Portsmouth, Dover, and Rochester received HUD funds directly.
  • You have a project that needs funding and meets the CDBG priorities and National Objectives discussed below.
  • You have a project that aligns with NH’s CDBG priority activities.

Two or more local governments (for example, a city and a county, or two cities) may work on an application for a regional project. In such cases, only one jurisdiction can be the primary applicant and act as the responsible party under the contract with the state. Joint applications where two or more parties are equally responsible will not be accepted. Regional projects are activities that benefit more than one jurisdiction and address a common problem in a region. The maximum funding available for a joint application shall be the same as for an individual applicant.

Grantees can administer the funds within their organization (e.g., town staff, nonprofit staff) or through agreements with a contractor or subrecipient through procurement procedures.

Subject to the specific requirements of each type of grant or subcategory, funds can be awarded as:

  • A direct grant to a grantee;
  • Grants, loan guarantees, interest rate subsidies or loans to an eligible subrecipient by the grantee;
  • Interest rate subsidies or other favorable terms from a bank participating in the project with the grantee; or
  • Any other innovative financing used either singly or in combination with items listed above, with permission from CDFA.

Cities and counties cannot “pass through” the awarded funds to another city or county to carry out the project activities. The recipient must carry out the project activities and remain fully responsible for the grant-funded project’s compliance with all federal and state requirements. In other words, the project must be under the direct control of the grant recipient at all times.

 

Funding Priorities

HUD requires that states establish priorities for CDBG among the types of eligible activities. Municipalities’ applications for funding must be consistent with the identified funding priorities, listed below:

  • Emphasize solving community problems with long-term community development benefits and innovative solutions.
  • Strengthen the resiliency and vibrancy, facilitate financial stability, and attract capital to the state’s communities.
  • Provide additional resources for the development of affordable housing and rehabilitation of existing affordable housing.
  • Preserve and promote existing neighborhoods and community centers.
  • Provide improved housing and public facilities or employment opportunities primarily to low- and moderate-income persons or households. (Grants shall not benefit moderate-income persons to the exclusion of low-income persons).
  • Build partnerships with municipalities and nonprofits with limited capacity and leveraging private and other public funding sources where feasible.
  • Fund needed projects for which other private or public funding is not available.

 

National Objectives and Eligible Activities

National Objectives and Eligible Activities describes the federal requirement that all CDBG-funded activities fulfill one of three National Objectives established by Congress. Applicants can learn more about the National Objectives, Eligible activities and how to documentation compliance in the CDFA’s Community Development Block Grant Implementation Guide found here: https://resources.nhcdfa.org/programs/community-development-block-grant/implementation/

To accomplish the national, state and current program year objectives, there shall be five grant categories, as follows:

  1. Housing
  2. Public facilities
  3. Economic development, which shall consist of the following subcategories:
    • Business Loan
    • Real Estate Development
    • Public Infrastructure
    • Nonprofit Grants for Xxx
    • Microenterprise Development
    • Job Training
    • Business Technical Assistance
  4. Emergency needs
  5. Planning

 

3.1 How do I know if my project idea will be funded?
  • The infographic below provides examples of eligible projects and should be used as a guide for priority community projects funded by CDBG.
  • Details about each project category are provided in Chapter 3.
  • Appendix A: Evaluation Rating and Ranking Criteria is also useful to determine if your project concept will be competitive.

 

Grant categories have programmatic requirements; more details are in the How to Apply section.

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3.2 Target Funding among Category Areas
CDFA receives an annual allocation from HUD for the CDBG program of approximately $9 million. After subtracting amounts allowed for Administration and Technical Assistance (3% plus $100,000), CDFA awards available funds in the categories listed below, using the percentages shown. Funding priority target percentages may be adjusted annually to be more in line with the increased demand for certain types of projects, current trends and based on the citizen participation plan conducted through the Consolidated and Annual Action Plan processes.

Annual Allocation Targets 

The final Annual Allocation from HUD is included in CDFA’s Annual Action Plan. The Annual Action Plan is prepared each year between January and May and is available for public review during the month of April. That plan can be accessed here:  HUD Limits & Consolidated Plan – New Hampshire Housing (nhhfa.org)

Annual Allocation From HUD Target % Average # of Grants Annually
Housing

30%

6
Public Facilities

30%

6
Economic Development

30%

4
Emergency

5%

Varies
Planning and Transformative Planning

3%

Varies
Technical Assistance / Administration

2%

N/A
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3.3 Ineligible activities
CDBG funds cannot be used for facilities owned and/or maintained by a state or federal agency. CDBG funds cannot be used to offset locally budgeted funds or to replace state or federal funds. All CDBG projects must comply with 2 CFR 200. In addition, 24 CFR 570.489(d) (2 CFR 200.444) requires that CDBG funds are not used for general expenses required to carry out other responsibilities of state and local governments.
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3.4 Maximum Grant Amounts for Category Areas
To comply with federal requirements pertaining to the timely distribution and expenditure of funds, the CDBG program will have the following application limits for all projects assisted in whole or in part with CDBG funds in any one program year:

  1. Community Development Housing Grants-
    A potential grantee may apply for Housing projects for the total limit of $500,000 per program year;
  2. Community Development Public Facility Grants-
    A potential grantee may apply for Public Facilities projects for the total limit of $500,000 per program year;
  3. Economic Development Grants-
    A potential grantee may only apply for projects from the following categories and shall not exceed $500,000 per program year:

      • Business Loan
      • Real Estate Development
      • Public Infrastructure
      • Grant to a Nonprofit
      • Job Training

    Microenterprise Development – In addition to the economic development grants above, a potential grantee may also apply for additional $500,000 for projects in this category in addition to the $500,000 limit for categories listed in a through e, above.

    Business Technical Assistance – A potential grantee may also apply for additional $300,000 for projects in this category in addition to the $500,000 limit for categories listed in a through e, above.

  4. Planning and Transformative Planning Grants:
    • The maximum grant award of $25,000 shall be made only for studies, which include architectural, engineering design or redesign, energy design review, energy audit and/or economic analysis, and a plan or approach to the study which has the potential for achieving the goals stated in the proposal.
    • The maximum grant award of $100,000 per transformative planning grant in the areas of childcare, broadband, housing rehabilitation/neighborhood revitalization and other areas the Authority sees as priority.
    • There shall be no yearly limit on the number of planning grant applications that can be funded and there shall be no more than three transformative planning grants funded in any year.
  5. Emergency Grants:
    A potential grantee may only apply for one project per year from one of the following categories:
    •  A municipality with a population of 10,000 or under shall not exceed $350,000 for a one-year grant(s);
    • A municipality with a population above 10,000 shall not exceed $500,000 for a one year grant(s).
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3.5 Funds Remaining
On July 1st of any given year, any un-obligated or recaptured funds, earlier program year funds or program income will be made available in the next Housing and Public Facility funding round unless another funding category has shown greater need, this will be determined by CDFA with consultation from the Community Development Advisory Committee (CDAC). Grant rounds will be announced on www.nhcdfa.org.
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