Divisions & Programs

Community Development Block Grant
Frequently Asked Questions

What is the Community Development Block Grant?
Where do the Funds come from?
How is the Amount determined?
What are the Funds used for?
How are low and moderate income households defined?
What activities are eligible for CDBG funding?
To whom are the Funds available?
What are the Eligibility requirements, Federal Criteria and National Objectives?
How do programs and organizations obtain CDBG Funds?
How much money does Cambridge receive from the CDBG program?
How does Cambridge determine how to spend CDBG funds?

Here are answers to several basic questions needed to understand how the CDBG program works. For more information, please go to the HUD web site or contact the Cambridge CDBG staff.

1. What is the Community Development Block Grant?

An attempt to streamline the disbursement of Federal funds to Municipalities led to the Community Development Block Grant (CDBG) program in the 1970’s. The initiative sought to pool the various funds received into one "Block" payment, creating a more efficient process on both the Federal and Municipal levels.

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2. Where do the Funds come from?

The Federal Treasury through The Department of Housing and Urban Development (HUD). It is also HUD's responsibility to monitor the use of funds by all CDBG recipients. Congress appropriates funds annually, an amount which varies year to year.

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3. How is the Amount determined?

HUD determines the amount allocated to each receiving community by one of two formulas. Cambridge is a ‘Formula B’ recipient. Formula B considers the percentage of low and moderate income persons in Cambridge compared to the national percentage; the percentage of pre-1940 housing units in Cambridge compared to the national percentage; and population growth lag, which is the growth in Cambridge’s population compared to that of all CDBG eligible communities.

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4. What are the Funds used for?

CDBG funds must be used to enhance the living environment of the lower and moderate income population of the city.

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5. How are low and moderate income households defined?

Low and moderate income persons live in households that earn no more than 80% of the median income of all Cambridge households. For 2002 a family of four can earn up to $58,300 and qualify for CDBG funded activities. through self contained and leveraged programs.

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6. What activities are eligible for CDBG funding?

Maintain, Create and Rehab Affordable Housing Units;
Fund Human Services Initiatives;
Upgrade and Refurbish Parks and Playgrounds, Open Spaces and Neighborhood Centers; and
Economic Development through Incubators, Micro-Enterprise Assistance and Commercial Facade Improvement

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7. To whom are the Funds available?

Each recipient (person or entity), or beneficiary, of CDBG Funds must be income eligible by HUD standards. Each proposed activity must meet Federal criteria and must also contribute to the meeting of national objectives.

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8. What are the Eligibility requirements, Federal Criteria and National Objectives?

There are many! Check HUD’s web-site for a complete explanation of Objectives, Criteria and Eligibility.

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9. How do programs and organizations obtain CDBG Funds?

Recipients are determined, in part, by public hearings and written proposals. Details on when these hearings occur can be found on the Community Development Department's public meetings page and are announced in the Cambridge TAB and Cambridge Chronicle.

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10. How much money does Cambridge receive from the CDBG program?

The amount Cambridge receives on an annual basis varies, depending on HUD’s budget and Cambridge’s formula calculation (see question 3 above). Over the past 10 years the amount has run between $3.7 and $4 million annually.

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11. How does Cambridge determine how to spend CDBG funds?

The City prepares a 5-year Consolidated Plan that delineates its goals and objectives in the utilization of CDBG funds. The City backs up this Plan with an annual One-Year Action Plan, which demonstrates the City’s utilization funds in respect to the objectives of the 5-Year Plan on an annual basis. CDBG also produces a Consolidated Annual Performance Evaluation Report (CAPER), which accounts for all activities and funds spent during the previous fiscal year.

For More Information

For more information contact either Janet Cudmore, CDBG Manager, jcudmore@cambridgema.gov, at 617/349-4613 or Robert Keller, Associate Planner, rkeller@cambridgema.gov, at 617/349-4602. The Community Development Department TTY line is 617/349-4621.

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