South Carolina Community Development Block Grant Program

The South Carolina Community Development Block Grant (SC CDBG) Program is a state-administered initiative funded by the U.S. Department of Housing and Urban Development (HUD) to support economic development and community revitalization in eligible areas. Managed by the South Carolina Department of Commerce’s Division of Business Incentives and Community Development, this program provides financial assistance to units of local government that do not receive direct CDBG entitlement funds from HUD. The program was established under Title I of the Housing and Community Development Act of 1974 and is guided by federal regulations and the State’s Consolidated Plan. The overarching goals of the SC CDBG Program are to improve public infrastructure, enhance community facilities, stimulate job creation, and foster neighborhood revitalization—especially for low- and moderate-income (LMI) persons. Each funded project must meet at least one of the three national objectives defined by HUD: benefiting LMI persons, eliminating slums or blight, or addressing urgent community health or safety threats. For LMI-benefit projects, at least 51% of beneficiaries must be from qualifying households, with 100% required for housing activities. The state certifies that at least 70% of total funds will be used to benefit LMI persons over the program cycle. For Program Year 2026 (April 1, 2026 to March 31, 2027), South Carolina estimates a HUD allocation of $20,158,365. These funds will be distributed across several program categories: $18.7 million for Community Development (including Community Infrastructure, Enrichment, Local Priorities, and Ready to Go programs), $250,000 for Business Development, and $500,000 for Regional Planning. Additional allocations or recaptured funds may be redirected at the State’s discretion to address critical local needs or pilot projects. Up to 20% of the total allocation may be used for planning and administration, including technical assistance to grantees. Eligible applicants include non-entitlement cities, towns, and counties. Joint applications are allowed if the project spans multiple jurisdictions. Entities within HUD-designated entitlement areas are generally not eligible unless benefits to those communities are incidental. Funded activities may include infrastructure upgrades (water, sewer, roads, drainage), public facilities (libraries, workforce centers, health clinics), economic development initiatives, demolition, brownfield remediation, and regional planning. Each category has specific award ceilings, match requirements (typically 10%), and evaluation criteria. Competitive rounds apply for most programs, except Ready to Go and Business Development grants, which are accepted on a rolling basis pending available funds. Applications must include documentation of need, LMI beneficiary data, match commitments, and evidence of readiness. Submission requires a written application request from the jurisdiction’s chief official, followed by the full application by the stated deadline. Deadlines for Community Infrastructure are March 20, 2026 (request) and April 20, 2026 (application), while Community Enrichment and Local Priorities are due August 21 and September 21, respectively. Regional Planning applications are due May 5, 2026. Ready to Go and Business Development applications are accepted year-round, with prioritization based on readiness and impact. Applications are evaluated on criteria such as severity of need, feasibility, readiness, sustainability, alignment with state priorities, and potential to benefit LMI populations. Priority is given to projects in distressed counties and those located in Opportunity Zones. Awards are determined by the SC Department of Commerce, and projects generally must score at least 175 out of 300 to be competitive. Technical assistance, planning resources, and workshops are available to assist applicants throughout the process. The SC CDBG Program aims to leverage federal resources to foster equitable and sustainable development in South Carolina’s non-entitlement communities.

Submit a complete application with strong justification for LMI benefit and readiness to proceed. Priority given to distressed counties and Opportunity Zones. Avoid local controversy.