Community Development Block Grant (CDBG) Project Grants

The Commonwealth of Virginia Community Development Block Grant (CDBG) Project Grants program is administered by the Virginia Department of Housing and Community Development (DHCD) using federal funding provided through the U.S. Department of Housing and Urban Development (HUD). Since 1982, the Virginia CDBG Program has provided financial assistance to eligible units of local government for projects intended to address critical community development needs. The program is specifically designed to support communities with the greatest demonstrated need while maximizing citizen participation and ensuring that funded activities align with federal community development objectives. All projects funded under the program must satisfy at least one national objective, including benefiting low- and moderate-income persons, preventing or eliminating slums and blight, or addressing urgent community development needs caused by immediate threats or emergency conditions. CDBG Project Grants are awarded competitively and are available for several primary project categories, including Housing Rehabilitation, Infrastructure, Economic Development, and Public Services. Eligible project activities include housing production and rehabilitation, water and sewer improvements, community service facilities, business district revitalization, job creation and retention initiatives, stormwater management improvements, and public service operations. Maximum funding levels vary according to project type. Housing Production projects may receive up to $2,000,000, Housing Rehabilitation projects may receive up to $1,500,000, Water and Sewer Infrastructure projects may receive up to $2,000,000 for a single locality and $3,500,000 for two localities, and Public Services projects may receive up to $250,000 for one locality or $500,000 for regional applications involving two localities. Project delivery costs are also allowable within defined limits based on project type. The program restricts eligibility to non-entitlement units of local government within Virginia. These local governments may partner or contract with nonprofit organizations, Planning District Commissions, and other qualified entities to implement project activities, but the local government itself must serve as the applicant and grant recipient. Applications are evaluated competitively based on demonstrated need, readiness, project management capacity, national objective compliance, budget accuracy, community participation, and the overall quality of the application package. DHCD also incorporates fiscal stress considerations into portions of the application scoring process. Localities are encouraged to pursue planning grants prior to applying for construction-oriented funding in order to improve project readiness and strengthen competitiveness. Applicants are required to submit applications electronically through DHCD’s Centralized Application and Management System (CAMS). Applications must include extensive supporting documentation, including public outreach documentation, certifications and assurances, maps, cost estimates, letters of support, relevant plans and studies, project management plans, environmental review documentation, budget forms, and national objective compliance materials. Additional project-dependent attachments may be required depending on the project category. Housing rehabilitation projects, for example, require detailed housing activity documentation and inspection summaries, while public infrastructure projects may require rate and fee documentation. Applications must also include evidence of citizen participation through public hearings and community engagement activities. The competitive application cycle generally occurs annually during the spring, with a possible second funding round conducted in the fall if funding remains available. According to the current application guidelines, all CDBG Project Grant applications and supporting documentation for the 2026 cycle must be submitted through CAMS by July 1, 2026 at 11:59 PM Eastern Time. DHCD strongly encourages prospective applicants to contact agency staff early in the development process to discuss project ideas and receive technical assistance. Staff will review applications and provide feedback beginning in January each year in order to improve project competitiveness. Competitive review activities are anticipated to occur during late spring and early summer, with award announcements expected during late summer or early fall. Applicants must demonstrate compliance with one of the federal national objectives by providing income survey documentation, HUD Low-Moderate Income Summary Data, participation agreements, blight inventories, or emergency declarations depending on the project type. Matching funds are not universally required by the program guidelines, but leverage documentation is heavily emphasized during review. Applicants are encouraged to document all local, state, federal, and in-kind funding commitments supporting the project. The program also requires detailed project budgets, implementation schedules, staffing plans, and long-term operational strategies for applicable facilities and services. Questions regarding project development and applications may be directed to DHCD staff members including Joanne Peerman at joanne.peerman@dhcd.virginia.gov, Kathi Boatright at kathi.boatright@dhcd.virginia.gov, and Kelly Charapich at kelly.charapich@dhcd.virginia.gov. General program inquiries may be submitted to CDBGProgram@dhcd.virginia.gov. Technical support for CAMS is available through CAMSHelp@dhcd.virginia.gov. The official application guidelines and supporting templates are published by the Virginia Department of Housing and Community Development and are updated annually to reflect current program requirements and funding priorities.

Contact DHCD early with project ideas for technical assistance; Use planning grants to improve construction application readiness; Ensure maps and supporting documentation are detailed and clearly aligned with the narrative; Submit all required attachments and national objective documentation completely and accurately