Community Development Block Grant Infrastructure Program

The Community Development Block Grant Infrastructure program is administered in North Carolina by the Department of Environmental Quality’s Division of Water Infrastructure following the transfer of funds from the North Carolina General Assembly in 2013. This program is part of the broader federally funded Community Development Block Grant framework established by the U.S. Department of Housing and Urban Development to support community development activities, particularly in non-entitlement areas that do not receive direct federal allocations. The program focuses specifically on improving public health and environmental conditions by funding water and wastewater infrastructure in economically disadvantaged communities. The primary purpose of the program is to construct or improve public drinking water and wastewater systems in areas where at least 51 percent of the population qualifies as low-to-moderate income. This threshold aligns with HUD requirements and ensures that funds are directed toward communities most in need of infrastructure improvements. The program emphasizes projects that address environmental hazards, failing infrastructure, contamination, and inadequate access to safe water or sewer services. According to program documentation, projects may include system rehabilitation, extension of services to underserved households, or replacement of aging or failing infrastructure. Funding is provided in the form of grants, with a maximum award of 3 million dollars distributed over a three-year period beginning at the State Water Infrastructure Authority award date. While applicants may submit multiple proposals within a funding round, only one project per applicant will be funded in each cycle. Funds are restricted to eligible infrastructure uses and must directly contribute to public health or environmental improvements. The program does not indicate a required cost share or matching requirement in the provided materials. Eligible applicants are limited to non-entitlement units of general local government within North Carolina, excluding special-purpose entities such as water or sewer districts. This ensures that municipalities and counties with broader governance responsibilities are the primary recipients. Eligible projects must meet HUD low-to-moderate income thresholds and must involve drinking water or wastewater infrastructure improvements. The program is therefore tightly focused on public sector applicants addressing essential utility services. The application process typically occurs once per year, with a funding cycle generally opening in September. The Division of Water Infrastructure may open additional rounds if needed to allocate all available funding, with announcements posted on the agency’s website. Applicants are directed to a centralized funding program application information page for detailed submission requirements, forms, and deadlines. Supporting documentation includes environmental review procedures, engineering requirements, compliance reporting, and closeout documentation, all of which must be followed throughout the project lifecycle. Projects are evaluated using a Priority Rating System that assigns points across categories including project purpose, project benefits, system management, and financial situation. As described in the draft updates for the 2025 cycle, this system prioritizes projects that resolve infrastructure failures, address contamination, improve system resilience, and benefit low-income populations. Additional scoring considerations include flood resiliency, system management practices, and financial capacity of the applicant. The scoring framework is designed to ensure transparent and consistent funding decisions aligned with state infrastructure priorities. The program operates on a recurring annual cycle, with updates and refinements to evaluation criteria periodically introduced. For example, proposed changes to the Priority Rating System for the Fall 2025 funding round include enhanced emphasis on flood resilience and system management planning. Public comments on these changes were solicited through March 31, 2025, demonstrating an iterative and stakeholder-informed approach to program administration. Overall, the program represents a structured, recurring funding opportunity aimed at improving essential infrastructure in underserved communities across North Carolina.

Focus on demonstrating clear public health benefits alignment with LMI thresholds and strong scoring under the Priority Rating System including resiliency and system management factors