CDBG Community Facilities Program

The CDBG Community Facilities opportunity makes approximately $1.8 million in federal Community Development Block Grant funds available annually to eligible communities through the State of Iowa's Community Facilities Fund. The program is a competitive funding opportunity intended to support community facility construction projects. Examples identified by the program include day care facilities, senior centers, community centers, facilities for persons with disabilities, and homeless shelters. The opportunity is categorized by the source as Community Development and is identified as a recurring opportunity. Eligible applicants are incorporated cities and counties in the State of Iowa, except for jurisdictions designated as HUD entitlement areas. Communities may apply for a maximum award of $600,000. The source does not identify a minimum award amount or state that applicants must provide a matching contribution. The program includes requirements associated with serving low- and moderate-income persons. For CDBG purposes, low and moderate income is defined as income at or below 80 percent of area median income as defined by the U.S. Department of Housing and Urban Development. The source directs applicants to the Community Facilities application workshop slides and recording for additional information regarding the methodologies different community facility types use to satisfy this requirement. Applicants should account for applicable federal compliance requirements when developing project budgets. CDBG contracts may be subject to audit under 2 CFR 200. Recipients expending $750,000 or more in federal funds during a fiscal year must have a single or program-specific audit as applicable. Organization-wide or project audit requirements depend on whether federal funding is received from more than one federal source or a single source. Eligible audit costs may be paid with CDBG funds subject to the conditions described by the program. Construction projects may also be subject to the Davis-Bacon Act and related requirements when contracts for construction, alteration, or repairs exceeding $2,000 involve CDBG funds. Project cost estimates should reflect applicable labor compliance costs. Projects involving acquisition or relocation must follow applicable requirements associated with the Uniform Relocation Assistance and Real Property Acquisition Policies Act and HUD Handbook 1378. Federally funded activities are also subject to Section 106 review requirements under the National Historic Preservation Act. The review process is intended to identify potentially affected historic properties, evaluate project effects, and identify ways to avoid, minimize, or mitigate adverse effects. IEDA conducts the review and may consult with the State Historical Preservation Office and other agencies, groups, or individuals. Applicants with projects involving property that may have historical significance are encouraged to contact IEDA early during project development. Environmental approval is a significant project initiation requirement. No HUD funds or non-HUD funds may be committed to a project until the applicant has secured environmental approval from the State under 24 CFR Part 58. Before environmental approval, recipients and other participants in project development, including contractors and subcontractors, may not undertake activities that limit the choice of reasonable alternatives. Examples identified in the source include real property acquisition, conducting a competitive sealed bid process, leasing, rehabilitation, repair, demolition, conversion, and new construction. Applicants should therefore account for environmental review requirements when planning the sequence and timing of project activities. Projects that will be operated by an entity other than the applicant city or county require additional documentation. Required information includes documentation of the operating entity's legal status as a nonprofit and its date of incorporation, signed agreements between the subrecipient and other parties, and documentation demonstrating site control. Site control may be established through a property deed or a signed lease with a minimum term of 15 years that permits the construction work. Applications are submitted through WebGrants; existing users may log in to apply, while users without an account must register. The final application deadline is August 17, 2026, at 11:59 PM. The source does not identify a separate pre-application deadline or performance period. The opportunity is recurring and makes approximately $1.8 million available annually. Awards are typically announced approximately 60 days after submission. Chad Sands is identified as the Program Officer and may be reached at 515-348-6208. The source also provides the Community Facilities program contact information of CDBG@IowaEDA.com and 515-348-6213, which is preferred for general program inquiries. Additional Section 106 review and compliance information is available from IEDA at 515-348-6205. No application attachments, previous recipient list, or explicit PDF solicitation URL were provided in the source.

Confirm the project meets applicable CDBG low- and moderate-income requirements; review the Community Facilities workshop materials for the methodology applicable to the facility type; budget for applicable 2 CFR 200 audit and Davis-Bacon requirements; account for acquisition, relocation, and Section 106 requirements where applicable; do not commit HUD or non-HUD project funds or undertake choice-limiting actions before State environmental approval; prepare required nonprofit, agreement, and site-control documentation when another entity will operate the facility