CDBG Construction Grants
- Community Development Block Grants
- Current: CDBG Construction Grants
Overview
Funding for all Community Development Block Grant programs is provided by the U.S. Department of Housing and Urban Development and administered by the Office of Community and Rural Affairs. The State of Indiana distributes CDBG funds to rural communities to support a range of projects, including infrastructure enhancement, downtown revitalization, improvements to public facilities, and economic development initiatives.
The state CDBG program offers competitive grants to units of local government to support rural areas. Within the CDBG program, there are five types of Construction Grants designed to enhance community resilience and livability:
- Blight Clearance Program,
- Main Street Revitalization Program,
- Public Facilities Program,
- Stormwater Improvement Program, and
- Wastewater and Drinking Water program.
Two rounds of Construction Grants are offered each year, with specific funding guidelines detailed in each round’s application Instructions document. For more information on OCRA’s program calendar visit the 2024 Calendar.
Current Funding Round
2024 Round 2 proposals are due on Friday, Oct. 18, by 11:59 p.m. ET and must be submitted here. Communities are encouraged to submit their applications prior to 4 p.m. on Oct. 18, as technical assistance will not be available after that time.
2024 Round 2 applications are due on Friday, Dec. 20, by 11:59 p.m. ET and must be submitted here. Applicants are encouraged to submit their applications prior to 4 p.m. on Dec. 20, as technical assistance will not be available after that time.
Application Instructions
The instructions for the 2024 Round 2 Construction application are available for review here. To review pertinent changes for the 2024 Round 2, please refer to the CDBG 2024 webinar regarding updates to the Action Plan, click here.
The programs listed below are now accepting applications for the 2024 Round 2.
- Public Facilities Program
- Blight Clearance Program
- Stormwater Improvements
- Main Street Revitalization
- Wastewater/Drinking Water
Community facilities enhance the lives of residents in numerous ways. Libraries, museums, community centers, and performance spaces open doors to knowledge and ideas, culture, and enjoyment. In addition to community facilities, historic preservation projects are eligible for the Public Facilities Program (PFP) grant. The goals of the PFP grant are to improve quality of place and generate jobs that spur economic revitalization.
- The maximum grant award is $750,000 for all Public Facility Program Grants.
- A local match of 10% of the total project cost will be required for consideration of funding.
The maximum award is not intended to serve as a target figure for requests for grant assistance. OCRA will review the level of grant assistance requested and will consider the appropriateness of the project’s scope, the level of demonstrated need and the financial resources of the applicant. If OCRA determines that a lesser amount is appropriate, it may be necessary to revise the project before it is submitted in final form.
- Removal of architectural barriers for ADA accessibility
- Community centers
- Daycare centers
- Facilities for special needs groups
- Fire/EMS stations
- Healthcare centers
- Historic preservation
- Learning centers
- Libraries
- Senior centers
- Youth center
The Blight Clearance Program encourages communities with blighted properties to take a long-term view of community development and revitalization, starting by improving quality of place. Eligible projects include land acquisition, the demolition and/or clearance of deteriorated or abandoned downtown buildings or vacant/unusable industrial sites, and environmental clean-up.
- The maximum grant award is $500,000 for Blight Clearance Grants.
- A local match of 10% of the total project cost will be required for consideration of funding.
Project Considerations: Closeout and Five-Year Monitoring Period
Property that has been acquired or improved (in whole or in part) using CDBG funds may not change the use of such property for a period of five years after closeout unless they go through a change in use process (24 CFR 570.489). Any change in use must remain an eligible activity under CDBG.
OCRA will monitor all grants made under the Blight Clearance Program for the five-year period following closeout of a project. If the community plans to change the use of a property within that five-year period, they must submit a request to OCRA in writing prior to making any change and go through the change in use process. If a project is changed to an ineligible CDBG activity, the community will have to repay all or part of the grant funds.
Communities across the state suffer from flooded properties and sewer backups due to inadequate resources for stormwater management. Flooding is expensive to clean up, depresses property values, and poses environmental risks like degraded water quality. With increasingly sever weather and overloaded sewer systems, these costs will continue to rise. That’s where the Stormwater Improvements Program comes in. This grant funding can be used for system improvements that reduce flooding, cut stormwater treatment and energy costs, incorporate green infrastructure methods to mimic natural systems, and protect rivers and lakes.
- The maximum grant award is $750,000 for Stormwater Improvements Program Grants.
- A match of 10% of the total project cost will be required for consideration of funding.
The maximum award is not intended to serve as a target figure for requests for grant assistance. OCRA will review the level of grant assistance requested and will consider the appropriateness of the project’s scope, the level of demonstrated need and the financial resources of the applicant. If OCRA determines that a lesser amount is appropriate, it may be necessary to revise the project before it is submitted in final form.
The amount of CDBG funds granted will be based on a $5,000 cost per project beneficiary. General types of activities that are eligible for SIP funding include stormwater improvements (retention, lines, etc.).
The Main Street Revitalization Program (MSRP) supports rural residents in their endeavors to create successful, sustainable communities and improve local quality of life. The MSRP grant encourages long-term community development efforts in the form of business creation, increased tourism, historic preservation, and other economic revitalization efforts. MSRP grant applicants must have a designated Indiana Main Street organization in good standing, and the project must be part of the Main Street organization’s overall strategy. Communities applying must:
- Have a designated Indiana Main Street Organization that:
- is Nationally accredited (NAMS), or
- is an Indiana Accredited Main Street (IAMS).
- The Main Street Organization is in good standing and has met all reporting requirements.
- The Main Street Organization has met their education requirement with the Indiana Main Street Program during last calendar year.
- The Main Street Organization is functioning within the Main Street Four Point Approach of organization, design, economic vitality and promotion, and if a Nationally Accredited Main Street, is using a Transformation Strategy.
- The Main Street Organization has work plans for each of its committees that have been submitted to Indiana Main Street.
- The Community has completed a downtown revitalization plan within the past five (5) years that meets OCRA’s minimum plan requirements. If a community has an alternative plan that meets OCRA’s minimum plan requirements for a downtown revitalization plan, they can use that alternative plan with approval from the CDBG Program Director.
- The Main Street Organization has been involved in the project development process for the application and there is a plan for their continued involvement if awarded.
Grantees must ensure that the local Indiana Main Street Organization remains in good standing with OCRA until the completion of the project. If the local Indiana Main Street Organization falls out of good standing, then de-obligation or repayment of CDBG funds is possible.
- Projects with a total cost more than $2 million may apply for a maximum grant amount of $600,000.
- Projects with a total cost less than $2 million may apply for a maximum grant amount of $500,000.
- A local match of 20% of the total project cost will be required for consideration of funding.
The maximum award is not intended to serve as a target figure for requests for grant assistance. OCRA will review the level of grant assistance requested and will consider the appropriateness of the project’s scope, the level of demonstrated need and the financial resources of the applicant. If OCRA determines that a lesser amount is appropriate, it may be necessary to revise the project before it is submitted in final form.
The amount of CDBG funds granted will be based on a $5,000 cost per project beneficiary. General types of activities that are eligible for MSRP funding include updating streetscapes and downtown infrastructure rehabilitation.
Many communities in Indiana struggle with inadequate water supply and failing wastewater treatment. OCRA is committed to improving the quality of water and wastewater in Indiana and assisting in financing appropriate water and sewer infrastructure for communities and counties that have planned and set priorities for long-term development.
The goals of the Wastewater and Drinking Water (WDW) Program are to protect health and the environment, reduce utility rates for low- to moderate-income communities, and improve rural infrastructure for long-term sustainability and growth. General eligible activities include wastewater improvements such as collection lines or treatment plans, or drink water system improvements such as water towers or distribution.
Grant amounts for communities with existing systems will be based on the current rates at the time of application and grant amounts for communities constructing new systems will be based on a verified rate study included in a Preliminary Engineering Report (PER). The amount of CDBG funds granted will be based on a $5,000 cost per project beneficiary. Maximum grant amounts are based upon user rate information, as follows:
| Rates for 4,000 gallons | |||
| Maximum Grant Amounts | User Rates (Over $50) | User Rates ($30 to $50) | User Rates (Under $30) |
| Projects over $1 million in total project cost | $750,000 | $700,000 | $650,000 |
| Projects under $1 million in total project cost | $700,000 | $650,000 | $600,000 |
The maximum award is not intended to serve as a target figure for requests for grant assistance. OCRA will review the level of grant assistance requested and will consider the appropriateness of the project’s scope, the level of demonstrated need and the financial resources of the applicant. If OCRA determines that a lesser amount is appropriate, it may be necessary to revise the project before it is submitted in final form.
- A local match of 20% of the total project cost will be required for consideration of funding.
General types of activities that are eligible for WDW funding:
- Wastewater Improvements (collection lines, treatment plant, etc.)
- Drinking Water System Improvements (water tower, distribution)
