Community Development Block Grant (CDBG) Program

Created in 1974, the Community Development Block Grant (CDBG) Program annually provides funding to localities on a formula basis to be used for a wide range of community development activities. While broad discretion is given to localities to determine which projects to fund, municipalities must ensure compliance with all applicable federal rules and regulations. In addition, localities must provide documentation that the CDBG funds assist projects which either benefit low to moderate income persons, aid in the removal of slums and blight, or meet an urgent need (this designation is very rare and intended to be used in cases of national disasters when insufficient local funding is available). Due to our population, Fayette County participates in the State / Small Communities CDBG Program. This means that CDBG funds received in Fayette County originate from the U.S. Department of Housing and Urban Development, but pass through the State's Department of Community and Economic Development (DCED). DCED utilizes their own formula to determine which localities in Pennsylvania will be entitled to a CDBG allocation. RACF administers CDBG funds on behalf of the County, as well as, the "Entitlement" Townships of Bullskin, Dunbar, Georges, German, Luzerne, Menallen, North Union, Redstone, South Union, Washington, and Wharton. Approximately $2.0 million in Entitlement CDBG funds are received annually by Fayette County from DCED.

In addition to "Entitlement" funds, the Authority also administers projects which have received funding through the State's Competitive CDBG Program. This program provides grants of up to $500,000 for strategic projects which generally involve improvements to water and sanitary sewer systems. Administration of these projects by the Authority generally includes preparation of the application requesting funds from DCED and project implementation.

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