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Community Development Block Grant

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2019 Community Development Block Grant

The Town of Cary is now accepting proposals from community and nonprofit organizations for activities and projects benefiting low- and moderate-income Town residents.

Based on prior year allocations, the Town expects to award approximately $575,000 in Community Development Block Grant (CDBG) funds to selected, eligible projects. The primary purpose of the CDBG Program is to fund community development projects and programs, which benefit low- and moderate-income people. To useCDBG funds most effectively, the Town will use a scoring system to prioritize those projects which will address identified needs most effectively. Eligible projects will include those that provide or maintain housing or housing services to extremely low, low-moderate income, senior and special needs households, or that provide social services activities addressing the homeless or special needs goals outlined in the Town’s Consolidated Plan.                   


The Community Development Block Grant (CDBG) program managed by the Department of Housing & Urban Development (HUD), is a flexible program that provides communities with federal funding and resources to address a wide range of unique community development needs. Beginning in 1974, the CDBG program is one of the longest continuously run programs at HUD. The CDBG program provides annual grants on a formula basis to over 1,200 local governments and states known as entitlement communities.

Entitlement Communities

On an annual basis, the CDBG entitlement program allocates individual grants to larger cities and urban counties to develop viable communities. The Town of Cary has been an entitlement community since 2005. From that time, Cary has received a direct annual funding allocation from HUD to locally help promote the HUD objectives of decent housing, a suitable living environment, and opportunities to expand economic opportunities, principally for low- and moderate-income persons. Over the last three years HUD funding for Cary has been over $500,000 per annum.

About the Program

The CDBG program works to ensure decent affordable housing, to provide services to the most vulnerable in our communities, and to create jobs through the expansion and retention of businesses. CDBG is an important tool for helping local governments like Cary tackle serious challenges facing their communities.  For individual entitlement communities, HUD determines the amount of each grant by using a formula comprised of several measures of community need, including the extent of poverty, population, housing overcrowding, age of housing, and population growth lag in relationship to other metropolitan areas.

Federal Oversight

To achieve these goals, the CDBG statute and regulations set forth eligible activities and the national objectives that each activity must meet. As recipients of CDBG funds, grantees or entitlement communities such as the Town of Cary, are charged with ensuring that these requirements are met.

Allocation of Funds

Proposed CDBG projects must be consistent with broad national priorities for CDBG: activities that benefit low- and moderate-income people, the prevention or elimination of slums or blight, or other community development activities to address an urgent threat to health or safety. A summary of the eligible uses and national objectives of the CDBG program can be found at HUD's website. CDBG funds may be used for many different community development activities (such as real estate acquisition, relocation, demolition, rehabilitation of housing and commercial buildings), construction of public facilities and improvements (such as water, sewer, and other utilities, street paving, and sidewalks), construction and maintenance of neighborhood centers, and the conversion of school buildings, public services, and economic development and job creation/retention activities. CDBG funds can also be used for preservation and restoration of historic properties in low-income neighborhoods.

Typically, national CDBG funds are allocated as follows:

  • Public infrastructure (33%)
  • Housing (25%)
  • Administrative and planning (15%)
  • Public services (11%)
  • Economic development (7%)
  • Property acquisition (5%)
  • Other (4%)

Eligible Activities

Over a three-year period, at least 70 percent of CDBG funds must be used for activities that benefit low- and moderate-income persons. In addition, each activity must meet one of the following national objectives for the program: benefit low- and moderate-income persons, prevention or elimination of slums or blight, or to address community development needs identified as having a particular urgency and which may pose a threat to the health or welfare of the community and for which other funding is not available.

Citizen Participation

All entitlement communities must develop a detailed plan that provides for and encourages citizen participation. This process emphasizes participation by persons of low or moderate income and areas in which the Community proposes to use CDBG funds. Participation should include the following: reasonable and timely access to local meetings; an opportunity to review proposed activities and the ability for residents and others to have comments and queries addressed by local entitlement staff. In addition, the policy must identify how the needs of non-English speaking residents may be met.

Town of Cary Citizen Participation Plan

To ensure that HUD resources are  put to the most appropriate uses, the Town promotes and the participation of citizens, including minorities, non-English-speaking persons, LMI residents, persons with disabilities, advocates for seniors, disabled, illiterate, homeless, and other low-income populations, whom the CDBG funding is designed to serve. This participation is used in the Town’s development of its 5-year Consolidated Plan and Annual Action Plan for use of CDBG funds and to comment on specific activities and projects supported by CDBG

The Town of Cary recognizes the importance of using extensive citizen participation, especially for low- and moderate-income residents during the development of its CDBG Consolidated and Annual Action Plans, substantial amendments to the plans, and in CDBG performance reports to be submitted to the U.S. Department of Housing and Urban Development. These plans are available for citizen review and comments. Upon request, CDBG documents can be made available in a format accessible to persons with disabilities.

The Town of Cary takes the following steps in the administration of its CDBG program:

1. Informing Citizens

The Town of Cary encourages citizen participation throughout the process of developing CDBG plans, assessing housing and community development needs, and developing particular CDBG project proposals. In particular, participation by low- and moderate-income (LMI) residents of project service areas, residents of assisted housing developments, and residents of slum and blight neighborhoods are encouraged. The Town also informs the Wake County Housing Authority about CDBG activities it plans to undertake.

To meet these objectives, the Town informs citizens of public hearings and other meetings, and provides opportunities for participation in CDBG program development through at least two of the following methods:

a. Advertisement in The Cary News and News & Observer (the required public meetings and hearings are announced using this method and at least one other method)

b. Advertisement through the Town website and local radio and/or television stations, including the Spanish-language media

c. Distribution of English/Spanish flyers in Town buildings, the Cary library, LMI areas and in the proposed service area(s)

d. Announcements at local community organization meetings

e. Announcements through local churches, non-profit organizations serving LMI residents, disabled, non-English-speaking and other participating entities (stores and businesses) located in LMI and proposed project areas

The Town keeps documentation on file of how it met the above requirement in its CDBG files for verification.

2. Available Information

Cary citizens are provided with reasonable and timely access to meetings, information and records relating to the Town's proposed and actual use of CDBG funds. Meetings are held and conducted according to the requirements established for public hearings cited below (No. 5).

CDBG-related information and records are available to interested citizens with the same availability and in the same manner as the public hearing advertisements. At a minimum, before the Consolidated or Annual Action Plans are adopted, the Town provides citizens with information concerning the amount of funds available (including program income, when applicable) for proposed activities and the range of activities that may be undertaken, including the estimated amount to be used for activities that will benefit low- and moderate-income residents, and the proposed CDBG activities likely to result in displacement, if any.

The Town's Consolidated and Annual Action Plan, substantial amendments to the Plans, and annual performance reports are available at the Cary Planning and Development Services Department, on the Town of Cary website, and at the Cary public library. A summary of the Consolidated and Annual Action Plans are published in one or more newspapers and reasonable numbers of free copies of the plans are made available to citizens and groups that request them.

3. Consultations with Groups Serving the Intended Beneficiaries

The Town of Cary includes consultations with nonprofit organizations, public agencies and other organizations in the development of its CDBG Consolidated and Annual Action Plans. It is the policy of the Town to conduct one or more meetings with such entities to determine Cary’s housing and community development needs, gaps in services, missing services or services provided by organizations where Town participation will benefit low and moderate-income residents. Participation in these meetings also helps in the prioritization of needs to guide future CDBG projects.

4. Providing Technical Assistance

Technical assistance is provided to groups representing low and moderate-income residents that request such assistance in developing proposals for use of CDBG funds, with the level and type of assistance to be determined by the Town. The name, address and telephone number of the Town's CDBG contact person(s) is available upon request and announced at all public meetings held on the CDBG program.

5. Consolidated and Annual Action Plan Public Hearings

At least two public hearings are held during the CDBG Consolidated and Annual Action Plan development period and annually after that. One hearing is held early in the plan development process to identify the Town's community development and housing needs. Citizen comments and views on priority community development needs are sought at this first hearing each year.

Also addressed in one or both hearings is the range of eligible project types funded through the CDBG program, the amount of money available, the activities the Town is proposing for funding, and the estimated amount that will benefit LMI persons.

A second hearing is held for public review and comment on the final draft of the CDBG Consolidated and Annual Action Plan. A minimum of 30 days is provided to receive citizen comments about the plans. The Town considers all comments received and attaches a summary of them to the final plan, including the project suggestions that were not accepted and reasons why they were not.

These hearings are held after adequate notice (newspaper advertisement at least seven days prior to the hearing and at least one other type of announcement), at times and locations convenient to the citizens and with accommodation for the physically challenged. Both public hearings are held within eight weeks of the plan submission deadline of May in each year. The two hearings, at a minimum, are held one week apart. Files are maintained containing documentary evidence that the hearings were held and of the comments and suggestions received.

In the case of substantial amendments (that is change where activities are to be added, deleted, or substantially changed in terms of purpose, scope, location, or beneficiaries or a change that would result in major deviation from the original purpose of the project or the intended method of achievement, as set out in the Consolidated or Annual Action Plans) the Town provides its citizens with an opportunity for comment on such changes through a public hearing, after the Town has informed citizens of the changes at least seven days prior to the hearing. A minimum of 30 days is made available to receive citizen comments about any substantial amendments to the plans. A summary of these comments are included (including views not accepted and the reasons why they were not accepted) in the amended plans.

6. Performance Reports

HUD requires the Town to submit an annual performance report to them within ninety days of the completion of a program year. The Consolidated Annual Performance and Evaluation Report, or CAPER, is due to HUD at the end of September each year. Cary provides a minimum of 15 days for Cary citizens to offer comments on the performance reports before sending them to HUD.

7. Complaint Process

The Town provides in the public hearing notices, the locations, phone numbers and times for submitting complaints, grievances and other suggestions regarding the Consolidated and Annual Action Plans, substantial amendments and performance reports. The Town also provides timely written responses to written complaints, grievances and suggestions within 15 working days where practicable.

8. Accommodating Non-English-Speaking Residents

Where an estimated five percent or more of public hearing participants are expected to be non‑English speaking residents, the Town will take reasonable measures to accommodate their needs. Census data on the proposed project area and on the Town as a whole are analyzed to determine if this provision applies in a particular instance. To meet this provision usually means having printed material available in the non‑English language(s) and/or retaining the services of an interpreter(s) for CDBG-related meetings and public hearings. The Town also takes appropriate actions to accommodate the needs of persons with mobility, visual, or hearing impairments who wish to participate in the CDBG program public comment processes described above. In addition to the above provisions, Spanish language versions of all of the CDBG related web pages are available and can be accessed here.

Access to Records

The Town of Cary provides reasonable and timely access to citizens, public agencies and other organizations who desire to review the Town’s records on its Consolidated and Annual Action Plans and its use of CDBG funds.

Minimizing Displacement

In the expenditure of its CDBG funds, the Town of Cary takes measures to minimize the displacement of LMI families that may result from its activities. When this is unavoidable on a temporary or permanent basis, federal law (the “Uniform Act”) is followed. Normally, this involves payments to the displaced families to help with the needed relocation and the difference between current rent and the rent at a comparable dwelling. A fuller description of the Town’s efforts to minimize displacement is included in the Consolidated Plan.

2018 CDBG Applications

The Town of Cary receives CDBG Entitlement Grant on an annual basis. The amount changes each year but in recent years has typically exceeded $500,000. This funding provides public services and supports programs and projects for community and housing investment for low- to-moderate income residents. Applicants (sub-recipients) are awarded funding on an annual competitive basis to implement activities which meet the eligible criteria as established by HUD and the Goals and Objectives as defined in the Town’s Consolidated Plan.  The CDBG program year is July 1 through June 30 each year;

The Town of Cary is pleased to announce a Request for Proposals (RFP). Funding will be available for neighborhood improvement projects, public services and public facilities. Additional qualifications and information will be found in the application packet. 

Please download the application and instructions here: Request for Proposals RFP

Applications for 2019 were due January 8, 2018.

The Town of Cary would also like your participation in the development of project proposals for the FY2019 Annual Action Plan for the Community Development Block Grant (CDBG) program. The Annual Action Plan is a planning document the Town of Cary submits each year to HUD detailing how the Town proposes to spend the CDBG funds during the next program year. CDBG funding supports a wide range of community development activities in Cary and has assisted many non-profits such as the Tammy Lynn Center pictured below with the development of projects that help low income, special needs and minority communities. Each year the Town requests project proposals from eligible Non-Profits, community organizations and others for part of its annual RFP process. If you are part of a group that provides services or supports low-income residents in Cary and have an idea for new services that you think we could support, we would love to hear from you. To find out more about the RFP process please contact:

Julie Clifton
(919) 460-4936 

Ribbon Cutting for Tammy Lynn Center Rehabilitation on Ralph Drive, Cary

 Tammy Lynne Center Rehabilitation


Helpful Links:

FY2018 AAP summary   

CDBG General Policies 

HUD National Objectives

National Objective Matrix Codes

Matrix Code Definitions


Other Helpful Information

Guide to National Community Development Block Grant

Playing by the Rules: A Handbook for CDBG Sub-recipients on Administrative Systems

Tool Kit on Crosscutting Regulations

"Basically CDBG" Course Training Manual

CPD Laws & Regulations