Title I of the Housing and Community Development Act of 1974, as amended (42 U.S.C. 5301 et seq.)
The Section 108 Loan Guarantee Program (Section 108) provides Community Development Block Grant (CDBG) recipients with the ability to leverage their annual grant allocation to access low-cost, flexible financing for economic development, housing, public facility, and infrastructure projects. Section108 can be used for communities to upgrade their broadband infrastructure to create more ‘connected’ communities.
14.218 Entitlement and Nonentitled Hawaiian County CDBG, 14.225 Insular Areas CDBG, and 14.228 State CDBG
Loan or loan guarantee
CDBG funding opportunities for broadband vary by local jurisdiction. The contact information for your local CDBG grantee can be found here: https://www.hudexchange.info/grantees/ Note: if you don’t see your city or county listed, please reach out to your state CDBG grantee for more information about opportunities in rural and suburban areas.
Other (i.e. one-time funding): Annual Formula Allocation
Non-competitive, open year round
Total Amount: $300M
Total Amount Available Towards Broadband (if specified): n/a, as sought by applicant
No
Not Applicable
Not Applicable
States and local governments can share financing with designated public entities, nonprofits, etc. as a subrecipient. The proceeds from the loan can also be relend to third party borrowers.
Communities use CDBG funds for projects initiated and developed at the local level based on local needs, priorities, and benefits. Eligible activities include public facilities, infrastructure, housing, economic development, and planning. Each activity must also
meet a National Objective of either: 1) benefitting low- and moderate-income persons; 2) eliminating slums or blight; or 3) addressing urgent needs for community health and safety.
CDBG must principally benefit for low- and moderate-income persons
- Section 108 Borrowing Capacity listed here:
- https://www.hudexchange.info/resource/5197/current-availability-of-section-108-financing-cdbg-entitlement-and-state-grantees/
Section108@hud.gov or contact your local HUD Field Office: or contact your local HUD
Field Office: https://www.hud.gov/program_offices/comm_planning/staff#fieldoffice
- This document describes the optional use of CDBG funds for broadband, https://www.hudexchange.info/resource/4891/cdbg-broadband-infrastructure-faqs/
- This document describes CDBG and HUD’s Connect Home program: https://www.hudexchange.info/trainings/courses/2017-2018-connecthome-using-cdbg-for-broadband/2561/
- This document describes how broadband is addressed in a grantee’s plan. Those plans also address a variety of other community development needs and are used when the grantee selects funding priorities: https://www.hud.gov/sites/dfiles/OCHCO/documents/20-04cpdn.pdf
March 2023