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Department of Housing and Urban Development - Community Development Block Grant (CDBG) I Section 108 Loan Guarantee Program

Federal Agency/Bureau
U.S. Department of Housing and Urban Development’s (HUD) Community Planning and Development (CPD) Office
Program Name
Community Development Block Grant (CDBG) I Section 108 Loan Guarantee Program
Authorizing Legislation

Title I of the Housing and Community Development Act of 1974, as amended (42 U.S.C. 5301 et seq.)

Program Overview

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.

CFDA

14.218 Entitlement and Nonentitled Hawaiian County CDBG, 14.225 Insular Areas CDBG, and 14.228 State CDBG 

Type of Funding

Loan or loan guarantee

Link to application site, NOFO, FOA, or Grants.gov (if different from program website above)

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.

Notice of Funding Opportunity (NOFO) or Federal Opportunity Announcement (FOA) Type

Other (i.e. one-time funding): Annual Formula Allocation

Important Dates (if applicable)

Non-competitive, open year round

FY2023 Appropriations Amount

Total Amount: $300M

Total Amount Available Towards Broadband (if specified): n/a, as sought by applicant

Matching Requirement

No

Complementary Federal Funding Option

Not Applicable

Broadband-related Program Purpose/Eligible Expenditures
Speed/Technical Requirement for Broadband Infrastructure

Not Applicable

If "Other", Eligible Recipient(s)

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.

Criteria for Eligible Recipients

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.

Grant Beneficiaries (if different from eligible recipients)

CDBG must principally benefit for low- and moderate-income persons 
 

Contact Information

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

Additional Information
  1. This document describes the optional use of CDBG funds for broadband, https://www.hudexchange.info/resource/4891/cdbg-broadband-infrastructure-faqs/
  2. This document describes CDBG and HUD’s Connect Home program: https://www.hudexchange.info/trainings/courses/2017-2018-connecthome-using-cdbg-for-broadband/2561/
  3. 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
Updated

March 2023

Funding Guide