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The CDBG Economic Development Grant Program is a grant from the Alabama Department of Economic and Community Affairs (ADECA) that funds infrastructure improvements that support job creation and retention in Alabama communities.
Federally funded through HUD's Community Development Block Grant program and administered by ADECA since 1982, the Economic Development Infrastructure Fund is available on a continuous funding cycle to non-entitlement Alabama municipalities and counties. Projects must be tied to business commitments to create or retain 15 or more jobs in manufacturing or similarly qualifying industries (SIC codes 20–39).
Eligible activities include water, sewer, and road improvements, rail spurs, and docks. Grants are capped at $400,000 (waivable), require a 20% local match, and construction may not begin prior to grant award. All projects must benefit at least 51% low- and moderate-income persons or address slum and blight prevention.
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Community Development Block Grant (CDBG) – ADECA Director Kenneth W.
Boswell Communications and External Affairs ADECA Organizational Chart Community and Economic Development Division Alabama Digital Expansion Division Federal Initiatives and Recreation Division Law Enforcement and Traffic Safety Division Office of Water Resources Surplus Property Division ADECA / Community Development Block Grant (CDBG) Community Development Block Grant (CDBG) The Community Development Block Grant program is funded by the U.S. Department of Housing and Urban Development (HUD), and the State of Alabama has administered the program since 1982.
The program is available to all non-entitlement communities (those not receiving direct funds from HUD) that meet applicable thresholds. All projects must meet one of the three national objectives: Benefit at least 51% low and moderate income persons Aid in the prevention or clearance of slum and blight The State is required to write an action plan each year for approval by HUD that shows how the State intends to distribute the funds.
Since the beginning, Alabama has distributed the majority of funds through competition among communities. Community Enhancement Fund Economic Development Fund ADECA annually awards CDBG money for the Large City, Small City and County categories. Applicants are scored based on several competitive factors including community need, cost efficiency, appropriateness and impact.
Applications deadlines are announced during the annual workshop in the first quarter of the year. Competitive categories are: Small City Fund (3,000 or less population) Large City Fund (>3,000 population) The Small City Fund has a ceiling of $400,000. The Large City Fund and County Fund both have ceilings of $500,000.
Water and sewer extensions and rehabilitation Neighborhood & downtown revitalization Street and drainage improvements Community Enhancement Fund This fund is available to all eligible communities to use for projects that address quality of life issues. Application deadline is announced during the annual workshop in the first quarter of the year.
Recreational facilities, etc. CED administers a small Planning Fund that allows communities to develop communitywide comprehensive plans and downtown revitalization plans. Economic Development Fund (ED) The ED Infrastructure Fund is available to all eligible communities for projects supporting the creation or retention of jobs. Applicants for ED assistance should have a commitment from the business to create or retain 15 or more jobs.
The business should fall within the SIC codes 20-39 or provide a significant economic benefit. Projects must not include intrastate relocation. The program is available on a continuous funding cycle.
A 20 percent local match is required, and construction cannot begin prior to grant award or release of environmental conditions.
Grant Ceiling : $400,000 (can be waived) Typical activities : water, sewer, or road improvements; rail spurs, docks, etc. Economic Development Incubator ($400,000) Economic Development Float Loans ($10 million) CDBG Program Supervisor Territories Map Basically CDBG – Course Training Manual CDBG Guide to National Objectives and Eligible Activities Compliance Rules, Policies, Guidance, & Training CDBG Handbook for Subrecipients on Administrative Systems Letter of Conditional Commitment Fair Housing, Equal Opportunity, and Section 3 Acquisition, Demolition and Relocation Monitoring and Compliance Checklists HUD Submittals, Plans, Reports, Etc. Strategic Plans and Action Plans Consolidated Annual Performance and Evaluation Reports (CAPER) Google Translate to Spanish
Based on current listing details, eligibility includes: Alabama municipal and county governments (excluding entitlement cities that receive CDBG funds directly from HUD). Applicants should confirm final requirements in the official notice before submission.
Current published award information indicates Up to $400,000 Always verify allowable costs, matching requirements, and funding caps directly in the sponsor documentation.
The current target date is rolling deadlines or periodic funding windows. Build your timeline backwards from this date to cover registrations, approvals, attachments, and final submission checks.
Federal grant success rates typically range from 10-30%, varying by agency and program. Build a strong proposal with clear objectives, measurable outcomes, and a well-justified budget to improve your chances.
Requirements vary by sponsor, but typically include a project narrative, budget justification, organizational capability statement, and key personnel CVs. Check the official notice for the complete list of required attachments.
Yes — AI tools like Granted can help research funders, draft proposal sections, and check compliance. However, always review and customize AI-generated content to reflect your organization's unique strengths and the specific requirements of the solicitation.
Review timelines vary by funder. Federal agencies typically take 3-6 months from submission to award notification. Foundation grants may be faster, often 1-3 months. Check the program's timeline in the official solicitation for specific dates.
Many federal programs offer multi-year funding or allow competitive renewals. Check the official solicitation for continuation and renewal policies. Non-competing continuation applications are common for multi-year awards.