CDBG Entitlement FAQ

If property is acquired with CDBG funds, what kind of expenses are eligible at the time of disposition?

Date Published: October 2018

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Real property acquired with CDBG funds may be managed and maintained as an eligible disposition expense, but such work must be limited in duration. Properties that have not achieved an end use within three to four years run the risk of monitoring or audit findings. Grantees or subrecipients may pay for ongoing maintenance of acquired properties, which could include repairs, utilities, yard work and similar expenses. CDBG funds may only be used to maintain property that was acquired with CDBG funds and is being actively marketed. The property must support an eligible use and meet a national objective. If the property never achieves an eligible end use that meets a national objective, the maintenance expenses may be found ineligible as well.

Tags: CDBG Entitlement Program Acquisition-Disposition-Demolition