CDBG Entitlement FAQ

How can a community benefit from an NRSA?

Date Published: March 2019

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A community will benefit from a comprehensive place-based approach by using CDBG dollars to leverage additional funding for the neighborhood. An NRSA designation encourages and requires extensive community consultation and participation in revitalization efforts. Grantees also receive enhanced flexibility when undertaking economic development, housing and public service activities when using their CDBG funds. Regulatory relief and greater flexibility are the primary benefits. In a HUD-approved NRSA, CDBG funds may be involved in the following incentives:

  • Aggregation of Housing Units: Housing units assisted in an approved NRSA, during each program year, may be treated as a single structure for purposes of meeting a national objective. The grantee must maintain documentation that demonstrates 51% of the all the single and multi-family housing units completed in the NRSA were initially occupied by low- and moderate-income households. In contrast, outside an NRSA, 100% of the single family homes must be occupied by low- and moderate-income households.
  • Job Creation/Retention as Low/Moderate Income Area Benefit: Job creation/retention activities undertaken in an NRSA may be qualified as meeting the area benefit national objective, thus eliminating the need for businesses to track personal income and maintain records for jobs held by or made available to low- and moderate-income persons residing within the NRSA.
  • Aggregate Public Benefit Standard Exemption: Economic development activities carried out in an NRSA may be exempted from the aggregate public benefit standards. While the public benefit standard for individual projects still applies, exemption from the aggregate standard means that a grantee may offer more assistance to attract companies that will be able to create jobs within an NRSA.
  • Public Service Cap Exemption: Public services carried out in an NRSA are not subject to the statutory 15% public service cap when such activities are carried out by a designated Community Based Development Organization (CBDO) undertaking a neighborhood revitalization, community economic development, or energy conservation project.

Tags: CDBG Entitlement Program Neighborhood Revitalization Strategy Area