CDBG Entitlement FAQ

What happens to a CDBG urban county with a population just over 200,000 if a participating unit of general local government becomes a CDBG entitlement community and drops out of the urban county?

Date Published: April 2019

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It depends on when the county became an urban county. If it has been an urban county since 1999, it is grandfathered as an urban county and cannot lose that status. Section 102(a)(6)(D)(viii) of the Housing and Community Development Act (HCDA) states that, aside from any other provision of Section 102(a)(6), any county that was classified as an urban county because it met the population threshold or low and moderate-income preponderance test for FY 1999 may always remain classified as an urban county.

If the urban county became an urban county in 2000 or later, then it is possible for the urban county to lose its urban county status. Any county that was classified as an urban county for a minimum of two years pursuant to Section 102(a)(6)(A), (C) or (D) will remain classified as an urban county unless one or more of its participating UGLGs chose not to have its population included or not to renew its cooperation agreement with the urban county. In this instance, the county fails to qualify as an urban county. (Section 102(a)(6)(B) of the HCDA). If this occurs, the county may seek a determination to remain as an urban county under the low- and moderate-income preponderance test.

Tags: CDBG Entitlement Program Urban County