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Timely Distribution of State CDBG Funds

May 08, 2012 Print ShareThis

This Notice replaces Notice CPD 11-05 and reiterates HUD’s policy and standards for the timely distribution of Community Development Block Grant (CDBG) funds by states. States administer the program but must distribute the funds to local governments, which carry out eligible activities. Since no one benefits from these funds until specific activities are underway or completed, states must distribute the funds in a timely manner in order to benefit low- and moderate-income people. The distribution requirements allow states a reasonable time to administer the program while assuring that the funds are used as Congress intended. This Notice also provides a summary report of the states’ performance in meeting the timely distribution requirements established by regulation for the 2010 annual allocations. The 15-month timely distribution period for the 2011 allocations expires for the earliest grantees on September 17, 2012 and for the latest grantee on May 03, 2013. Timeliness for the 2011 grants will be reported in the next annual Notice. The Office of the Inspector General (OIG), the Government Accountability Office (GAO), and other entities maintain a continuing interest in the performance and results of the CDBG program including the states’ distribution of their allocations. 

To read this notice, please click here.

Tags: CDBG Entitlement