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Community Development Block Grant

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grants/federal/cdbg/pages/default.aspxState & Local

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The Kentucky Department for Local Government administers the Community Development Block Grant program, providing 25,894,683 dollars for the 2026 funding cycle. These funds are intended for neighborhood revitalization, affordable housing, economic opportunities, and infrastructure improvements. To qualify for funding, projects must benefit low to moderate income individuals, eliminate slums or blight, or address urgent community development needs. Eligible applicants include all Kentucky cities and counties, excluding specific entitlement communities that receive funds directly from HUD. Funding is allocated across several program areas, including community projects, economic development, housing, and public services. All projects are evaluated based on need, cost reasonability, and overall effectiveness. Because these are federal funds, recipients must adhere to strict HUD regulations regarding procurement standards, environmental reviews, fair housing, and Davis-Bacon wage rates. The program is managed in coordination with the Kentucky Housing Corporation as part of the state's broader Consolidated Plan.

General Info

Kentucky provides $25,894,683 for community development, housing, and infrastructure for eligible local governments.

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Organization & Contact Information

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AgencyKentucky Department for Local Government
ContactsNo contacts available
OfficeN/A
Office AddressN/A
ContactsNo contact information available

Full Description

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The Department for Local Government (DLG) administers approximately $26 million annually from the U.S. Housing and Urban Development’s (HUD) Community Development Block Grant (CDBG) program.The CDBG program provides assistance to communities for use in revitalizing neighborhoods, expanding affordable housing and economic opportunities, providing infrastructure and/or improving community facilities and services. With the participation of their citizens, communities can devote these funds to a wide range of activities that best serve their own particular development priorities.All project activities must meet at least one of three national objectives:Benefit to low and moderate income personsPrevention or elimination of slums or blightMeeting particularly urgent community development needs For the 2026 funding cycle, DLG will receive $25,894,683 for distribution. Funds are designated for various program areas including Community Projects, Community Emergency Relief Fund, Economic Development, Housing, Public Facilities Public Services (Recovery Kentucky). Who Can Apply: All cities and counties are eligible to apply for the funds with the exception of Ashland, Bowling Green, Covington, Elizabethtown, Henderson, Hopkinsville, Lexington-Fayette County, Louisville/Jefferson County Metro Government, Owensboro and Paducah. These entitlement communities receive CDBG funds directly from HUD. Application Process: Please see to the 2026 CDBG Guidelines Handbook and HUD Section 108 Guidelines posted below. Project Review Criteria: For a project to be funded, a determination must be made regarding project need, reasonability of costs, and overall effectiveness. Special Requirements: CDBG funds are federal funds allocated by HUD and must comply with numerous federal regulations such as Davis-Bacon wage rates, procurement standards and environmental review procedures, fair housing/equal opportunity, financial management and acquisition requirements. All requirements are set forth in the CDBG Handbook. Kentucky's CDBG Consolidated Plan The Consolidated Plan is the Commonwealth's application and distribution plan for U.S. Department of Housing and Urban Development's (HUD) Office of Community Planning and Development (CPD) Programs (CDBG, ESG, HOME, HOPWA, and HTF). Kentucky Housing Corporation (KHC) and the Department for Local Government (DLG) are the agencies responsible for submission of the plan to HUD.

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