AGENDA DATE: 8/6/2025
TITLE:
Title
2025 Community Development Block Grant (CDBG)
BODY
SUBJECT/PROPOSAL/REQUEST: Public Hearing on the availability of CDBG funding and to receive input on community development and housing needs
ITEM TYPE: Regular Action Item
STAFF CONTACT(S): Richardson, Dimock, Herrick, Curfman, Pethia
PRESENTER (S): Stacy Pethia, Director of Housing
LEGAL REVIEW: Yes
REVIEWED BY: Jeffrey B. Richardson
BACKGROUND: The Community Development Block Grant (CDBG) is a federally-funded grant program administered by the Virginia Department of Housing and Community Development (DHCD). Since 1982, the DHCD has provided funding to eligible units of local government for projects that address critical community needs including housing, infrastructure, and economic development. Albemarle County successfully secured numerous grants in previous years to support housing and community improvement initiatives.
The CDBG application process requires that two local public hearings be conducted. The purpose of the first public hearing is to provide information on eligible activities that may be funded by CDBG, the amount of funding estimated to be available, past activities undertaken with CDBG funds, and to receive public comment on this information for potential community development and housing needs. A follow-up public hearing is held to consider proposed project applications and must take place prior to the DHCD application due date of August 26, 2025. Applications must be submitted by the County to the DHCD; however, the proposed activities may be undertaken by partner agencies.
STRATEGIC PLAN: Quality of Life - Encourage a vibrant community with economic and recreational opportunities that serve all community members.
DISCUSSION: Albemarle County, as a non-entitlement community, is eligible to apply to the DHCD for up to approximately $2 million in CDBG funding for projects that benefit low- and moderate-income persons, prevent slums and blight, and/or address urgent community needs. Eligible activities include housing rehabilitation, public infrastructure, community service facilities, and business district revitalization. Community development projects can receive varying levels of funding, depending on the nature of the activity, or by combining multiple activities. In calendar year 2025, $16,313,103 is available for competitive grants and $1.8 million for open submission applications.
Over the years, Albemarle County has successfully received a number of CDBG grant awards. The most recent grant was awarded in 2023 for infrastructure construction serving 59 households as part of the Southwood Redevelopment project. This project is approximately twenty percent (20%) complete. The most recent completed project was for the construction of five single-family homes and the construction of the Monacan Indian Nation Tribute Park as part of the Southwood Redevelopment Project. The Monacan Indian Nation Tribute Park is awaiting the fall for planting, but has achieved substantial completion in its construction. Prior grants have resulted in improved infrastructure and preservation of owner-occupied homes and rental units.
For any project to be considered by the County for CDBG funding, the applicant must notify the County no later than Friday, August 15, 2025. This notice shall include a brief description of the project, the amount of funding requested and the proposed use of CDBG funds, and a description of the beneficiaries of the proposed activity. Staff will return to the Board during a second public hearing on August 20, 2025, to present any proposed CDBG project(s) and seek Board approval for application submission. A completed application that includes the proposed project budget and all required attachments shall be submitted to the DHCD electronically by the County by the DHCD deadline of August 26, 2025.
BUDGET IMPACT: There is no budgetary impact until an application is made to the DHCD and approved for a funded project. Projects approved for CDBG funding generally require some level of local funding support, which may include funding provided by the project partner.
RECOMMENDATION:
Recommendation
Recommendation Staff recommends that the Board receive information on available CDBG funding and eligible uses and hold the public hearing to receive input from the public on potential community development and housing needs.
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