Community Development Block Grant Program

The Community Development Block Grant (CDBG) program funding is a flexible program that is administered by the U.S. Department of Housing and Urban Development (HUD) which provides communities with resources to address a wide range of unique community development needs.


CDBG program funds are allocated to eligible communities on an annual basis to develop “viable communities by providing decent housing, a suitable living environment, and opportunities to expand economic opportunities, principally for low- and moderate-income persons.” Low- and moderate-income persons are defined by HUD as persons with an annual household income equal to or less than 80% of the county’s median income. This standard is adjusted for family size and updated annually.

HUD awards grants to communities or grantees to carry out a wide range of activities directed toward revitalizing neighborhoods, economic development, and providing improved community facilities and services. Grantee communities must develop their own programs and funding priorities, however, grantees must give maximum feasible priority to activities which benefit low- and moderate-income persons.

Types of Activities
CDBG funds may be used for activities which include, but are not limited to:
  • Acquisition of real property
  • Rehabilitation of residential and non-residential structures
  • Construction of public facilities
  • Public improvements,such as water and sewer facilities, streets, and neighborhood centers
  • Social services within certain limits
  • Assistance to profit-motivated businesses to carry out economic development and job creation/retention activities
As a CDBG grantee community, the City of Rancho Santa Margarita will utilize its allocation in a variety of ways to assist low- and moderate-income City residents.