Small Cities Development Program Grants

Small Cities Development Program Grants The Minnesota Department of Trade and Economic Development administer the Small Cities Development Program (SCDP) as part of the federal Community Development Block Grant Program (CDBG) administered by the United State Department of Housing and Urban Development (HUD) and funded on a federal fiscal year basis. The purpose of the program, as defined by the CDBG, is the development of communities "by providing decent housing and a suitable living environment and expanding economic opportunities, principally for persons of low and moderate income".

Any general-purpose unit of local government that does not receive CDBG funds directly as an entitlement can submit one grant per grant cycle. In Minnesota seven cities: Bloomington, Duluth, Minneapolis, Moorhead, Rochester, St. Cloud and St. Paul; and five counties: Anoka, Dakota, Hennepin, Ramsey and St. Louis; are ineligible for SCDP grants.

The grant application, due October 1 each year, must identify and meet at least one of three federal objectives: One - primarily benefit persons at low and moderate income levels; Two - prevent or eliminate slum and blight; Three - urgent community development need.

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Most SCDP grant requests address the first federal objective, low and moderate income (LMI) levels. The Housing and Community Development Act requires that 70% of the funds a state receive are to be used to meet this objective. A LMI family is defined as having an income equal or less than the Section 8 income levels set annually by HUD.

These figures are adjusted by family size and separated by county. Many jurisdictions, when writing SCDP grants, will survey the community or target areas for more closely defined LMI data. In housing rehabilitation, owner-occupied or rental, the unit must be occupied by persons with a household income of at or below 80 % of area median income.