Beginning in 1974, the Community Development Block Grant (CDBG) program was created as a federal funding tool through the U.S. Department of Housing and Urban Development (HUD) to address certain community development objectives. The CDBG program provides annual grants on a formula basis to local government and states.
The Charter Township of Waterford is a recipient of the CDBG entitlement program (municipalities with populations of at least 50,000), which allocates annual grants for activities intended to provide decent housing, a suitable living environment, and opportunities to expand economic opportunities for low- and moderate-income persons.
CDBG Consolidated Plan
HUD requires CDBG entitlement communities to develop and submit a 5-year plan outlining the activities to be funded with CDBG funds. Not less than 70% of CDBG funds must be used for activities that benefit low- and moderate-income persons. In addition, each activity must meet 1 of the following national objectives for the program:
Benefit low- and moderate-income persons
Prevent or eliminate slums or blight
Address community development needs having a particular urgency because existing conditions pose a serious and immediate threat to the health or welfare of the community for which other funding is not available
This planning process is focused on providing information required by HUD as conditions of receiving grant funds. This 5-year plan is then used as the basis for an annual action plan of CDBG-funded projects that is approved by the Township Board and submitted to HUD each year.