HUD Releases Proposed Rule to Revise CDBG and Section 108 Program Regulations

On January 10, HUD published a proposed rule that would revise the Community Development Block Grant (CDBG) and related Section 108 loan guarantee program regulations.

Proposed changes will not have any impact on the allocation of CDBG funds among recipients. Additionally, HUD asks for comments to 11 questions provided within the proposed rule.

Comments to the proposed rule are due by March 11, 2024 and can be submitted here.

According to HUD, the proposed rule is meant “to provide authority that would allow CDBG grantees and Section 108 borrowers to implement funding more effectively and efficiently in their communities.” In addition, HUD believes the proposed changes would enhance the goals of the CDBG program to benefit low- and moderate-income (LMI) persons and remove obstacles that prevent it’s effectiveness.

The proposed rule would make some of the following changes and updates:

  • Proposes change to national objectives criteria to remove impediments to carrying out economic development activities.
  • Updates the public benefit standards to allow CDBG and Section 108 recipients greater flexibility in undertaking economic development activities.
  • Incorporates several changes to eligible activities under the CDBG and Section 108 programs.
  • Aims to simplify regulations to encourage CDBG and Section 108 recipients to invest CDBG funds in underserved communities.
  • Adds methods of making the Consolidated Plan publicly accessible to persons with disabilities and provide meaningful access to limited English proficient persons.
  • Proposes changes to Indian Community Development Block Grant (ICDBG) regulations related to eligibility activities and other various definitions to ensure that CDBG and ICDBG regulations are in alignment.
  • Aims to remove outdated provisions and make technical corrections.
  • Revises and adds definitions, such as period of performance, mixed use property, labor market area and many more.

For more information, see the proposed rule or the February edition of The NAHRO Monitor.

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