U.S. Government Funding Programs on a "Community" Scale

 What Is A CDE?
The Federal Government has devised programs that target the "Community" for funding Low Income housing and other projects. One such program is the Community Development Entity, or CDE. Loosely defined, the CDE is a domestic corporation or partnership that acts as an intermediary for the provisions of loans, investments and finance counseling for Low Income Communities. Being certified as a CDE will open the door for applying to a Community Development Financial Institution fund (CDFI). By applying to the CDFI, the CDE will be eligible for New Market Tax Credits (NMTC) allocations which will be offered to investors in exchange for equity investments in the CDE.

What is a CDBG?
The Community Development Block Grant (CDBG) is one of the longest running programs linked to the Housing and Urban Development (HUD) sector of the government. The CDBG program was enacted in 1974 as part of the Housing and Community Development Act of 1974. It's goals were to attempted to end poverty and "urban blight". Originally, the funds were used for community development activities such as affordable housing, anti-poverty programs and infrastructure improvements. The program has expanded to include prevention and elimination of slums, real estate acquisition (which can include relocation, demolition and rehabilitation of commercial and residential buildings), and public service projects such as water, sewer, utilities, streets and sidewalks. In addition, CDBG funds can be used for restoring historical properties in economically depressed areas.The funds are allocated to local and state governments using a formula. When the program was re-authorized 1978, a two part formula was used to attempt to balance the different areas of the country with their different requirements. Part A of the formula was based based on poverty rate, population and overcrowding conditions and typically benefits rapidly growing cities with higher poverty rates. Part B of the formula addressed age of housing, poverty rate and growth. Formula B tends to benefit older cities with greater housing deterioration. Additionally, a fund was set aside to address rural areas of the country. In order to receive the funds, communities must communicate to the city/state "urgent needs". In relation to other government funded community programs, CDBG is a much broader program that addresses poverty and blight and is less restricted than other programs such as the Urban Development Action Grants (UDAG). Closer to home (Texas), The State of Texas, through the Texas Department of Agriculture has initiated a CDBG for the state's rural areas. The goal of the rural CDBG is as follows: " The primary objective of the Community Development Block Grant program is to develop viable communities by providing decent housing and suitable living environments, and expanding economic opportunities principally for persons of low-to-moderate income". The specifics of the CDGB are as follows: "Non-entitlement cities under 50,000 in population and non-entitlement counties that have a non-metropolitan population under 200,000 and are not eligible for direct CDBG funding from HUD may apply for funding through any of the Texas CDBG programs".