What is the meaning of block grants?

What is the meaning of block grants?

A block grant is an annual sum of money that is awarded by the federal government to a state or local government body to help fund a specific project or program.

What is a CDBG fund?

The Community Development Block Grant (CDBG) Program provides annual grants on a formula basis to states, cities, and counties to develop viable urban communities by providing decent housing and a suitable living environment, and by expanding economic opportunities, principally for low- and moderate-income persons.

What is a CDBG Subrecipient?

The CDBG regulations at 24 CFR §570.500(c) define a subrecipient as: a public or private nonprofit agency, authority, or organization, or a for-profit entity authorized under §570.201(o), receiving CDBG funds from the recipient or another subrecipient to undertake eligible activities.

Can CDBG funds be used as match?

ELIGIBLE ACTIVITIES Accordingly, a CDBG grantee may use its grant funds to pay for the required match for an IDA on behalf of an individual when the family or household of the individual for whom the IDA is established is low- or moderate-income before assistance is provided.

What is an example of a block grant?

Examples of Federal block grant programs are the Omnibus Crime Control and Safe Streets Act of 1968, the Housing and Community Development Act of 1974, and the grants to states for social services under title XX of the Social Security Act.

Are block grants taxable?

A: Yes, all block grant payments to applicants are taxable income and are subject to 1099 reporting with the IRS.

How are block grants distributed?

Block grants are fixed-sum federal grants to state and local governments that give them broad flexibility to design and implement designated programs. Federal oversight and requirements are light, and funds are allocated among recipient governments by formula.

What kind of organizations might receive a block grant?

Organizations. This means local and regional organizations, such as a nonprofit organization or a local government office, may receive pass-through funds to implement the program to its residents.

What are project grants used for?

In general, a project grant is given to support a specific, connected set of activities, with a beginning and an end, explicit objectives and a predetermined cost. When a funder gives a grant for a specific project, it is generally a restricted grant and must be used for that project.

What is the Community Development Block Grant?

The Community Development Block Grant ( CDBG ), one of the longest-running programs of the U.S. Department of Housing and Urban Development, funds local community development activities with the stated goal of providing affordable housing, anti-poverty programs, and infrastructure development.

When did the CDBG program start?

The CDBG program was enacted in 1974 by President Gerald Ford through the Housing and Community Development Act of 1974 and took effect in January 1975. Most directly, the law was a response to the Nixon administration’s 1973 funding moratorium on many Department of Housing and Urban Development (HUD) programs.

What is a Proposed CDBG project?

Proposed CDBG projects must be consistent with broad national priorities for CDBG: activities that benefit low-and moderate-income people, the prevention or elimination of slums or blight, or other community development activities to address an urgent threat to health or safety. CDBG funds may be used for community development activities.

What is a cdcdbg grant?

CDBG, like other block grant programs, differ from categorical grants, made for specific purposes, in that they are subject to less federal oversight and are largely used at the discretion of the state and local governments and their subgrantees.