Funding Cycles: Method of Distributing Funds - Overview

Funds are allocated to the State of Louisiana from the U. S. Department of Housing and Urban Development once a year, generally in late Spring. April 1 is the beginning of Louisiana's program year.

The federal CDBG award is allocated into various program components pursuant to the methods specified in the current Annual Action Plan. The following methodology describes the State's allocation of federal CDBG dollars.

State Administration and Technical Assistance

Consistent with CFR 570.489(a), the State may use up to 3 percent of the annual CDBG award, plus $100,000 for State administrative and technical assistance costs. The administrative costs in excess of $100,000 figure is matched with non-CDBG State dollars on a one-for-one basis.  However, the amount of administrative costs in excess of $100,000 and technical assistance costs together may not exceed 3 percent of the State's total allocation.  Of the 3 percent, the State allocates 2 percent to administration and 1 percent to technical assistance.

Demonstrated Needs

For FY 2013, this component was allocated $1 million dollars.

LaSTEP  (Louisiana's Small Towns Environmental Program)

This component received $500,000 in FY 2013.

Economic Development

$4 million was set aside.

  • The Revolving Fund is an account used for grants to local governments to make loans for economic development activities.
Public Infrastructure

This component received those funds remaining after the set-asides described above were satisfied.

Generally, funds not obligated under the  Demonstrated Needs and LaSTEP  allocations are awarded to unfunded Public Infrastructure applicants at the end of the program year (see current Consolidated Annual Action Plan). The exception involves the set-aside for Economic Development projects. Five months following the beginning of the State's program year, monies in excess of half of the original Economic Development allocation not applied for will be awarded to unfunded Public Infrastructure applicants. Ten months following the beginning of the State's program year, the balance in the allocation not applied for will be awarded to unfunded Public Infrastructure applicants.