Community Development

Carol M. Newton

Tel: (225) 342-7412
Fax: (225) 342-1947
Email: Carol.Newton@la.gov

Mailing Address:
P.O. Box 94095
Baton Rouge, LA 70804-9095

Louisiana.gov > Division of Administration > Office of Community Development > CDBG

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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 early Spring. April 1 is the beginning of Louisiana's program year.

The federal CDBG award was 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

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 costs. The 3 percent figure is matched with non-CDBG State dollars on a one-for-one basis.

Technical Assistance

Under Title I of the Housing and Community Development Act of 1974, as amended, 106(d)(5), the State may allocate up to 1 percent of the annual CDBG award for technical assistance activities. The State sets aside 1 percent for each program year.

Demonstrated Needs

For FY 2011, this component received $1 million dollars.

LaSTEP (Louisiana's Small Towns Environmental Program)

This component received $500,000 in FY 2011.

Economic Development

$4 million was set aside.

The Revolving Fund is an account used for loans for economic development activities.

Public Infrastructure

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

Funds not obligated under the Technical Assistance, Demonstrated Needs, LaSTEP allocations are awarded to unfunded Public Infrastructure applicants at the end of the program year. 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.