Community Development Block Grants

Growing Small Communities in South Dakota
The state’s CDBG program is funded through an annual formula allocation from the US Department of Housing and Urban Development (HUD). The program allows the state to fund a variety of different projects in small cities and rural areas. All projects must meet one of HUD’s national objectives, with the primary objective to benefit people of low-moderate income (LMI.)

Eligible applicants include all incorporated municipalities and counties. (Rapid City, Sioux Falls, and Tribal governments are the exception because these entities receive direct funding from HUD.) Eligible applicants may apply for funding on behalf of townships, unincorporated communities, and certain non-profit associations.

Annual Allocation in Three Separate Accounts

South Dakota separates their annual allocation into three separate accounts:

1. The Community Projects Account is available for a wide range of community development needs. Typical projects include water and wastewater infrastructure, community centers, workforce training, medical centers, and senior centers.
2. The Special Projects Account is available to help communities provide industrial infrastructure to assist businesses promising to create new job opportunities for LMI persons.
3. The Imminent Threat account is available to help communities address an urgent need of recent origin which poses a risk to the health and safety of its residents.

Projects Must Meet One of Program’s Objectives

Eligible projects must be consistent with at least one of the State’s program objectives:

1. Promote more rational land use.
2. Provide increased economic opportunities for low and moderate income persons.
3. Correct deficiencies in public facilities that affect the public health, safety or welfare, especially of low and moderate income persons.