STATE OF CALIFORNIA - BUSINESS, CONSUMER SERVICES AND HOUSING AGENCY GAVIN NEWSOM, Governor
DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT
DIVISION OF FEDERAL FINANCIAL ASSISTANCE
May Lee State Office Complex
651 Bannon Street
Sacramento, CA 95811
(916) 263-2771
www.hcd.ca.gov
California Department of Housing and Community Development 2025 Community Development Block Grant Program NOFA 1
December 15, 2025
MEMORANDUM FOR: All Potential Applicants
FROM: Jenny Cho, Deputy Director
Division of Federal Financial Assistance
SUBJECT: 2025 Community Development Block Grant Program Notice of Funding Availability – Amendment #1
The California Department of Housing and Community Development (Department) is announcing the release of an amendment to the Community Development Block Grant (CDBG) 2025 Notice of Funding Availability (NOFA) issued on September 30, 2025 for approximately $27 million in federal funds for the Community Development Block Grant (CDBG) program. If additional resources become available either through disencumbrances of prior year funding or through the availability of future year funding, the Department has the sole discretion to fund eligible applications on a competitive basis. This Amendment moves the application window from December 1, 2025 – January 30, 2026 to February 2, 2026 – April 3, 2026.
Funding for this NOFA is available to the state from the United States Department of Housing and Urban Development (HUD), pursuant to the Housing and Community Development Act of 1974, as amended, and 24 Code of Federal Regulation (C.F.R.) Part 570 Subpart I “State Community Development Block Grant Program.” These regulations require the state to make funds available to the state’s non-entitlement Units of General Local Government (UGLGs). Units of General Local Government are defined by HUD as political subdivisions of the state, which in California are towns, cities, and counties. Only non-federally recognized Tribes can receive funding through applications submitted by non-entitlement Units of General Local Government. No direct funding from the Department can be provided to Tribes, Tribally-Designated Housing Entities, or nonprofits.
Applicants are encouraged to set-up profiles in the eCivis Portal at eCivis Portal | Login as early as possible. Profile set-up instructions and other technical assistance can be found in the eCivis Grants Network External User Manual found on the Department’s CDBG webpage under the “Resources” tab.
STATE OF CALIFORNIA - BUSINESS, CONSUMER SERVICES AND HOUSING AGENCY GAVIN NEWSOM, Governor
DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT
DIVISION OF FEDERAL FINANCIAL ASSISTANCE
May Lee State Office Complex
651 Bannon Street
Sacramento, CA 95811
(916) 263-2771
www.hcd.ca.gov
California Department of Housing and Community Development 2025 Community Development Block Grant Program NOFA 2
Applicants are encouraged to begin the application process early to ensure successful submission before the application deadline. If you have issues logging into the portal or have questions on how to complete the online application, please contact the Department at [email protected].
To receive CDBG program NOFA FAQs, emails, and other information and updates, please sign up for emails and check the “Federal Programs” box. If you have any questions, please submit them to [email protected].
All activities and proposed funding in this NOFA are subject to availability of funds and continuing HUD and legislative and fiscal authority.
Attachments
California Department of Housing and Community Development 2025 Community Development Block Grant Program NOFA 1
Community Development Block Grant Program
2025 Notice of Funding Availability
Gavin Newsom, Governor
State of California
Tomiquia Moss, Secretary
Business, Consumer Services and Housing Agency
Gustavo Velasquez, Director
California Department of Housing and Community Development Division of Financial Assistance, Federal Programs Branch, Community Development Block Grant Program
651 Bannon Street, 8th Floor, Sacramento, CA 95811
Email: [email protected]
September 30, 2025
Amended December 15, 2025
California Department of Housing and Community Development 2025 Community Development Block Grant Program NOFA 2
Table of Contents
Table of Contents ............................................................................................................ 2 I. Overview................................................................................................................... 5 A. Notice of Funding Availability ...................................................................... 5 B. Estimated Timeline...................................................................................... 5 C. Insufficient Demand .................................................................................... 6 D. What’s new in this NOFA?........................................................................... 6 E. Authorizing Legislation ................................................................................ 7 II. Allocation and Funding ............................................................................................. 8 A. Definitions ................................................................................................... 9 B. Limits for Administration and Planning ........................................................ 9 C. Conditions ................................................................................................. 10 III. Program Requirements .......................................................................................... 10 A. Eligible Applicants ..................................................................................... 10 B. Non-Entitlement Status ............................................................................. 11 C. Housing Element Compliance ................................................................... 11 D. Growth Control Limitations ........................................................................ 12 E. Eligible Activities ....................................................................................... 12 F. Application Limits ...................................................................................... 12 G. Activity Limits ............................................................................................ 14 H. Additional Requirements ........................................................................... 14 IV. Application Requirements....................................................................................... 15 A. National Objectives ................................................................................... 15 B. Milestones ................................................................................................. 15 C. Public Participation.................................................................................... 17 V. Application Threshold and Initial Requirements...................................................... 17 A. Single Audit ............................................................................................... 17 B. Site Control ............................................................................................... 17 C. Statement of Assurances (Appendix D) .................................................... 18 D. Resolution ................................................................................................. 19 E. TIN ............................................................................................................ 20 California Department of Housing and Community Development 2025 Community Development Block Grant Program NOFA 3
F. Budget....................................................................................................... 20 G. Sources and Uses Chart ........................................................................... 20 H. System for Award Management (SAM) ..................................................... 20 I. State Objectives ........................................................................................ 21 J. National Environmental Policy Act of 1969 (NEPA) .................................. 21 K. Construction Projects ................................................................................ 22 L. Economic Development (ED) Programs Only ........................................... 22 M. Planning Related to Another Activity Only................................................. 23 N. 50 Percent Rule ........................................................................................ 24 VI. Application and Activity Requirements ................................................................... 25 A. Federal Cross-Cutting Requirements........................................................ 25 B. Application Verification.............................................................................. 25 C. Timely Submittal........................................................................................ 25 D. Gap Funding/“But-For” .............................................................................. 25 E. Good Standing .......................................................................................... 26 F. Homelessness Assistance ........................................................................ 26 G. Readiness ................................................................................................. 26 H. Waivers ..................................................................................................... 27 VII. Application Submission .......................................................................................... 27 A. Workshops ................................................................................................ 27 B. Submission Process.................................................................................. 27 C. Application Submission ............................................................................. 28 D. Applicant Responsibility ............................................................................ 29 E. Disclosure of Application ........................................................................... 29 VIII.Application Review ................................................................................................. 29 A. Review Process ........................................................................................ 30 B. Set-Aside for Applicants Not Awarded CDBG Funds in the Last Five Years .................................................................................................................. 30 C. Scoring ...................................................................................................... 30 D. Corrections................................................................................................ 30 IX. Appeal Criteria and Process ................................................................................... 31 California Department of Housing and Community Development 2025 Community Development Block Grant Program NOFA 4
A. Competitive Application Appeals............................................................... 31 X. Award Recommendations....................................................................................... 32 XI. Awards Announcement and Grant Implementation ................................................ 32 A. Awards Announcements ........................................................................... 32 B. Standard Agreements ............................................................................... 32 XII. Federal Program Requirements ............................................................................. 33 A. Federal Cross-Cutting Requirements........................................................ 33 B. Relocation Plan Requirements.................................................................. 34 C. Procurement Requirements ...................................................................... 34 D. False, Fictitious or Fraudulent Claims ....................................................... 35 E. Whistleblower Protection Acts................................................................... 36 F. The California Whistleblower Protection Act ............................................. 37 XIII.LIST OF APPENDICES.......................................................................................... 39 California Department of Housing and Community Development 2025 Community Development Block Grant Program NOFA 5
I. Overview
A. Notice of Funding Availability
The California Department of Housing and Community Development (Department) announces the availability of approximately $27 million in funding available through the federal Small Cities Community Development Block Grant Program (CDBG) for the 2025 funding year. If additional resources become available either through disencumbrances of prior year funding or through the availability of future year funding, the Department has the sole discretion to fund eligible applications on a competitive basis.
The objectives of the CDBG program are to develop viable communities by the provision of decent affordable housing, a suitable living environment, and to expand economic opportunities, principally for the benefit of Low- and Moderate-Income (LMI) persons, families, households, and neighborhoods.
All applications will be reviewed for completeness and compliance with state and federal requirements. Only complete and compliant applications will be eligible for application review, approval, and potential funding per 42 United States Code (U.S.C.) §5302(a), 24 Code of Federal Regulations (C.F.R.) Part 570, and the State CDBG Guidelines. All awards made and standard agreements entered into under this NOFA will be subject to the provisions in the Department’s grant agreement(s) with HUD and all applicable federal law.
B. Estimated Timeline
CDBG NOFA Releases September 30, 2025
Submission Portal Opening
Date
February 2, 2026, at 9AM PST
Application Deadline April 3, 2026, at 3PM PDT
Award Letters Signed September 2026
Standard Agreement
Execution On a rolling basis starting October 2026
Expenditure Deadline 2 years, 9 months from Standard
Agreement execution by the Department
Applications submitted before the application open date or after the respective California Department of Housing and Community Development 2025 Community Development Block Grant Program NOFA 6
closing date or deadline will not be accepted. There will be no exceptions. The Department recommends Applicants plan to submit their application(s) well before the application deadline to provide opportunity for troubleshooting if needed.
Each application will be digitally time-stamped upon submittal. The digital time-stamp shall be conclusive proof of the filing date and time for the application being filed.
C. Insufficient Demand
If any identified set-aside is undersubscribed, set-aside funds shall be made available under the allocation for “Housing Programs, Economic Development Programs, and All Projects.” If this NOFA is undersubscribed, unawarded funds may be made available under a subsequent NOFA. If funds become disencumbered or additional funding resources become available, the additional available funds may be made available under this NOFA or any subsequent NOFAs, at the Department’s discretion. If disencumbered funds or additional available funds exceed applications, these funds may be made available under a subsequent NOFA.
D. What’s new in this NOFA?
1. A set-aside for applicants who haven’t been awarded CDBG funds in the past five NOFA cycles (2020-2024) has been established. Applicants will be allowed to rank from 1 to 3 their priority among planning, public service, project, or program. The highest prioritized qualifying selection will compete in the setaside. Additional applied for planning, public service, project or program will compete with all other applicants.
2. All applications will be eligible under a Competitive Application process, with certain submissions competing under defined set-asides. There is no Over-theCounter (OTC) Application. i) The following activity types are available:
a.Public Service and Planning
b.Programs
• Housing Programs
• Economic Development Programs (ED Programs)
c. Projects
• Public Facilities Projects
• Infrastructure Projects
• Housing Projects
California Department of Housing and Community Development 2025 Community Development Block Grant Program NOFA 7
3. All applications must meet the 50 Percent Rule as described in the CDBG Program Guidelines Section 202(a)(2), 50 Percent Rule.
4. Scoring system has been updated.
5. General updates for clearer instructions and definitions have been made.
E. Authorizing Legislation
Funding under this NOFA is made available pursuant to the Housing and Community Development Act of 1974. This NOFA should be read in conjunction with the following statutes, regulations, and guidelines that establish state and federal CDBG requirements. Relevant legal authorities include, but are not limited to, the following, as the same may be amended from time to time:
• 24 C.F.R. §570.480, et. seq., Federal CDBG Regulations • 24 C.F.R. Part 58, Environmental Review Procedures
• 2 C.F.R. Part 200, Uniform Grant Administration Requirements • Health & Safety Code (H.S.C.) §§50825-50834, State of California CDBG program
• CDBG Final Program Guidelines
• CDBG Grants Management Manual (CDBG GMM)
• 2025-2029 State of California Consolidated Plan
If there are changes to federal or state statutes, regulations, guidelines, or other laws governing the CDBG program, or if funding is modified or eliminated by Congress, HUD, the federal government, the Department, or the state Legislature, these changes may become effective immediately and apply to activities and funding under this NOFA.
Note: The Housing and Community Development Act of 1974 (HCDA) is codified as Title 42 U.S.C. §5301, et. seq. thus, those citations are interchangeable and cite the same statute language. For example, the citation of HCDA 105(a)(22) and 42 U.S.C. §5305(a)(22) are references to the same statute language. For the purposes of this NOFA, we will use the 42 U.S.C. §5301 citations for references to the federal statutes.
In administering this NOFA, if there is a conflict between the federal statutes or regulations and state statutes or guidelines, the federal statutes and regulations shall prevail. All activities in this NOFA are subject to availability of funds and continuing federal, HUD and California legislative and fiscal authority. The Department reserves the right, at its sole discretion and at any time, to rescind, suspend or amend this NOFA and any or all its provisions and the availability or amount of any funding described herein.
The Department will notify interested parties through listserv emails and by posting California Department of Housing and Community Development 2025 Community Development Block Grant Program NOFA 8
notification on the Department website if the Department rescinds, suspends, or amends this NOFA. This NOFA is not a commitment of funds to any Activity or Applicant.
II. Allocation and Funding
Funds will be allocated in accordance with federal regulations found in 24 C.F.R. §570 and state statute, as found in H.S.C. §50827 et. seq. For more information, please reference the CDBG Guidelines, Section 200.
The table below include the estimated percentage of Funding Category Allocations for the 2025 NOFA:
Funding Category Allocation Percentage Estimated Dollar Amount Local Administration 7% $2,000,000.00
Public Service (24 C.F.R.
570.201(e)(1))
Planning (24 C.F.R. 570.483(b)(5))
≤15%
≤10%
$4,400,000.00
$2,900,000.00
Housing Programs, Economic
Development Programs, and All
Projects
34% $9,250,000
Set-aside for applicants who have
not been awarded CDBG funds in the
last 5 NOFA cycles (2020-2024)
(Limit one public service, planning,
program or project per applicant)
≤25% of total
NOFA
amount; to
fund a
maximum of 4
total awards,
whichever is
the lesser
amount
Up to $6,750,000.00
California Department of Housing and Community Development 2025 Community Development Block Grant Program NOFA 9
Colonias Set-Aside (Section 916 of
the National Affordable Housing Act)
Set-aside of
5% $1,480,000.00
Non-federally recognized Tribes SetAside (H.S.C. §50831) Set-aside of
1.25% $371,000.00
*Note: The amount of total funding available and the allocations of those funds are only estimates and are subject to change without notice.
A. Definitions
Except as otherwise defined herein, all defined terms have the meaning set forth in 42 U.S.C. §5302(a), 24 C.F.R. Part 570, and the State CDBG Guidelines.
B. Limits for Administration and Planning
1. Program Administration
The Department can use 3 percent of the total funding +$100,000 for administration costs.
2. General Administration (GA)
i) Applicants may request up to 7 percent of the total CDBG grant funding requested by that Applicant for General Administration (GA). For detailed information regarding General Administration costs, see Chapter 6: Financial Management of the current posted version of the CDBG GMM, as may be amended, which is found on the CDBG page of the Department’s website. ii) The calculation to determine the maximum allowable General Administration amount is the amount of Activity expenses plus Activity Delivery expenses, multiplied by 7 percent per application. Appendix G has been provided for ease of calculation.
iii) In general, there should be minimal GA costs. Staff time and/or work completed/costs incurred directly on a specific Activity should be reported as Activity Delivery Cost (ADC) whereas the overall management of the CDBG Program, such as NOFA webinars and Office Hours, should be reported as GA.
iv) For detailed information regarding ADC, see Chapter 6: Financial Management of the current posted version of the CDBG GMM, as may be amended, which is found on the CDBG page of the Department’s website.
California Department of Housing and Community Development 2025 Community Development Block Grant Program NOFA 10
v) GA should be requested in the Main Application for the aggregate amount of all Sub Applications.
3. GA for Program Income (PI) funds is 17 percent of the annual PI receipts for the most recently completed Department Program Year (e.g., for PY 2023, receipts PY 2022 (July 1, 2022 – June 30, 2023).
4. Applicants may elect to assign more funds to Activity costs and take less than the 7 percent (17 percent for Program Income) as their GA allocation.
5. For project budgets with both grant award and PI as funding sources, applications must identify how much GA will be from each source to ensure that GA stays within the appropriate program caps.
C. Conditions
Applicants and awardees acknowledge that the funding opportunities referenced in this NOFA, and all obligations of the Department herein, are expressly subject to and conditioned upon the ongoing availability of funds, as well as the continued federal and state authority of the Department to operate the CDBG program. In the event that funds are not available or the amount thereof is reduced or restricted, or the Department’s authority under the CDBG Program or Act, or such funding or authority to operate is in any way restricted, the Department shall have the option, at its sole and absolute discretion, to amend, rescind, suspend, or terminate this NOFA and any associated funding pursuant to the provision set forth immediately above.
This NOFA is not a commitment of funds to any Activity or Applicant and the submission of an application does not guarantee an award to an Applicant.
III. Program Requirements
All Program Requirements, Application Requirements, Application Threshold and Initial Requirements, and Application and Activity Requirements set forth in Sections III-VI must be met. Failure to timely satisfy all of the requirements will result in disqualification.
A. Eligible Applicants
1. Only non-entitlement Units of General Local Government such as cities, counties and municipalities are eligible to apply. Federally-recognized Tribes, non-federally recognized Tribes, and nonprofits may receive assistance only by entering into a subrecipient agreement*, a Memorandum of Understanding, or a contract with an eligible Applicant.
*A subrecipient agreement is a written agreement in effect for each subrecipient before giving out any CDBG funds and remaining in effect for the period during which a subrecipient has control over any CDBG funds, including Program California Department of Housing and Community Development 2025 Community Development Block Grant Program NOFA 11
Income. At a minimum, a subrecipient agreement must contain content required by the federal CDBG regulations at 24 C.F.R. §570.503.
2. Applicants must meet one or more of the following requirements when the application is submitted to be eligible to apply for funding under this NOFA:
i) An eligible Applicant may apply on its own behalf.
ii) An eligible Applicant may apply on behalf of one or more other eligible Applicants.
iii) Two or more eligible Applicants, which share an activity, may submit a joint application.
iv) An eligible Applicant may apply on behalf of an eligible subrecipient including a Federally- recognized Tribe, non-federally recognized Tribe, or nonprofit. v) In addition to activity and application limits identified in this NOFA, an eligible Applicant may apply for activities in service areas within or outside of the Applicant’s Jurisdiction when the Applicant is applying for funds set aside by the California State Legislative for non-federally recognized Tribes (H.S.C. §50831) and/or Colonias.
B. Non-Entitlement Status
CDBG program funds are provided as grants to Non-Entitlement Units of General Local Government (UGLGs). These UGLGs are encouraged to partner with federally- and non-federally recognized Tribes, districts, agencies, nonprofit service providers, and other community organizations, whenever appropriate, to prepare and submit applications for CDBG funding, and to administer and complete CDBGfunded programs and projects.
Incorporated cities located in an urban county as defined by 42 U.S.C. §5302 (a)(6) must formally elect to be excluded from participation in the urban county entitlement status. HUD and the Department must be notified that the city has elected to be excluded from the urban county participation as per 24 C.F.R. 570.307(g) for it to be eligible for the state CDBG program. Only eligible activities from eligible Applicants will be considered for an award.
Applications for eligible activities outside the Applicant's Jurisdiction must include a legally binding agreement, acceptable to the Department, with the city or county in which the eligible Activity is located. Applicants may not apply to both the State CDBG program and to a CDBG program administered by an Urban County or other entitlement entity during the same program year.
C. Housing Element Compliance
As per H.S.C. §50829, the Applicant must, at a minimum, submit a draft or adopted California Department of Housing and Community Development 2025 Community Development Block Grant Program NOFA 12
housing element to the Department in accordance with the requirements listed in Government Code (G.C.) §65580, et seq., and G.C. §65585 (see Appendix B) prior to an application submission. Jurisdictions that fail to complete the Housing Element process in a timely manner will be ineligible for funding until the Housing Element meets requirements pursuant to H.S.C. 50829 – 50830. Per CDBG Guidelines, Section 202(a)(4), by the time of award funding, the Applicant must have complied with all the Housing Element requirements listed in H.S.C. 50829 – 50830. The jurisdiction’s Housing Element must be in compliance with CDBG requirements by the deadline listed on the jurisdiction's Application Correction Letter to be considered for award. If a jurisdiction’s Housing Element is determined by the Department to not be in compliance with CDBG requirements by the deadline listed on the Application Correction Letter, the Department has full discretion to determine whether the application will continue to be processed for a potential award.
D. Growth Control Limitations
Applicants that have adopted growth controls, including, but not limited to, restrictions on residential building permits and residential buildable lots, that do not meet the exception criteria in H.S.C. §50830 (b) and (c) are ineligible or deprioritized for funding as per H.S.C. §50830 (see Appendix B). Applicants intending to apply for CDBG funds are required to submit a signed 2025 CDBG Application Certifications and Statement of Assurances form that certifies the Applicant has not adopted any residential growth controls or adopted residential growth controls meet the applicable exception criteria. Failure to submit an executed Application Certifications and Statement of Assurances at the time of application will result in Applicant ineligibility.
E. Eligible Activities
For a complete list of eligible activities allowed under the HCDA, go to 42 U.S.C. §5305 and Chapter 2 of the current version of the CDBG GMM which is found on the CDBG page of the Department’s website. For a list of eligible activities allowed under this NOFA, go to: IDIS CDBG Matrix Code/National Objective Table (ca.gov).
Pursuant to both federal and state laws all CDBG costs must:
1. be eligible;
2. be necessary;
3. be reasonable;
4. not be used to supplant local or state resources; and
5. be guarded against fraud.
F. Application Limits
California Department of Housing and Community Development 2025 Community Development Block Grant Program NOFA 13
1. Each Jurisdiction may submit up to three (3) applications during this NOFA cycle.
i) 1 Project + 1 Program + 1 Public Service or Planning -ORii) 1 Project + 2 Public Service or Planning -ORiii) 1 Program + 2 Public Service or Planning **Note: 2 Projects, 2 Programs, 3 Public Service, or 3 Planning applications are NOT allowed.
2. The two (2) Public Service or Planning applications may be 2 Public Service, 2 Planning, or 1 Public Service and 1 Planning application.
3. Jurisdictions may not apply for more than the aggregate amount of $3.6 million in grant funds regardless of the number of applications submitted. Program Income amounts do not apply towards this limit.
4. The maximum combined award amount per jurisdiction for all awarded applications is $3.6 million in grant funds. Each activity must have a unique Sub Application with a complete budget, National Objective, scope of work, and milestone timeline. Failure to timely submit the Main or Sub Application will result in immediate disqualification.
5. The Main Application’s Budget will need to breakdown the total amount requested in each Sub Application by Sub Application title.
6. Applicants are encouraged to review the sample draft Standard Agreement in Appendix K as a sample of the applicable terms and conditions required for CDBG-funded activities. The final form of the Standard Agreement may vary.
7. The $3.6 million per jurisdiction limits do not apply to Colonias and Native American set-asides. The maximum activity limits are listed below. Program Income (PI) included in an activity budget does not count against the Jurisdiction’s maximum award limit.
Applicants eligible for the set-aside who haven’t been awarded CDBG funds in the last five NOFA cycles (2020-2024) are subject to the same limitations in the number and dollar amount as all other applicants, but may rank from 1 to 3 their priority among planning, public service, project or program. The highest prioritized qualifying selection will compete in the set-aside. Additional applied for planning, public service, project or programs will compete with all other applicants.
8. If applying with another jurisdiction, the application will count as a submission for the lead jurisdiction only.
California Department of Housing and Community Development 2025 Community Development Block Grant Program NOFA 14
G. Activity Limits
1. Public Service – up to $300,000
2. Planning – up to $300,000
3. Projects – up to $3.3 million
4. Programs – up to $1.5 million
i) Housing Program application may include any of the following activities. Each activity must have its own Sub Application.
• 13A – Housing Counseling
• 13B – Single Family (1 - 4 units) Homeownership Assistance • 14A – Single Family (1 - 4 units) Housing Rehabilitation • 14F – Single Family (1 - 4 units) Energy Efficiency Improvements • 15 – Code Enforcement
ii) An Economic Development Program may include any of the following activities.
Each activity must have its own Sub Application.
• 18A – Economic Development Direct Financial Assistance to ForProfit Business • 18B – Economic Development Technical Assistance
• 18C – Economic Development: Microenterprise Assistance H. Additional Requirements
1. Americans with Disabilities Act and Physical Accessibility Requirements i) The Grantee shall ensure compliance with all applicable state and federal building codes and accessibility laws and standards. All developments shall adhere to the accessibility requirements set forth in: (i) California Building Code Chapters 11A and 11B; (ii) the federal Fair Housing Act (42 U.S.C. § 3601 et seq.) and its regulations at 24 C.F.R. Part 100 (particularly 24 C.F.R. 100.205), and its design and construction requirements, including ANSI A117.1-1986, and the Fair Housing Accessibility Guidelines, March 6, 1991, in conjunction with the Supplement to Notice of Fair Housing Accessibility Guidelines: Questions and Answers About the Guidelines, June 28, 1994; and (iii) the Americans with Disabilities Act of 1990 (42 U.S.C. § 12101 et seq.) and its Title II and Title III regulations at 28 C.F.R. Parts 35 and 36; and Section 504 of the Rehabilitation Act of 1973 (29 U.S.C. § 794) and the implementing HUD regulations at 24 C.F.R. Part 8.
2. Construction Standards/Requirements
ii) All residential construction Projects, where applicable, must comply with the housing construction codes of the State of California. All units must meet these California Department of Housing and Community Development 2025 Community Development Block Grant Program NOFA 15
codes as well as any locally adopted codes and ordinances. Housing construction codes for building in California follow federal and state laws, regulations, and adaptions for construction of single family and multifamily units.
The State Housing Law Program within the Department continuously refines the building standards to ensure they comply with new or changing laws and regulations and develops statewide building standards for new construction of all building types and accessories. The State Housing Law Program also develops the building standards necessary to provide accessibility in the design and construction of all housing other than publicly funded housing. The building standards are published as the California Building Standards Code under the California Code of Regulations, Title 24, and construction standards in the Standard Agreement must meet or exceed all applicable requirements for housing or building construction. Tribal Entities with Projects on Native American Lands are required to follow their own tribal building codes or the International Building Code.
3. Upon request of the Department, Applicants must demonstrate to the satisfaction of the Department that it is compliant with the financial management requirements of 2 C.F.R. Part 200.
IV. Application Requirements
A. National Objectives
CDBG-funded activities must meet the following National Objective:
• Benefit LMI persons
At least 70 percent of the funds awarded must benefit LMI individuals or households.
No activity or portion of a program assisted by these funds may exclude from its benefits the lowest income-eligible group. Individual activities must meet the Low- to Moderate-Income National Objective as defined and described in detail in Chapter 2 of the CDBG GMM.
B. Milestones
All CDBG program-funded activities must be timely implemented in accordance with the milestones defined in the Standard Agreement. Milestones should be project/program specific and a reflection of significant progress. Applicants must include at least five (5) milestones per Activity application. The first and last milestone will be prepopulated and cannot be edited by Applicants. Failure to meet the first milestone identified, is a material breach of the Standard Agreement and will result in a for-cause termination of this Agreement.
California Department of Housing and Community Development 2025 Community Development Block Grant Program NOFA 16
• First Milestone: Activity Initiation. Must be completed no later than 60 days from the Effective Date of the Standard Agreement. The Effective Date of the Standard Agreement is the date which the Department counter signs the Standard Agreement
• Milestone Two: [populated by Applicant] – examples below • Milestone Three: [populated by Applicant] – examples below • Milestone Four: [populated by Applicant] – examples below • Final Milestone: Activity closeout (must be completed no later than 90 days after the Expenditure Deadline, as such term is defined in the Standard Agreement).
TIP: The Department recognizes that Applicants’ proposed milestone dates are estimates.
Instead of using an actual date for all optional milestones, please utilize time frames.
For example:
Milestone One (required): Activity Initiation. Must be completed no later than 60 days from the Effective Date of the Standard Agreement. The Effective Date of the Standard Agreement is the date which the Department counter signs the Standard Agreement.
Milestone Two: Release Invitation for Bid (IFB) within 90 days of Standard Agreement execution by the Department.
Milestone Three: Execute contract with a General Contractor within 120 days of Standard Agreement execution by the Department.
Milestone Four (optional): Begin construction within 9 months of Standard Agreement execution by the Department.
Milestone Five: Record Notice of Completion within 2 months of project completion.
Milestone Six (required): Activity closeout (must be completed no later than 90 days after the Expenditure Deadline, as such term is defined in the Standard Agreement).
Prior to Standard Agreement execution, your CDBG representative may update milestones if changes need to be made.
Additional milestones are optional, though encouraged for best practice of Activity implementation. Applicants are encouraged to evaluate feasibility of meeting milestones and build time for unexpected delays into the milestone schedules.
Milestones may not extend beyond the term of the Standard Agreement. All California Department of Housing and Community Development 2025 Community Development Block Grant Program NOFA 17
milestones proposed by Applicants are subject to the review and approval of the Department in its discretion.
C. Public Participation
Pursuant to 24 C.F.R. §570.486, Applicants must follow CDBG public participation regulations. Applicants must provide documentation that the Department’s Citizen Participation Plan requirements have been met. Documentation must include proof of public noticing, information provided during the public meeting, and public comments received during the public participation, including Jurisdiction responses to comments. Additional information about public participation requirements can be found in CDBG GMM Chapter 4.
This NOFA is not a commitment of funds to any Activity or Applicant and the submission of an application does not guarantee an award to an Applicant.
V. Application Threshold and Initial Requirements
All applications are required to meet and pass threshold requirements at the time of application submission, as determined by the Department. Applications that do not meet threshold will not move on to ranking and scoring and may be immediately disqualified.
The Department strongly recommends a careful review of the application and application instructions PRIOR to beginning the application.
A. Single Audit
Applicant must provide the Department with its most recent single audit (as submitted to the State Controller’s Office), if applicable. If the Applicant had or has single audit findings identified in the audit, the Applicant must include the remediation plan/agreement; the Applicant will be deemed ineligible for funding through the CDBG program until the findings are resolved or a remediation plan or agreement is established. All findings, remediation plans, and agreements will be reviewed by the Department for risk. A risk determination will be made at the sole and absolute discretion of the Department and applications may be deemed ineligible for funding based on the determination. Any and all single audit findings are included in this evaluation.
This requirement is not limited to federal funds administered by the Department. If an Applicant is currently not subject to single audit requirements, the Applicant may be required to submit their last filed single audit for review.
If an Applicant is not required to submit an annual single audit, they must provide documentation directly from the State Controller’s Office (SCO) to such effect.
B. Site Control
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Applicant must submit evidence of site control.
1. If securing federal funding is contemplated for any stage of a project at the time a project site is acquired, grantee must complete a NEPA environmental review record prior to completing the acquisition. Failure to do this will result in a choice-limiting action, which prohibits the project from receiving any federal funds in the future. If a site is to be acquired for a CDBG-funded project, regardless of whether CDBG funds are used for acquisition or development and construction, evidence of site control must be provided.
Acceptable evidence of site control may be conveyance documentation with substantiation that the transfer is contingent on completion of a NEPA environmental review record and securing federal funds.
2. Construction-related activities must have documented site control for the year in which the application is submitted and for the duration of the Standard Agreement. Public facilities are subject to a five-year no change in use restriction. The restriction recorded against the property, must run with the land and remain in effect regardless of the ownership of the property.
3. If project/activity is in a public right of way or easement, the grantee must submit a satisfactory opinion of counsel that all necessary rights, easements, and permits have been obtained.
4. If site control is expected to expire during the open activity period, the Applicant must document that either an alternative site will be made available or that the activity operators intend to extend or renew the site control on the existing site.
All activities will need to provide proof of intent to extend site control and submit documentation upon site control extension. Site control must be maintained through the operation period of the activity.
5. Acceptable evidence of site control may include: a conditional purchase agreement or enforceable option for projects involving acquisition, a lease option agreement from DGS and/or HCD as verified by HCD’s Excess Sites Team, a deed or lease, or a title report showing ownership of the property vested in the applicable entity. The determination as to what constitutes acceptable evidence of site control shall be made by the Department in its sole and absolute discretion.
C. Statement of Assurances (Appendix D)
Applicant must submit the fully executed Certifications and Statement of Assurances (see Appendix D), including the Jurisdiction’s name, initialing all pages [where applicable], and completing the last page. Please review the Statement and confirm compliance with each requirement. Failure to comply with the certifications and assurances may result in disqualification, recapture of federal funds, and/or California Department of Housing and Community Development 2025 Community Development Block Grant Program NOFA 19
debarment.
D. Resolution
1. Applicant must submit a completed Authorizing Resolution using the required Department-approved Authorizing Resolution form, which has been duly approved by the Applicant’s governing board. The Authorizing Resolution designates a person or persons responsible for, and authorized to, execute and deliver all documents related to the application of CDBG funds and, if awarded, the execution of a Standard Agreement with the Department.
2. See Appendix C for the Department-approved Authorizing Resolution form as well as instructions on how to complete it.
3. If a governing body must prepare a separate resolution concurrently that conforms to its local standard, it may do so in addition to preparing the Authorizing Resolution form provided by the Department. Applicants must submit their approved resolutions on the form provided by the Department by the application due date. Failure to provide an acceptable resolution at the time of application will result in a delay executing the Standard Agreement.
4. Authorized Signatory involving a City Jurisdiction: Pursuant to California G.C. Sections 40601 and 40602, the mayor or mayor pro tempore must sign any written contracts and conveyances made or entered into by the city, unless the city has an ordinance or municipal code provision in effect that specifically allows or designates contracts to be signed by an officer other than the mayor or mayor pro tempore. Accordingly, if the city does not have a city ordinance or municipal code provision described above, then the Department requires that the mayor or mayor pro tempore sign the Standard Agreement as the authorized signer for the city and provide to the Department the Resolution from the City Council authorizing the mayor to sign the Standard Agreement and related documents on behalf of the city. The mayor or mayor pro tempore may not delegate to a third party his or her authority to sign documents unless there is a city ordinance or municipal code provision in effect that expressly authorizes such delegation and a duly authorized resolution reflecting such delegation is provided to the Department. If the city does have an ordinance or municipal code provision as described above, the Department requires the city to provide a copy of such ordinance or municipal code, as well as the Resolution that indicates the name and title of the city official authorized to sign the Standard Agreement and related documents. The Resolution required by this section must be in form and content acceptable to the Department. The Department reserves the right in all cases to require the Applicant to timely provide a satisfactory written legal opinion from the City Attorney (or other legal California Department of Housing and Community Development 2025 Community Development Block Grant Program NOFA 20
counsel) stating that the designated signatory for the City has full, current legal authority to execute and deliver this Standard Agreement, and all subsequent amendments and other documents related to the Standard Agreement, to the Department.
E. TIN
Applicant must submit the required Government Agency Taxpayer ID (TIN) Form found in the Files tab of each program solicitation. The submitted TIN form must include FEIN, accurate payment information to be complete, and must not have been signed more than one (1) year before submission.
F. Budget
Applicant must complete CDBG budget found in the Grants Network portal.
Required budget information includes direct costs only. Direct costs for Activity, GA, and Program Income, if applicable, must be completed and clearly identified. Do not include any information on indirect cost, match, or cost share. Budget requests must be in whole dollars and not include any cents.
A Budget must be completed for the Main and every Sub Application. Failure to complete the Budget for the Main and every Sub Application may result in an immediate disqualification.
G. Sources and Uses Chart
Applicants must submit a Sources and Uses Chart which evidences the commitment of all funds required to complete the applied for CDBG project or program. The application will guide Applicants that are using multiple funding sources to upload a comprehensive Activity Sources and Uses Chart. Grantees may use their own form, or the template Sources and Uses Chart found in the Files tab of the application.
Evidence of commitment of any funding sources other than CDBG needed for a project to be feasible must be uploaded at application.
The Sources and Uses Chart must itemize the general projected costs of the project or program.
H. System for Award Management (SAM)
Pursuant to 24 C.F.R. Part 5, all CDBG Applicants are required to verify they and their principals, or any/all persons, contractors, consultants, businesses, subrecipients, etc., that are conducting business with the Applicant are not presently debarred, proposed for debarment, suspended, declared ineligible, or voluntarily excluded from participation in the covered transaction or in any proposal submitted in connection with the covered transaction. Applicants and their partners, contractors, consultants, and subrecipients must register with the System for California Department of Housing and Community Development 2025 Community Development Block Grant Program NOFA 21
Award Management (SAM) to do business with the U.S. government and have debarment checks that return a registration status of “Active” and “No Active Exclusion Records” under the Exclusion Summary. See Chapter 5 of the CDBG GMM for additional guidance.
The Department will not award or distribute any CDBG program funds to Applicants and Applicant partners, including contractors, subrecipients, and consultants that are debarred, suspended, proposed for debarment, declared ineligible, voluntarily excluded from participation, and/or unregistered in SAM from federally assisted programs. Applicants are not required to perform debarment checks on individual Applicant or partner employees or individual persons unless that person is acting as a contractor, consultant, subrecipient, or program partner and will be receiving payment directly from CDBG funds. Debarment checks for Applicant and all applicant partners must be completed before award of funds.
I. State Objectives
The Applicant must answer the questions regarding Disaster Resiliency in the application form.
J. National Environmental Policy Act of 1969 (NEPA)
Pursuant to 24 C.F.R. 570.604 Environmental Standards, the regulations in 24 C.F.R. Part 58 specify how the National Environmental Policy Act of 1969 (NEPA), must be met. Applicants must demonstrate compliance by submission of a complete, current, and applicable Environmental Review Record with the appropriate level of review form, completed Related Federal Laws and Authority topic worksheets (as applicable), and all supporting documentation. For more information regarding the Related Federal Laws and Authority, please visit the website.
Required NEPA process, training, and current forms are available on the HUD Exchange website. Additional HUD guidance can be found on the Orientation to Environmental Reviews page and additional Department guidance can be found in Chapter 3 of the CDBG GMM and Environmental Review Steps CDB Program.
If CDBG funds will be used for GA Activities, a GA NEPA Environmental Review Record must be submitted specifying the applicable exemption in 24 C.F.R. §58.34(a).
For Business Assistance and Housing Assistance activities that operate as a program but, as per HUD, require a Tiered Review process with site specific environmental reviews for NEPA clearance, both a GA NEPA review and Tier 1 NEPA review are required at time of application.
All documents must be submitted in the application portal. Do not send any documents to the Environmental Services Team (EST). If an application is awarded, California Department of Housing and Community Development 2025 Community Development Block Grant Program NOFA 22
program staff will submit documents to EST as needed.
K. Construction Projects
All construction projects applying for funding under this NOFA must demonstrate readiness at the time of application, including but not limited to, the submission of the following items:
• Independent Cost Estimate
• Completed NEPA Environmental Review Record for the project. • Bid-ready Plans and Specs
• Certification from Engineer that Plans and Specs are bid-ready • Certification from City that bid docs are ready
• Construction timeline (Gantt Chart preferred)
• Demonstration and Certification that jurisdiction has the capacity and knowledge to manage the project.
• Demonstration and Certification that developer is experienced. • List of required permits including anticipated date of obtaining the permit and any prerequisites needed to obtain the permit. Specifics regarding permit acquisition should be detailed in the application Narrative and Milestones.
• Written commitments for any and all third-party funding that is needed to complete the project.
L. Economic Development (ED) Programs Only
The Applicant must demonstrate capacity and experience to operate an ED Program. Capacity and experience may be documented through one of the following options:
1. The Applicant has hired staff that are able to dedicate capacity to the operation of a CDBG-funded ED Program. These staff must have at least:
i) Three years of CDBG ED experience; or
ii) Five years of commercial underwriting experience plus two years of general CDBG experience; -OR2. The Applicant has prepared a draft request for proposals (RFP) or subrecipient selection process for a qualified consultant or nonprofit ED group with direct experience in implementation of the ED activities proposed in the ED Program application.
i) A request for proposals or a subrecipient selection process must be completed within 60 days of applicant’s receipt of the Standard Agreement. A copy of the executed agreement with the selected subrecipient or contractor must be California Department of Housing and Community Development 2025 Community Development Block Grant Program NOFA 23
provided to the Department within 120 days of execution of the Standard Agreement. These must be listed as milestones in the application. -OR3. The applicant has identified at least three (3) qualified consultants or nonprofit ED groups with direct experience in implementation of the ED activities proposed in the ED Program application.
4. The Applicant commits to partnering with the Small Business Development Centers or a similar organization that has direct experience in CDBG ED program design, implementation, and commercial underwriting. This commitment will be a resolution, memorandum of understanding, or similar formal statement and will be required at application.
M. Planning Related to Another Activity Only
Applicants wishing to apply for engineering, architectural, and design costs (bidready plans and specs) related to a specific eligible construction activity may do so under a Planning application, however this will not be considered a Planning-only activity. It will be considered Planning Related to Another Activity and will be coded under the ultimate planned-for Matrix Code. For example, bid-ready plans and specs for a senior center will be coded under 03A for Senior Center, and will not be considered to have met the National Objective until the Senior Center is fully built.
To submit an eligible Planning Related to Another Activity application, applicants must demonstrate activity feasibility and obtain written approval from the Department prior to submitting an application. Without prior written authorization from the Department, the application will not meet threshold.
To obtain written authorization, submit an email to [email protected] with the following information:
1. Description of the work to be done.
2. List of deliverables (i.e. architectural designs, independent cost estimate, etc.).
3. If there was a feasibility or preliminary engineering/architectural study conducted for this project, please include that as an attachment to the email.
4. If there was no feasibility or preliminary engineering/architectural study conducted, describe how the jurisdiction determined project feasibility.
5. How does the jurisdiction plan to fund the project when all planning deliverables are complete? Please note, CDBG cannot be the sole funding source.
a. If planning to utilize CDBG funds, what is the contingency plan if the jurisdiction does not receive a CDBG award for the project? California Department of Housing and Community Development 2025 Community Development Block Grant Program NOFA 24
6. Identify if there are any potential barriers to this project (e.g., permitting, laws, site control, community opposition, etc.).
7. Provide a timeline for the project from planning through construction and closeout.
8. Provide a cost estimate for the project.
9. Is the project’s NEPA complete? If so, please provide.
Additional information may be requested and must be provided. Submission of information does not guarantee written authorization. Once all information is provided and reviewed, the Department will review the information and determine in its sole and absolute discretion, if the proposed activity is feasible and provide written authorization as applicable. Authorization letters are only valid for the current NOFA cycle.
All requests must be submitted via email to the CDBG Unit inbox ([email protected]) no later than by 9AM (PST), 14 calendar days prior to the Submission Portal Opening Date as stated in Section I.B. of this NOFA. If the 14th day lands on a holiday or weekend, the deadline will be the next available business day at 9AM (PST).
N. 50 Percent Rule
Any applicant with one or more current and open CDBG Standard Agreements for which the expenditure deadline established in the agreement(s) has not yet passed must have expended, in aggregate, at least 50 percent of CDBG funds for the same type of activity(s) included in those open CDBG Standard Agreement(s).
For example, if an applicant has 2 open public service awards (one for a hot meals program for $250,000 and another for senior services for $300,000), the applicant must have expended at least 50 percent of the total combined amounts of both awards ($275,001) in order to apply for a new public service application.
Requirement must be met by the time the application submission period opens. For purposes of the “50 Percent Rule,” “expended” means that a Financial Report was submitted in the grants management system and passed at least 2 steps of approval – regardless of the “Spend” column shown in the grants management system.
Applicants with an open CDBG Standard Agreement(s) may not disencumber funds in order to comply with the 50 Percent Rule requirement. Applicants who are preparing to close out an open CDBG Standard Agreement that includes disencumbrance that may affect compliance with the 50 Percent Rule, should submit an exemption request to the CDBG unit inbox ([email protected]) prior to the California Department of Housing and Community Development 2025 Community Development Block Grant Program NOFA 25
Submission Portal Opening Date. Exemption request must include the draft completed Closeout Package and public notice with proof of posting. The Department has sole and absolute discretion on exemption approval. Exemption approval may be rescinded if the final completed closeout package is not received by the Department by the application submission portal closing date.
VI. Application and Activity Requirements
A. Federal Cross-Cutting Requirements
At time of application submission, all applications must comply with and provide documentation of HUD’s federal cross-cutting requirements found at 24 C.F.R. §570.600 et. seq., and summarized in XII: Federal Program Requirements of this NOFA, as the same may be amended from time to time.
B. Application Verification
Applicants must certify upon submission that their application is true and correct to the best of their knowledge. Selecting an input field or uploading a blank document to circumvent the application requirements invalidates the application certification and will result in immediate disqualification. Applicants that intentionally input false information or that intentionally upload blank documents will have their good standing with the Department revoked and may be determined to be ineligible for other Department funding. Applicants are warned that intentionally providing false information to the Department may constitute fraud.
C. Timely Submittal
Applicants are strongly encouraged to give plenty of time for submitting prior to the application cutoff date and at least several hours prior to the cutoff time.
If an input field, upload requirement, or application component is not functioning correctly, or if there are system outages or other system failures prior to submittal, please contact [email protected] as soon as possible prior to the cutoff time to document the issue so that applications are not disqualified due to technical difficulties. Failure to contact the Department with system issues will not exempt Applicants from application verification requirements.
D. Gap Funding/“But-For”
CDBG is intended to provide stop-gap funding for crucial infrastructure, public safety, housing, and social service projects. CDBG funds may not be obligated to Activities that are documented to already have sufficient funding for the Activity as described, or that have identified multiple funding sources for the same costs, California Department of Housing and Community Development 2025 Community Development Block Grant Program NOFA 26
resulting in overfunding of the Activity. CDBG funds must be “but-for” funding for every Activity and may not be used to supplant local or state resources. CDBG grant funds cannot be used to replace funds that have been budgeted and/or expended from another funding source for the same Activity (i.e., there cannot be any supplanting). Pre-agreement costs are generally eligible provided that the initial funding for those costs is identified as a temporary funding source (such as a loan from a local fund wherein the loan is float-funding the CDBG Activity pre-agreement costs, but such costs must be repaid so that the temporary loaned funds may be used as originally intended) and that the costs are budgeted to be part of the CDBG Activity.
CDBG funds are not intended to be the sole funding source for a project or program.
E. Good Standing
The Applicant, and any co-Applicant, together with all respective affiliates, must be in good standing with the Department (i.e., are current on all loan and/or grant obligations, have a satisfactory past performance history in all their prior dealings with the Department, and are in full compliance with all Department contracts and reporting requirements). Applicants not meeting the foregoing requirements shall be ineligible to apply for or receive funding under this NOFA.
F. Homelessness Assistance
If you are seeking funding for homelessness assistance, generally defined as activities falling under matrix codes 03C or 03T, you must be a participating member of your local homelessness Continuum of Care (CoC). To demonstrate this, please submit a letter on CoC letterhead signed by the CoC coordinator that states that your jurisdiction is a participating member of the Continuum of Care.
G. Readiness
Planning related to another activity and public facilities and infrastructure project applications must demonstrate readiness as outlined in Section V: Application Threshold and Initial Requirements of this NOFA and the application.
Housing and Economic Development Program applications must demonstrate readiness to be considered for funding. To be considered “ready,” a program will need to provide the following at application submission to the satisfaction of the Department:
1. Draft or final program guidelines,
2. An underwriter either secured or a draft RFP/RFQ to be released within 60 days of Standard Agreement execution by the Department, and
3. A marketing plan/strategy.
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H. Waivers
Any requests for waivers or exceptions to any requirements must be submitted to the CDBG unit inbox ([email protected]) within 30 calendar days of the NOFA release. The denial of any request for a waiver or exception may not be appealed.
The granting or withholding of any waivers or exceptions are subject to the Department’s sole and absolute discretion and in compliance with applicable law.
VII. Application Submission
A. Workshops
The Department is conducting a series of both live and pre-recorded application workshops. These workshops will include training on:
i) Resolution (formerly: Resolutions: What is required and why) ii) Public Participation
iii) NEPA (formerly: How to complete the correct level of Environmental Review) iv) Debarment (formerly: How to pull a debarment check) v) Preparing the Narrative & Milestones (formerly: How to write a narrative and milestones)
vi) Single Audit
vii) 2024 CDBG Application & Budget (formerly: Completing the 2024 NOFA Application and Budget)
viii) 2025 CDBG NOFA Review (formerly: CDBG 2024 NOFA Review) Applicants are required to attend these workshop sessions. It is important to attend and engage in the live webinars to ensure a complete and accurate application is submitted. If they are unable to attend the live virtual workshop, Applicants must certify that they have reviewed these workshops on the CDBG website. The website also provides Training and Technical Assistance materials on the CDBG program, the CDBG Program Redesign, using Grants Network, and preparing a CDBG program application in Grants Network.
Excessive corrections may result in disqualification, or an application being reverted to draft to reapply. Please visit the Department’s website for upcoming information.
B. Submission Process
Applicants must follow instructions in this NOFA, the online application, and the CDBG program Guidelines. The Department strongly encourages Applicants to have all required documents on hand when completing the application. Failure to California Department of Housing and Community Development 2025 Community Development Block Grant Program NOFA 28
follow instructions and timely submit all required documentation (including a Main and all required Sub Applications) will result in disqualification. Time is strictly of the essence with respect to the application deadlines and other deadlines referenced in this NOFA. Once submitted, applications must stand on their own. It is the Applicant’s responsibility to ensure that the submitted application is clear, complete, and accurate. Department staff may request clarifying information but are unable to accept any new documentation that would provide an unfair advantage over other applications. It is strongly recommended that all documents be reviewed and saved to their own electronic files PRIOR to submission.
The CDBG Application and all required attachments must be submitted to the Department through the eCivis Portal. Applicants must certify that all information is true and complete to the best of their knowledge, under penalty of perjury. Per 83 FR 5848 “Any person who knowingly makes a false claim or statement to HUD may be subject to civil or criminal penalties under 18 U.S.C. §287, 1001 and 31 U.S.C. §3729.’’
Applicants that do not have an account with the eCivis Portal should create an account through the eCivis website. Use the “Create an account” option to initiate a profile. See the available training on the CDBG webpage to learn how to open an account. There is no cost associated with an eCivis Portal account.
A complete application consists of one Main Application and at least one Sub Application. Failure to submit a Main or a Sub Application will be considered an incomplete application. Incomplete applications WILL NOT be reviewed. We recommend reaching out to your CDBG representative or [email protected] for confirmation of receipt.
C. Application Submission
1. Applicants are ultimately responsible for what is submitted in an application, even if the application was prepared by a consultant. Applicants that rely on consultants or grant writers to prepare the CDBG application must carefully and thoroughly review the application for completeness and correctness prior to submittal.
2. Applications submitted through the eCivis Grants Network Portal must be submitted by a jurisdiction’s Profile account. Applications submitted by an account using an email address for someone other than a jurisdiction employee will be disqualified.
3. All documents requiring signature must be executed by the appropriate Authorized Representative identified in the Resolution of the Governing Body submitted with the application.
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4. All application certifications must be certified by a staff member of the applying jurisdiction with authority to make such certifications on behalf of the jurisdiction.
5. A complete application consists of one Main Application and at least one Sub Application. Failure to submit a Main or a Sub Application will be considered an incomplete application. Incomplete applications WILL NOT be reviewed. We recommend reaching out to your CDBG representative for confirmation of receipt.
D. Applicant Responsibility
It is the duty and responsibility of each Applicant to review the provisions, requirements, and limitations of all funding sources applied for and obtained for a particular project, program, or activity to ensure that each and every requirement of those funding sources is compatible with all Department program requirements and restrictions. Incompatibility of funding sources may result in the denial or cancellation of an award or may result in the placement of conditions or limitations on an award, all as determined by Department in its sole and absolute discretion.
E. Disclosure of Application
Information provided in the Application will become public record available for review by the public pursuant to the California Public Records Act (G.C. §7920, et. seq.).
As such, the Department may disclose any materials provided by the Applicant to any person making a request under this Act, without prior notice to the Applicant.
The Department cautions Applicants to use discretion in providing information not specifically requested, including, but not limited to, bank account numbers, personal phone numbers, home addresses, or other personally identifying information (PII).
By providing this information to the Department, the Applicant is waiving any claims of confidentiality, and consents to the Department’s disclosure of the Applicant’s material upon receipt of a Public Records Act request and without advance notice to the Applicant.
VIII. Application Review
All applications submitted by the application deadline and that pass the Threshold evaluation phase will be reviewed for Activity eligibility. Activities that do not meet program eligibility requirements will be disqualified for funding.
The Department reserves the right, at its sole discretion, to suspend, amend, or modify the provisions of this NOFA at any time, including, without limitation, the amount of funds available hereunder. This includes, but is not limited to, authorizing California Department of Housing and Community Development 2025 Community Development Block Grant Program NOFA 30
an eligible increase in funding to any Applicant after the Department makes an award under this NOFA.
A. Review Process
1. All applications will be reviewed for minimum Threshold Requirements as outlined in this NOFA.
2. Applications that meet minimum Threshold Requirements will be placed into the appropriate set-aside if applicable and scored.
3. Awards will be made in order from the highest to the lowest score, within the appropriate set-aside if applicable. If funding cannot be awarded to all planning, public service, projects, or programs, within a set-aside, the highest scores ones will be awarded. If set-asides are exhausted, the remainder will be scored along with all others.
B. Set-Aside for Applicants Not Awarded CDBG Funds in the Last Five Years
1. Applicants who have not received a CDBG award in the past five NOFA cycles (2020-2024) will be eligible to rank in priority order from 1 to 3 planning, public service, project or program to compete under a set-aside. i) This rank in priority will be made via a prompt in the main application. ii) PI only Awards are not considered a CDBG Award received in the past 5 years for the purposes of this ranking.
C. Scoring
All applications will be scored according to the evaluation criteria outlined in Appendix F. All applications will be sorted, from highest to lowest score, within each set-aside if applicable. The Department has full and absolute discretion regarding scoring criteria and interpretation of requirements and definitions. The Department’s decision shall be final, binding, and conclusive, and shall constitute the final action of the Department.
The Community Need Score. This value is calculated by transforming the Low/Mod Percentage from HUD’s Low- and Moderate-Income Summary Data (LMISD) based on the 2016-2020 American Community Survey (ACS) into a numerical value, dividing the value in half.
D. Corrections
Prior to routing the application for Standard Agreement packaging, the Department may make clerical changes to the application such as naming conventions, grammar, and capitalization. Any changes will be documented, and the applicant will California Department of Housing and Community Development 2025 Community Development Block Grant Program NOFA 31
be notified.
IX. Appeal Criteria and Process
Any request to appeal the Department’s decision regarding an application shall be reviewed for compliance with the Guidelines and the NOFA. All decisions rendered shall be final, binding, and conclusive, and shall constitute the final action of the Department.
The Department will provide opportunity to appeal any disagreed points assessment, pursuant to the appeals process as set forth in the NOFA. Disqualifying threshold determinations shall also follow a similar process, which shall be set forth in greater detail in the NOFA. For reference, all such appeals must be received by the Department no later than five (5) business days from the date of the Department’s threshold review, and/or initial score letter, as applicable, representing the Department’s decision made in response to the application.
A. Competitive Application Appeals
1. Basis of Appeals
i) Applicants may appeal the Department’s written determination that an application is incomplete, has failed threshold review, or has otherwise been determined to provide an insufficient basis for an award (including point scoring and tie breaker).
ii) At the sole discretion of the Department, the Department’s written determination may include a request for clarifying and/or corrective information. For purposes of this section, “clarifying information” includes information and/or documentation that resolves ambiguities in any application materials that will inform the Department’s threshold, scoring, and feasibility determinations. iii) No Applicant shall have the right to appeal a decision of the Department relating to another Applicant’s application (e.g., eligibility, award). iv) Any request to appeal the Department’s decision regarding an application shall be reviewed for compliance with the Guidelines and this NOFA. All decisions rendered shall be made by the Program Manager or his/her designee. The decision shall be final, binding, and conclusive, and shall constitute the final action of the Department.
v) The appeal process provided herein applies solely to decisions of the Department made pursuant to this NOFA.
2. Process
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i) To file an appeal, Applicants must submit to the Department, by the deadline set forth below, a written appeal which states all relevant facts, arguments, and evidence upon which the appeal is based. Furthermore, the Applicant must provide a detailed reference to the area or areas of the application that provide clarification and substantiation for the basis of the appeal. No new or additional information will be considered if this information would result in a Competitive advantage to an Applicant. Once the written appeal is submitted to the Department, no further information or materials will be accepted or considered thereafter. Appeals are to be submitted to the Department at [email protected] according to the deadline set forth in the Department review letters.
3. Filing Deadline
i) Appeals must be received by the Department no later than five (5) business days from the date of the Department’s threshold review, or initial score letters, as applicable, representing the Department’s decision made in response to the application.
X. Award Recommendations
Applications that are eligible, complete, timely submitted, and that satisfy all threshold requirements may be recommended for funding, subject to the availability of funds for the activity(ies) applied for. Applicants recommended for award will officially be notified of awards via an award letter sent via email. Subsequently, the grantee will receive award notification through the eCivis Grants Network. The award notification will include instructions for accepting or declining the award, as well as an executable Standard Agreement. Applicants that are not recommended for awards or that fail threshold will be officially notified via email that their application was not awarded or failed to pass threshold. The Final Award List will be posted on the Department’s CDBG webpage. Applicants may request a copy of their application reviews after the review has been completed and the Applicant has been notified of the results.
XI. Awards Announcement and Grant Implementation
A. Awards Announcements
The Department anticipates awards will be announced no later than July 2026. All awards are subject to availability of funds and compliance with all applicable legal requirements of the Program. Until all awards are announced, the CDBG staff will not be able to discuss applications or the status of applications.
B. Standard Agreements
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Successful Applicants (awardees) will enter into a Standard Agreement with the Department. A draft, sample Standard Agreement is included as Appendix E to this NOFA. The Standard Agreement contains all the relevant state and federal requirements, Activity performance and management requirements, and disbursement requirements. The form and content of the sample draft Standard Agreement is subject to revision without prior notice. A condition of award will be that a Standard Agreement must be executed by the awardee within 30 days (contracting period) of the awardee’s receipt of the Standard Agreement(s). Failure to execute and return the Standard Agreement(s) to the Department within the contracting period may result in award cancellation. Award cancellations are final.
Funding awarded through this NOFA will have a 33-month (two (2) years and nine (9) months) expenditure and liquidation period.
To ensure that the Standard Agreement(s) are being sent to the correct individual, Applicants MUST complete ALL required sections of the profile section of the application and must let the Department know in writing if the contact information has changed since the time of application submittal by emailing [email protected]. Standard Agreements and communication during this process will be with the email address designated in the profile section of the Application.
XII. Federal Program Requirements
A. Federal Cross-Cutting Requirements
The CDBG program is administered under the rules and regulations promulgated primarily in 24 C.F.R. §570.600, et seq, as the same may be amended from time to time. These primary regulations are known as the federal cross-cutting requirements and form the basis of the programmatic requirements. The Department incorporates all federal cross-cutting requirements into the state CDBG program, and the regulations in Part 570 are translated into required actions on the part of all Grantees of the state CDBG program.
The following is a list of some of the most commonly applicable federal cross-cutting requirements. This is not an exhaustive list.
i) Environmental Standards (based on National Environmental Policy Act of 1969 [NEPA])
ii) Labor Standards (Davis-Bacon and related laws)
iii) Public participation requirements
iv) Fair Housing
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v) Equal Opportunity and Non-Discrimination in federal Grant Programs vi) Federal Procurement Guidelines
vii) National Flood Insurance Program compliance
viii) Relocation and displacement requirements
ix) Employment and Contracting Opportunities Section 3 Compliance x) Lead-based paint requirements
xi) No use of debarred, ineligible, or suspended contractors or sub-recipients xii) Uniform Administrative Requirements and Cost Principles xiii) Conflict of interest prohibitions
xiv) Compliance with the Architectural Barriers Act and the Americans with Disabilities Act
xv) Federal reporting requirements
xvi) Grant and subrecipient monitoring requirements
xvii) Build America, Buy America Act (BABA) requirements B. Relocation Plan Requirements
Applicants engaging in project-specific activities that may or will cause the temporary or permanent relocation and displacement of persons, property, or businesses must provide a project-specific relocation plan as part of the application. The plan must meet the standards established in the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 (URA) and any applicable State relocation requirements. Applicants must successfully demonstrate that they have met URA requirements prior to the start of the project or displacement Activity.
Applicants must include relocation costs in project budgets and timely pay the same to those displaced in accordance with applicable law.
Applicants must provide relocation assistance to persons who may be displaced if the Activity in the grant application is funded. This plan must outline how the Grantee will enforce and manage the project’s relocation and displacement activities and estimate what relocation benefits will be required so those costs can be included in the project’s development budget.
C. Procurement Requirements
Pursuant to 24 C.F.R. §570.489(g), all Grantees must comply with federal procurement requirements. The Department will review the Grantee’s procurement documents for services (i.e., administrative sub-contractor, Davis-Bacon consultant, etc.) at time of monitoring or upon the Grantee’s request.
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Requirements for federal procurement can be found at 2 C.F.R. §200.317-327.
Applicants are responsible for meeting all federal procurement standards for goods and services funded through federal programs. Failure to meet procurement requirements may result in disqualification, recapture of federal funds, and debarment.
D. False, Fictitious or Fraudulent Claims
Warning: Any person who knowingly makes a false claim or statement to HUD or the Department may be subject to civil or criminal penalties under 18 U.S.C. §287, 1001 and 31 U.S.C. §3729.
1. Detecting, Preventing, and Reporting Fraud
Fraud is a white-collar crime that has a devastating effect on the CDBG program because the CDBG program beneficiaries are victims of this crime when the CDBG program is abused. The Department wants to stop any criminal assault on the CDBG program it administers, and in doing so all CDBG funds go to people it was designed to help and improve their living conditions.
2. Combatting Fraud
The HUD Office of Inspector General (OIG) is committed to protecting HUD’s programs, operations, and beneficiaries from dishonest individuals and organizations.
HUD cannot combat fraud alone; they rely on Department and CDBG NOFA Applicants to combat CDBG program fraud. HUD also relies on Applicants for, and people receiving, HUD benefits, such as: tenants receiving rental assistance, borrowers with HUD insured loans, or citizens having their communities restored using HUD grants.
The HUD OIG Hotline number is 1-800-347-3735. This is the primary means to submit allegations of fraud, waste, abuse, mismanagement, or Whistleblower related matters for the CDBG program to the OIG.
HUD OIG accepts reports of fraud, waste, abuse, or mismanagement in the CDBG program from HUD employees, anyone administering the CDGB program, anyone working in the CDBG program, contractors, and the public.
You can report mismanagement or violations of law, rules, or regulations by HUD employees or program participants.
Fraud, Waste and Abuse in the CDBG program and its operation may be reported in one of the following four (4) ways:
i) By email:
[email protected]
California Department of Housing and Community Development 2025 Community Development Block Grant Program NOFA 36
ii) By phone:
Call toll free: 1-800-347-3735
iii) By fax:
202-708-4829
iv) By mail: Department of Housing & Urban Development
HUD OIG, Office of Investigation, Room 1200
Field Office
One Sansome Street
San Francisco, CA 94104
(213) 534-2518
HUD OIG, Office of Investigation
Suite 4070
Regional Office
300 North Los Angeles Street
Los Angeles, CA 90012
(213) 534-2518
E. Whistleblower Protection Acts
(Federal Whistleblower Protection Act (5 U.S.C Section 2302(b)(8)) The Federal Whistleblower Protection Act (WPA) protects employees from retaliation for making protected disclosures. The WPA also provides penalties for supervisors who retaliate against Whistleblowers.
1. A disclosure is protected under the WPA if the employee discloses information the employee reasonably believes to be evidence of:
i) a violation of any law, rule, or regulation,
ii) gross mismanagement,
iii) a gross waste of funds,
iv) an abuse of authority, or
v) a substantial and specific danger to public health or safety.
2. In general, an employee or Applicant may make a protected disclosure to anyone, including non-governmental audiences, unless the information is classified or specifically prohibited by law from release. Options for making a protected disclosure include:
i) Informing a supervisor or someone higher up in management, California Department of Housing and Community Development 2025 Community Development Block Grant Program NOFA 37
ii) Submitting a complaint to the OIG by emailing the OIG at [email protected], iii) Filing a complaint with the Office of Special Counsel (OSC) http://www.osc.gov/
F. The California Whistleblower Protection Act
The California Whistleblower Protection Act (Title 2, Division 1, Chapter 6.5, Article 3.5, G.C. §§ 8548-8548.5) authorizes the California State Auditor to receive complaints from state employees and members of the public who wish to report an improper governmental activity. An "improper governmental activity" is any action by a state agency or any action by a state employee directly related to state government that:
i) Violates any state or federal law or regulation,
ii) Violates an Executive Order of the Governor, a California Rule of Court, or any policy or procedure required by the State Administrative Manual or State Contracting Manual, or
iii) Is economically wasteful or involves gross misconduct, incompetency, or inefficiency. Complaints received by the State Auditor are confidential, and the identity of the complainant may not be revealed without the complainant's permission, aside from to an appropriate law enforcement agency conducting a criminal investigation.
There are many ways to file a complaint:
i) By Telephone:
You may call the Whistleblower Hotline at (800) 952-5665 to file a complaint by talking to one of the State Auditor's employees. The hotline generally is staffed Monday through Friday from 8:00 a.m. to 5:00 p.m. If you call when the hotline is not being staffed, or staff is occupied with other calls, you may leave a voicemail message requesting a return call.
ii) By Mail or Facsimile:
You may file a complaint in the form of a letter to the State Auditor addressed as follows:
Investigations
California State Auditor
P.O. Box 1019
Sacramento, CA 95812
Or you may fax the letter to the State Auditor at (916) 322-2603.
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iii) As an alternative, you may complete the electronic version of the complaint form (which is available on the State Auditor website at auditor.ca.gov), print it out, and return it by mail or facsimile as stated above. iv) Online:
Although the State Auditor does not accept complaints by e-mail, you may file a complaint online at
https://app.scoutcms.com/CaStateAuditorWhistleblowerComplaint v) The State Auditor will not undertake an investigation unless there is a basis for believing that your complaint has sufficient merit to warrant spending resources on an investigation. Your complaint should therefore include:
a.A clear and concise statement of what you Compare alleging to be improper activity and why you believe it is improper.
b.The name or other information that clearly identifies the person you are alleging has acted improperly and the department where that person works.
c. The names and contact information for any witnesses who can confirm the truth of what you are saying.
d.Copies of any documents that will support what you are saying. (You should not submit original documents, as they cannot be returned.)
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XIII. LIST OF APPENDICES
Appendices are located in the eCivis Grants Network under the ‘Files’ tab within each specific program solicitation.
Appendix A: Community Need Score
Appendix B: Housing Element and Growth Control Requirements Appendix C: Resolution Template of the Governing Body
Appendix D: 2025 CDBG Application Certifications and Statement of Assurances Appendix E: Sample DRAFT Standard Agreement
Appendix F: 2025 CDBG Scoring Matrix
Appendix G: General Admin Calculator