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Community Development Block Grants (CDBG) - Public Facilities Program, Stormwater Improvements Program, and Wastewater/Drinking Water Program

Grants to Indiana Local Agencies for
Projects to Benefit Rural Communities

Agency Type:


Funding Source:

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Indiana Office of Community and Rural Affairs (OCRA)

LOI Date:


Deadline Date:

12/17/21 11:59 PM ET


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Grants to Indiana local government agencies for community development projects in rural areas. Interested applicants are required to submit a preliminary application prior to submitting a full proposal. Funding is intended to help enhance the lives and ensure the safety and health of residents in rural communities. Funds may be used for wastewater improvements, drinking water system improvements, public facilities, and stormwater improvements.

The goal of the Community Development Block Grant (CDBG) Program through the Office of Community and Rural Affairs (OCRA) is to encourage communities with eligible populations to focus on long-term community development. 

Rural communities have many pressing needs that require outside financial assistance. Through the Office of Community and Rural Affairs, Indiana requests federal funds to help rural communities with a variety of projects to include sewer and water systems, community centers, health and safety programs, and many others. Through these funded programs, OCRA helps Indiana rural communities to grow, thrive and prosper.

The following programs are currently accepting applications:

For all programs, the following general activities are eligible for CDBG funding: (This list is not meant to include or to exclude any particular project.)

  • Property Acquisition
    • Surveying and appraisal costs
    • Legal costs related to the acquisition
    • Actual purchase costs of land or easement provided URA is followed, and the property is not purchased before release of funds.
  • Administration
    • Reasonable and eligible costs associated with the administration of the proposed project
  • Environmental Review
    • Costs related to obtaining the necessary review of the proposed project.

General types of activities that are eligible for WDW funding:

  • Wastewater Improvements (collection lines, treatment plant, etc.)
  • Drinking Water System Improvements (water tower, distribution, treatment, etc.)

General types of activities that are eligible for SIP funding:

  • Stormwater improvements (retention, lines, etc.)

General Types of activities that are eligible for PFP funding:

  • Removal of Architectural Barriers for ADA Accessibility
  • Community Centers
  • Daycare Centers
  • Facilities for Special Needs Groups
  • Fire/EMS Stations
  • Healthcare Centers
  • Historic Preservation
  • Learning Centers
  • Libraries
  • Senior Centers
  • Youth Centers

GrantWatch ID#:

GrantWatch ID#: 169249

Estimated Size of Grant:

Wastewater / Drinking Water (WDW) Program:
- The Indiana Office of Community and Rural Affairs (OCRA) has established a maximum grant award according to the following matrix.
- Grant amounts for communities with existing systems will be based on the current combined rates at the time of application, and grant amounts for communities constructing new systems will be based on a verified rate study included in a Preliminary Engineering Report (PER).
- Maximum grant amounts are based upon user rate information in accordance with the chart on p. 6 of the Instructions listed in Supporting Documents below.

Stormwater Improvements Program:
- The Indiana Office of Community and Rural Affairs (OCRA) has established a maximum grant award of up to $600,000 for the Stormwater Improvements Program (SIP). If OCRA determines that a lesser amount is appropriate, it may be necessary to revise the project before it is submitted in final form.

Public Facilities Program:
- The Indiana Office of Community and Rural Affairs (OCRA) has established a maximum grant award of $500,000 for all Public Facility projects. If OCRA determines that a lesser amount is appropriate, it may be necessary to revise the project before it is submitted in final form.

For all 3 programs, the amount of CDBG funds granted will be based on a $5,000 cost per project beneficiary.

Term of Contract:

The project must be ready to proceed upon grant award and be completed within 18 months after grant award.

Additional Eligibility Criteria:

Eligible local units of government are counties, cities, or incorporated towns not located within an entitlement community. Unincorporated areas must apply through the county in which they are located.

To be eligible for CDBG assistance projects must meet the following minimum requirements:
- The lead applicant must be a non-entitlement city, county, or incorporated town that possesses the legal capacity to carry out the proposed program.
- The lead applicant may contract with a not-for-profit organization to carry out the activities of an eligible project, provided that the organization can document its nonprofit status with the U.S. Internal Revenue Service, the Indiana Department of Revenue, and the Indiana Secretary of State.
- The proposed project must meet a national objective and be an eligible activity under Section 105 (a) of the Housing and Community Development Act of 1974. In general, the project must either:
(i) Benefit an area or limited clientele whose population is at least 51% low- and moderate-income
(ii) Aid in the prevention or elimination of slums or blight

For further details on requirements, see p. 2 and pp. 4-6 of the Instructions listed in Supporting Documents below.

Ineligible Activities:
This list is not meant to be all-inclusive; please consult your Community Liaison for questions regarding specific projects. The following is a list of some of the projects that are not eligible for CDBG funding:
- The acquisition, construction or rehabilitation of buildings for the general conduct of government;
- Real property acquisition for ineligible activities;
- General equipment purchase;
- Purchase of items that are living (plants, trees, sod, animals, etc.);
- Operation and maintenance expenses associated with public facilities or services;
- General government expenses;
- Political activities of any nature; or
- The direct construction of new housing.

Pre-Application Information:

The second round of Community Development Block Grants for 2021 is now open.

- The proposal MUST be submitted by 11:59 PM ET Friday, October 15, 2021. Howevet, OCRA encourages communities to submit proposals before 4 p.m. ET on that date as there will be no technical support available after that time.
- The application MUST be submitted by 11:59 PM ET on Friday, December 17, 2021.
- Awards will be announced on Thursday, February 10, 2022

All requests to use in-kind match must be submitted by the pre-approval deadline of December 10, 2021.

The proposal must be submitted via the Indiana Electronic Grants Management System (INeGMS) by a certified Grant Administrator.

Application Process:
- There are two stages to the application process: the Proposal stage and the Application stage. The Proposal stage consists of a community submitting a proposal, which is a draft of the application, and allows OCRA to review project information and determine if it is likely to meet a national objective, and an eligible activity before submitting a full application. Proposals that do not include all the required elements will not be invited to move to full application.
- OCRA will also conduct a site visit between the Proposal and Application with the community to go over details of the project, explain the rules of the grant program, provide technical assistance, and address any questions.
- The second stage is the full application. Applicants are strongly urged to take advantage of the assistance of their Community Liaison so the most competitive application can be submitted.

Duplication of Benefits:
Many communities have received or will receive federal stimulus funds from the CARES Acts, American Rescue Plan (ARP), or other federal allocations that can be used for the same eligible activities as CDBG, as such OCRA must consider any duplication of benefit. To determine if any duplication has or will occur, each applicant must complete the Duplication of Benefit form (listed in Supporting Documents below) and upload it will their proposal.

Match Requirement:

- Local match must be provided by the applicant or a third-party. Other local, state, or non-HUD federal grants can count toward the local match requirement. The local match is a percentage of the total project cost, not the grant amount being requested. Minimum local match percentage requirements for each program are:
- 20% - Wastewater Drinking Water (WDW)
- 10% - Stormwater Improvement Program (SIP)
- 10% - Public Facilities Program (PFP)

- Local Match Contribution: A maximum of 75 points based on the percentage of local funds devoted to the project, not grant request. This total is determined as follows:
Total Match Points = % Eligible Local Match X 1
The points total is capped at 75 points or 75% match, i.e., a project with a 75% match or greater will receive 75 points. Below 75% match, the formula calculation will apply.


Duplication of Benefits Disclosure Clarification video:

Contact Information:

Before starting your grant application, please review the funding source's website listed below for updates/changes/addendums/conferences/LOIs.

Application portal:

Contact the assigned OCRA regional community liaison for questions, further information, and eligibility of specific activities/expenses related to these programs:

Indiana Office of Community and Rural Affairs
CDBG Program
One North Capitol, Suite 600
Indianapolis, IN 46204

Grant Coverage Areas:

A map of community liaison districts can be found at

URL for Full Text (RFP):

Geographic Focus:

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