Challenge Grants are awarded from within the 15% Community Development Block Grant (CDBG) public service category cap. No more than 15% of any CDBG annual allocation may be expended for public service activities.
An eligible public service activity must be either a new service not currently receiving CDBG funds or a quantifiable increase in the level of an existing service.
Eligible public services include, but are not limited to:
- Employment training
- Homeless services
- Crime prevention
- Child care
- Drug abuse counseling
- Fair housing counseling
- Energy conservation
- Homebuyer down payment assistance
- Recreational needs
Challenge grants will be for a minimum initial grant award of $30,000 (due to new insurance requirements). Matching funds are required in the amount of 25% of the grant award.