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:
Drug abuse counseling
Fair housing counseling
Homebuyer down payment assistance
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.