Texas CDBG Funding
Every year, the U.S. Department of Housing and Urban Development (HUD) provides federal Community Development Block Grant (CDBG) funds directly to states, which, in turn, provide the funds to cities with populations less than 50,000, and to counties that have a non-metropolitan population under 200,000 and are not eligible for direct funding from HUD.
These communities are called non-entitlement areas, because they must apply for CDBG funds through the Texas CDBG program. Larger cities, entitlement areas, receive CDBG funds directly from HUD.
The Texas CDBG program is administered by the Texas Department of Agriculture (TDA).
Have questions about Texas CDBG funding, please contact:
Kaileen McHugh
- Regional Planning & Services
- Planning and Economic Development Coordinator
- 512-916-6011
- [email protected]
TxCDBG Community Development Fund 2025-26
Purpose: The primary objective of the Community Development Block Grant program is to develop viable communities by providing decent housing and suitable living environments and expanding economic opportunities principally for persons of low- to moderate-income. The Community Development Fund is the largest fund category in the TxCDBG Program. These funds are available on a biennial basis through a competition in each of the 24 state planning regions. Although, most funds are used for Public Facilities (water/wastewater infrastructure, street and drainage improvements and housing activities), there are numerous other activities for which these funds may be used.
Eligible Applicants: Eligible applicants are nonentitlement cities and counties that are not participating or designated as eligible to participate in the entitlement portion of the federal Community Development Block Grant Program (CDBG).
Maximum Grant Amount: $750,000
Application Deadline: Phase 1 applications are due Dec. 9, 2024
Phase 2 applications will be due mid-2025
Go to the TDA grant’s webpage for more information.
Get the application guide.
Community Development (CD) Fund Process
The Community Development (CD) Fund is the largest fund category in the TxCDBG Program. This fund is available in the CAPCOG region and the other 23 state planning regions. Although most funds are used for Public Facilities (water/wastewater infrastructure, street and drainage improvements and housing activities), there are numerous activities for which these funds may be used.
Eligible cities and counties within the CAPCOG region will be able to submit applications for TxCDBG CD Funds when the program opens in early 2025. Communities within each COG region compete against each other for funding.
Scoring Applications
All applications for TxCDBG CD Funds within the CAPCOG region during the 2025-2026 cycle will be scored using the same criteria. The scoring criteria is weighted as follows:
| Share of Score | Source | Applicability |
|---|---|---|
| 10% | Factors adopted by Texas Department of Agriculture | All applications statewide |
| 65% | Factors adopted by the Unified Scoring Committee | All applications statewide |
| 25% | Project priorities selected by CAPCOG | Only applications within the CAPCOG region |
Texas Department of Agriculture
Ten percent of the score for all applications in the state will be determined by TDA based on the following factors:
- Past Performance on previously awarded contracts – Maximum of 16 Points
- Timely submission of Close-out reports,
- Environmental clearance within 6 months of the contract start date,
- Extension of contracts (i.e., timeliness of completing projects), and
- Maximum utilization of grant funds awarded
- TxCDBG Priorities, such as early public hearing participation or fair housing activities, as determined by TDA prior to release of the CD Fund Request for Application Guide – Maximum of 4 points
Unified Scoring Committee
The Commissioner of Agriculture appoints one representative from each of the 24 state planning regions to serve on a Unified Scoring Committee (USC). The USC met April 10, 2024, in San Antonio to establish scoring factors that will be used to determine 65 percent of the score of applications being reviewed. CAPCOG’s representative on the USC is Johnson City Mayor Stephanie Fisher. The factors chosen by the USC will apply to all applications in the state.
Read the 2024-25 Scoring Factors Adopted by the USC.
CAPCOG Scoring Subcommittee
The CAPCOG Executive Committee appointed a subcommittee to establish regional priorities that will comprise 25 percent of the score for applications within the CAPCOG region. The subcommittee conducted a public hearing on May 13, 2024 to identify three different priority levels for activities as indicated in the table below and the points that will be awarded to applications that include projects involving those activities.
| Category | Activities | Number of Points (50 maximum) |
|---|---|---|
| 1st Priority | Flood Drainage Improvements, Water/Sewer Improvements, Streets Improvements, Fire Station/Equipment, Health Facilities, and Homeless Facilities | 50 |
| 2nd Priority | Parks, Recreational Facilities; Clearance and Demolition; and Code Enforcement | 40 |
| 3rd Priority | Rehab Single-Unit Residential Utility Connections | 20 |
Review the list of all eligible activities from which the subcommittee chose priorities.
The CAPCOG Scoring Subcommittee Members
- Judge Hoppy Haden, Caldwell County
- Judge Ron Cunningham, Llano County
- Mayor Pro Tem Steve Hougen, City of Granite Shoals
- Mayor Joel Lopez, City of Giddings
- Mayor Stephanie Fisher, City of Johnson City (CAPCOG’s 2025-2026 USC Representative)
Read the CAPCOG resolution creating the 2023-2024 TxCDBG Regional Priorities Subcommittee.
Review the form the subcommittee will provide to TDA indicating the CAPCOG priorities.
HUD’s Opportunity Portal & Section 3
HUD’s Section 3 Opportunity Portal helps HUD grantees and Section 3 businesses meet Section 3 benchmarks. The site is used by Section 3 workers, targeted workers or employers. Section 3 workers may search for jobs and post profile/employment history for companies to search. Employers may post job and contract opportunities or search for workers to fill positions.
Under the Section 3 program, recipients of certain HUD financial assistance, to the greatest extent possible, must provide training, employment, contracting and other economic opportunities to low- and very low-income persons. This is especially true for recipients of government assistance for housing and to businesses that provide economic opportunities to low- and very low-income persons.
Individuals may qualify as a worker, targeted worker or Section 3 business concern by meeting one or more of the following criteria:
- recipient of government assistance for housing
- income falls below HUD’s income limits
Businesses may qualify as Section 3 business by meeting one or more of the following criteria:
- ownership/control by a low-or very low-income person(s)
- owned and controlled by public housing residents
- business that has at least 75% of labor hours using Section 3 workers
More information about Section 3 is at https://www.hud.gov/section3 and https://www.hud.gov/program_offices/comm_planning/home/section3.