The Role of the CDBG Program in Rural America

The stated goal of U.S. Department of Housing and Urban Development's Community Development Block Grant (CDBG) program is "to develop viable urban communities by providing decent housing and a suitable living environment and expanding economic opportunities, principally for persons of low and moderate income." While it may be perceived that CDBG exclusively assists urban or inner-suburban communities, the program also makes funds available to many smaller and less populated portions of states under the rubric of "nonentitlement" areas. Some research suggests that CDBG is the largest community and economic development program in rural America. Overall, there has been very little study of the CDBG program in terms of rural geography or funding.This research explores several basic questions. (1) To what degree do nonentitlement CDBG service areas actually comprise rural population and land (as opposed to suburban and exurban communities)? (2) What proportion of nonentitlement CDBG funds reaches rural communities and, in particular, economically distressed areas? The results indicate that a majority of the nation's nonentitlement service areas are largely rural in nature. On the other hand, over 40% of the population in nonentitlement areas actually reside in the suburbs. Similarly, most CDBG nonentitlement funds go to rural and small-town communities, with over a third of funds supporting projects in high-poverty communities. However, the degree to which these awards are large enough to make an important and sustainable impact within a rural community is difficult to assess.