Colonia Fund - Construction (CFC)

The Texas Community Development Block Grant (TxCDBG) Program is administered by the Texas Department of Agriculture (TDA) and funded by the U.S. Department of Housing and Urban Development (HUD). Established under Title I of the Housing and Community Development Act of 1974 and governed by 24 CFR 570, Subpart I, the program is designed to empower states to distribute federal funds to eligible communities. Through the Omnibus Budget Reconciliation Act of 1981, states assumed responsibility for the administration of CDBG programs previously managed at the federal level. The primary objective of TxCDBG is to foster viable communities by ensuring access to decent housing, a suitable living environment, and expanded economic opportunities, primarily for low- to moderate-income individuals. Eligible applicants include Texas non-entitlement cities with populations under 50,000 and counties with non-metropolitan populations under 200,000 that are not eligible for direct HUD funding. These funds support projects that meet at least one of three national objectives: benefit to low- and moderate-income persons, prevention or elimination of slum or blight, or urgent needs arising from immediate threats to health or safety. TxCDBG funds are distributed through multiple competitive funding categories: the Community Development Fund, Downtown Revitalization Program, Colonia Funds, and the State Urgent Need (SUN) Fund. Each program has distinct goals and application timelines. For example, the Community Development Fund focuses on public facilities such as water and wastewater infrastructure and has a deadline of December 9, 2024, with a maximum award of $750,000. The Downtown Revitalization Program supports historic main street areas and has a deadline in March 2025, with a maximum award of $1,000,000. Colonia Funds target areas within 150 miles of the Texas-Mexico border and also offer up to $1,000,000. The SUN Fund is open on an as-needed basis for state-declared disaster areas, with awards up to $500,000 or $1,000,000 for multi-jurisdiction efforts. Applications are scored using program-specific criteria and reviewed during each funding cycle. Applicants must ensure their projects align with national objectives and state priorities as described in the annual Action Plan submitted by Texas to HUD. Following an award, grantees must administer their projects per the CDBG Project Implementation Manual, which guides contract execution and project delivery. The program’s administration ensures compliance with federal and state regulations, including income eligibility criteria, which require that at least 51 percent of beneficiaries in funded projects qualify as low- to moderate-income. These criteria are defined under HUD guidelines and verified using local and statewide income data. The Texas Department of Agriculture provides application support and resources, including access to application manuals and prior award data. For assistance, the program provides specific email contacts for support: CDBGApps@TexasAgriculture.gov for application questions and CDBGReporting@TexasAgriculture.gov for reporting-related inquiries. The main contact number is (800) 835-5832. Additional information and support tools, including the project implementation manual and fund-specific application windows, are available via the Texas Department of Agriculture’s website.

Ensure project clearly meets one of the three national objectives; use the CDBG Project Implementation Manual; reference the latest income eligibility documentation for beneficiary qualification.