SACRAMENTO — The California Department of Housing and Community Development (HCD) announced today that it has been recognized by the United States Department of Housing and Urban Development (HUD) for being the top state in quickly expending monies allocated from the Community Development Block Grant (CDBG) Program during the last reporting period.

The most recent CDBG expenditure reports for the period ending July 31, 2021 can be accessed here - State CDBG Timely Expenditure Reports - HUD Exchange.

“We are pleased with the recent news that California has worked its way into the top position in terms of utilizing federal dollars efficiently and effectively to assist communities in need,” HCD Director Gustavo Velasquez said. “Our team takes the responsibility of managing federal funds very seriously, and we’ve made recent organizational improvements to ensure the state continues to deliver results that serve all Californians.”

In February, HCD split its Division of Financial Assistance into distinct divisions devoted to deploying and monitoring funding across state and federal allocations. The newly established Division of Federal Financial Assistance now has its own Deputy Director assigned to oversee and manage all operations related to federal programs. HCD’s rate of expenditure has steadily increased since those organizational changes were enacted.

The CDBG Program provides annual grants on a formula basis to develop viable communities by providing decent housing and a suitable living environment, as well as by expanding economic opportunities, principally for low- and moderate-income persons.

The CDBG program is very flexible and responsive to the needs of communities across the Country and the State. Funds may be used for activities such as the acquisition of real property; rehabilitation of residential and non-residential structures; construction of public facilities and improvements, such as water and sewer facilities, streets, neighborhood centers, and the conversion of buildings for eligible purposes; as well as the provision of critical public services in support of vulnerable populations such as the homeless, seniors, and disabled; all while seeking to support activities relating to energy conservation and the implementation and installation of renewable energy resources.

HCD’s efforts to distribute Community Development Block Grant funds to communities in need is just one piece of the state’s larger effort, coordinated by the Business, Consumer Services and Housing Agency, to expand affordable housing options and address homelessness. HCD’s recognition of its expanding ability to expedite the deployment of these funds as well as other resources from HUD and the United States Treasury is an important achievement as California continues to address the impacts of the pandemic in our communities.