The state’s CDBG program is funded through an annual formula allocation from the US Department of Housing and Urban Development (HUD). The program allows the state to fund a variety of different projects in small cities and rural areas. All projects must meet one of HUD’s national objectives, with the primary objective to benefit people of low-moderate income (LMI.) Eligible applicants include all incorporated municipalities and counties. (Rapid City, Sioux Falls, and Tribal governments are the exception because these entities receive direct funding from HUD.) Eligible applicants may apply for funding on behalf of townships, unincorporated communities, and certain non-profit associations.
South Dakota separates their annual allocation into three separate accounts:
Eligible projects must be consistent with at least one of the State’s program objectives: