You asked why the Department of Economic and Community Development (DECD) requires 10% non-government matching funds for certain Small Cities Community Development Block Grants (CDBG).

DECD administers the U. S. Department of Housing and Urban Development Small Cities CDBG program, which provides states with annual direct grants that they in turn award to smaller communities and rural areas to revitalize neighborhoods, expand affordable housing and economic opportunities, and improve public facilities and services.

DECD requires a 10% match for public facility projects, concluding that these projects, which would otherwise be entirely state- and federally-funded, should include a local financial commitment to provide an incentive to towns to move along the projects in a timely fashion. (Each state establishes its own application requirements for communities seeking Small Cities CDBG funds. ) With limited federal funds available to 147 qualifying municipalities and with federal expenditure requirements, the department determined the match to be an appropriate policy. However, housing projects and planning-only grants are not subject to the 10% local contribution and there is a matching grant waiver provision for extraordinary circumstances, according to DECD.

We have attached a copy of OLR 2004-R-0187, which contains information about the program and DECD’s criteria for evaluating and rating small cities applications. Further information about the Small Cities Program is available on the DECD’s Website, http: //www. ct. gov/ecd/cwp/view. asp?a=1098&q=249736.

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