HUD’s $3.5B Community Development Block Grants: How Nonprofits Can Apply in 2025

Why Community Development and Health Go Hand in Hand

Housing stability, safe neighborhoods, and access to essential services are some of the most powerful social determinants of health. Without secure housing or community infrastructure, healthcare interventions alone cannot close equity gaps.

To address this, the U.S. Department of Housing and Urban Development (HUD) has allocated $3.5 billion in Community Development Block Grants (CDBGs) for 2025. These funds support local governments and nonprofits in tackling housing, infrastructure, and social services—areas that directly affect health outcomes.

Breaking Down the HUD Funding Program

Who Can Apply

CDBG funds are distributed to states, counties, and local governments, which then make funding available to:

• Nonprofits providing housing, food, or community health services.
• Healthcare organizations addressing homelessness and housing insecurity.
• Community-based organizations running neighborhood improvement programs.
• Partnerships between local governments, clinics, and nonprofits.

Priority Focus Areas

• Affordable housing development and rehabilitation.
• Homelessness prevention and shelter expansion.
• Infrastructure projects supporting safe and healthy communities.
• Services addressing food insecurity, job training, and senior support.

Grant Size & Duration

Funding varies based on population and community need. Large urban counties may receive tens of millions annually, while smaller cities and rural areas receive smaller—but impactful—allocations. Projects typically run on an annual funding cycle, with renewal opportunities.

Past Success Stories

CDBG funding has long been a backbone for community resilience. Examples include:

• Los Angeles County, CA (Tier 1 – County, 2023 Award) : Used CDBG funds to support housing rehabilitation programs and neighborhood health initiatives that served 15,000 residents.
• Detroit, MI (Tier 1 – City, 2022 Award) : Allocated $18M toward food access and shelter programs, reducing chronic homelessness by 11% over two years.
• Appalachian Service Project, Tennessee (Tier 3 Nonprofit, 2022 Award) : Secured $1.8M in CDBG funds to repair substandard rural housing, meeting requirements to demonstrate urgent community health risks tied to unsafe housing. They partnered with local clinics to show how housing improvements reduced asthma and injury risks.

These programs succeeded by aligning with HUD’s mission: addressing housing, infrastructure, and social services as the foundation for healthier communities.

How to Apply for HUD Community Development Block Grants

Step 1: Identify Your Local Jurisdiction

CDBG funds flow first to states, counties, or cities. Check HUD’s directory to find your local administrator: HUD CDBG Program.

Step 2: Review Local Priorities

Each jurisdiction sets priorities in its Annual Action Plan (housing, public services, infrastructure). Tailor your proposal to these.

Step 3: Build a Strong Proposal

Include a project description, community need data, budget, and measurable impact on health and well-being.

Step 4: Submit Through Local Systems

Applications are submitted to your state, county, or city administrator—deadlines vary.

Step 5: Prepare for Reporting

If funded, expect to submit compliance data showing project impact and alignment with HUD goals.

Timeline

For the 2025 funding cycle, the HUD CDBG process follows these milestones:

• HUD Issues Annual Allocations: February 2025
• State and Local Action Plans Finalized: April–May 2025
• Local Application Windows Open: May–July 2025 (varies by jurisdiction)
• Funding Awards Announced: August–September 2025
• Project Implementation Begins: October 2025 onward

How Your Nonprofit Can Win HUD Funding

Connect Housing to Health Outcomes

Demonstrate how stable housing and community infrastructure directly improve health equity.

Leverage Partnerships

Show collaboration with healthcare providers, shelters, and food programs for holistic impact.

Show Scalability

Funders want to see programs that can grow. Share how your project expands beyond one neighborhood or county.

Use Data and Stories

Combine housing/health data with community testimonials to build a persuasive case.

Prove Compliance Capacity

HUD requires rigorous tracking of spending and outcomes. Show that your systems are ready.

Example: Appalachian Service Project (Tier 3 Nonprofit)

In 2022, the Appalachian Service Project (Tennessee) secured a $1.8M CDBG award to repair unsafe rural housing across several counties.

How They Won:

• Requirements Met : Demonstrated urgent community health risks from substandard housing, aligning directly with HUD’s housing quality priorities.
• Partnerships : Partnered with county health departments and local clinics to connect housing repairs with measurable health benefits.
• Metrics Presented : Showed reductions in asthma flare-ups, household injuries, and hospitalizations linked to unsafe housing.
• Date of Award : Announced November 2022.

This case shows how a Tier 3 nonprofit can use housing-health connections, strong partnerships, and measurable outcomes to successfully win HUD funding.

Where GridSocial by SocialRoots.ai Fits In

Securing HUD funding is only part of the journey—managing referrals and proving outcomes is where projects succeed long-term. GridSocial by SocialRoots.ai helps organizations:

• Track referrals across housing, food, healthcare, and social services in one system.
• Provide closed-loop reporting to ensure no family or patient falls through the cracks.
• Collect compliance-ready data for HUD reporting requirements.
• Demonstrate ROI with dashboards that show how housing interventions reduce ER visits and improve health outcomes.

GridSocial empowers nonprofits and counties to turn HUD dollars into measurable community health impact.

Conclusion: The Time to Act Is Now

HUD’s $3.5B in CDBG funding for 2025 is a historic opportunity for nonprofits and local governments to address housing, infrastructure, and the social determinants of health.

By pairing a strong program vision with GridSocial’s referral management and impact-tracking tools, your organization can move from competing for funds to delivering results that transform communities.