Eligible Applicants
Under federal law, eligible applicants are limited to general-purpose local government, i.e. counties, incorporated cities and towns, and consolidated city-county governments. Among municipalities, only Billings, Great Falls, and Missoula are ineligible to apply to the State CDBG Program because they receive CDBG funds from a separate HUD allocation for communities with populations over 50,000. Montana's Indian tribes also receive CDBG funds from a separate HUD CDBG Program and are not eligible to apply to the State program. However, counties can apply for projects to assist unincorporated communities; in particular, water and sewer districts.
Special purpose agencies or organizations such as local economic development corporations, housing authorities, community housing development organizations (CHDO's) or water or sewer districts, are not eligible to apply directly. Likewise, private, nonprofit organizations such as human resource development councils, councils on aging, or hospital associations are not eligible to apply directly. In these cases, a county or municipality must apply for CDBG funds on their behalf. If the application is funded, an interlocal agreement must be executed between the local government and the special purpose agency or organization clarifying project responsibilities. Water or sewer users associations, because they are private non-governmental entities, and rural special improvement districts, must first be established as county water or sewer districts (pursuant to Title 7, Chapter 13, Parts 22 and 23, MCA) before making an application for CDBG funds through a county government.
Public housing authorities and nonprofit organizations, such as CHDO's, may manage CDBG projects and own and manage CDBG-assisted property. Nonprofit organizations must have an Internal Revenue Service 501(c)(3) or 501(c)(4) nonprofit designation to be an eligible sub-recipient of CDBG funds.
