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.
A general-purpose local government must apply on behalf of special purpose agencies or organizations such as:
- Local economic development corporations;
- Housing Authorities;
- Community Housing Development Organizations (CHDOs);
- Water or sewer districts; and
- Private and nonprofit organizations.