Overview
Funding for all Community Development Block Grant programs is provided by the U.S. Department of Housing and Urban Development and administered by the Office of Community and Rural Affairs. The State of Indiana distributes CDBG funds to rural communities to support a range of projects, including infrastructure enhancement, downtown revitalization, improvements to public facilities, and economic development initiatives.
The state CDBG program offers competitive grants to units of local government to support rural areas. Within the CDBG program, there are five types of Construction Grants designed to enhance community resilience and livability:
- Blight Clearance
- Main Street Revitalization
- Public Facilities
- Stormwater Improvements
- Wastewater/Drinking Water
Two rounds of Construction Grants are offered each year, with specific funding guidelines detailed in each round’s application Instructions document. For more information on OCRA’s program calendar visit the OCRA Calendar.
Current Funding Round
2025 Round 2 proposals are due on Friday, Oct. 24, by 11:59 p.m. ET and must be submitted via eGMS. Communities are encouraged to submit their applications prior to 4 p.m. on Oct. 24, as technical assistance will not be available after that time.
2025 Round 2 applications are due on Friday, Dec. 19, by 11:59 p.m. ET and must be submitted via eGMS. Applicants are encouraged to submit their applications prior to 4 p.m. on Dec. 19, as technical assistance will not be available after that time.
Application Instructions
The instructions for the 2025 Round 2 Construction application are available for review here. For detailed information on the program changes in effect following the adoption of the 2025 Action Plan, please refer to the CDBG 2025 Round 2 webinar here and the PowerPoint slides here.
- Facilities Program
- Blight Clearance Program
- Stormwater Improvements
- Main Street Revitalization
- Wastewater/Drinking Water
Community facilities enhance the lives of residents in numerous ways. In addition to community facilities, historic preservation projects are eligible for the Facilities Program grant. The goals of the Facilities Program are to support rehabilitation and restoration of historic buildings and public facilities.
- The maximum grant award is $750,000 for all Public Facility Program Grants.
- A local match of 10% of the total project cost will be required for consideration of funding.
The maximum award is not intended to serve as a target figure for requests for grant assistance. OCRA will review the level of grant assistance requested and will consider the appropriateness of the project’s scope, the level of demonstrated need and the financial resources of the applicant. If OCRA determines that a lesser amount is appropriate, it may be necessary to revise the project before it is submitted in final form. The amount of CDBG funds granted will be based on a $5,000 cost per project beneficiary.
- Removal of architectural barriers for ADA accessibility
- Community centers
- Daycare centers
- Facilities for special needs groups
- Fire/EMS stations
- Healthcare centers
- Historic preservation
- Learning centers
- Libraries
- Senior centers
- Youth center
The Blight Clearance Program (BCP) offers grants assistance for the acquisition, demolition, clearance or remediation of blighted residential and non-residential structures.
- The maximum grant award is $500,000, this amount is not guaranteed, each application will be assessed based on the project scope to determine whether a reduced funding level is deemed appropriate.
- Grant funding through the Community Development Block Grant (CDBG) program is calculated at $5,000 per project beneficiary.
- To be eligible for consideration, applicants must provide a local match of 10% of the total project cost.
Properties acquired with CDBG funds must maintain their designated use for a period of five years following the grant closeout date. OCRA will monitor all BCP-funded projects throughout this compliance period. If a community plans to change the use of a funded property within the five-year window, it must adhere to the change in use process outlined in 24 CFR 570.489. A written request must be submitted to OCRA prior to any changes. The proposed new use must remain an eligible activity under CDBG regulations. If the property is repurposed for ineligible use, the community may be required to repay all or part of the grant funds.
Communities across the state suffer from flooded properties and sewer backups due to inadequate resources for stormwater management. Flooding is expensive to clean up, decreases property values, and poses environmental risks like degraded water quality. With increasingly sever weather and overloaded sewer systems, these costs will continue to rise. That’s where the Stormwater Improvements Program comes in. This grant funding can be used for system improvements that reduce flooding, cut stormwater treatment and energy costs, incorporate green infrastructure methods to mimic natural systems, and protect rivers and lakes.
- The maximum grant award is $750,000 for Stormwater Improvements Program Grants.
- A match of 10% of the total project cost will be required for consideration of funding.
The maximum award is not intended to serve as a target figure for requests for grant assistance. OCRA will review the level of grant assistance requested and will consider the appropriateness of the project’s scope, the level of demonstrated need and the financial resources of the applicant. If OCRA determines that a lesser amount is appropriate, it may be necessary to revise the project before it is submitted in final form. The amount of CDBG funds granted will be based on a $5,000 cost per project beneficiary.
General types of activities that are eligible for SIP funding include stormwater improvements such as water retention, line improvements, drainage rehabilitation, etc.
The Main Street Revitalization Program (MSRP) is designed to empower rural communities in their efforts to build vibrant, sustainable environments and enhance overall quality of life.
Eligible projects include:
- Traffic Control or Pedestrian Safety
- Functional Art
- ADA Improvements
- Sidewalk Rehabilitation or Addition
- Signage or Utility Relocation for Accessibility
- Pavers
- Water Management
- Energy Efficiency (LED Traffic Lights or Signals)
- Alley Activation
To be eligible, applicants must have a designated Indiana Main Street organization that meets one of the following qualifications:
- National Accreditation through the National Main Street Center (NAMS), or
- Indiana Accredited Main Street (IAMS) status with at least three years of active designation
- Be in good standing with the Indiana Mainstreet Program requirements
Grant awards are based on the proposed project cost, as outlined below.
- Projects over $2 million in total project cost may received a grant up to $600,000
- Projects under $2 million in total project cost may received a grant up to $500,000
A local match of 20% of the total project cost is required for funding consideration.
CDBG funds will be awarded at a rate of $5,000 per project beneficiary.
Many communities in Indiana struggle with inadequate water supply and failing wastewater treatment. OCRA is committed to improving the quality of water and wastewater in Indiana and assisting in financing appropriate water and sewer infrastructure for communities and counties that have planned and set priorities for long-term development.
The goals of the Wastewater and Drinking Water (WDW) Program are to protect health and the environment, reduce utility rates for low- to moderate-income communities, and improve rural infrastructure for long-term sustainability and growth. General eligible activities include wastewater improvements such as collection lines or treatment plans, or drink water system improvements such as water towers or distribution.
Grant amounts for communities with existing systems are based on the current rates at the time of application. Grant amounts for communities constructing new systems will be based on a verified rate study included in a Preliminary Engineering Report (PER). The amount of CDBG funds granted will be based on a $5,000-cost-per-project beneficiary.
A local match of 20% of the total project cost will be required for consideration of funding.
Maximum grant amounts are based upon user rate information, as follows:
| Rates for 4,000 gallons | |||
| Maximum Grant Amounts | User Rates (Over $50) | User Rates ($30 to $50) | User Rates (Under $30) |
| Projects over $1 million in total project cost | $750,000 | $700,000 | $650,000 |
| Projects under $1 million in total project cost | $700,000 | $650,000 | $600,000 |
General types of activities that are eligible for WDW funding:
- Wastewater Improvements (collection lines, treatment plant, etc.)
- Drinking Water System Improvements (water tower, treatment, distribution)
Indiana Office of Community & Rural Affairs