659597 - CDBG Public Services
Funding Opportunity Details

CDBG

Final Application Deadline: May 22, 2026 11:59 PM

Description

• Approximately $1,210,432 in federal Community Development Block Grant (CDBG) funds are available to cities and counties through the state of Iowa’s Public Services Program. All incorporated cities and all counties in the State, except those designated as HUD entitlement areas, are eligible to apply for and receive funds under this program. The Applicant will establish a subrecipient agreement with the participating nonprofit entity (“Subrecipient Partner”) for implementation of the program. Additionally, all Applicants & Subrecipient Partners must work with a Grant Administrator that complies with IEDA’s Certified Grant Administrator Policy (typically council of government or IEDA-approved consultant) to submit the application and conduct grant administration / project delivery.

   

  The purpose of the Public Service Program is to support essential service providers, Homelessness Service Providers and Food Pantries, that address the most urgent and persistent needs of low- and moderate-income households in Iowa. By focusing resources on these high impact service areas, the program aims to support local safety nets, access to nutritious food, and individuals and families experiencing housing instability to improve community resilience. These investments complement broader CDBG goals by ensuring vulnerable Iowans receive the immediate services necessary to achieve long-term housing, health, and economic stability. 

   

  Communities may apply for $100,000 maximum. Applicants must demonstrate at the time of application that they have a minimum $5,000 match funding in cash or in-kind services. Shelter Assistance Funds (SAF) are not eligible for use as matching funds.

   

  Activities funded under the Public Services Program must meet either HUD’s Low- and Moderate-Income (LMI) national objective or the Low- and Moderate-Income Limited Clientele (LMC) national objective. This means the activity must either serves individuals or households whose incomes are verified as LMI or provide services to a clearly identifiable group that is presumed to be primarily LMI under HUD regulations. For purposes of the CDBG program, “low and moderate income” is defined at persons with incomes at or below 80% of the area median income as defined by the U.S. Department of Housing and Urban Development (HUD). Current income levels can be found on the IEDA website: https://www.iowaeda.com/cdbg/program-guidance/

  
  Applications for funding are competitive and will open on 3/18/26 and close on 5/22/26. Awards are typically announced within 60 days of the close of application rounds.

   

  2 CFR 200 Audit Requirements

  CDBG contracts may be subject to audit. Federal Code (2 CFR 200) requires that recipients that expend $750,000 or more in federal funds within a fiscal year must have a single or program specific audit. When budgeting for CDBG funds, applicants should be aware of these audit requirements:

   

  • For recipients of $750,000 or more in federal funds received from more than one source of federal funding, an organization-wide audit must be conducted in accordance with federal requirements outlined in 2 CFR 200.514
  • For recipients of $750,000 or more in federal funds received from a single source, a project audit, targeting only transactions dealing specifically with the project, may be performed in lieu of an organization-wide audit.

  Communities should consult with their accountants regarding the applicability of an audit and audit requirements.

   

  Audit costs are a CDBG-eligible expense. Organization-wide audits can be paid with CDBG funds proportional to the amount of all other funds included in the audit. The total cost of a project audit can be paid with CDBG funds.

   

  For more information on the Public Services Program and applicable requirements, contact CDBG@IowaEDA.com or 515.348.6241.