659606 - CDBG Streetscapes
Funding Opportunity Details

CDBG

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

Description

• Approximately $1,031,297 in federal Community Development Block Grant (CDBG) funds are available to cities and counties through the State of Iowa’s Streetscapes Program. Incorporated cities and all counties in the State are eligible for this program's funding only if they are not in a designated HUD entitlement areas and if they have successfully closed out a previous Commercial Facades project with IEDA.

   

  The Streetscapes Program exists to assist communities who have previously been awarded and completed CDBG Downtown Revitalization (DTR) projects in making improvements to their downtown “streetscape” infrastructure. After having completed a DTR grant, a community that wishes to take the next step in revitalizing their downtown area can apply for this program, so long as that community has documented blight in their current streetscape that they are intending to mitigate or the entire community is at least 51% low-to-moderate income (LMI).

   

  Working with a professional engineer, a city will submit designs for everything to be included in the project scope of work. Eligible activities include improvements to streets, curb cuts and/or bump-outs, streetlights, benches, sidewalks, street trees, street signs, and other permanently installed features commonly understood as “streetscaping.” No work may be done on private property. Note that parks/recreational uses, murals, blade signs on businesses, or seasonal/temporary installments are not eligible under this program. 

   

  Communities may apply for $250,000 maximum. A match amount is not required for this program if the CDBG funds requested are sufficient to complete the proposed project. However, additional points are awarded to applications that demonstrate greater leveraged funds in their budgets.

   

  Projects must occur in a community with 51% of household being low-to-moderate income or meeting the requirements necessary to satisfy HUD’s elimination of blight national objective. For purposes of CDBG programs, “low and moderate income” is defined as 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.

   

  Davis Bacon and Related Acts

  Projects that include construction may be subject to the requirements of the Davis-Bacon Act and related laws and regulations. The Davis-Bacon Act applies to all contracts for construction, alteration and/or repairs in excess of $2,000 that involve CDBG funds. Cost estimates for the proposed project should reflect compliance with these requirements.

   

  Uniform Relocation Assistance and Real Property Acquisition Policies Act

  For projects that include acquisition and relocation, all recipients given the authority to acquire property are required to follow the guidelines in HUD Handbook 1378 – Tenant Assistance, Relocation and Real Property Acquisition. Cost estimates for the proposed project should reflect compliance with these requirements.

   

   

  Historic Preservation Review Requirements

  Federally funded activities are subject to the review requirements of Section 106 of the National Historic Preservation Act. The goal of the review process is to identify historic properties, both above and below the ground potentially affected by the undertaking, assess the effects of the undertaking and seek ways to avoid, minimize or mitigate any adverse effects on historic properties.

   

  The review process involves review by IEDA and possible consultation with various agencies, groups and individuals, including the State Historical Preservation Office (SHPO), located in the Department of Cultural Affairs. Although consultation is not required prior to a CDBG award, if the project includes a property that may have historical significance, it is a good idea to contact IEDA early in the project development. For more information regarding Section 106 review and compliance, you may call IEDA at 515.348.6205.

   

  Environmental Review and project initiation

  No HUD Funds or non-HUD funds may be committed to the project until the applicant has secured environmental approval from the State, as provided in HUD regulation 24 CFR Part 58. In addition, pending environmental approval and pursuant to 24 CFR Part 58.22(a), no grant recipient or participant in the development process, including contractors or sub-contractors, may undertake an activity that may limit the choice of reasonable alternatives. Such choice limiting actions include real property acquisition, conducting a competitive sealed bid process for the project, leasing, rehabilitation, repair, demolition, conversion, and new construction.

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