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Community Development Block Grant (CDBG)

CDBG logo

MSHDA's Neighborhood Development Division (NDD) allocates Community Development Block Grant (CDBG) funds through the MI Neighborhood Program. This grant funding is provided to non-entitlement units of general local government—including cities, towns, townships, villages, and counties that do not receive direct CDBG allocations from HUD (see CDBG Municipalities Map to determine eligibility)

Letter of Intent Process to Reserve MI Neighborhood CDBG Funds – 3rd Round

The Michigan State Housing Development Authority (MSHDA) is pleased to announce a second round of its new streamlined process to reserve Community Development Block Grant (CDBG) funds. The CDBG Program, funded through MI Neighborhood, is expanding eligible activities and increasing the maximum funding amount a unit of local government can request up to $1.5 million. Letters of Intent (LOI), the first step of the process to reserve funding, are now being accepted.

MSHDA is currently accepting LOI for funding from eligible Units of General Local Government (UGLG) for proposals that meet the housing objectives of the CDBG Program. These letters will be used to establish eligible projects. Letters will be reviewed on a first come first served basis until December 04, 2025, or available funds are fully designated for projects, whichever comes first. After submission, you may be contacted for a consultation prior to reservation of funds.

If approved, grantees will receive a designation memo reserving funds contingent upon completion of a formal application outlining CDBG compliance steps.  Applications are provided upon LOI approval.

Need help completing your Letter of Intent? Please refer to our LOI Submission Guidance for step-by-step instructions on how to complete and submit your LOI. A CDBG Letter of Intent FAQ and Activity specific quick finders are available below in the resource section.

To be considered for funding, please submit an Online Letter of Intent Form, or print and mail a completed Mail- in Letter of Intent Form (via overnight mail only) to the attention of MSHDA NDD, 735 E. Michigan Ave, Lansing, Michigan 48912. All submissions need to be date stamped/submitted prior to 11:59 p.m. December 04, 2025.

APPLY NOW 

Multiple activities may be selected, but only one Letter of Intent may be submitted per jurisdiction. MSHDA has the right to select entities for further consideration of funding at their discretion based on the proposals submitted and regional distribution. All submissions are considered public information and are subject to discovery under the Freedom of Information Act (FOIA). 

MI Neighborhood 3.0 - CDBG Regional Allocation

Submit any questions to MSHDA-CDBG@michigan.gov 

Timeline

11/03/25 Letters of Intent (LOI) become available.
11/13/25 LOI Question and Answer Session.

11/19/25

CDBG Essential Training - in-person/online options available, more information soon.
11/20/25 LOI FAQ updated on website.
12/04/25 Deadline for submission of LOI. Submissions must be received by 11:59:59 PM EST.

Through
12/30/25

Consultations are conducted with local government participants.
01/15/26 Designation Memos are issued to selected participants, contingent upon completing a formal application and meeting CDBG compliance step, including public participation.
4 months
from issue date
Designation expiration date. This is the final day for application submission from participants with a funding reservation.

* Applications will be reviewed as submitted, so the dates listed above are subject to change. Grant Agreements will be awarded on a rolling basis. 

Training Resources 

MSHDA CDBG Grantee Training 05-13-25

Other Resources

CDBG Policy Manual webpage
Round One CDBG Letter of Intent FAQ
Round Two CDBG Letter of Intent FAQ
Homeowner Rehab Quick Finder
Reconstruction Quick Finder 
Unoccupied Rental Rehabilitation Quick Finder
Infrastructure (Housing) Quick Finder
Manufactured Housing Quick Finder
CDBG Municipalities Map 
MI Neighborhood CDBG Funding Availability (PDF)

Previous Funding Rounds (Not LOI Related)

CHILL Round 1    Closed.  Applicants selected to move forward should access this webpage.
CHILL Round 2    Closed.  Applicants selected to move forward should access this webpage.