Small Cities Development Program Grant

Small Cities Development Program Grant

Status: ACTIVE
Funder: Minnesota Department of Employment and Economic Development (DEED)
Amount: US $600,000 - US $1,400,000
Last Updated: March 03, 2026

Summary

The Small Cities Development Program (SCDP) provides essential funding to cities, townships, and counties for housing, public infrastructure, and commercial rehabilitation projects. Aimed at benefiting low-and-moderate income households, SCDP enhances community viability by facilitating economic opportunities and improving living conditions. Administered by the Minnesota Department of Employment and Economic Development (DEED), this program offers competitive grants for diverse development needs, with funding caps of $600,000 for single-purpose projects and $1.4 million for comprehensive initiatives.

Overview

Small Cities Development Program Our Small Cities Development Program (SCDP) helps cities, townships, and counties with funding for housing, public infrastructure and commercial rehabilitation projects. Program Goal The goal of SCDP is to develop viable communities and provide a suitable living environment by expanding economic opportunities that principally benefit low-and-moderate income (LMI) households. The program accomplishes this goal by providing financial assistance to address the need for decent, safe, affordable housing, economic development, and adequate public facilities. Background The Community Development Block Grant (CDBG) Program is a federal program that provides funding for housing, community, and economic development. In 1974, Congress passed the Housing and Community Development Act, Title I, which authorized the development of the CDBG Program. The Program, administered by the U.S. Department of Housing and Urban Development (HUD), consists of two components: An entitlement program that provides funding directly to urban areas.CDBG Program that awards funds, through a competitive process, to eligible units of local government (UGLG) as sub-recipients. The Minnesota Department of Employment and Economic Development (DEED) is responsible for administrating the CDBG program, through the Small Cities Development Program (SCDP), for non-entitlement communities, per Minnesota Administrative Rules, Chapter 4300, Community Development Block Grants. Housing Grants Funds are granted to local units of government, which, in turn, lend funds for the purpose of rehabilitating local housing stock. Loans may be used for owner-occupied, rental, single-family or multiple-family housing rehabilitation. Loan agreements may allow for deferred payments or immediate monthly payments. Interest rates may vary, and loan repayments are retained by grantees for the purpose of making additional rehabilitation loans. In all cases, housing funds must benefit low- and moderate-income persons. Public Facility Grants Funds are granted for wastewater treatment projects, including collection systems and treatment plants; wells, water towers and distribution systems. Comprehensive Grants Comprehensive projects frequently include housing and public facility activities described above. In addition, comprehensive projects may include an economic development activity, which consists of loans from the grant recipient to businesses for building, rehabilitation related to facade improvements, code violations, and health and safety issues. The most common economic development activity is rehabilitation of local commercial districts. Maximum Available The maximum grant award for a Single Purpose project is $600,000. The maximum grant award for a Comprehensive project is $1.4 million. Funds for the program are provided by the U.S. Department of Housing and Urban Development (HUD) for the benefit of eligible non-entitlement local units of government (cities, counties, townships) through a competitive application process for a variety of community development needs. Single Purpose Application Single Purpose Application is used for housing projects, which include one or more housing activities designed to increase the supply or quality of dwellings suited for the occupancy of the individuals and families. Single purpose applications can also be used for public facilities projects. Public facilities projects include one or more activities designed to construct, reconstruct, or install buildings/infrastructure that serve a community or neighborhood area. Examples include water/wastewater treatment facilities, streetscapes, and public aesthetic amenities that are part of a larger renewal or beautification plan. Single purpose applications cannot exceed $600,000, including administrative expenses. Comprehensive Application The Comprehensive Application is used for projects that include a combination of at least two related activities, one of which must be a housing activity that will address community development needs. For multi-community applications, each communities proposed activities must meet the definition of a comprehensive project for multi-community applications to be eligible as a comprehensive project. These projects must benefit a defined geographical area. Total funding request cannot exceed $1.4 million and each activity within the application cannot exceed $600,000, including administrative expenses.

Eligibility

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