Community Development Block Grant (CDBG) Investing in South Carolina communities
South Carolina’s Community Development Block Grant Program provides funding to eligible towns, cities and counties that do not receive CDBG funds directly from the US Department of Housing and Urban Development (HUD). Grants support projects that strengthen communities, improve infrastructure, expand economic opportunity and address critical local needs.
South Carolina's CDBG Program
Administered by SC Commerce’s Business Incentives and Community Development division, the State CDBG Program helps eligible local governments address community needs and create measurable improvements for residents.
Funding is awarded through competitive community development programs, regional planning initiatives and economic development activities. Projects must meet federal and state requirements, respond to an identified community need and align with South Carolina’s Consolidated Plan for Housing and Community Development.
Programs & application guidelines
Programs and funding categories are established at the beginning of each program year. Current program documents explain eligible project types, application requirements, funding categories and other conditions applicants must meet.
Review the following materials before requesting an application:
Eligibility
Who can apply?
Only units of general local government, including eligible towns, cities and counties, may apply for State CDBG funding.
Some jurisdictions receive annual CDBG allocations directly from HUD and are not eligible to apply through the State CDBG Program. Current entitlement jurisdictions include:
- Berkeley, Charleston, Greenville, Horry, Lexington, Richland and Spartanburg counties
- Municipalities of Aiken, Anderson, Charleston, Columbia, Florence, Greenville, Hilton Head Island, Rock Hill, Spartanburg, Summerville and Sumter
- Municipalities participating in an entitlement county’s urban county designation
All other South Carolina municipalities and counties may be eligible to apply. Consult the current CDBG Program Description to confirm eligibility.
What can CDBG support?
Eligible projects may include:
- Water, sewer, road and drainage improvements
- Public facilities and equipment
- Downtown and neighborhood revitalization
- Streetscape and sidewalk improvements
- Clearance and demolition activities
- Economic development infrastructure
- Job creation and retention initiatives
- Community and regional planning activities
Every proposed project must involve an activity permitted under federal law, meet the requirements of the applicable funding category and satisfy a CDBG national objective.
National objectives
Every project funded through the State CDBG Program must meet at least one of three national objectives.
Benefit low- and moderate-income persons
Projects may qualify by providing an area benefit, serving a limited clientele, supporting eligible housing activities or creating or retaining jobs for low- and moderate-income residents.
Elimination or prevention of slums and blight
Projects may qualify by addressing conditions that contribute to deterioration, blight or threats to the health and safety of a community.
Urgent need
Use of the urgent need objective is extremely rare and is reserved for activities that alleviate emergency conditions. To qualify:
- Existing conditions must pose a serious and immediate threat to the health or welfare of the community
- The conditions must be of recent origin or have recently become urgent, generally within the previous 18 months
- The applicant must be unable to finance the activity independently
- Other sources of funding must be unavailable
Program LMI benefit requirement
Federal regulations require the State CDBG Program to expend at least 70% of its funds on activities benefiting low- and moderate-income persons. South Carolina therefore prioritizes projects that qualify under this national objective.
Projects qualifying under the slums and blight or urgent need objectives do not contribute toward the program’s overall LMI benefit requirement and are funded more selectively.
Public notices & hearings
Public participation helps shape South Carolina’s community development priorities and plans for the use of federal funding.
2026-2030 Consolidated Plan
The 2026-2030 Consolidated Plan includes the 2026 Annual Action Plan and the 2026 CDBG Program Description. The plan was available for public review from January 18 through February 19, 2026.
A public hearing was held January 28, 2026, to discuss the Consolidated Plan and Annual Action Plan.
CDBG documents & resources
Access the manuals, forms, policy guidance, training materials and reference documents needed to apply for and administer CDBG funding.
Disaster recovery & mitigation
The regular State CDBG Program is administered by SC Commerce. Community Development Block Grant Disaster Recovery and Mitigation programs in South Carolina are administered by the South Carolina Office of Resilience.
Visit SCOR for information about disaster recovery programs, mitigation resources, eligibility requirements and available assistance.
Questions about CDBG?
The CDBG team can help eligible local governments understand program requirements, determine the appropriate starting point and navigate the application process.
