Community Development Block Grant (CDBG) Guidebook


This guidebook has been developed by the State of Colorado to assist local governments and subgrantees in the implementation and administration of local public facility, housing, and economic development projects undertaken through funding from the State administered Community Development Block Grant (CDBG) program.

Forms are updated periodically, so please bookmark this site for future reference to ensure you have the most current forms available.

The guidebook below is intended to serve as a resource and is divided into sections.

Each of the sections contain a narrative section (what we are asking you to do as a grantee) and an exhibit section (a complete set of forms, etc., to either be filled out or duplicated for use.) It is our intent to provide an example of how to comply with everything we have asked you as the grantee to do. Except for Section VIII, Labor and Construction, which has been prepared for construction projects, all remaining portions of the guidebook have identical requirements. Any items that required clarification for a specific type of project, e.g. explaining an economic development policy for program income, are contained in the appropriated sections of the manual surrounded by double lines.

Reporting and record keeping requirements necessary for compliance early on in the process are included in each individual section where appropriate and will provide the grantee with the proper starting point. State CDBG Monitoring guidelines have now been consolidated into Section X. These guidelines identify the critical performance and compliance issues in each programmatic area.

This section of the Guidebook outlines the eight procedural steps which typically precede actual initiation of CDBG project activities.

This section contains information on financial management requirements for CDBG grantees. It addresses:

I. Administrative Requirements (State modified version of HUD Regulation 24 CFR Part 85)
II. Cost Principles (Revised OMB Circular A-87, effective June, 2004)
III. Checklist -- Financial Management of Grants
IV. Audits

The CDBG grantee is responsible for submitting quarterly financial and program performance reports.
This Section contains the appropriate forms and any necessary instructions.

All reports are required during the contract period regardless of whether funds were expended or project activities were undertaken during the calendar quarter.

Public Facility and Economic Development, Projects

  • Exhibit III-A: Instructions for Quarterly Financial and Performance Stats Report
  • Exhibit III-B: Quarterly Financial and Performance Report

Economic Development Projects

  • Exhibit III - B: (Instructions): Instructions for Quarterly Performance Employment Report (here you can link the New Exhibit III B instructions doc)
  • Exhibit III - B: Quarterly Performance Employment Report Form (here you can link the Exhibit III-B excel)
  • Exhibit III - F: (Instructions): Instructions for Quarterly Financial Report (here you can link the New Exhibit III F instructions doc)
  • Exhibit III - F: Quarterly Financial Report Form (here you can link the Exhibit III - F excel) 

Housing Development Projects

In accordance with 24 CFR Part 58.22, "Choice Limiting Action," before any federal funds can be committed, obligated, expended, or drawn down from the State, the grantee must complete an environmental review for their project and have received a Release of Funds (ROF) letter, indicating the environmental review requirements have been met.

Please note, in some instances there are two separate forms available below, one for local government grantees and one for non-local government grantees. Forms are updated periodically, so please bookmark this page for future reference to ensure you have the most current forms available.

24 CFR Part 58: Environmental Review Procedures

HUD eGuide: Overview of the Part 58 Environmental Process

HUD Exchange: Easy to follow HUD guidance for the Part 58 Related Federal Laws and Authorities.

How long will this process take?: Use the “Corn Chart” to determine the level of review and how long this process takes.

24 CFR Part 58: Environmental Review Procedures

Partner Worksheets: These Worksheets assist Grantees and Environmental Consultants with ensuring a project's compliance as you complete your environmental review. These are supplemental documents to your review, and should be referenced as supporting documentation. These documents are not required, but are extremely useful.

DOLA/State Historic Office Programmatic Agreement: List of Stipulations, which do not require historic consultation.

Environmental Review Record (ERR) Exhibits

Review your award letter to determine the level of Environmental Review required for your project.

Exempt (IV-A)

Exempt Activities Pursuant to 24 CFR Part 58.34(a)


Categorical Excluded Activities Not Subject to 24 CFR Part 58.5 Pursuant to 24 CFR Part 58.35(b)


Categorically Excluded Activities Subject to 24 CFR Part 58.5 Pursuant to 24 CFR 58.35(a)

Instructions for Completing the RROF

Part 58 Environmental Assessment (IV-D)

Environmental Assessment Subject to 24 CFR Part 58.5 and 58.6

Instructions for completing the RROF

This section of the Guidebook details the civil rights responsibilities., It identifies the two basic types of requirements, the extent of the applicability of the nondiscrimination requirements, and the specific areas in which affirmative actions are required.

If CDBG funds are used to pay any part of the cost of acquisition, demolition, construction or rehabilitation activities for a project, the project IS subject to the requirements of the Uniform Relocation Act (URA) and Section 104(d) of the Housing and Community Development Act. If CDBG funds are used solely to pay the costs of general program administration or to pay for relocation assistance only, then URA and Section 104(d) are not triggered.

If after reading this section it is determined that the Uniform Act (URA) does apply, please contact your project monitor for more information.

All CDBG applicants were required to certify in their application that they are following a Residential Antidisplacement and Relocation Assistance Plan which agrees to:

  1. Replace all occupied and vacant occupiable low/moderate income dwelling units that are demolished or converted to another use in connection with a CDBG assisted activity. (See One-For-One Replacement Section in Chapter VI. ACQUISITION AND REPLACEMENT)
  2. Provide certain relocation assistance to any lower income person displaced as a direct result of the demolition or conversion of a low/moderate income dwelling unit in connection with a CDBG assisted activity.

While a formal relocation plan is not required for approval of a project to proceed, relocation planning is required.

Federal and State Laws govern the wages and working conditions for laborers and mechanics employed under construction contracts funded with State CDBG funds. The application of all Federal and State labor laws is prevalent throughout the entire construction process and not specific to just one component. This section on Labor and Construction is divided into four subsections:

  • applicable state and federal acts,
  • grantee responsibilities prior to the awarding of a construction contract,
  • grantee responsibilities during the construction phase of the contract, and
  • closeout.

All contracts for construction, alteration, rehabilitation, or repair funded in whole or in part with State CDBG funds, including grant funds passed through to private firms, are subject to federal labor standards. All monies involved in a project, whether State, federal or private funds, are subject to the following labor standards if State CDBG funds are used for some part of a construction project.

It is extremely important for all grantees involved in construction projects to understand the application of these requirements to their projects and assign one person the responsibility for ensuring compliance with them. The grantee must develop compliance procedures so that it will not violate the law.

Grantee Responsibilities prior to Awarding a Construction Contract

Exhibit VIII-A: Sample-Contract for Professional Services Exhibit VIII-B: Water Works Plans and Specification Review Process

Exhibit VIII-C: Davis-Bacon Exception Checklist

Exhibit VIII-D: Request for Wage Determination Exhibit VIII-E: Request for Additional Classification &, Rate with Instructions Exhibit VIII-F: Architect's Certification +++ Handicapped Accessibility, Exhibit VIII-G: Easements Exhibit VIII-H: Invitation for Bids Exhibit VIII-I: Instructions to Bidders

Exhibit VIII-J: Contract Documents

  • Exhibit VIII-J, pages 1-2: Contract
  • Exhibit VIII-J, pages 3-21: General Conditions
  • Exhibit VIII-J, pages 22-24: Supplemental Conditions
  • Exhibit VIII-J, pages 25-26: Terms and Conditions
  • Exhibit VIII-J, pages 27-30: Labor Standards Provisions

Exhibit VIII-K: Bid for Lump Sum Contracts Exhibit VIII-L: Bid for Unit Price Contracts Exhibit VIII-M: Bid Bond Form Exhibit VIII-N: Performance &, Payment Bonding Requirements Exhibit VIII-O: Contractor/Subcontractor Certifications

Exhibit VIII-P: Contractor Eligibility Verification

Grantee Responsibilities during the Construction Phase

Exhibit VIII-Q: Notice of Award & Pre-construction Conference Exhibit VIII-R: Notice of Contract Award / Notice to Proceed Exhibit VIII-S: Payroll & Instructions, FORM WH-347

Exhibit VIII-T:,Project Wage Sheet, Exhibit VIII-U: Notice to Employees (EEO Poster)

Exhibit VIII-V: Employee Interview Form &, Instructions

Exhibit VIII-W: Pre-construction Checklist

Grantee Responsibilities Final Inspection and Closeout

OEDIT Grantees Only

This section provides the complete Monitoring Checklist. All grantees will be monitored at the conclusion of their project and are encouraged to review the checklist to ensure all documentation is in order prior to a monitoring visit.


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