The Official Website of the Executive Office of Housing and Economic Development (EOHED)

Housing and Economic Development

Community Development Action Grant (CDAG)

FY 2010 and FY 2011 Program Information

Notice of Funding Availability ( NOFA ) Word
Program and Application Word
Notice of Interest to Apply ( NIA ) Word

Program Description

The Community Development Action Grant Program (CDAG) provides funding to communities for projects that build local economies, eliminate blight, create jobs and produce workforce and affordable housing that would not occur by private enterprise alone. 

Eligible Applicants

Any city or town in the Commonwealth is eligible to apply to DHCD for CDAG funds.  The amount of CDAG funding requested by the community must be the minimum amount necessary to make the project feasible, and any benefit to private entities or individuals must be indirect and incidental and not the purpose of the project.

Eligible Activities

CDAG can be used in a variety of ways, including: infrastructure improvements such as water and sewer system upgrades, sidewalk, roadway and streetscape improvements to support new mixed-use housing and commercial development; site preparation and improvements to publicly-owned buildings that may include demolition, new construction and/or rehabilitation of existing structures; and many other eligible activities.  CDAG-funded projects must be publicly owned or managed for a period of not less than 30 years.  Parking facilities are not eligible projects for funding under the CDAG Program.

Funding and Priorities

A community may submit one individual application and/or one joint application for the combined CDAG FY 2010 and FY 2011 funding round.  Individual CDAG awards shall be limited to a maximum of $1 million per project.  Funding for the CDAG FY 2010 and FY 2011 Program is limited and DHCD reserves the right to delay disbursements of an awarded grant to a community based on spending allocations and bond cap restrictions.  For FY 2010 and FY 2011, funding priority in the following order will be given to projects located within a designated district of a:

  1. Gateway Plus Community
  2. Growth District Initiative Community
  3. Chapter 40R Smart Growth District

Selection Criteria

Applications are evaluated to determine the degree to which the proposed project meets CDAG requirements and priorities, including:

  • Project Need and Community Development Impacts - Applicants must demonstrate that the project addresses a specific community need and will result in a significant impact on the overall physical and economic condition of the city or town, demonstrated by a combination of characteristics, including: (1) improvement of blighted conditions; (2) support of workforce and/or affordable housing; (3) job creation and/or retention; and (4) new private investment.
  • Feasibility and Readiness to Proceed – Applicants must establish that the project is feasible and ready to proceed within 120 days of award.
  • Sustainable Development Consistency – Applicants must demonstrate that the project is consistent with sustainable development principles adopted by the Commonwealth.

How To Apply

Application for CDAG FY 2010 and FY 2011 funding is conducted on a rolling basis.   If a community is interested in applying, they must first submit a Notice of Interest to Apply (NIA), meet with staff to discuss the project and receive a written invitation from DHCD to apply.  Once a community receives an invitation, they will have sixty (60) days in which to complete and submit a full CDAG application.

FY 2010 and FY 2011 Program Information

Notice of Funding Availability ( NOFA ) Word
Program and Application Word
Notice of Interest to Apply ( NIA ) Word

Additional Reference Material

CDAG Statute - Chapter 121B: Section 57A 
Sustainable Development Principles 
Guidelines for Project Consistency with Sustainable Development Principles Word
Massachusetts Fair Housing Mission Statement and Principles Word
Chapter 30B Procurement Manual
State Office of Minority and Women Business Assistance (SOMWBA) Guidelines
Massachusetts Historic Commission – Project Review and Guidance
Massachusetts Environmental Policy Act (MEPA) – Regulations and Filing Instructions 

Gateway Plus Communities
Chapter 40R Smart Growth Districts
Growth District Initiative Communities

Commonwealth Capital Program 
Community Development Planning and Resources
Economic and Business Development Resources 
Chapter 40B Affordable Housing Planning Resources
Smart Growth and Smart Energy Resources
Low Impact Development
Massachusetts Business Improvement District Guide