Texas Community Development Program
Community Development Fund
This fund distributes the majority of the TCDP's grants ($40-$60 million in recent years). Funds are awarded once every two years through 24 regional competitions for assistance to eligible cities and counties to address public facilities and housing needs. Eligible activities include infrastructure projects such as sewer and water system improvements, street, bridge, and drainage improvements, and housing rehabilitation. At least 60% of a project’s beneficiaries must be of low-and-moderate income. Grants typically range from $100,000 to more than $500,000, depending on the region; a $250,000 maximum is common in most of the regions.

Planning/Capacity Building Fund
Funding is available once every two years through a statewide competition to provide assistance to cities for planning activities that assess local needs and then develop strategies and build local capacity that address those needs. The community's residents must be at least 51 percent low and moderate income. Common planning activities include base map creation and studies of infrastructure systems, housing, land use, economic development, parkland, and capital improvements planning. Grants are based on population size and typically range from $15,000 to $50,000. Match is an effective requirement of the selection process.

Colonia Fund
The fund is available to counties to assist identifiable unincorporated communities that are located within 150 miles of the Texas-Mexico border ("colonias"), but outside the San Antonio Metropolitan Area. Sub-funds include the Construction Fund (primarily first-time water and sewer improvements) with grants up to $500,000; and the Planning Fund with grants ranging from $25,000 to $200,000.

Disaster Relief/Urgent Need Fund
This fund was established to assist cities and counties in dealing with unexpected, emergency situations that result in destruction of infrastructure and housing. Disaster Relief funds are available after either a Governor's or Presidential declaration of disaster in a certain area. These "last-resort" grant funds are used in conjunction with FEMA or other assistance when available and range from $50,000 to $350,000.

Housing Infrastructure Fund
Funds are available to provide grants on a direct award basis for the infrastructure development to support the construction of affordable single family and multifamily low to moderate income housing. The funds may not be used for the actual construction costs of new housing.

Housing Rehabilitation Fund
Grants to cities and counties are offered once every two years to provide deferred loan (essentially a grant to the homeowner) assistance for the rehabilitation of existing owner-occupied and renter-occupied housing units. Residents are typically elderly or disabled and must be low-to-moderate income. Applicants may apply for up to $250,000 in assistance in lieu of applying for a Community Development Fund application during the same two-year funding cycle.

TCDP Small Towns Environment Program (STEP) Fund
Funds are available for grants on a direct award basis to cities and counties to assist communities that have the need and willingness to solve water and sewer problems through Small Towns Environment Program (STEP) self-help techniques. STEP requires the community to lower the overall costs of the project by at least 40 percent compared with privately contracted work. Local volunteer organizers and labor is most often used.

Texas Capital Fund
The Texas Capital Fund encourages business development, retention, or expansion by providing infrastructure and real estate development funds to qualified applicants (non-entitlement cities/counties). Funds will be awarded for the express purpose of creating new permanent jobs or retaining existing permanent jobs, primarily for low-and-moderate income persons. The TCF program is administered by the Texas Department of Agriculture (TDA or Department) through an interagency agreement with the Office of Rural Community Affairs (ORCA). The Texas Capital Fund Infrastructure and Real Estate Programs provide a way for an eligible applicant to receive funds to make infrastructure and/or real estate improvements to support a specific business that is expanding or beginning operations in the applicant’s jurisdiction. The business must create or retain jobs for Texans. In order to comply with the national goal of expanding economic opportunities for persons of low and moderate income, a minimum of 51 percent or more of all the jobs created or retained by the business must benefit persons who qualify as low and moderate income persons

Community Development Supplemental Fund
Funds under the Community Development Supplemental Fund are allocated among the 24 state planning regions through a formula using the same methodology that HUD uses to allocate CDBG funds to the non-entitlement state programs. Activities eligible under the Community Development Supplemental Fund will be same as under the Community Development Fund.

Non-Border Colonia Fund
This fund is available on a biennial basis to eligible county applicants for projects in severely distressed unincorporated areas located farther than 150 miles from the Texas-Mexico border. Non-border colonia areas would be an identifiable unincorporated community that is determined to be colonia-like on the basis of objective criteria, including lack of potable water supply, lack of adequate sewage systems, and lack of decent, safe, and sanitary housing; and was in existence as a colonia before the date of the enactment of the Cranston-Gonzalez National Affordable Housing Act (November 28, 1990). Scoring of all the selection criteria for Non-Border Colonia Fund applications is completed by TCDP staff.


Microenterprise Fund
This fund is available on an annual basis for funding from available program income through an annual statewide competition. Applications received by the application deadline are eligible to receive grant awards from available program income. An eligible city or county submits the application and must contract with a non-profit organization (economic development corporation, community development corporation, etc.) for the purpose of establishing a local loan program that directly assists for-profit microenterprise businesses. Proceeds from the repayment of the loans will be retained by the non-profit organization. A microenterprise is a commercial enterprise that has five (5) or fewer employees, one (1) or more of whom owns the enterprise. The microenterprise receiving the loan assistance must commit to creating or retaining jobs that will not exceed a maximum cost of $25,000 per job. The jobs created or retained by the microenterprise must principally benefit low and moderate-income persons. The funds cannot be used by the microenterprise for debt service, refinancing, or payment of the business owner’s salaries.

Small Business Fund
This fund is available on an annual basis for funding from available program income through an annual statewide competition. Applications received by the application deadline are eligible to receive grant awards from available program income. An eligible city or county submits the application for the purpose of supporting for-profit small businesses through loans meeting a gap financing need. Retention of the proceeds from the repayment of the loans will meet the same requirements for program income that apply to Texas Capital Fund contracts. A small business is a for-profit business with less than one hundred (100) employees. The small business receiving the loan assistance must commit to creating or retaining jobs that will not exceed a maximum cost of $25,000 per job. The jobs created or retained by the small business must principally benefit low and moderate-income persons. The funds cannot be used by the small business for debt service, refinancing, or payment of the business principal’s salaries.

Section 108 Loan Guarantee Pilot Program
Section 108 is the loan guarantee provision of the Housing and Community Development Act Community Development Block Grant (CDBG) program. The loan is made by a private lender to an eligible non-entitlement city or county. The United States Department of Housing and Urban Development (HUD) guarantees the loan; however, TCDP must pledge the state’s current and future Community Development Block Grant nonentitlement area funds to cover any losses. In order to provide eligible non-entitlement communities an additional funding source, the State is authorizing loan guarantee pilot program consisting of one application up to a maximum of $500,000 for a particular project. An application guide containing the submission date and qualifications will be available for applicants interested in being selected as the pilot project under this program.

<< Back to Grant Programs | Back to Funds List >>
About Us | Grant Programs | Our Links | Forms Library | Private | Contact | Home Copyright ©2003, Gary Traylor and Seven Point