Federal Community Development Block Grant (CDBG) Program

The City of Wauwatosa provides WEDC with Federal Community Development Block Grant (CDBG) funding to be used for grants and loans to facilitate blight elimination or the generation of new employment within the community. CDBG funds can be used by both property owners and business owners leasing space for building improvements. Although CDBG is a great program for many businesses, there are several important requirements of the CDBG program that should be considered before determining if CDBG is appropriate for your project.

• All contractors employed on a CDBG funded project must be paid Federal Davis-Bacon Wages. These wages are often higher than what would normally be paid to contractors. Any CDBG grant should be considered a gross amount that will be partially reduced by increased labor expenses. Please contact WEDC for a current list of Davis-Bacon wage rates.
• At least 51% of new employment positions generated within the building or tenant space must be taken by or made available to Low-to-Moderate Individuals (LMI). An LMI individual is defined as a person with a household income that falls at or below a predetermined threshold. Please contact WEDC for a list of current LMI income requirements.
• Grants are usually provided on a reimbursement basis after the work has been completed and jobs generated. Use of these funds can be coordinated with the (Wauwatosa Revolving Loan Fund) to cover a potential financing gap.
• A significant amount of reporting and paperwork is required for this program. Contact WEDC staff to learn more.

Application Process

• Step 1: Meet with WEDC staff to discuss appropriateness of CDBG funding.
• Step 2: Submit a project proposal to WEDC, including a detailed business plan and renovation plans.
• Step 3: Meet with WEDC’s CDBG Task Force to discuss the proposal.
• Step 4: Once satisfied with the information presented, the CDBG Task Force will forward an application to the full Board of Directors for approval.
• Step 5: Assuming the full WEDC Board approves the project, the Applicant will enter into an Agreement between the Applicant, WEDC, and the City of Wauwatosa.
• Step 6: Work is completed, documentation is provided, and a check is issued to the Applicant.