Each year the City of New Rochelle prepares an annual budget, based on the Prior Year Allocation, for its Community Development Block Grant (CDBG) Program. The budget is typically adopted by City Council in December. Ordinarily, between February and April, the City receives notification from HUD of the actual formula based allocation amount. Upon receipt, the City will amend the adopted budget and submit to City Council for approval.
Under HUD Guidelines, the City is allowed to allocate 15% of the CDBG Grant to Public Services and 20% to Administration & Planning. The remaining 65% is used to fund Economic Development and Construction/Improvements of Public Facilities/Infrastructure.