The Community Development Block Grant (CDBG) is a federal grant that Sarasota receives from the U.S. Department of Housing and Urban Development (HUD). The CDBG program was created in 1974 by combining a number of existing grant programs such as Open Space, Model Cities and Urban Renewal. The result is a versatile, effective tool for governments to create healthy, viable communities.

Because Sarasota receives funding from the HOME and SHIP programs for affordable housing activities, the CDBG funds in Sarasota are focused on community development activities. Local projects include water and wastewater systems, street lighting, drainage improvements, streetscaping, neighborhood signage, Americans with Disabilities Act (ADA) enhancements, community centers, non-profit facilities, and a host of other activities.