Clearance Program

The Clearance Program provides CDBG funding to Louisiana communities for the demolition and removal of blighted residential or commercial structures that threaten public safety, health or welfare. Through a competitive selection process, non-entitlement municipalities and parishes may access grants ranging from $150,000 to $750,000 to address dangerous properties on private land. This program helps communities eliminate slum and blight conditions, improve neighborhood safety, and create opportunities for future redevelopment where deteriorated structures pose risks to residents.

A yellow front-end loader parked on a gravel path at a construction site, with industrial processing equipment and hoses set up in the background near a grassy area under a blue sky.

Application Process

The Clearance Program provides funds to eligible applicants for clearance and demolition activities through a competitive selection process, subject to the availability of funds. Awards for FY 2026 were announced as of April 1, 2026. The information below applies to the FY 2026 Clearance Program. A hard copy of the FY 2026 application was due to the LOCD office by December 15, 2025.

Information regarding the FY 2027 application period will be available August 2026.

Eligible Applicants

Each eligible applicant may submit only one application. Eligible applicants include non-entitlement units of general local government, consisting of municipalities and parishes, as defined by 42 U.S.C. 5306(d) and 42 U.S.C. 5302(a)(7). The following entitlement areas are excluded: Alexandria, Baton Rouge, Bossier City, Hammond, Terrebonne Parish Consolidated Government, Jefferson Parish (including Grand Isle, Gretna, Harahan, Jean Lafitte and Westwego), Kenner, Lafayette Parish Consolidated Government, Lake Charles, Monroe, New Orleans, St. Tammany Parish (excluding Madisonville), Shreveport, Slidell and Thibodaux.

Eligible Activities

Proposed activities must be eligible under Section 105(a)(4) of the Housing and Community Development Act of 1974, as amended, and must address the national objective of eliminating or preventing slums and blight. LOCD accepts applications for clearance, demolition and removal of residential or commercial structures on private property that are found to be detrimental to or endangering public safety, health or welfare.

Ineligible Activities

Administrative and pre-agreement costs are not allowed under the Clearance Program.

Size of Grants

A minimum grant amount of $150,000, including administrative costs, is required. If an application’s costs are reduced below the $150,000 minimum during the rating process, the application will not be considered.
The state has established a funding ceiling of $500,000 for towns and villages and $750,000 for cities and parishes.

Funding Criteria

An application will not be considered for funding if the applicant has an active grant under the Clearance Program or a grant funded prior to FY 2024 under any other CDBG program.