This guide was written for small and rural government officials who have limited experience with the Community Development Block Grant (CDBG) program and with federal grants in general. The use of outside expertise is often necessary in projects involving public facilities, housing, and economic development, some of the principal activities which may be eligible for CDBG funding. The guidebook is designed to help local officials submit better block grant applications, by hiring outside help in the areas of project eligibility and design, needs assessment, and community planning. The guide tells when to use consultants and describes the steps a community should take in selecting and hiring a consultant. It also emphasizes that the use of outside experts need not add unnecessary costs to a project. The guidebook tells how the leaders of Peters Township in rural Pennsylvania completed a wastewater treatment system for less than $400,000, despite a $1 million initial estimate for construction. Township leaders used block grant funds, township employees, volunteers, and a cooperative engineering firm to get the most out of every community dollar invested. The guide also summarizes certain competitive bidding procedures that may apply when federal dollars are involved. (TES)