Residents can propose housing and community improvement projects during a public hearing tonight at the Nevada City Council meeting.

The city is eligible to apply for grants under the California's Community Development Block Grant (CDBG) program, which funds a variety of projects focused on improving infrastructure and low- and moderate-income housing.

Last year, the city won a $300,000 CDB grant to establish a loan program for small businesses, according to Nevada City Manager Gene Albaugh. Businesses can apply for a loan to complete a range of improvement projects.

Around 2005, the city won a smaller grant to conduct a study of the city's economic state.

Other projects eligible for CDBG funding include buying property for public purposes, demolishing buildings, building community centers and renovating old buildings.

Since 1981, the CDBG program has allowed states to administer federal Housing and Urban Development funds for small cities and counties.

Tonight's public hearing is the first of two about the block grant, with the second scheduled for Jan. 13, 2010.

Other items on the Nevada City Council agenda include:

• Reviewing a draft of a city ordinance prohibiting smoking in public places, including parks.

• Reviewing a draft of a city ordinance to repeal the Business Improvement District. Through the BID, the city collected fees from downtown businesses for collective efforts such as tourism marketing and street cleaning. The BID and its administering organization, the Nevada City Downtown Association, were controversial for some business owners. The city has not collected funds through the BID this year.

The council meets at 7 p.m. today at City Hall, 317 Broad St., downtown Nevada City.