The Community Development Block Grant (CDBG) program is the primary source of funding used to provide decent housing and a suitable living environment, and by expanding economic opportunities, principally for low- and moderate-income persons. The CDBG program is authorized under Title 1 of the Housing and Community Development Act of 1974, Public Law 93-383, as amended 42 U.S.C. -530.1 et seq.
CDBG funds may be used for activities which include, but are not limited to:
- Acquisition of real property
- Relocation and demolition
- Rehabilitation of residential and non-residential structures
- Construction of public facilities and improvements, such as water and sewer facilities, streets, neighborhood centers, and the conversion of school buildings for eligible purposes
- Public services, within limits
- Activities relating to energy conservation and renewable energy resources
- Provision of assistance to nonprofit and profit-motivated businesses to carry out economic development and job creation/retention activities
Each activity must meet one of the following national objectives for the program: 1.) benefit low- and moderate-income persons, 2.) prevention or elimination of slums or blight, or 3.) address community development needs having a particular urgency because existing conditions pose a serious and immediate threat to the health or welfare of the community for which other funding is not available. A need is considered urgent if it poses a serious and immediate threat to the health or welfare of the community and has arisen in the past 18 months.
Generally, the following types of activities are ineligible:
- Acquisition, construction, or reconstruction of buildings for the general conduct of government;
- Political activities
- Certain income payments
- Construction of new housing (with some exceptions)
For more information regarding the CDBG program, visit the HUD Exchange - CDBG Program website.