Community Development Block Grant
Federal funding through U.S. Department of Housing and Urban Development helps entitled metropolitan cities and urban counties meet their housing and community development needs.
The program provides annual grants on a formula basis to carry out a wide range of community development activities directed toward neighborhood revitalization, economic development, and improved community facilities and services.
Entitlement communities develop their own programs and funding priorities and consult with local residents before making final decisions.
All CDBG activities must meet one of the following national objectives:
- Benefits low and moderate income persons
- Aids in the prevention or elimination of slums and blight
- Meets certain community development needs having a particular urgency
Activities that can be carried out with community development funds include:
- Acquisition of real property
- Rehabilitation of residential and nonresidential properties
- Provision of public facilities and improvements, such as water and sewer, streets, and neighborhood centers
- Homeownership assistance
- Assistance to for-profit businesses for economic development activities
No less than 70% of the funds expended over a period specified by the grantee, not to exceed three years, must be used for activities that benefit low and moderate income persons.