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Community Reinvestment
Summer 1996


Additional Resources

COMMUNITY DEVELOPMENT BLOCK GRANTS (CDBG)
U. S. Department of Housing and Urban Development (HUD)

Community Development Block Grants are allocated to state and local jurisdictions.

Eligibility

  • CDBG projects and activities must principally benefit low- and moderate-income persons, aid in the prevention or elimination of slums or blight, or meet other urgent community needs.
  • Entitlement communities, states, small cities, Indian tribes, and special purpose programs, including technical assistance, are eligible for block grants.
  • Spending is subject to federal regulations or state regulations under state-administered programs.
  • No less than 70 percent of the funds must be used for activities that benefit low- and moderate-income persons over a period specified by the grantee, not to exceed three years.

Program

  • Funds to entitlement areas are allocated using formulas that consider the extent of poverty and extent of housing overcrowding.
  • Entitlement cities develop their own programs and funding priorities.
  • Activities that can be carried out with block grants include provision of public facilities and improvements such as water and sewer, streets, and neighborhood centers, and assistance to profit-motivated businesses to help with economic development activities.

Contact

Local government housing or economic development agency or
U. S. Department of Housing and Urban Development (HUD)

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