Eligible Activities

Not less than 70% of Community Development Block Grant (CDBG) funds must be used for activities that benefit low-and moderate-income persons. CDBG funds may be used for activities which include, but are not limited to:

  • Acquisition of real property
  • Activities relating to energy conservation and renewable energy resources
  • Construction of public facilities and improvements, such as water and sewer facilities, streets, neighborhood centers, and the conversion of school buildings for eligible purposes
  • Provisions of assistance to profit-motivated businesses to carry out economic development and job creation/retention activities
  • Public services, within certain limits
  • Rehabilitation of residential and non-residential structures
  • Relocation and demolition

National Objectives

Each activity must meet one of the following national objectives for the program:

  • Benefit low- and moderate-income persons.
  • Prevention or elimination of slums or blight.
  • 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.

Ineligible Activities

Generally, the following types of activities are ineligible:

  • Acquisition, construction, or reconstruction of buildings for the general conduct of government; certain income payments
  • Construction of new housing (with some exceptions)
  • Political activities