Community Development Block Grant
Congress created the Community Development Block Grant (CDBG) program with the enactment of the Housing and Community Development Act of 1974, as amended. The Department of Housing and Urban Development (HUD), through the CDBG Program, annually allocates these funds in a single or “block” grant to eligible cities, counties, and states with the objective of improving communities. The funds are then distributed to municipalities, organizations and groups through a competitive proposal process (CDBG Process Flowchart).
Congress developed the CDBG program to benefit low-income and moderate-income persons. In order to be eligible for these funds, a project must meet one of the three National Objectives. The principle National Objective states that the project must primarily benefit persons of low- and moderate-income and be an eligible activity.