The purpose of CDBG is to develop viable urban communities by providing decent housing and a suitable living environment, and by expanding economic opportunities, primarily for persons of low and moderate income.

CDBG provides funding to implement a wide variety of community and economic development activities directed toward neighborhood revitalization, economic development and the provision of improved community facilities and services.

CDBG activities are initiated and developed at the local level based on a community's local needs and priorities, and how the community will benefit. Each entitlement grantee that receives CDBG funds is free to determine what activities the grant will fund as long as certain requirements are met. Each activity must meet one of the following broad national objectives:

  • benefit persons of low and moderate income
  • aid in the prevention or elimination of slums or blight
  • meet other community development needs of particular urgency
  • Notice of Funding Availability (NOFA) Guidelines


CDBG funds cover a variety of services and activities, including:

  • acquisition/disposition of real property
  • public improvements and facilities (e.g., senior citizens center, recreation center, day care center)
  • public services (e.g., child care, health care, job training/education programs, recreation programs, drug abuse counseling/treatment, and services for homeless persons)
  • interim assistance; relocation payments/assistance
  • rehabilitation of residential, commercial/industrial, or other nonprofit owned, nonresidential buildings
  • historic preservation
  • lead based paint hazard evaluation and reduction
  • code enforcement
  • special economic development
  • assistance to microenterprises
  • homeownership assistance
  • urban renewal completion
  • technical assistance to increase capacity of public/private non- profits
  • assistance to institutions of higher education and program administration costs related to planning and execution of CDBG assisted activities