The CDBG Program is authorized under Title I, Housing and Community Development Act of 1974 (42 U.S.C. 5301-20) and Section 7(d) of the Department of Housing and Urban Development Act (42 U.S.C. 3535(d).

The purpose of the CDBG Program is to provide decent housing, suitable living environment and expanding economic opportunities, principally benefiting persons of low and moderate income. Federal regulations require that at least one of the following national objectives are met by all CDBG funded activities:

• The activity must principally benefit low and moderate income
  individuals.
• The activity must aid in the prevention or elimination of slums/blight.
• The activity must address an immediate, urgent threat to the health/ welfare of the community, not addressed by other financial resources.

In approved CDBG target areas, grant funds may be used for the acquisition, demolition, clearance, removal or rehabilitation of real property and blighted buildings; the construction, reconstruction or installation of public work projects, neighborhood facilities and other site improvements; relocation assistance; economic development; assistance to the elderly or handicapped; public services; preparation of the Consolidated Plan and yearly action plan and administrative costs.

CDBG allocations have been directed toward programs/projects that include the rehabilitation of private homes, apartment buildings and commercial stores; capital improvements such as replacement of street lighting, sewer rehabilitation, sidewalks and streets repairs and/or replacement, installation of traffic signals, and code enforcement. Economic development grants and loans have been made for commercial facade improvement, replacement of old signs and a variety of public service programs such as recreation programs, day-care scholarships, education counseling and training, etc.