CDBG grantees are responsible for assuring that each eligible activity meets one of three national objectives:
- Benefits low - and moderate-income persons
- Aids in the prevention or elimination of slums or blight
- Meets a need having a particular urgency (referred to as urgent need)
Low - and Moderate-Income (LMI) Benefit
Area Benefit: Activity provides benefit to area where at least 51% of residents receive low - and moderate-incomes.
- Area is primarily residential and activity meets LMI needs
- Income levels are documented by Census or an approved substitute
- Exceptions apply under special circumstances
Limited Clientele: Activity benefits a limited number of persons who are at least 51% LMI (includes abused children, elderly, and homeless).
- Assistance for LMI persons owning or developing microenterprises
- Job training or placement activity (conditions apply)
Housing: Activity provides or improves residential structures to be occupied by LMI persons.
- At least 51% of units must be occupied by LMI (exceptions to the 51% rule are possible under limited circumstances)
Jobs: Activity creates or retains jobs.
- At least 51% of the jobs must be held by or available to LMI persons
Area Basis: Activity addresses slums and blight in area designated under state or local law.
- Area must have a substantial number of deteriorated buildings
- Activity must address one or more conditions contributing to deterioration
Spot Basis: Activity eliminates specific condition of blight in particular instance.
- Condition is not located in a slum or a blighted area
- Activity is acquisition, clearance, relocation, historic preservation, or rehabilitation (conditions apply to rehabilitation)
Urban Renewal Area: Activities located in an urban renewal area or Neighborhood Development Program area.
- Activity must be necessary to complete the urban renewal plan.
- Microenterprise assistance (financial support, technical assistance, related services)
- Special economic development assistance activities that produce certain public benefits (jobs or retail services) through:
- Acquisition, construction, rehabilitation or installation of commercial or industrial buildings, equipment, and other improvements
- Financial and technical assistance and related services
- Job training and employment services
- Health care and substance abuse services
- Child care
- Crime prevention
- Fair housing counseling
- Relocation assistance and related loss of rental income
- Technical assistance to public or non-profit entities for capacity building
Eligible activities may vary based on available CDBG funds.