Purpose of the Program

What is the purpose of the CDBG Program?
The primary objective of the Housing and Community Development Act of 1974, as amended, is the development of viable urban com­munities, including decent housing and expanded economic oppor­tunities, principally for persons of low and moderate income.

In order to be eligible for funding, every CDBG funded activity must qualify as meeting one of the three "National Objectives" of the pro­gram. This requires that each activity, except Program Administration and Planning, meet specified tests for either:

  • Benefiting low and moderate income persons;
  • Aiding in the prevention or elimination of slums or blight; or
  • Meeting other community development needs having a particular urgency because existing conditions pose a serious and immediate threat to the health or welfare of the community and other financial resources are not available to meet such needs.

An activity which fails to meet the applicable tests is in noncompli­ance with CDBG rules.

Moreover, the Act directs local officials to concern themselves with accomplishing these objectives:

  1. The elimination of slums and blight and the prevention of blight­ing influences, principally for low and moderate income persons.
  2. The elimination of conditions which are detrimental to health, safety, and public welfare.
  3. The conservation and expansion of the Nation's housing stock, principally for low and moderate income persons.
  4. A more rational utilization of land and other natural resources.
  5. The reduction of the isolation of income groups within communi­ties and geographic areas.
  6. The restoration and preservation of properties of special value for historic, architectural, and aesthetic reasons.
  7. The alleviation of physical and economic distress through the stimulation of private investment and neighborhood revitalization.