The Community Development Block Grant (CDBG) program was designed in 1974 to help revitalize cities and neighborhoods with the assistance of Federal funds. The CDBG program was established under the U.S. Department of Housing and Urban Development, and today is one of their longest continually running programs.
The CDBG program offers annual grants to large cities and urban counties to assist with affordable housing, economic development, and job creation. It also provides State grants that can be used for smaller city development assistance.
The amount of each grant given is calculated by the Department of Housing and Urban Development. It is based off a formula accounting for population, poverty, overcrowding, age of residential buildings, and growth of the area. Certain stipulations are set up about how the funds must be used, including one regulation that requires at least 70 percent of the grant be used to benefit people with a low to moderate income.
The Housing and Economic Recovery Act, published on September 29 2008, includes a notice that states that CDBG will provide public grants totaling $3.92 billion for communities that have suffered the most from foreclosures and delinquencies.
The guide set up to help cities determine what activities are eligible for the CDBG can be found here. (Eligible Activities)