The Community Development Block Grant Program (CDBG) provides annual direct grants to "entitlement communities" (eligible metropolitan cities and urban counties) that can be used to expand affordable housing and economic opportunities, to revitalize neighborhoods, and/or to improve community facilities and services, principally for the benefit of low- to moderate- income individuals. Along with the participation of local citizens, the entitlement communities can devote their funding to the activities that best serve their own particular development priorities, as long as these priorities (1) benefit low- and moderate-income persons; (2) prevent or eliminate slums or blight; or (3) meet other urgent community development needs. All of the activities may be carried out by the local governments themselves or they may award a portion or all of the funds to private or public nonprofit organizations, as well as for-profit entities.
CDBG-R Substantial Amendment: The American Recovery and Reinvestment Act of 2009 ("Recovery Act":) was signed into law by President Obama on February 17, 2009. This Act awarded $1 billion in CDBG Recovery (CDBG-R) funds to be distributed to cities, counties, insular areas and states, of which $10 million has been reserved by HUD for its administrative costs and $10 million of which will be awarded to Indian tribes. Approximately 1,200 jurisdictions that received CDBG funding in Fiscal Year 2008 will be the recipients of the remaining $980 million.
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