CDBG Application Guidelines

In order to be eligible for CDBG funds,  the project must meet one or more of the three national objectives below. For more information, review the Guide to National Objectives and Eligible Activities for State CDBG Programs.

1. Benefit Low and Moderate Income Persons

• Area Benefit: Benefits are available to all the residents in a particular service area, where at least 51% of the residents are LMI persons. There are two ways to qualify for this:
  • ACS (American Community Survey) 5-Year Low-and Moderate-Income Summary Data:  If the listed community/county has a low- and moderate-income percentage over 51%, that community/county is eligible to apply.
  • If your community/county does not have a percentage over 51%, an income survey may be conducted.
    • CPD-14-013: Guidelines for Conducting Income Surveys to Determine the Percentage of Low- and Moderate-Income (LMI) Persons in the Service Area of a CDBG Funded Activity.
    • Notice CPD-24-04: Low- and Moderate-Income Summary Data Updates – HUD Exchange
• Limited Clientele: A Limited Clientele activity benefits a specific group of people (rather than all the residents in a particular area), at least 51% of whom are LMI persons.
• Housing: Income based, the resident that will benefit from the housing activity must be a LMI person.
• Jobs: Created/retained jobs, of which 51% or more are provided to LMI persons.

2. Aid in the Prevention or Elimination of Slums or Blight: Focuses on activities that create a change to the physical environment of a deteriorating area. There are two ways to qualify for this national objective. The applicant community must officially designate the project’s target area.

• Area Basis
• Spot Basis

3. Urgent Need: Use of this national objective category is extremely rare. It is designed only for activities that alleviate emergency conditions. Consult with a program representative.

CDBG Application Guidelines

• 2024 CDBG Application Guidelines
• 2024 Application Guideline Webinar
• 2023 CDBG Application Guidelines

Exhibit Guidance and Templates