I 

118TH CONGRESS 

2D SESSION H. R. 8026 

To modernize the formulas for allocation of Community Development Block 

Grant Program grants for entitlement communities to more effectively 

target such amounts for community development needs, and for other 

purposes. 

IN THE HOUSE OF REPRESENTATIVES 

APRIL 16, 2024 

Mr. KUSTOFF (for himself and Mr. HILL) introduced the following bill; which 

was referred to the Committee on Financial Services 

A BILL 

To modernize the formulas for allocation of Community Development Block Grant Program grants for entitlement 

communities to more effectively target such amounts for 

community development needs, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘CDBG Modernization 

5 Act of 2024’’. 

6 SEC. 2. INITIAL STUDY AND REPORT. 

7 (a) STUDY.—Not later than the expiration of the 12- 

8 month period beginning on the date of the enactment of 


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1 this Act, the Secretary of Housing and Urban Develop2 ment (in this Act referred to as the ‘‘Secretary’’) shall con3 duct a study to— 

4 (1) analyze and assess the effectiveness of the 

5 formulas under paragraphs (1) through (3) of sec6 tion 106(b) of the Housing and Community Develop7 ment Act of 1974 (42 U.S.C. 5306(b)) Act, and the 

8 factors used in such formulas, including the use of 

9 the age of housing factor (as such term is defined 

10 in section 102(a) of such Act (42 U.S.C. 5302(a))), 

11 in effectively targeting funding under the Commu12 nity Development Block Grant Program (in this Act 

13 referred to as the ‘‘Program’’) for community devel14 opment needs and in carrying out the purposes of 

15 such program under section 101 of such Act (42 

16 U.S.C. 5301); and 

17 (2) develop revised and updated formulas for 

18 use under paragraphs (1) through (3) of such sec19 tion 106(b), or updated factors for use in such for20 mulas, that— 

21 (A) more effectively target funding under 

22 the Community Development Block Grant Pro23 gram for community development needs; 


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1 (B) eliminate any funding inequities that 

2 use of such age of housing factor has contrib3 uted to under the Program; 

4 (C) include an element that provides for 

5 re-evaluation to maintain effective targeting for 

6 community development needs of grantees over 

7 time and adjusts funding in accordance with 

8 such changing needs; and 

9 (D) more effectively carry out the purposes 

10 of the Program under section 101 of such Act. 

11 (b) REPORT.—Not later than the expiration of the 

12 period referred to in subsection (a) of this section, the Sec13 retary shall submit a report to the Congress that— 

14 (1) describes the study conducted pursuant to 

15 subsection (a) and sets forth any findings and con16 clusions of such study; 

17 (2) sets forth the revised and updated formulas 

18 or factors developed pursuant to subsection (a)(2) 

19 and to be used under section 106(b) of such Act, as 

20 amended by section 3 of this Act; 

21 (3) specifies how such revised and updated for22 mulas or factors shall be counted for purposes of 

23 section 106(b)(3) of the Housing and Community 

24 Development Act of 1974; 


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1 (4) identifies how the use of the age of housing 

2 factor has contributed to inequities in effectively tar3 geting funding under the Program to community de4 velopment needs of grantees; and 

5 (5) compares the effects of using such revised 

6 and updated formulas or factors to the effects of ap7 plying paragraphs (1)(B) and (2)(B) of section 

8 106(b) of the Housing and Community Development 

9 Act of 1974, as in effect on the date of the enact10 ment of this Act, to determine which grantees are 

11 over-subsidized or under-subsidized with respect to 

12 community development needs. 

13 SEC. 3. SUBSEQUENT STUDIES AND REPORTS. 

14 (a) SUBSEQUENT STUDIES.—Not later than the expi15 ration of each successive 10-year period after the expira16 tion of the period referred to in section 2(a), the Secretary 

17 shall conduct a study to— 

18 (1) analyze and assess the effectiveness of the 

19 revised and updated formulas or factors set forth 

20 pursuant to section 2(b)(2) of this Act in effectively 

21 targeting funding under the Community Develop22 ment Block Grant Program (in this Act referred to 

23 as the ‘‘Program’’) for community development 

24 needs and in carrying out the purposes of such proVerDate Sep 11 2014 03:10 Apr 25, 2024 Jkt 049200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H8026.IH H8026

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1 gram under section 101 of such Act (42 U.S.C. 

2 5301); and 

3 (2) develop recommendations regarding revi4 sions and updates to such formulas and factors 

5 that— 

6 (A) more effectively target funding under 

7 the Community Development Block Grant Pro8 gram for community development needs; 

9 (B) include an element that provides for 

10 re-evaluation to maintain effective targeting for 

11 community development needs of grantees over 

12 time and adjusts funding in accordance with 

13 such changing needs; and 

14 (C) more effectively carry out the purposes 

15 of the Program under section 101 of such Act. 

16 (b) REPORTS.—Not later than the expiration of each 

17 applicable 10-year period referred to in subsection (a) of 

18 this section, the Secretary shall submit a report to the 

19 Congress that— 

20 (1) describes the study conducted pursuant to 

21 subsection (a) for such period and sets forth any 

22 findings and conclusions of such study; 

23 (2) sets forth the recommended revisions and 

24 updates developed pursuant to subsection (a)(2); 


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1 (3) specifies how such recommended revisions 

2 and updates should be counted for purposes of sec3 tion 106(b)(3) of the Housing and Community De4 velopment Act of 1974; and 

5 (4) compares the effects of using such rec6 ommended revisions and updates to the effects of 

7 applying paragraphs (1)(B) and (2)(B) of section 

8 106(b) of the Housing and Community Development 

9 Act of 1974, as then in effect, to determine which 

10 grantees are over-subsidized or under-subsidized 

11 with respect to community development needs. 

12 SEC. 4. APPLICABILITY OF NEW FORMULAS OR FACTORS. 

13 (a) AMENDMENT TO 1974 ACT.—Subsection (b) of 

14 section 106 of the Housing and Community Development 

15 Act of 1974 (42 U.S.C. 5306(b)) is amended by striking 

16 the subsection designation and all that follows through the 

17 end of paragraph (3) and inserting the following: 

18 ‘‘(b)(1) The Secretary shall determine the amount to 

19 be allocated to each metropolitan city in accordance with 

20 the revised and updated formulas or factors set forth pur21 suant to section 2(b)(2) of the CDBG Modernization Act 

22 of 2024 in the report pursuant to such section 2(b). 

23 ‘‘(2) The Secretary shall determine the amount to be 

24 allocated to each urban county in accordance with the re25 vised and updated formulas or factors set forth pursuant 


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1 to section 2(b)(2) of the CDBG Modernization Act of 

2 2024 in the report pursuant to such section 2(b). 

3 ‘‘(3) In determining the amount to be allocated each 

4 metropolitan city and urban county, the Secretary shall 

5 count each revised and updated formula or factor as pro6 vided in the report pursuant to section 2(b) of the CDBG 

7 Modernization Act of 2024.’’. 

8 (b) PHASE-IN.—Notwithstanding any other provision 

9 of law, the Secretary shall adjust any allocations for met10 ropolitan cities and urban counties made pursuant to sec11 tion 106 of the Housing and Community Development Act 

12 of 1974 (42 U.S.C. 5306) for any of the first 5 fiscal years 

13 commencing after the date of the enactment of this Act 

14 to provide for phase-in of the effects from the amendments 

15 made by this Act and to allow such entitlement entities 

16 to adjust their budgets accordingly. 

Æ 


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