As one of the Nation's largest Federal grant programs, the impact of CDBG-funded projects can be seen in the housing stock, the business environment, the streets, and public facilities of almost every community. Traditionally, the largest single use of State CDBG funds has been the provision of public facilities. In the past few years, however, the program has played an increasingly key role in stimulating economic development activities that expand job and business opportunities for low-income families and neighborhoods. The program awards annual project grants based on population size and past performance of the applicants. The four eligible insular areas are American Samoa, Guam, the Northern Mariana Islands, and the Virgin Islands.
Eligible activities are the same as under the national program.
CDBG also helps communities demolish property and clear sites to prepare the land for other uses. Reconstructing or rehabilitating housing and other property . From homeless shelters to single-family homes to shopping centers, CDBG enables communities to improve properties that have become less usable, due to age, neglect, natural disaster, or changing needs. New construction of housing is allowed only in certain circumstances. Building public facilities and improvements , such as streets, sidewalks, sewers and water systems, parks and community centers, and fire stations.