The Limited Clientele Test for measuring lower income benefit. Some CDBG-assisted activities are either facilities or services which, by their special nature, serve people who might frequently be lower income people. Examples include shelters for abused spouses, or senior citizen centers. To determine whether one of these activities principally benefits lower income people, one of seven tests must be met. Only lower income people are allowed to use the facility or service.
People can challenge whether an activity truly meets the limited clientele test.
Also, the regulations make it clear that moderate income people are not supposed to benefit from CDBG at the exclusion of low income people. The Area Benefit Test for measuring lower income benefit. Many CDBG activities can benefit all people in an area, no matter what their income is. Things aren't always what they seem. The law states that the activity must clearly be designed to meet genuine needs of lower income people.