States develop their own programs and funding priorities.
If, a State were to decide to stop administering the CDBG program, the funds that would have been allocated to the State would be reallocated among the other States. All States except Hawaii administer CDBG funding for nonentitlement areas through the State CDBG Program. Each State may use up to one percent of its grant to provide technical assistance to local governments and nonprofit program recipients. Units of general local government funded by the State may undertake a wide range of activities directed toward neighborhood vitalization, economic development, or provision of improved community facilities and services. Specific activities that can be carried out with block grant funds include acquisition of real property, relocation and demolition, rehabilitation of residential and nonresidential structures, direct assistance to facilitate and expand homeownership among persons of low and moderate income, and provision of public facilities and improvements, such as water and sewer facilities, streets, and neighborhood centers.