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 De-
velopment Block Grant Program grants for entitlement 
communities to more effectively target such amounts for 
community development needs, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘CDBG Modernization 
Act of 2024’’. 
SEC. 2. INITIAL STUDY AND REPORT. 
(a) STUDY.—Not later than the expiration of the 12- 
month period beginning on the date of the enactment of 
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this Act, the Secretary of Housing and Urban Develop-
ment (in this Act referred to as the ‘‘Secretary’’) shall con-
duct a study to— 
(1) analyze and assess the effectiveness of the 
formulas under paragraphs (1) through (3) of sec-
tion 106(b) of the Housing and Community Develop-
ment Act of 1974 (42 U.S.C. 5306(b)) Act, and the 
factors used in such formulas, including the use of 
the age of housing factor (as such term is defined 
in section 102(a) of such Act (42 U.S.C. 5302(a))), 
in effectively targeting funding under the Commu-
nity Development Block Grant Program (in this Act 
referred to as the ‘‘Program’’) for community devel-
opment needs and in carrying out the purposes of 
such program under section 101 of such Act (42 
U.S.C. 5301); and 
(2) develop revised and updated formulas for 
use under paragraphs (1) through (3) of such sec-
tion 106(b), or updated factors for use in such for-
mulas, that— 
(A) more effectively target funding under 
the Community Development Block Grant Pro-
gram for community development needs; 
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(B) eliminate any funding inequities that 
use of such age of housing factor has contrib-
uted to under the Program; 
(C) include an element that provides for 
re-evaluation to maintain effective targeting for 
community development needs of grantees over 
time and adjusts funding in accordance with 
such changing needs; and 
(D) more effectively carry out the purposes 
of the Program under section 101 of such Act. 
(b) REPORT.—Not later than the expiration of the 
period referred to in subsection (a) of this section, the Sec-
retary shall submit a report to the Congress that— 
(1) describes the study conducted pursuant to 
subsection (a) and sets forth any findings and con-
clusions of such study; 
(2) sets forth the revised and updated formulas 
or factors developed pursuant to subsection (a)(2) 
and to be used under section 106(b) of such Act, as 
amended by section 3 of this Act; 
(3) specifies how such revised and updated for-
mulas or factors shall be counted for purposes of 
section 106(b)(3) of the Housing and Community 
Development Act of 1974; 
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(4) identifies how the use of the age of housing 
factor has contributed to inequities in effectively tar-
geting funding under the Program to community de-
velopment needs of grantees; and 
(5) compares the effects of using such revised 
and updated formulas or factors to the effects of ap-
plying paragraphs (1)(B) and (2)(B) of section 
106(b) of the Housing and Community Development 
Act of 1974, as in effect on the date of the enact-
ment of this Act, to determine which grantees are 
over-subsidized or under-subsidized with respect to 
community development needs. 
SEC. 3. SUBSEQUENT STUDIES AND REPORTS. 
(a) SUBSEQUENT STUDIES.—Not later than the expi-
ration of each successive 10-year period after the expira-
tion of the period referred to in section 2(a), the Secretary 
shall conduct a study to— 
(1) analyze and assess the effectiveness of the 
revised and updated formulas or factors set forth 
pursuant to section 2(b)(2) of this Act in effectively 
targeting funding under the Community Develop-
ment Block Grant Program (in this Act referred to 
as the ‘‘Program’’) for community development 
needs and in carrying out the purposes of such pro-
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gram under section 101 of such Act (42 U.S.C. 
5301); and 
(2) develop recommendations regarding revi-
sions and updates to such formulas and factors 
that— 
(A) more effectively target funding under 
the Community Development Block Grant Pro-
gram for community development needs; 
(B) include an element that provides for 
re-evaluation to maintain effective targeting for 
community development needs of grantees over 
time and adjusts funding in accordance with 
such changing needs; and 
(C) more effectively carry out the purposes 
of the Program under section 101 of such Act. 
(b) REPORTS.—Not later than the expiration of each 
applicable 10-year period referred to in subsection (a) of 
this section, the Secretary shall submit a report to the 
Congress that— 
(1) describes the study conducted pursuant to 
subsection (a) for such period and sets forth any 
findings and conclusions of such study; 
(2) sets forth the recommended revisions and 
updates developed pursuant to subsection (a)(2); 
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(3) specifies how such recommended revisions 
and updates should be counted for purposes of sec-
tion 106(b)(3) of the Housing and Community De-
velopment Act of 1974; and 
(4) compares the effects of using such rec-
ommended revisions and updates to the effects of 
applying paragraphs (1)(B) and (2)(B) of section 
106(b) of the Housing and Community Development 
Act of 1974, as then in effect, to determine which 
grantees are over-subsidized or under-subsidized 
with respect to community development needs. 
SEC. 4. APPLICABILITY OF NEW FORMULAS OR FACTORS. 
(a) AMENDMENT TO 1974 ACT.—Subsection (b) of 
section 106 of the Housing and Community Development 
Act of 1974 (42 U.S.C. 5306(b)) is amended by striking 
the subsection designation and all that follows through the 
end of paragraph (3) and inserting the following: 
‘‘(b)(1) The Secretary shall determine the amount to 
be allocated to each metropolitan city in accordance with 
the revised and updated formulas or factors set forth pur-
suant to section 2(b)(2) of the CDBG Modernization Act 
of 2024 in the report pursuant to such section 2(b). 
‘‘(2) The Secretary shall determine the amount to be 
allocated to each urban county in accordance with the re-
vised and updated formulas or factors set forth pursuant 
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to section 2(b)(2) of the CDBG Modernization Act of 
2024 in the report pursuant to such section 2(b). 
‘‘(3) In determining the amount to be allocated each 
metropolitan city and urban county, the Secretary shall 
count each revised and updated formula or factor as pro-
vided in the report pursuant to section 2(b) of the CDBG 
Modernization Act of 2024.’’. 
(b) PHASE-IN.—Notwithstanding any other provision 
of law, the Secretary shall adjust any allocations for met-
ropolitan cities and urban counties made pursuant to sec-
tion 106 of the Housing and Community Development Act 
of 1974 (42 U.S.C. 5306) for any of the first 5 fiscal years 
commencing after the date of the enactment of this Act 
to provide for phase-in of the effects from the amendments 
made by this Act and to allow such entitlement entities 
to adjust their budgets accordingly. 
Æ 
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