The Community Development Block Grant Program (CDBG) was authorized by the Housing and Community Development Act of 1974, replacing several community development categorical grant programs. CDBG provides eligible metropolitan cities and urban counties (called "entitlement communities") with annual direct grants that they can use to revitalize neighborhoods, to develop affordable housing, and to expand economic opportunities, and/or improve community facilities and services, principally to benefit low and moderate income persons or households. The application period is usually in December prior to the FY.
All projects and programs have to meet one of three national objectives:
A benefit to low and moderate (L/M) income persons or households;
Aiding in the prevention or elimination of slums or blight;
Urgent Need (Meeting other community development needs having a particular urgency because existing conditions pose a serious and immediate threat to the health or welfare of the community, such as natural disasters).