Not less than 70% of Community Development Block Grant (CDBG) funds must be used for activities that benefit low-and moderate-income persons. CDBG funds may be used for activities which include, but are not limited to:
Acquisition of real property
Activities relating to energy conservation and renewable energy resources
Construction of public facilities and improvements, such as water and sewer facilities, streets, neighborhood centers, and the conversion of school buildings for eligible purposes
Provisions of assistance to profit-motivated businesses to carry out economic development and job creation/retention activities
Public services, within certain limits
Rehabilitation of residential and non-residential structures
Relocation and demolition
Each activity must meet one of the following national objectives for the program:
Benefit low- and moderate-income persons.
Prevention or elimination of slums or blight.
Address community development needs having a particular urgency because existing conditions pose a serious and immediate threat to the health or welfare of the community for which other funding is not available.
Generally, the following types of activities are ineligible:
Acquisition, construction, or reconstruction of buildings for the general conduct of government; certain income payments
Construction of new housing (with some exceptions)