The CDBG program is a flexible program that provides communities with resources to address a wide range of unique community development needs. Beginning in 1974, the CDBG program is one of the longest continuously run programs at the Department of Housing and Urban Development (HUD). The program is authorized under Title 1 of the Housing and Community Development Act of 1974, Public Law 93-383, as amended; 42 U.S.C.5301 et seq.
The CDBG program provides annual grants on a formula basis to general units of local government and States. The annual CDBG appropriation is allocated between States and local jurisdictions called “non-entitlement” and “entitlement” communities respectively. Entitlement communities are comprised of central cities of Metropolitan Statistical Areas (MSAs); metropolitan cities with populations of at least 50,000; and qualified urban counties with a population of 200,000 or more (excluding the populations of entitlement cities). States distribute their CDBG funds to non-entitlement localities not qualified as entitlement communities. HUD determines the amount of each grant [entitlement amount] by using a formula based distribution system comprised of several measures of community need, including the extent of poverty, population, housing overcrowding, age of housing, and population growth lag in relationship to other metropolitan areas. The City of Killeen is an “entitlement” community.
CDBG is an important tool for helping local governments tackle serious challenges facing their communities. The CDBG program works to ensure decent affordable housing, to provide services to the most vulnerable in our communities, and to create jobs through the expansion and retention of businesses. For nearly 40 years, the CDBG program has made a difference in the lives of millions of people and their communities across the Nation principally by assisting to low- and moderate-income persons and families.