Proposed CDBG projects must meet one of the following criteria to be eligible for funding:
Benefit low- and moderate-income persons
Help to prevent urban blight and eliminate slums
Address urgent community development needs that present a serious and immediate community health and welfare threat for which no other funding is available.
CDBG grantees must use at least 70% of all funds to benefit low- and moderate-income persons. For CDBG purposes, low- and moderate-income means at or below 50% or 80%, respectively, of the median income for the area, as determined annually by HUD, or acceptable local income data whose methodology HUD endorses. A proposed project only meets the national goal of benefiting low- to moderate-income persons if at least 51% of those community members/households receiving some benefit from the project fall below median income requirements.