Community Development Block Grant

[1] President Ford emphasized the bill's potential for reducing inefficient bureaucracy, as the grant replaced seven previous programs that were "too fragmented to provide comprehensive solutions to complex local needs".

[4] The CDBG was presented as explicitly meant to "redistribute influence from the federal bureaucracies to local governments"[5] - in Ford's words, to "return power from the banks of the Potomac to people in their own communities".

Decentralizing control over community development appealed to some Democrats because the central administration of previous programs meant benefits often did not reach the targeted low-income communities,[7] while Republicans appreciated that the program was represented as meant to "limit the powers of the federal bureaucracy",[8] a political and ideological presentation reflective of "growing public resentment of big government and big bureaucracy".

[12] Upon reauthorizing CDBG in 1978, Congress instituted a dual formula to strengthen controls on how money was spent and to better serve communities with different types of problems.

[14] HUD calculates both formulas for all entitlement grantees and awards the larger amount, but Congressional appropriation has ultimate determination on program funding.

Such activities may include "Acquisition of real property, Relocation and demolition, Rehabilitation of residential and non-residential structures, Construction of public facilities and improvements", and more.

[22] Nominal levels of CDBG funding have remained fairly constant over time, but they have dramatically declined over the course of the program's existence in inflation-adjusted terms, as can be seen in the figure to the right.

CDBG funds may be used for community development activities (such as real estate acquisition, relocation, demolition, rehabilitation of housing and commercial buildings), construction of public facilities and improvements (such as water, sewer, and other utilities, street paving, and sidewalks), construction and maintenance of neighborhood centers, and the conversion of school buildings, public services, and economic development and job creation/retention activities.

The creation of the Action Plans includes community outreach, public meetings, and the solicitation of Requests for Proposals from city government departments and local nonprofits of activities that could be funded.

Second, a Consolidated Annual Performance Evaluation Report (CAPER) covering the previous fiscal year is submitted to HUD at the end of September to ensure the cities are meeting objectives.