CDBG Entitlement FAQ

If our community wishes to qualify a demolition activity as meeting the CDBG national objective of benefiting low- and moderate-income persons, is there a way to accomplish this?

Date Published: October 2018

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If the demolition is integral to another activity meeting the national objective of benefitting low- and moderate-income persons, the demolition could meet a national objective other than slums and blight. For example, a grantee could demolish a vacant structure and remove the debris to make a neighborhood park and playground that will serve a predominantly residential low- and moderate-income neighborhood. It is very difficult to qualify a stand-alone demolition as anything but removal of slums or blight.

Because grantees must demonstrate that at least 70% of expenditures benefit low- and moderate-income persons, communities have an effective limit of 30% of the grant (adjusted for administration and program income) for slum and blight (and urgent need) activities.

Tags: CDBG Entitlement Program Acquisition-Disposition-Demolition