CDBG Entitlement FAQ

If our community must acquire and dispose of a property, how can we meet a national objective under the CDBG program?

Date Published: October 2018

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Once property is acquired, the grantee must either retain the property or dispose of it. CDBG recipients that hold the property must put it to an eligible use that meets a national objective within a reasonable period of time, because land banking is ineligible in CDBG. If the property is acquired for a public purpose and then sold, national objective compliance is determined based on the end use of the property.

Some public uses that are eligible and meet a national objective are:

  • Community gardens or public facilities in low- and moderate-income areas (LMA)
  • Neighborhood play lots in low- and moderate-income areas (LMA)
  • Open space for drainage and storm water retention in low- and moderate-income areas (LMA)
  • Lease or sale of land for housing meeting the low- and moderate-income housing criteria (LMH)

Tags: CDBG Entitlement Program Acquisition-Disposition-Demolition