CDBG Entitlement FAQ

What is the CDBG overall low- and moderate-income benefit requirement, and where is it found? Are grantees required to certify that they will meet this requirement?

Date Published: March 2019

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This CDBG requirement refers to a certification period of over one, two, or three years, a CDBG grantee shall expend not less than 70 percent of its CDBG funds in the aggregate for activities that benefit low- and moderate-income persons. This does not include planning and administrative costs, but does include program income. The grantee elects the period over which it will meet this requirement. This has also been referred to as the 70 percent (70%) test, LMI benefit test, or overall benefit requirement. It is found at Section 101(c) of the Housing and Community Development Act of 1974 (HCDA) and 24 CFR 570.200(a)(3).

Tags: CDBG Entitlement Program Overall Benefit