CDBG Entitlement FAQ
Q

Why is it so important for a CDBG grantee to ensure that its Line of Credit balance does not exceed 1.5 times its most recent allocation, when the measurement is taken?

Date Published: March 2019

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A

Section 104(e) of the Housing and Community Development Act of 1974, as amended, requires HUD to determine annually whether each CDBG entitlement grantee is carrying out its activities in a timely manner. In addition to meeting the legal requirements, CDBG funds must be spent on time to achieve the objectives of the program. CDBG funds are used to meet the economic, infrastructure and social needs of under-served, distressed neighborhoods and therefore Congress wants to make sure that funds are being spent on a regular basis to meet those needs. Congress has expressed concerns in the past about increasing CDBG program funding if CDBG grantees cannot promptly spend the money they already have.


Tags: CDBG Entitlement Program Timeliness

FAQ ID:

3626