CDBG Entitlement FAQ

Can CDBG funds be used to conduct code enforcement in any area where at least 51 percent of the residents are low- and moderate-income persons?

Date Published: April 2019

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To be an eligible area for carrying out CDBG-assisted code enforcement, the area must be deteriorated/deteriorating in accordance with state/local law. Even if an area contains 51 percent low- and moderate-income persons, if it does not contain areas that meet a definition of deteriorated/deteriorating, then CDBG funds may not be used to conduct code enforcement in those areas. On the other hand, an area that is less than 51 percent low-and moderate-income might meet the grantee's definition of a deteriorated area, and thus be an eligible area in which to conduct CDBG-assisted code enforcement. A deteriorating/deteriorated area that is not primarily residential (such as an industrial area) could also be an area where code enforcement activities could be paid for with CDBG funds. However, in both of these latter examples, the grantee could not meet the low-and moderate-income area benefit national objective criteria –because eligible areas must be both primarily residential and 51 percent or more low- and moderate-income. Grantees may be able to comply with one of the other national objectives.

Tags: CDBG Entitlement Program Code Enforcement