CDBG funds must be used to address one of the 3 national objectives established by HUD. These national objectives are:
- Low Mod Benefit: the activity must benefit low and moderate-income persons. The activity must benefit low and moderate-income persons but such activities cannot benefit moderate-income persons to the exclusion of low-income persons. At least 51% of the Service Area, Limited Clientele or Jobs Created must be Low to Moderate Income. Eligible activities fall into one of the following 4 categories:
- Area wide Benefit - benefits low to moderate income persons residing in an area in which 51% of the residents are considered Low to Moderate Income. Example projects - street paving, youth center, fire station and/or equipment, new water lines, drilling of new water wells, parks, libraries.
- Limited Clientele Benefit - provides benefits to a target group (as identified by CDBG) that is assumed to be 51% low to moderate income. These target groups are abused children, elderly persons (age 62+), battered spouses, homeless persons (an adult without children or a youth not accompanied by an adult), adults with severe disabilities (age 16+), illiterate persons, persons living with AIDS and migrant farm workers. Example projects - senior center, removal of architectural barriers, social service center, literacy training.
- Housing - assistance to improve residential structures or assistance to purchase homes for qualified persons who individually meet the low to moderate-income requirements. Example projects - Housing Rehab, homeowner assistance, mobile home replace (if consistent with Town Code), new construction of homes by non-profit for eligible homebuyers.
- Job Creation or Retention - economic development assistance, in which the end result creates or retains permanent jobs, at least 51% of which are held by or will be made available to low to moderate income persons. Example projects - Job training and placement for low to moderate income persons for specific jobs.
- Slum / Blight - the activity must aid in the prevention or elimination of slums or blight. Example projects - Demolition and clearance, downtown redevelopment plan, code enforcement, commercial rehabilitation.
- Urgent Need - the activity meets other community development needs having particular urgency, which pose a serious and immediate threat to the health or welfare of the community. Example projects - Demolition and clearance, commercial rehabilitation, housing rehabilitation.