The primary objective of the CDBG program is the development of
viable urban communities, by providing decent housing, suitable
living environments, and expanded economic opportunities,
principally for low- and moderate-income persons. To divide the
annual appropriation of CDBG funds among jurisdictions, Congress
has designed a formula that seeks to provide larger grants to
communities with relatively high community development need and
smaller grants to communities with relatively low community
development need. The core formula variables in the allocation
formula have not been changed since 1978. This report provides the
latest assessment of how well the variables being used in the CDBG
formula continue to target funds toward community development need.
It shows that the formula does generally continue to target to
need, but that targeting toward community development need has
declined substantially over the past 26 years. Over time, an
increasing number of jurisdictions with similar need have come to
receive substantially different grants. In addition, the amount of
funds going to the most needy grantees on a per capita basis has
decreased, while the amount of funds going to the least needy
grantees on a per capita basis has increased.
General
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