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What is CDBG? <br />•The CDBG program was created in 1974 to further the <br />development of urban communities through affordable housing, <br />economic opportunities, and suitable living environments. <br />•All uses of CDBG funds must meet a national objective including: <br />1) benefit to low-income persons or neighborhoods; 2) prevent or <br />eliminate slums and blight; or 3) meet an urgent need. <br />•CDBG funds are restricted to certain eligible uses. Only 15% may <br />be used for human service programs. <br />•CDBG has strict requirements for expenditure of funds. <br />•CDBG may not be used to fund new construction of housing. <br />•Use of CDBG funds triggers compliance with multiple federal <br />requirements for entire projects. <br />19