The Community Development Block Grant (CDBG) program was authorized by the Housing and Community Development Act of 1974. The primary objective of Title 1 of the Housing and Community Development Act of 1974, as amended, is the development of viable urban communities. These viable communities are achieved by providing the following:  

• Decent housing
• A suitable living environment
• Expanded economic opportunities

Salem’s City Council determines priorities for CDBG through a public input process. Current priorities for the CDBG program include:  

1. Providing assistance to the homeless or at risk of homelessness population
2. Providing affordable housing free from discrimination 
3. Revitalizing eligible neighborhoods
4. Economic development/job creation 

National objectives

CDBG grantees are responsible for assuring that each eligible activity meets one of three national objectives:

1. Benefits low - and moderate-income persons
2. Aids in the prevention or elimination of slums or blight
3. Meets a need having a particular urgency (referred to as urgent need)

Low - and Moderate-Income (LMI) Benefit

Area Benefit: Activity provides benefit to area where at least 51% of residents receive low - and moderate-incomes.

• Area is primarily residential and activity meets LMI needs
• Income levels are documented by Census or an approved substitute
• Exceptions apply under special circumstances

Limited Clientele: Activity benefits a limited number of persons who are at least 51% LMI (includes abused children, elderly, and homeless).

• Assistance for LMI persons owning or developing microenterprises
• Job training or placement activity (conditions apply)

Housing: Activity provides or improves residential structures to be occupied by LMI persons.

• At least 51% of units must be occupied by LMI (exceptions to the 51% rule are possible under limited circumstances)

Jobs: Activity creates or retains jobs.

• At least 51% of the jobs must be held by or available to LMI persons

Slums/Blight

Area Basis: Activity addresses slums and blight in area designated under state or local law.

• Area must have a substantial number of deteriorated buildings
• Activity must address one or more conditions contributing to deterioration

Spot Basis: Activity eliminates specific condition of blight in particular instance.

• Condition is not located in a slum or a blighted area
• Activity is acquisition, clearance, relocation, historic preservation, or rehabilitation (conditions apply to rehabilitation)

Urban Renewal Area: Activities located in an urban renewal area or Neighborhood Development Program area.

• Activity must be necessary to complete the urban renewal plan.

Eligible Activities a Community Partner Can Get a Grant For

• Microenterprise assistance (financial support, technical assistance, related services)
• Special economic development assistance activities that produce certain public benefits (jobs or retail services) through:
• Job training and employment services
• Health care and substance abuse services
• Child care
• Crime prevention
• Fair housing counseling
• Relocation assistance and related loss of rental income
• Technical assistance to public or non-profit entities for capacity building
• Housing rehabilitation

Eligible activities may vary based on available CDBG funds.

Details of the Community Renewal Fund start on page 307 of Fiscal Year 2025 Budget Book 1.