The CDBG is a federally funded program enacted in August 1974 as Public Law 93-383. The CDBG program consolidated seven previously funded federal programs:
1. Urban Renewal 2. Model Cities 3. Water and Sewer Facilities Grants 4. Neighborhood Facilities Grants 5. Public Facilities Loans 6. Open Space Land Grants 7. Rehabilitation Loans (Nathan et al., 1977)
This change provided local governments with more flexibility in using federal transfer payments for program activities (housing, employment, recreation, social services, etc.). The CDBG Program awards funds to local communities based on a multiple-need formula that considers housing, population, and poverty measures.