ABSTRACT
The community development block grant (CDBG) program provides grants to local governments for general community development. The funds are used primarily for development of residential neighborhoods, rehabilitation of housing for low- and moderate-income families, physical improvements of neighborhood infrastructure, and economic development. Although CDBG has been a block grant since its inception, the reconciliation act further increased the states' authority over the program by giving them the option to administer the nonentitlement, small cities portion of the program. To receive funds under the small city portion of the program, states must engage in planning for community development, provide technical assistance to localities, and consult local officials about the method of distributing the funds. The reconciliation act lowered the CDBG budget authority by 7 percent in fiscal year 1982 and 15 percent in fiscal year 1983. The most important effect of the reconciliation act is to change the program requirements of this existing block grant.
