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States participating in the CDBG Program award grants only to non-entitlement Units of General Local Government (UGLG). CDBG funds may be used for activities which include, but are not limited to: Acquisition of real property. Relocation and demolition.
Block grants provide state and local governments funding to assist them in addressing broad purposes, such as community development, social services, public health, or law enforcement, and generally provide them more control over the use of the funds than categorical grants.
If the grantee awards CDBG homeownership assistance as a loan, can it be forgivable? Yes. A grantee may require the homeowner to remain in the unit for a selected period after it is purchased. If the homeowner does so, the balance of the loan is forgiven.
If CDBG funds are spent, but the project is not finished within a reasonable period of time, HUD will determine that no National Objective was met and will require that all funds expended be repaid out of non-federal dollars.
Amounts expended on administration in excess of $100,000 must be matched. States may expend up to three percent of their CDBG allocation on technical assistance activities.

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Per 24 CFR Part 570.489(e) and Section 6.6 of Chapter 6: Financial Management of the GMM, Program Income (PI) is the gross revenue received by the Grantee and its subrecipients directly generated from the use of CDBG funds, including revenues generated using PI.

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