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CDBG funds can be used for new construction but only in very limited circumstances. This section reviews the eligible activities under the CDBG program for new construction housing activities. ✓ Generally, new construction of housing is not eligible under the CDBG program.
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.
HOME Match | HUD.gov / U.S. Department of Housing and Urban Development (HUD) All Participating Jurisdictions (PJs) must contribute or match no less than 25 cents for each dollar of HOME funds spent on affordable housing.
Generally, they must include the canceled amount in their income. If the citys CDBG mortgages are structured so that they are fully forgiven over a specified period of time, the canceled amount would not be considered taxable income.
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.

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populations of at least 50,000; and qualified urban counties with populations of at least 200,000 (excluding the population of entitled cities) can receive annual grants. Entitlement communities must spend at least 70 percent of their funds for activities that principally benefit low- and moderate-income persons.

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