CDBG may be used to fund Public Facilities and Improvements assisting not-for-profit organizations. In general, public facilities and public improvements are interpreted to include all facilities and improvements that are publicly owned, or owned by nonprofit that is open to the general public during normal working hours.
To utilize CDBG Public Facilities and Improvements funds, project(s) must benefit at least 51% extremely low, very low, and low to moderate income residents or that population presumed to be low income as either Limited Clientele or Area Benefit:
CDBG funded public facilities and improvements are generally carried out under the Low and Moderate Income (LMI) Benefit National Objective as an Area Benefit activity. This means that the public facility/improvement must benefit all residents of an area where at least 51% of the residents are LMI and the area must be primarily residential in nature.
CDBG may sometimes qualify under the Limited Clientele criteria of the LMI national objective. The regulation indicates that the facility must benefit a specific targeted group of individuals, of which at least 51% must be low and moderate income or serve a group primarily presumed to be LMI such as abused children, homeless persons, illiterate adults, persons living with AIDS, and migrant farm workers, etc.