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federalUnited StatesCommunity Development Block Grant (rental housing activities)set_aside

A CDBG housing activity meets the low- and moderate-income national objective only through occupancy by LMI households

cdbg.set_aside.lmh_national_objective_occupancy · v1.0.0

An eligible CDBG activity carried out to provide or improve permanent residential structures benefits low- and moderate-income persons only if, upon completion, the structures are occupied by low- and moderate-income households. Where the structure contains two dwelling units at least one must be so occupied; where it contains more than two dwelling units at least 51 percent of the units must be so occupied. Two or more assisted rental buildings on the same or contiguous properties under common ownership and management may be treated as a single structure for this purpose. Unlike LIHTC or HTF, CDBG states no per-unit income ceiling of its own; the national objective is a structure-level occupancy test.

The exception at 570.208(a)(3)(i) is narrow and cumulative: it is available only for new construction of multifamily NON-ELDERLY rental, requires at least 20 percent LMI occupancy at affordable rents, and caps the CDBG share of development cost at the LMI share of units. All three conditions must hold.
Confidence
high
Effective from
1988-10-21
Consequence model
agency finding with cure
Last reviewed
2026-08-31

Evidence required

  • Rent roll(at_least_one)
  • Tenant Income Certification(at_least_one)

Citations

All sources verified within 1 day
  • Community Development Block Grants
    24 CFR 570.208(a)(3)
    regulationSource ↗verified 1d ago
  • Community Development Block Grants
    24 CFR 570.200(a)(2)
    regulationSource ↗verified 1d ago
  • Community Development Block Grants
    24 CFR 570.208(a)(3)(i)
    regulationSource ↗verified 1d ago