CDBG funds primarily support which of the following in local governments?

• A. Housing, community development, and non-profit services in low-income communities.
• B. High-end urban development.
• C. Industrial subsidies to large corporations.
• D. Private school construction.

Answer: (A)

CDBG funds are designed to help local governments improve housing, community development, and services in neighborhoods with low- and moderate-income residents. The most fitting description is housing, community development, and non-profit services in low-income communities because these activities directly benefit those communities and align with CDBG’s goal of assisting low- and moderate-income people. The other options describe activities that either target upscale development, subsidize large corporations, or fund private schools, which are not the intended uses of CDBG and don’t focus on helping low-income residents. In practice, eligible uses include housing rehabilitation, public facilities, infrastructure improvements, and support for nonprofit and public services that benefit low- and moderate-income areas.