The primary federal objective of the CDBG program is the development of viable urban communities by providing decent housing and a suitable living environment and by expanding economic opportunities, principally for persons of low and moderate income. "Persons of low and moderate income" or the "targeted income group" (TIG) are defined as families, households, and individuals whose incomes do not exceed 80 percent of the county median income, with adjustments for family or household size. 

Each year the program makes funds available to eligible jurisdictions through several allocations: General and Native American, Economic Development, Planning and Technical Assistance, and Colonies. Notices of Funding Availability are published for each allocation, as the funds become available. Successful applicants enter into contracts with the State to complete the specified activities with the grant funds.