"CDBGs, established in 1974, can be used for many different purposes. Over the program's history, the most popular uses have been affordable-housing rehabilitation and upgrades to infrastructure such as streets, sewers, and community centers.
But for the stimulus CDBGs, HUD says in a technical guidance document released May 5 that it 'strongly urges grantees to use funds for hard development costs associated with infrastructure activities that provide basic services to residents, or activities that promote energy efficiency and conservation through rehabilitation or retrofitting of existing buildings.'"
"...The economic-stimulus legislation says that localities that receive the grants should place a priority on projects for which contracts can be awarded within 120 days of the grant agreement.
By June 5, cities and counties must file amendments to their 'action plans,' telling HUD how they plan to use the stimulus CDBG money. States have until June 29 to file their amended plans."