Technically, Community Development Block Grants are administered by the Michigan Strategic Fund, rather than the MEDC.[*],[66] They frequently accompany Michigan Economic Growth Authority agreements overseen by the MEDC.

This $53 million appropriation is a "pass through" from the federal government and is not specifically combined with other state resources. The CDBG program was created in 1974 when the federal government attempted to consolidate a disparate group of programs designed to help local units of government. The program contains a state-administered component for areas that do not receive CDBG support directly from U.S. Department of Housing and Urban Development. According to the MEDC, state CDBG funds administered by the MSF are allocated to communities where 51 percent of the population is of low and moderate income. Within these communities, two types of activities are eligible for the grants: projects "that address critical infrastructure needs" and projects involving "a for-profit private business location or expansion project that will result in the creation of permanent jobs."[67] In addition, HUD stipulates, "The State must ensure that at least 70 percent of its CDBG grant funds are used for activities that benefit low- and moderate-income persons. ..."[68]

[*] Some state CDBG money is administered by the Michigan State Housing Development Authority; this money, however, does not appear in the MSF budget.

[66] "Financial Audit Including the Provisions of the Single Audit Act of the Michigan Strategic Fund," 46.

[67] "Michigan Community Development Block Grant (CDBG) Program," (Michigan Economic Development Corp., 2009), (accessed August 26, 2009).

[68] "State Administered CDBG," U.S. Department of Housing and Urban Development, (accessed August 24, 2009).