The City of Nashua is an entitlement community that receives Community Development Block Grant (CDBG) and HOME Investment Partnership (HOME) funds from the U.S. Department of Housing and Urban Development (HUD) each year. These funds are based on a formula and announced each year by HUD. In order to receive these funds, the City of Nashua must prepare a Consolidated Plan for approval by HUD at least every five years and an Annual Act Plan for each of those five years.
Community Development Block Grant (CDBG) funds must be used for projects that: (1) benefit low- and moderate-income residents; (2) fix slums or blighted areas of the City; or (3) meet a particularly urgent community development need. Past of the City's CDBG grant funds the Housing Improvement Programs.
The full federal regulations on eligible CDBG activities can be found at 24 CFR §570.200, et al.