American Institute of Certified Planners (AICP) Practice Exam

What legislation established the framework for Community Development Block Grants?

1. American Recovery and Reinvestment Act

2. Housing and Community Development Act of 1974

3. Community Reinvestment Act

4. Fair Housing Act

The correct answer is: Housing and Community Development Act of 1974

The Housing and Community Development Act of 1974 is the legislation that established the framework for Community Development Block Grants (CDBG). This act was aimed at advancing the improvement of community infrastructure and housing needs, particularly in urban areas with low to moderate-income households. The CDBG program was designed to provide flexible funding to local governments to assist with various activities that enhance residents' quality of life, such as housing rehabilitation, infrastructure improvements, and economic development initiatives. The act marked a shift in federal policy towards more localized decision-making regarding the allocation of funds for community development. While other legislation mentioned in the choices plays important roles in their respective areas, they do not specifically establish the CDBG framework. For example, the American Recovery and Reinvestment Act primarily focused on economic stimulus during a recession, the Community Reinvestment Act encourages banks to help meet the needs of all communities, particularly low-income neighborhoods, and the Fair Housing Act addresses discrimination in housing. Each of these acts serves distinct purposes, but it is the Housing and Community Development Act of 1974 that directly created the structure for CDBG funding.