American Institute of Certified Planners (AICP) Practice Exam

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Which federal program aims to help states and localities improve conditions in low-income areas?

Community Development Block Grants.
Tax Increment Financing.
Low-Income Housing Tax Credit.
Urban Development Action Grants.

The correct answer is: Community Development Block Grants.

The Community Development Block Grants program is designed to provide financial assistance to states and local governments to improve living conditions in low-income areas. This federal program offers funding that can be used for a variety of community development activities, including housing rehabilitation, infrastructure improvements, and public services aimed at benefiting low-income individuals. It promotes the development of viable urban communities by providing decent housing and a suitable living environment, which is crucial for addressing urban poverty and economic decline. The other options serve different purposes. Tax Increment Financing primarily supports redevelopment projects without directly addressing social conditions, while the Low-Income Housing Tax Credit provides incentives for the development of affordable housing but does not cater to broader community development needs. Urban Development Action Grants, though similar in intent, are more limited in scope and focus on specific urban revitalization efforts rather than comprehensive community improvement. Therefore, Community Development Block Grants stand out as the most effective federal program for enhancing conditions in low-income areas.