American Institute of Certified Planners (AICP) Practice Exam

Which program is designed to promote economic opportunity for low and moderate-income families?

1. Local improvement districts

2. Community Development Block Grants

3. Impact fees

4. Tax increment financing

The correct answer is: Community Development Block Grants

The program that is specifically designed to promote economic opportunity for low and moderate-income families is the Community Development Block Grants (CDBG). CDBG is a federal program administered by the U.S. Department of Housing and Urban Development (HUD) that provides funds to state and local governments for various development projects aimed at benefiting these families. The funding supports a wide range of activities, including affordable housing, infrastructure improvements, and economic development initiatives that create jobs and enhance community viability. The emphasis of CDBG on improving the living conditions and economic prospects of low and moderate-income individuals makes it a crucial tool for municipalities to address poverty and promote inclusive growth within their communities. By targeting these populations, CDBG helps to alleviate disparities and fosters opportunities that directly impact the quality of life for the targeted groups. Other programs listed address different aspects of urban planning and development. Local improvement districts focus on enhancing specific neighborhoods through assessments and improvements; impact fees are charges imposed on developers to cover the costs of public infrastructure required by new development; and tax increment financing is a tool used to stimulate economic growth by capturing future tax revenue generated by a development project. While these tools can indirectly benefit various populations, CDBG is explicitly created to assist low and moderate-income families, making it the most relevant