The Community Development Block Grant (CDBG) program is a federal grant distributed to localities to fund neighborhood redevelopment, economic development, and community services. Eligible uses include acquisition, rehabilitation, or demolition of real estate. Any central city of a Metropolitan Statistical Area (MSA), local government of over 50,000 people, or urban county with at least 200,000 people automatically qualifies for these formula-based funds from the U.S. Department of Housing and Urban Development (HUD). The formula allocation for CDBG funds is based on poverty levels, population, growth lag, overcrowding in housing, and the age of housing. The recipient must ensure that at least 70 percent of all funds received are used for people with low- or moderate- incomes. While the City of New York receives a direct allocation from HUD, New York State Homes and Community Renewal (HCR) oversees the distribution of a state-wide CDBG program to eligible cities, towns, and villages with populations under 50,000 and counties with an area population under 200,000. About 60 percent of New York City’s allocation is used by New York City Department of Housing Preservation and Development (HPD) for housing services.