Which federal program provides assistance for affordable housing and community development through block grants?

The Community Development Block Grant (CDBG) program is the correct answer because it specifically provides federal funding to state and local governments for a wide range of activities that support affordable housing and community development initiatives. The program is designed to benefit low- and moderate-income individuals and families, helping communities to develop viable urban environments by providing decent housing, a suitable living environment, and expanded economic opportunities.

CDBG funds can be used for a variety of purposes, such as constructing or rehabilitating public facilities, providing public services, and supporting economic development activities, making it a versatile tool for fostering community development. It emphasizes local decision-making and empowers municipalities to target their needs effectively, ensuring that the funds address the unique challenges faced by different communities.

While other programs listed also support housing and development objectives, they operate under different frameworks and funding mechanisms. For example, the Home Investment Partnerships Program focuses on providing grants to states and localities for the development of affordable housing specifically, rather than a broader community development focus. The Low-Income Housing Tax Credit (LIHTC) incentivizes private investors to create affordable housing through tax credits rather than direct block grants. The Neighborhood Stabilization Program provides funding to address foreclosure crises but is limited in scope compared to the broader CDBG program