CMM Economic Development & Housing 2

Question 1

Which federal program provides grants to states and localities for community development activities that benefit low- and moderate-income persons?

Accepted Answer

Community Development Block Grant (CDBG)

Answer

CDBG is a flexible federal grant program administered by HUD that supports community development activities benefiting low- and moderate-income residents.

Question 2

A municipality wants to attract a large manufacturer that will create 500 jobs. Which incentive tool directly reduces the company's property tax burden for a set number of years?

Accepted Answer

Tax Abatement Agreement

Answer

A tax abatement agreement temporarily reduces or eliminates a business's property tax liability to incentivize location or expansion within the municipality.

Question 3

What is the primary purpose of a Consolidated Plan required by HUD?

Accepted Answer

To identify housing and community development needs and allocate federal funds accordingly

Answer

The Consolidated Plan is a HUD-required planning document that identifies a community's housing and community development needs and outlines how federal formula grants will be used to address them.

Question 4

A city is experiencing 'housing cost burden.' By HUD's definition, this means residents are spending more than what percentage of their income on housing?

Accepted Answer

30%

Answer

HUD defines housing cost burden as spending more than 30% of gross income on housing costs, including rent or mortgage, utilities, and insurance.

Question 5

Which type of zoning approach allows for a mix of uses—residential, commercial, and sometimes light industrial—within the same zone or building?

Accepted Answer

Mixed-use zoning

Answer

Mixed-use zoning permits multiple land uses in the same area or structure, promoting walkability, economic vitality, and housing density.

(CMM) Certified Municipal Manager Practice Test

(CMM) Certified Municipal Manager Practice Test

CMM Economic Development & Housing 2