CDBG provides annual grants on a formula basis to entitled cities and counties to develop viable urban communities by providing safe and decent housing, a suitable living environment and by expanded economic opportunities, principally for person of low to moderate income. The national objectives are to benefit low and moderate income persons, to prevent or eliminate slums or blight, or to meet community development need which has a particular urgency. The City provides CDBG funds to carry out single family homeowner rehabilitation assistance and to a variety of local non-profit agencies to carry out public service activities such as dental, medical, homeless counseling, etc. The City also assists homeless service providers and public facility improvements

The National Affordable Housing Act of 1990 created the HOME Investment Partnerships Act (HOME) Program. This federal program is designed to strengthen public-private partnerships and to expand the supply of decent, safe, sanitary and affordable housing for very low income and low-income individuals or families. The City of Fort Smith receives an annual federal entitlement of HOME funds to implement the Act locally and is defined by federal regulation as a Participating Jurisdiction (PJ). The eligibility criteria is much the same as that of CDBG, however HOME funds are restricted for housing and housing related activities only.