This publication explores the relationship between Community Development Block Grant (CDBG) spending and neighborhood improvement. Conducted by the Urban Institute for HUD, the study analyzes data from 17 cities, focusing on five data-rich cities. It identifies proxy indicators of neighborhood quality, such as residential mortgage lending and business activity, and examines the impact of CDBG investments on these indicators. The findings suggest that larger CDBG investments are generally linked to improvements in neighborhood quality, though the relationship varies by neighborhood type and local economic conditions. The study concludes that while the proposed performance measurement system shows promise, further research is needed to address its limitations and ensure it accurately reflects the diverse objectives of local community development efforts.