More than 1,100 local and state governments, called "entitlement communities," automatically qualify for the grant if they meet certain requirements, though they are required to submit allocation reports (showing to whom and where the money was spent) and quarterly reports to the United States Department of Housing and Urban Development. First, “not less than 70 percent of CDBG funds must be used for activities that benefit low- and moderate-income persons”. Secondly, funds must be spent on eligible activities, which are broadly defined as including “community development activities directed toward neighborhood revitalization, economic development, and improved community facilities and services”. Such activities may include “Acquisition of real property, Relocation and demolition, Rehabilitation of residential and non-residential structures, Construction of public facilities and improvements”, and more. Third, governments must follow a plan of project selection that includes citizen participation, especially by citizens who live in “areas in which the grantee proposes to use CDBG funds”.