The primary goal of the IIG program is to support infrastructure improvements to promote infill housing development. IIG serves to aid in new construction and rehabilitation of infrastructure designated as infill that supports higher density affordable and mixed-income housing in locations designated as infill. Infill project sites must have been previously developed or largely surrounded by development. Project funds must be used for reasonable and necessary costs of the Capital Improvement Project. Eligible activities include new construction, rehabilitation, and acquisition of infrastructure. Eligible projects include: development of parks or open space; water, sewer and other utility improvements; streets and road construction; transit linkages and facilities; traffic mitigation devises, such as signal lights; site acquisition, including easements and rights of way.

Nonprofit or for profit developers are required applicants, either solely or as a joint applicant with a locality or public housing authority over the areas in which the Qualifying Infill Project is located. Public agencies are not eligible as sole applicants.