1978, Congress instituted a dual formula to strengthen controls on how money was spent and to better serve communities with different types of problems. A city's proportion of the overall CDBG allocation is either the average of the area's fractions of the US's total population, total poverty and total amount of housing overcrowding, or the average of the area's fractions of the country's total growth lag, total poverty, and total age of housing. Formula A typically benefits rapidly growing cities with high poverty that lack affordable housing. Formula B tends to benefit cities with large shares of old housing and low growth, including many affluent suburbs. HUD calculates both formulas for all entitlement grantees and awards the larger amount, but Congressional appropriation has ultimate determination on program funding. These formulas have become less well matched to community need over time, and improvements or revisions have been proposed by several analytical reports. More than 1,100 local and state governments, called "entitlement communities", automatically qualify for the grant. Cities qualify if they have populations of at least 50,000 or are the principal city of a Metropolitan Area, as determined by the Office of Management and Budget. Counties qualify if they have populations of at least 200,000, excluding any entitlement cities, and are in a metropolitan area. 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". There are a number of other distribution methods of CDBG funds besides entitlement communities. The 1978 re-authorization also required HUD to award 30% of all CDBG funds to states for grants to municipalities and counties that are not entitlement communities. This is often called the "Small Cities" program, because it includes many small cities