Through a community development program, a municipality may conduct work or activities designed to:
(1) improve the living and economic conditions of persons of low and moderate income;
(2) benefit low or moderate income neighborhoods;
(3) aid in the prevention or elimination of slums and blighted areas;
(4) aid a federally assisted new community; or
(5) meet other urgent community development needs, including an activity or function specified for a community development program that incorporates a federally assisted new community.