Community Development Block Grant Improvement Act of 1987

Community Development Block Grant Improvement Act of 1987 - Amends the Housing and Community Development Act of 1974 to set minimum distribution requirements for home loans and loan guarantees for low and moderate income persons. Sets FY 1986 support levels as minimum levels for subsequent fiscal years.

Increases income levels for purposes of defining low and moderate income. Defines "persons of very-low income."

Requires community development block grant applications to be submitted to the Secretary of Housing and Urban Development prior to the receipt of any grant funds.

Prohibits a grantee from using such funds in a manner that will result in the involuntary displacement of low- and moderate-income persons.

Requires grant applications to include a neighborhood economic development strategy.

Authorizes multiyear grants for nonentitlement areas.