undeserved, underserved

Undeserved or undeserved means not earned through one's merits or behavior--
He still claims that he's not guilty, and that his punishment is undeserved.
The other workers resent him; they're sure his promotion was undeserved.

Underserved or underserved means lacking adequate service or care, most commonly meaning medical care or social services--
This community has been underserved for years, so we are planning to open a new clinic.
This is an underserved rural area; people have to travel for hours to get to a doctor.

Now that you know that, you can say--
"The mayor says this neighborhood is underserved and needs the money, but the council decided the grant was undeserved."