Community Development Block Grant (CDBG) - Housing Rehabilitation

The Housing Rehabilitation Program, under the Community Development Block Grant (CDBG) framework, is funded by the U.S. Department of Housing and Urban Development (HUD) and administered by the Office of Community Development. It is authorized under Title I of the Housing and Community Development Act of 1974, with regulatory guidance provided through 24 CFR 570 and 2 CFR 200. The program is structured to assist low-to-moderate income communities by offering grants that aim to improve the safety, sanitation, and structural integrity of owner-occupied single-family housing units. The program’s primary goal is to enhance neighborhood stability and support affordable housing by enabling eligible communities to rehabilitate and retrofit existing housing stock. Communities may apply for up to $650,000 in total grant funding or a maximum of $60,000 per household. These grants target essential housing improvements that ensure sanitary and safe living conditions for residents in qualifying areas. This initiative also contributes to community development by maintaining habitable housing and preventing blight. Applicants must meet specific eligibility thresholds, which include demonstrating the benefit to low-to-moderate income populations. Only certain activities are permitted under this program, focusing specifically on the rehabilitation of housing. Ineligible activities and communities are detailed in the guidebook to ensure funds are appropriately allocated. All applications must align with both federal and state objectives and include documentation verifying compliance and readiness. Submissions must include a range of documents, such as a letter of transmittal, project summary, housing project design, cost estimates for rehabilitation work, commitment letters for leveraged resources, and various certifications and forms like W-9, SAM registration, and IRS letters. Additional application components involve environmental reviews, maps, and public hearing records, reflecting comprehensive preparation and community engagement. Applications are evaluated based on criteria including project need, impact, resource coordination, and readiness. These are outlined in detail in the evaluation and ranking section of the guidebook. Technical assistance is available for applicants, and applications must be submitted in accordance with the guidelines provided in the CDBG submission checklist. The most recent awards under this program were announced on August 4, 2023, with thirteen communities receiving a total of $8.4 million from the 2022 funding cycle. While the program is competitive, it represents a valuable opportunity for local governments to improve housing conditions for their residents.

Prepare in advance to gather required certifications and conduct community surveys; coordinate with general contractors and ensure documentation of public hearings is complete.