COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG)

The CDBG program works to ensure decent affordable housing, to provide services to the most vulnerable in our communities, and to create jobs through the expansion and retention of businesses. CDBG is an important tool for helping local governments tackle serious challenges facing their communities. The CDBG program has made a difference in the lives of millions of people and their communities across the Nation.

The annual CDBG appropriation is allocated between States and local jurisdictions called “non-entitlement” and “entitlement” communities respectively. Entitlement communities are comprised of central cities of Metropolitan Statistical Areas (MSAs); metropolitan cities with populations of at least 50,000; and qualified urban counties with a population of 200,000 or more (excluding the populations of entitlement cities). States distribute CDBG funds to non-entitlement localities not qualified as entitlement communities.

HUD determines the amount of each grant by using a formula comprised of several measures of community need, including the extent of poverty, population, housing overcrowding, age of housing, and population growth lag in relationship to other metropolitan areas.

Over a 1, 2, or 3-year period, as selected by the grantee, not less than 70 percent of CDBG funds must be used for activities that benefit low- and moderate-income persons. In addition, each activity must meet one of the following national objectives for the program: benefit low- and moderate-income persons, prevention or elimination of slums or blight, or address community development needs having a particular urgency because existing conditions pose a serious and immediate threat to the health or welfare of the community for which other funding is not available.

HOME INVESTMENT PARTNERSHIP PROGRAM (HOME)

Participating Jurisdictions (PJ) may choose among a broad range of eligible activities, using HOME funds to provide home purchase or rehabilitation financing assistance to eligible homeowners and new homebuyers; build or rehabilitate housing for rent or ownership; or for “other reasonable and necessary expenses related to the development of non-luxury housing,” including site acquisition or improvement, demolition of dilapidated housing to make way for HOME-assisted development, and payment of relocation expenses. PJs may use HOME funds to provide tenant-based rental assistance contracts of up to 2 years if such activity is consistent with their Consolidated Plan and justified under local market conditions. This assistance may be renewed. Up to 10 percent of the PJ’s annual allocation may be used for program planning and administration.

HOME-assisted rental housing must comply with certain rent limitations. HOME rent limits are published each year by HUD. The program also establishes maximum per unit subsidy limits and maximum purchase-price limits.

Some special conditions apply to the use of HOME funds. PJs must match every dollar of HOME funds used (except for administrative costs and CHDO predevelopment loans for projects that do not move forward) with 25 cents from nonfederal sources, which may include donated materials or labor, the value of donated property, proceeds from bond financing, and other resources. The match requirement may be reduced if the PJ is distressed or has suffered a Presidentially-declared disaster. In addition, PJs must reserve at least 15 percent of their allocations to fund housing to be owned, developed, or sponsored by experienced, community-driven nonprofit groups designated as Community Housing Development Organizations (CHDOs). PJs must ensure that HOME-funded housing units remain affordable in the long term (20 years for new construction of rental housing; 5-15 years for construction of homeownership housing and housing rehabilitation, depending on the amount of HOME subsidy). PJs have two years to commit funds (including reserving funds for CHDOs) and five years to spend funds.

The eligibility of households for HOME assistance varies with the nature of the funded activity. For rental housing and rental assistance, at least 90 percent of benefiting families must have incomes that are no more than 60 percent of the HUD-adjusted median family income for the area. In rental projects with five or more assisted units, at least 20% of the units must be occupied by families with incomes that do not exceed 50% of the HUD-adjusted median. The incomes of households receiving HUD assistance must not exceed 80 percent of the area median. HOME income limits are published each year by HUD.

LEAD BASED PAINT HAZARD CONTROL PROGRAM (LBHCP)

The purpose of the LBPHC program is to help units of local government create and implement programs to make homes lead safe. Specifically, the program assists states, cities, counties/parishes, Native American Tribes or other units of local government in undertaking comprehensive programs to identify and control lead-based paint hazards in eligible privately owned rental or owner-occupied housing. HUD’s Office of Lead Hazard Control and Healthy Homes administers this program, which is aligned with HUD’s 2014-2018 Strategic Plan and HUD’s 2012-2015 Environmental Justice Strategy. The Strategic Plan includes an Agency Priority Goal to “increase the health and safety of homes and embed comprehensive energy efficiency and healthy housing criteria across HUD programs.” The Environmental Justice Strategy, which is in the process of being updated, addresses environmental and human health issues in high-risk communities, such as minorities, low-income homes, children, and people with disabilities.

The Healthy Homes Supplemental funds are intended for use in units where LBPHC funds are used. Healthy homes funding may be used only in homes also receiving HUD-funded lead hazard control work (interim controls or abatement). Grantees must use an inspection tool that identifies all 29 hazards identified in the Healthy Homes Rating System (HHRS) or a Green Building assessment protocol under the NOFA Priority in
section V.2.B.1, for assessing, prioritizing and repairing the identified health and safety hazards within those units.

Applicants receiving an award shall accomplish the following objectives:

  • Maximize the number of children under the age of six years protected from lead poisoning and the number of housing units where lead hazards are controlled;
  • Target lead hazard control efforts in housing units where children are at greatest risk of lead poisoning, especially children currently residing in low-income and minority families, in order to reduce elevated blood lead levels in children under the age of six years;
  • Promote cost-effective lead hazard control methods and approaches that can be replicated, maintained, and sustained;
  • Build local capacity to safely and effectively address lead hazards during lead hazard control and renovation, remodeling, and maintenance activities by integrating lead-safe work practices;
  • Promote integration of this grant program with other local programs that address housing related health and safety hazards;
  • Obligation to affirmatively further fair housing. Note that in addition to being an “objective” of this NOFA, the obligation to affirmatively further fair housing is also a civil rights related program requirement;
  • Develop a comprehensive community-based approach to address lead hazards in housing by mobilizing public and private sector resources including grassroots community-based non-profit and faith-based organizations;
  • Promote collaboration, data sharing, and targeting between health and housing departments;
  • Establish a detailed process that will facilitate lead-safe units to be affirmatively marketed, and priority given, to families with young children;
  • Ensure to the greatest extent feasible that job training, employment, contracting, and other economic opportunities generated by this grant will be directed to low- and very-low income persons, particularly those who are recipients of government assistance for housing, and to businesses that provide economic opportunities to low- and very low-income persons in the area in which the project is located. For more information, see 24 CFR 135;
  • Further environmental justice, the fair treatment and meaningful involvement of all people regardless of race, color, national origin, disability, or income with respect to the development, implementation, and enforcement of environmental laws, regulations, and policies; and
  • Comply with Section 504 of the Rehabilitation Act of 1973 (“Section 504”) and its implementing regulations at 24 CFR 8, and Titles II and III of the Americans with Disabilities Act, as applicable. Each of these prohibits discrimination based on disability.