The Community Development Block Grant Program (CDBG) provides deferred loans to pay for renovations of single-family owner-occupied dwelling units that are occupied by lower income households.
Income Guidelines
As of January 1, 2022, the maximum income for households of various sizes to qualify for funding is as follows:
- 1 Person: $57,250
- 2 Person: $65,400
- 3 Person: $73,600
- 4 Person: $81,750
- 5 Person: $88,300
Household income includes the income earned by all members of a household who are 18 years of age or older who will be residing in the dwelling unit.
Funding Guidelines
Funding is provided as a five (5) year deferred loan. This means that 20% of the loan amount is forgiven each year, so that if the owner continues to own and occupy the property for five years, the entire amount of the loan is forgiven. The deferred loan is secured by a mortgage and mortgage note. (An exception is for homes located in the Deer Brook Village development, where properties are secured by a UCC Financing Statement a security agreement.)
The maximum amount of the deferred loan that can be provided to the owner of a single-family, owner-occupied dwelling unit is S 10,000. The program will cover 100% of the cost of the renovations if the work does not exceed this $10,000 limit.
All rehabilitation work shall be performed by contractors approved by the Administrative Agent. Work performed by a property owner shall not be funded.
Eligible & Ineligible Property Improvements
CDBG funds may be used only for repairs or system replacements necessary to bring a substandard unit into compliance with municipal health, safety and building codes, to correct code violations and meet property maintenance standards, or to eliminate a blighting influence in an existing neighborhood.
Eligible Required Improvements List
At least one major system must be replaced or included in the repairs, which include one of the following:
- Roof
- Windows
- Siding
- Entryway steps
- Load-bearing structural systems
- Heating
- Electrical
- Sanitary plumbing
- Lead paint abatement
Eligible Supplemental Improvements List
Additional related work may include, but not be limited to the following:
- Interior trim work
- Interior and/or exterior doors
- Interior stair repair
- Wall surface repair
- ADA improvements
- Weatherization
Ineligible Improvements List
Work not eligible for program funding includes, but is not limited to:
- Additions to a primary unit
- Construction or repairs to structures separate from the living units (detached garage, shed, barn, etc)
- Installation of luxury items (swimming pool, etc)
- Costs of equipment, furnishing, or other personal property not an integral structural fixture, such as a window air conditioner or washer and dryer. (If determined unsafe, stoves may be replaced. The replacement or repair of other appliances is prohibited.)
- Cosmetic improvements, landscaping
- Labor costs for homeowners to rehabilitate their own property
Application
Include the following with your application:
- Copy of Driver’s License or State ID (per each household member who is 18 years or older)
- Proof of Income (per each household member who is 18 years or older and not a full-time student)
- Copies of tax returns for the past recent three (3) years
- Proof of ownership, copy of the deed
- Proof of homeowner’s insurance (declaration page)
Mail application to:
