Block Grants (CDBG)

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, 2020, the maximum income for households of various sizes to qualify for funding is as follows:

  • 1 Person: $66,920
  • 2 Person: $76,480
  • 3 Person: $86,040
  • 4 Person: $95,600
  • 5 Person: $103,248

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:

  1. Roof.
  2. Plumbing
  3. Heating
  4. Electrical
  5. Sanitary plumbing
  6. Load bearing structural systems
  7. Lead paint abatement
  8. Weatherization (Building insulation for attic, exterior walls and crawl space; siding to improve energy efficiency; replacement storm windows and storm doors; replacement windows and doors.)

Eligible Supplemental Improvements List

Additional related work may include, but not be limited to the following:

  1. Interior trim work
  2. Interior and/or exterior doors
  3. Interior and/or exterior hardware
  4. Window treatment
  5. Interior stair repair
  6. Exterior step repair or replacement
  7. Porch repair
  8. Wall surface repair
  9. Painting
  10. Replacement of a stove deemed unsafe

Ineligible Improvements List

Work not eligible for program funding includes, but is not limited to:

  1. Luxury improvements (improvements which are strictly cosmetic)
  2. Additions
  3. Conversions (basement, garage, porch, attic, etc.)
  4. Repairs to structures separate from the living units (detached garage, shed, barn, etc.)
  5. Furnishings
  6. Pools
  7. Landscaping.
  8. If determined unsafe, stoves may be replaced. The replacement or repair of other appliances is prohibited.

Application

Include the following with your application:

  1. Copy of Driver’s License or State ID (per each household member who is 18 years or older)
  2. Proof of Income (per each household member who is 18 years or older and not a full-time student)
  3. Copies of tax returns for the past recent three (3) years
  4. Proof of ownership, copy of the deed
  5. Proof of homeowner’s insurance (declaration page)

Mail application to:

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