Deadline: 15-Sep-21
The Montana Department of Commerce has announced the Community Development Block Grant (CDBG) Housing Grants to help local governments fund new construction or rehabilitation of single-family or multi-family housing projects that benefit low- to moderate-income (LMI) Montanans, i.e. households earning less than 80% of the area median income.
Type of Grants
CDBG offers two distinct types of housing grants:
- CDBG Affordable Housing Development and Rehabilitation Grants: This grant is intended for construction or rehabilitation of affordable housing projects. Typically these housing projects are multi-family rental or single family development projects in which CDBG fills a funding gap and the maximum grant amount is $450,000. Annual applications for the CDBG Housing grants are due at the same time as the Community and Public Facility grant applications.
- CDBG Housing Stabilization Program (HSP) Grants: Successful applicants will qualify to access the CDBG HSP pool of funds for a period of five years. During that time, local governments are eligible to receive funds for construction or rehabilitation of owner-occupied or rental units that benefit low- to moderate-income households. There is no maximum grant amount and funds will be allocated based on the individual level of need and scope of project.
Eligible Projects
- CDBG Affordable Housing Development and Rehabilitation Grants
- The following summarizes the major categories of assistance for the CDBG Affordable Housing and Rehabilitation Grants:
- New construction of multi-family housing or multiple single family housing development;
- Rehabilitation of multi-family rental housing;
- Temporary housing facilities such as homeless shelters or domestic violence shelters; and
- Neighborhood revitalization and renewal activities such as improvements to sidewalks, street lighting, or neighborhood playgrounds.
- These projects may include the following activities:
- Rehabilitate substandard housing;
- Support construction of new, permanent housing;
- Finance or subsidize the construction of new permanent, residential units;
- Site improvements or provision of public facilities to be used or sold for new housing;
- Demolition of vacant, deteriorated housing units with the intent of making the site available for new construction;
- Acquiring sites for use or resale for new housing, and converting existing nonresidential structures for residential use; and
- Neighborhood renewal activities such as cleaning up junk and debris or improving or constructing sidewalks, streets, or neighborhood parks.
- The following summarizes the major categories of assistance for the CDBG Affordable Housing and Rehabilitation Grants:
- CDBG Housing Stabilization Program (HSP) Grants
- The following summarizes the major categories of assistance for the CDBG HSP Grants:
- Rehabilitation of owner-occupied homes and residential properties determined to have critical health and safety deficiencies;
- New construction of infill development residential properties on vacant lots; and
- Demolition of blighted structures that results in replacement of housing on a one-for-one basis.
- Requirements for eligible housing units:
- All housing units proposed for rehabilitation must have an inspection completed by a professional to determine the specific health and safety deficiencies and a report must be provided to Commerce;
- All housing units proposed for rehabilitation must have an inspection completed to determine the ADA improvements needed, if applicable;
- All housing units that are proposed for rehabilitation cannot exceed the median home price for the project area;
- All proposed rehabilitation work cannot exceed either:
- The median home price for the project area, or
- The value of the property, after work has been completed based on an appraisal at the completion of the project.
- The following summarizes the major categories of assistance for the CDBG HSP Grants:
Eligibility Criteria
Under federal law, eligible applicants are limited to general-purpose local government, i.e. counties, incorporated cities and towns, and consolidated city-county governments.
Among municipalities, only Billings, Great Falls, and Missoula are ineligible to apply to the State CDBG Program because they receive CDBG funds from a separate HUD allocation for communities with populations over 50,000.
Montana’s Indian tribes also receive CDBG funds from a separate HUD CDBG Program and are not eligible to apply to the State program.
A general-purpose local government must apply on behalf of special purpose agencies or organizations such as:
- Local economic development corporations;
- Housing Authorities;
- Community Housing Development Organizations (CHDOs);
- Water or sewer districts; and
- Private and nonprofit organizations.
For more information, visit https://comdev.mt.gov/Programs-and-Boards/Community-Development-Block-Grant-Program/Housing