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COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) PROGRAM The CDBG Program provides annual grants on a formula basis to be used for a wide range of community development activities directed toward neighborhood revitalization, economic development, and improved community facilities and services. Specific activities include: Acquisition of real property:
In developing their priorities and activities, Entitlement Grantees and State Grantees must ensure that
each activity meets one of the Program’s three national objectives:
Over a three-year period, at least 70% of Program funds must be used for activities that benefit low and
moderate-income persons.
Funding Status: As of this date HUD has not notified the City of a final budget figure, but last year the city was awarded $2,964,247. Legal Authority: Title I of the Housing and Community Development Act of 1974 (42 U.S.C.5301 et seq.); 24 CFR Part 570. THE HOME PROGRAM: HOME INVESTMENT PARTNERSHIPS The HOME Program provides funds to participating jurisdictions, State and local governments, based on a formula to implement local housing strategies designed to increase the supply of housing for low-income persons. The funds may be used for many housing activities, including:
All HOME-assisted housing and rental assistance is targeted to low-income families, with deeper targeting required for rental housing.
Participating jurisdictions such as Mobile are required to provide a match in an amount of 25% of the funds drawn from the jurisdiction’s HOME Investment Trust Fund in any given fiscal year. The matching requirements are reduced in a jurisdiction is in fiscal distress or severe fiscal distress, respectively. The match requirement may be waived in cases of Presidentially-declared disasters. In the past, Mobile’s matching requirement has been reduced because of fiscal distress. Jurisdictions are required to reserve 15% of their HOME funds for housing to be developed, sponsored, or owned by Community Housing Development Organizations(CHDOs). A CHDO is a private, community-based nonprofit organization which has among its purposes the provision of decent affordable housing to low-income persons. Additional information on CHDO certification is available by contacting the Mobile Housing Board’s Community Development Division. In general, HOME funds are allocated by formula. Prior to such allocation, however, several set-asides are funded. Legal Authority: Title II of the Cranston-Gonzales National Affordable Housing Act (42 U.S.C.12701 et seq.);24 CFR Part 92. Funding Status: Mobile's share last year was 1,438,240. THE AMERICAN DREAM DOWN-PAYMENT INITIATIVE (ADDI) PROGRAM The American Dream Downpayment Initiative (ADDI) was signed into law on December 16, 2003. The American Dream Downpayment Assistance Act authorizes up to $200 million annually for fiscal years 2004 - 2007. ADDI will provide funds to all fifty states and to local participating jurisdictions that have a population of at least 150,000 or will receive an allocation of at least $50,000 under the ADDI formula. ADDI will be administered as a part of the HOME Investment Partnerships Program, a formula grant program.
ADDI aims to increase the homeownership rate, especially among lower income and minority households, and to revitalize and stabilize communities. ADDI will help first-time homebuyers with the biggest hurdle to homeownership: downpayment and closing costs. The program was created to assist low-income first-time homebuyers in purchasing single-family homes by providing funds for downpayment, closing costs, and rehabilitation carried out in conjunction with the assisted home purchase. ADDI will provide downpayment, closing costs, and rehabilitation assistance in conjunction with home purchase to eligible individuals. The amount of ADDI assistance provided may not exceed $10,000 or six percent of the purchase price of the home, whichever is greater. The rehabilitation must be completed within one year of the home purchase. Rehabilitation may include, but is not limited to, the reduction of lead paint hazards and the remediation of other home health hazards. To be eligible for ADDI assistance, individuals must be first-time homebuyers interested in purchasing single family housing. A first-time homebuyer is defined as an individual and his or her spouse who have not owned a home during the three-year period prior to the purchase of a home with ADDI assistance. ADDI funds may be used to purchase one- to four- family housing, condominium unit, cooperative unit, or manufactured housing. Additionally, individuals who qualify for ADDI assistance must have incomes not exceeding 80% of area median income. Legal Authority: Title II of the Cranston-Gonzales National Affordable Housing Act (42 U.S.C. 12821) as amended by H.R. 1276. Funding Status: Last year Mobile's share was $23,897. EMERGENCY SHELTER GRANTS (ESG)
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