PURPOSE:
The Community Development Block Grant (CDBG) program (CDBG) offers grants to Missouri communities to improve local facilities, address health and safety concerns, and develop a greater capacity for growth. The Rural Affordable Housing RFP (Request for Proposals) category is intended to make the development of affordable housing feasible in communities that have the need but are lacking conventional resources.
AUTHORIZATION:
42 USC § 5301 et seq., 24 C.F.R. Part 570; and Missouri’s “Consolidated Plan” submitted to the U.S. Department of Housing and Urban Development.
ELIGIBLE APPLICANTS:
Missouri cities and counties in non-entitlement areas.
ELIGIBILITY CRITERIA:
State CDBG funds are only available to cities and counties in non-entitlement areas. A non-entitlement area is a city with population less than 50,000 and/or a county with population less than 200,000.
PROGRAM BENEFITS/ELIGIBLE USES:
Rural Affordable Housing funds can be used for rehabilitation of existing apartment complexes into senior or multi-family housing, infrastructure, single-family construction, acquisition, and professional services, such as appraisal and review appraisal services.
FUNDING LIMITS:
The maximum amount any applicant can apply for is $250,000 or $5,000 per household.
APPLICATION/APPROVAL PROCEDURE:
All applicants submitting a proposal are required to propose applications to the Missouri Housing Development Commission (MHDC) Low Income Housing Tax Credit (LIHTC) program.
The funding cycle is competitive, with a deadline of August 15.Project proposals that achieve the following will receive priority:
- A partnership between a nonprofit and a conventional LIHTC developer
- Clearly describe a need for CDBG assistance to close a financial gap for housing development in rural Missouri
- Exist in areas where homes are cost burdened
- Promote redevelopment and rehabilitation
- Promote historic preservation
- Support a local housing plan
- Offer a mixed income development
- Renovate existing housing such as building or apartment complex
- Include amenities not customary in a project, such as child care, after-school study room with computer access, and employment counseling with computer access
- Consist of a development team with appropriate capacity to complete the project
- Structure the use of CDBG funds to accomplish additional development and sustainability through the use of program income
Selection is accomplished by eliminating all proposals that do not substantiate a financial need for CDBG funds, eliminating proposals where affordable housing development is occurring as a result of the market, and evaluating the balance of the proposals based on the priorities listed above.
- Renovation of existing complexes
- Single-family houses with home ownership option component
- Historic Preservation projects
SPECIAL PROGRAM REQUIREMENTS:
All CDBG-funded projects must meet a national objective set forth by the U.S. Department of Housing and Urban Development (HUD). Project activities must show:- 100% low-to-moderate income (LMI) beneficiaries for rehabilitation or new construction activities, or
- 51% low-to-moderate income (LMI) benefit of persons and families for infrastructure activities, or
- Eliminates slum and blight with demolition activities.
In regard to #3 above, projects creating affordable housing from buildings that meet the definitions of slums and blight may apply under that national objective. Acquisition, appraisal, and grant administration activities are the primary uses of funds by applicant cities and counties and their project developer.
CONTACT
Department of Economic Development
Division of Business and Community Services
Development Finance Team
301 West High Street, Room 770
P.O. Box 118
Jefferson City,
MO
65102-
Phone:
(573) 751-3600
Fax:
(573) 526-4157
E-Mail:
dedfin@ded.mo.gov