The city currently uses CDBG funds to operate a homeowner rehab program. A homeowner recently applied for the program to obtain assistance in making improvements to her home. The applicant has an addition to the garage that was not built to code and would require extensive work to make it safe. Is it possible to demolish only the portion of the garage that was not built to code using CDBG funds? If so, should the demolition be done separate from the other rehabilitation work completed at the home?
Date Published: May 2015
CDBG regulations permit funds to be used to rehabilitate a garage or additions to a housing structure incidental to the rehabilitation of the home. Assuming that your local guidelines include detached garages as an eligible housing rehabilitation activity, then demolition and reconstruction of the unsafe addition may be eligible as housing rehabilitation and meet the low/moderate income housing national objective. There is no CDBG requirement for a separate bid process or contract for work on the same structure. Therefore, all of the work may be performed by one contractor.