CDBG Entitlement FAQ

Does the CDBG program have a definition of homeownership like the HOME program does? Specifically, can a housing unit that is an installment purchase be assisted with CDBG funds?

Date Published: May 2015

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The CDBG regulations are silent on a definition of homeownership. Each Grantee must describe the activities it will undertake and how it will define homeownership in its Consolidated Plan and Policies and Procedures. If in this situation the seller retains ownership rights then the current resident is not considered a homeowner but rather a renter. Under that scenario, not only is your CDBG investment unsecured but (assuming your intent is rehabilitation assistance rather than homebuyer assistance), you are in essence doing rental rehabilitation and would need the actual "owner's" approval to do the rehabilitation. You would also be required to comply with all of the requirements of rental rehabilitation, including ensuring that the "rent" paid is "reasonable" based on local policy.

Tags: CDBG Entitlement Program Homeowner Rehabilitation