CDBG Entitlement FAQ

What are some of the activity delivery costs of homeownership assistance that may be charged to the CDBG activity?

Date Published: March 2019

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The salary of the grantee's staff person(s) taking and processing applications from interested homebuyers and conducting the classes listed above may be charged to homeownership assistance proportionate to the amount of time grantee staff spends on these activities.

Some grantees require credit counseling and homebuyer education classes to be completed before CDBG assistance is provided for homeownership assistance. Those classes may be considered activity delivery costs of homeownership assistance under 24 CFR 570.201(n) and HCDA Section 105(a)(25). Note that after August 1, 2020, the final compliance date, all housing counseling required under or provided in connection with HUD programs, as defined in CFR § 5.111 (b), must be provided by HUD certified housing counselors that must work for agencies approved to participate in HUD's Housing Counseling Program. In reporting on housing counseling in IDIS, grantees must use the new matrix code, 05Y.

Tags: CDBG Entitlement Program Homebuyer Assistance