CDBG Entitlement FAQ
Q

A CDBG Entitlement grantee wants to carry out homeownership assistance and housing rehabilitation in its NRSA. May the grantee apply the language at 24 CFR 570.208(d)(5)(ii) in meeting a national objective since it is carrying out both homeownership assistance and housing rehabilitation? If so, how?

Date Published: March 2019

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A

Yes, the language applies, and here is an example of how aggregation of housing units may result in compliance with the low/moderate income housing national objective:

City X is carrying out homeownership assistance and has obligated CDBG funds for 60 households in the NRSA to receive this assistance. The city is also rehabilitating 50 houses in the NRSA. To meet the low- and moderate-income national objective, add the total number of housing activities together (110). Multiply 110 X .51 to determine the number of units that must be occupied by low/moderate income households (56). Since all the homeownership assistance units (60) must be occupied by low/moderate income households, this means that none of the 50 units receiving rehabilitation have to be occupied by low/moderate income households to meet the low- and moderate-income housing national objective in the NRSA.

In another example, City Y provides homeownership assistance for 30 units and rehabilitates 40 houses in its NRSA for a total of 70 units. Thirty-six (36) of these units must be occupied by low/moderate income households and the thirty homeownership assistance units must be owned by low- and moderate-income households. Therefore, only six (6) of the units being rehabilitated must be occupied by low/moderate income households. The other 34 units may meet the slum/blight national objective (or in certain circumstances, the urgent need national objective).


Tags: CDBG Entitlement Program Homebuyer Assistance

FAQ ID:

3585