Date Published: March 2019
Yes, as a public service under 24 CFR 570.201(e) of the Entitlement CDBG regulations and Section 105(a)(8) of the Housing and Community Development Act (HCDA). However, the only homeownership activity that is allowed as a public service is downpayment assistance. (Note that there is no requirement that only 50 percent of the downpayment required be provided when such assistance is carried out as a public service.) This activity is not frequently carried out by grantees because it is a very costly activity. The primary intent of the CDBG program is for low- and moderate-income persons to benefit from CDBG-assisted activities. In addition, for public services, grantees are limited to spending no more than 15 percent of their CDBG grant plus 15 percent of the prior year's program income.