CDBG Entitlement FAQ
Q

If the grantee awards CDBG homeownership assistance as a loan, can it be forgivable?

Date Published: March 2019

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A

Yes. A grantee may require the homeowner to remain in the unit for a selected period after it is purchased. If the homeowner does so, the balance of the loan is forgiven. This type of loan is used more frequently for housing rehabilitation but can be used for home purchases. A grantee may also impose "due on sale" provisions requiring repayment if the homebuyer sells the property, dies, or stops occupying it as their principal residence.


Tags: CDBG Entitlement Program Homebuyer Assistance

FAQ ID:

3593