CDBG Entitlement FAQ
Q

Where is homeownership assistance cited in the CDBG regulations, and where may you find the list of activities defined as homeownership assistance? What are those activities?

Date Published: March 2019

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A

Homeownership assistance is cited at 24 CFR 570.201(n) of the Entitlement CDBG regulations, and the list of activities is found at Section 105(a)(25) of the Housing and Community Development Act (HCDA) of 1974, as amended.

The activities as defined in the statute are: subsidizing interest rates and mortgage principal amounts; financing the acquisition of housing occupied by the homebuyers; acquiring guarantees of mortgage financing obtained by homeowners from private lenders (but not directly guaranteeing the mortgage); providing up to 50 percent of the required downpayment; and paying reasonable closing costs.


Tags: CDBG Entitlement Program Homebuyer Assistance

FAQ ID:

3598