Dane County receives annual funding from the U.S. Department of Housing and Urban Development (HUD) under two programs:
• Community Development Block Grant (CDBG)
• Home Investment Partnership Program (HOME)
These programs allow Dane County to provide financial assistance to sub-recipients (businesses, organizations, agencies, and municipalities) for housing and community development activities that benefit primarily low- and moderate-income residents of the County. Funds are distributed as grants to sub-recipients through an annual competitive application process. The County’s CDBG-Revolving Loan Funds (RLFs) provide gap financing to businesses that create jobs for low- and moderate-income persons.
Dane County CDBG and HOMECDBG is authorized by the Housing and Community Development Act of 1974. CDBG is one of HUD's programs which provides eligible metropolitan cities and urban counties (called "entitlement communities") with annual direct grants that they can use to provide decent housing, suitable living environments, and expanded economic opportunities, principally for low and moderate income persons. Dane County became an entitlement community in 1999 and annually receives approximately $1 million in CDBG funds.
Dane County CDBG and HOMEHOME is authorized under Title II of the Crantson-Gonzales National Affordable Housing Act of 1990. HOME provides grant and loan funding to create affordable housing for low-income individuals. HOME activities undertaken must accomplish at least one of two goals for low-income individuals; 1) provide decent housing and/or 2) provide suitable living environments. Dane County is required to set aside a minimum of 15% of its HOME funds for CHDOs. A Community Housing Development Organization (CHDO) is a certified, non-profit, community based service consortium that has, or intends to retain staff for the purpose of developing affordable housing in the community it serves. Dane County has been allocated HOME funding since 2002 and annual receives approximately $400,000 in HOME funds.
CDBG Revolving Loan Fund: Dane County offers low-interest loans to businesses and organizations located outside of Madison that commit to creating or retaining jobs for low- and moderate- income residents of Dane County. CDBG loans are generally intended for high-risk borrowers that have difficulty securing financing from non-federal sources. Loans must be used for eligible CDBG activities, including (but not limited to): fixed assets; machinery and equipment; and working capital.
The CDBG and HOME programs are housed in the Office of Economic and Workforce Development of the Dane County Executive’s Office. The Office works through community-based groups on projects to strengthen communities and to expand opportunities for low- and moderate-income households throughout Dane County (outside of Madison). The Office invests in community-based groups that forward the priorities to:
• Create decent, affordable housing
• Create suitable living environments
• Expand economic opportunities
The 13-member Dane County Community Development Block Grant (CDBG) Commission provides oversight for the CDBG and HOME programs. The Commission is charged with addressing policy issues related to housing and community development and with recommending eligible projects, activities, and contracts to the County Board of Supervisors and County Executive.
To receive its annual entitlement grants, Dane County must develop and submit to HUD its Consolidated Plan which guides the County in describing the housing and community development needs, resources, priorities, and proposed activities over a 5-year span. The Consolidated Plan must be developed with extensive citizen participation as outlined in the Citizen Participation Plan. The Citizen Participation Plan provides for and encourages public participation, emphasizing involvement by low- and moderate-income people. Dane County also encourages participation of minorities, people who do not speak English, and people with disabilities.
Dane County CDBG/HOME funds must be used to benefit persons living in Dane County outside the City of Madison. Applicants with funding requests for projects in the City of Madison should contact the City of Madison CDBG Office or visit the Madison CDBG webpage for more information.
A list of the communities that participate in the Urban County Consortium can be found here.