Seal of Dane County County of Dane
Translate
Dane County CDBG

CDBG & HOME Programs

A new building is made possible thanks to the CDBG

Community Development Block Grant (CDBG):

The Community Development Block Grant (CDBG) Entitlement Program provides annual grants on a formula basis to entitled cities and counties to develop viable urban communities by providing decent housing and a suitable living environment, and by expanding economic opportunities, principally for low- and moderate-income persons. The program is authorized under Title 1 of the Housing and Community Development Act of 1974, as amended.  The funds that Dane County receives from HUD are distributed across the County (outside of Madison) and available to a variety of sub-recipients including municipalities, non-profit, and for-profit entities.  Since 1999 over $18 million in CDBG funds have been invested in Dane County Consortium communities.

Two people pose while constructing a home

HOME Investment Partnership (HOME):

The HOME Investment Partnership (HOME) Program is the largest Federal block grant to State and local governments designed exclusively to create affordable housing for low-income households. HOME provides formula grants to States and localities that communities use, often in partnership with local nonprofit groups, to fund a wide range of activities that build, buy, and/or rehabilitate affordable housing for rent homeownership or provide direct rental assistance to low-income people.

The HOME Program was created by the National Affordable Housing Act of 1990. Program regulations are at 24 CFR Part 92. The intent of the program is to:

  • Provide decent affordable housing to lower-income households,
  • Expand the capacity of nonprofit housing providers,
  • Strengthen the ability of state and local governments to provide housing, and
  • Leverage private-sector participation

Since 2002 over $7 million in HOME funds have been invested in Dane County Consortium communities.

National Objective

CDBG and HOME funded projects must primarily benefit low- and/or moderate-income residents of Dane County (outside of Madison) in order to be meet a HUD National Objective. Certain projects that eliminate slum and/or blight from an area, or that address an urgent community development need in an area, may also qualify.  Refer to the National Objective Fact Sheet for guidance on meeting a CDBG National Objective.  Potential applicants with eligibility questions should contact the Office of Economic and Workforce Development prior to submitting an application.

Eligible Activities:

Housing

  • Homeownership assistance (such as down-payment assistance and interest subsidies).
  • Rehabilitation of buildings that are owner-occupied housing, including (but not limited to) acquisition and rehabilitation for residential purposes; energy improvements; water efficiency improvements; and handicapped accessibility improvements.
  • Activities that support new housing construction such as acquisition, clearance, site improvements, and street improvements.
  • Rental Housing- affordable rental housing may be acquired and/or rehabilitated, or constructed.
  • Tenant-Based Rental Assistance- financial assistance for rent, security deposits, and, under certain conditions, utility deposits may be provided to tenants.

15% of HOME funds received annually must be set-aside for Community Housing Development Organizations (CHDOs). A CHDO is a private, nonprofit organization that meets a series of prescribed qualifications.

Other Real Property Activities

In additional to the housing-related activities outlined above, many other real property activities are eligible to be funded by CDBG/HOME such as: acquisition; disposition, clearance, rehabilitation of publicly- or privately- owned commercial or industrial buildings; code enforcement; historic preservation; and renovation of closed buildings.

Public Facilities and Improvements

Funds may be used for the acquisition, construction, reconstruction, rehabilitation, or installation of public improvements or public facilities.

  • “Public improvements” includes, but is not limited to, streets, sidewalks, water and sewer lines, and parks.
  • “Public facilities” includes, but is not limited to, neighborhood/community facilities and facilities for persons with special needs (e.g. homeless shelters, group homes, and halfway houses).

Public Services

Public service activities may include, but are not limited to:

  • Job training and employment services
  • Health care and substance abuse services
  • Child care
  • Crime prevention
  • Fair Housing counseling

Economic Development

Acquisition of land, buildings, machinery, and equipment; site preparation; clearance of land; rehabilitation of buildings; and working capital.

Exclusions

Generally, the following types of activities are ineligible: Acquisition, construction, or reconstruction of buildings for the general conduct government; political activities; income payments; construction of new housing by units of general local government.