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FY2019 Consolidated Plan: Community Development Block Grant (CDBG) Program and HOME Investment Partnership Program

Grants to Waterloo, Iowa Nonprofits for Community
Services, Development, and Housing Activities

Agency Type:


Funding Source:

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City of Waterloo, Iowa - Community Development Board

Deadline Date:

12/30/17 Receipt


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Grants to Waterloo, Iowa nonprofit organizations for local community development and housing activities. Priority will be given to activities that primarily benefit low- and moderate-income households, prevent or eliminate urban blight or slum conditions, increase affordable housing, or meet other urgent community development needs. Designated target areas will be given preference for the federal funds.

The basic goals of these programs are to: (1) provide decent housing (by assisting the homeless, retaining affordable housing stock, increasing the availability of permanent housing, and increasing supportive services for persons with special need without discrimination) and (2) provide a suitable living environment (by improving the safety and livability of neighborhoods, increasing access to quality facilities and services, reducing the isolation of income groups, revitalizing deteriorating neighborhoods, restoring/preserving features of special value for historic, architectural, or aesthetic reasons, and conserving energy resources).

Community Development Block Grant (CDBG) Program:

To be eligible for CDBG funding, proposals must address one of three broad national objectives: (1) principally benefit low- moderate-income households; (2) reduce or eliminate slum and blighting conditions; or (3) address a particular urgency (such as natural disaster(flood) or immediate health threat (Zika virus)). Funding must also address any of a number of possible eligible activities. The City has traditionally funded housing rehabilitation and a variety of public facility improvements and public service agencies.

The following is particularly noteworthy concerning CDBG "Public Service" activities:

First, a CDBG Program "public service" activity is something not traditionally considered a "brick and mortar" type of physical improvement (i.e., not construction, not rehabilitation, etc.). Generally, a public service activity will fund either a human resource (such as staffing costs) or operating costs. Examples may include: staff or operating costs at a homeless facility; operational costs of a program directed toward crime prevention; child or elderly care; counseling (substance abuse, fair housing, etc.); recreational programming; etc.

Second, no more than 15% of the City's annual entitlement (including last year's program income) may be allocated for public service projects/activities.

Third, to be considered for favorable recommendation by the City's Community Development Subcommittee, a public service activity must principally be either: (1) a new activity not undertaken / funded (from any source) within the preceding year; or (2) a quantifiable increase in the level of an already existing service. This follows the federal regulations found in 24 CFR 570.201(e). The following flow chart illustrates how eligibility determinations are made in regard to this policy.

Fourth, a public service typically may not be offered to anyone on a citywide basis. Rather, there must either be a specific primarily residential area served (such as census tract) where there exists a predominance of low- moderate-income persons, (as documented with service area boundaries and census data), or the activity must be operated such that by designed control there is assurance it will serve a specific "limited-clientele" which is predominately low- moderate income (as documented with income verification, such as paycheck stubs). Only a few groups are automatically "presumed" to benefit low- moderate-income persons. Included are those activities directed toward assisting abused children, battered spouses, elderly persons, severely disabled adults, homeless persons, illiterate adults, and persons living with AIDS. It is extremely difficult to otherwise qualify a public service on the basis of preventing or eliminating slum/blighting conditions (the only other option aside from "low/mod" income benefit, as required by Federal Statute).

Note:"Low- moderate-income households" are those, respectively by size, at or below 80% of the area median. “Predominately" means at least 51%. "Elderly" are those persons at or older than 62 years of age.

HOME Investment Partnership Program:

HOME funding is principally eligible to assist any of a number of housing assistance activities. To summarize, the City has traditionally funded down-payment assistance for qualified homebuyers, tenant-based rental assistance, housing rehabilitation and tax credit projects. A 15% set-aside requirement also ensures that a portion of the funds are provided to nonprofit entities certified as a Community Development Housing Organization ("CHDO") to carry-out other housing assistance activities. New construction is eligible under this program, but any assistance provided (for any activity) generally invokes long-term affordability provisions (to benefit low- moderate-income persons).

GrantWatch ID#:

GrantWatch ID#: 166681

Term of Contract:

The 2019 fiscal year covers the period from July 1, 2018 through June 30, 2019.

Additional Eligibility Criteria:

It is noted that rules and regulations of the CDBG Program allow great latitude for the funding of projects and activities by public and nonprofit entities.

Community Development Block Grant “subrecipient" entities may undertake activities, if they possess appropriate nonprofit status.

There is great flexibility for use of CDBG money. However, according to Federal statute, certain types of activities are not eligible by their inherent nature. This includes: new housing construction; funding any religious activity (i.e., constitutional prohibition concerning separation of church and "state"); funding political activities; and funding direct income payments to provide basic levels of food, shelter (including rent, mortgage, or utility payments), or clothing - except in case of emergency, but only for a period not to exceed three months.

More restrictive provisions of the HOME Investment Partnership Program generally limit such nonprofit funding to those entities considered a "Community Housing Development Organization" (CHDO).

Pre-Application Information:

Entitlement amounts for the upcoming FY2019 period are pending determination, but are presently estimated to equal $1,130,000 for the CDBG Program and $369,000 for the HOME Program.

New CDBG applicants are encouraged to contact City Staff in advance of application preparation to confirm activity eligibility.

Submission deadline (for receipt) is December 30, 2017.

-December 30, 2017: Application deadline
-January 9, 2018: 1st public hearing citizen input
-February 20, 2018: 2nd hearing subcommittee recommendation
-February 28, 2018: Publish in paper; 30-day comment period (March 1 - March 31, 2018)
-April 2, 2018: Set date of City Council public hearing
-April 16, 2018: City Council public hearing
-April 24, 2018: Publish intent to request release of funds
-May 9, 2018: Submit application to HUD
-May 16, 2018: Request for release of funds to HUD

Contact Information:

Before starting your grant application, please review the funding source's website listed below for updates/changes/addendums/conferences/LOIs.

Rudy D. Jones, Director

City of Waterloo Community Development
Carnegie Annex, Suite 202
620 Mulberry Street
Waterloo, IA 50703

URL for Full Text (RFP):

Geographic Focus:

USA: Iowa: City of Waterloo