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Community Development Block Grant (CDBG) and HOME Investment Partnership (HOME)

Grants to Iowa Nonprofits, For-Profits, and Housing Providers
in Eligible Locations to Develop Urban Communities

Agency Type:

Local

Funding Source:

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City of Iowa City - Housing and Community Development Commission (HCDC)

Deadline Date:

08/31/21 Noon

Description:

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Grants to Iowa nonprofit organizations, for-profits, and housing providers in eligible locations to benefit urban communities. Funding is intended to primarily benefit residents with moderate and low incomes. Funding may be used for affordable housing activities, including acquisition, rehabilitation, new construction, or direct assistance for renter- or owner-occupied housing. Projects should benefit Iowa City.

The Community Development Block Grant (CDBG) and HOME Investment Partnerships (HOME) programs help develop viable urban communities through projects that principally benefit low- and moderate-income persons, including public facility, affordable housing, and other eligible activities listed in the Applicant Guide.

All proposals must benefit low-moderate income individuals. The specific ways that a project must accomplish the program’s purpose (also called a National Objective) varies by program.

  • CDBG Funds. At least 51% of those benefitting from the program (persons or households) must have incomes at or below 80% of the area median income (AMI) based on household size (see table below). For programs that benefit individual households, all households must earn less than 80% of the median household income.
    • Applicants must document that its purpose is being met. CDBG allows households to self-certify their income with their signature, though a percentage of beneficiaries must also provide source documentation such as pay stubs or a Social Security statement to verify the household’s income. The City must approve this percentage based on the program and number of beneficiaries – usually set between two and five percent. This source documentation must be kept in the client’s file and is subject to monitoring when City or HUD staff review the client files.
  • HOME Funds. All activities undertaken with HOME funds must benefit households below 80% AMI, and nearly all assisted units must be targeted to households below 60% AMI. 

Eligible activities can be found on page 3 of the Application Guide in Supporting Documents below.

GrantWatch ID#:

GrantWatch ID#: 166698

Estimated Total Program Funding:

$500,000

Term of Contract:

- All CDBG projects (except applicants for Low Income Housing Tax Credits) carried out by subrecipients will have expended a minimum of fifty percent (50%) of the assistance provided for the proposed project by March 15 each year.
- All HOME projects carried out by subrecipients will have entered into a formal agreement with the City of Iowa City within two years of award (24 months). All HOME funds must be spent within five years.

Additional Eligibility Criteria:

Eligibility:
- The Community Development Block Grant (CDBG): Non-profit organizations, housing providers and businesses who serve primarily low-moderate income persons are eligible to apply.
- HOME Investment Partnership Program (HOME): For-profit and non-profit housing providers are eligible to apply.

The following types of activities that are ineligible include, but are not limited to, the following:
- Public service eligible activities such as operations or salaries.
- Buildings for general conduct of government and expenses required to conduct the regular responsibilities of local government, e.g. street maintenance, public buildings for government.
- Political, religious and lobbying activities, income payments, such as rent assistance and mortgage payments. HOME only: tenant based rent assistance is an allowable activity.
- CDBG only: New housing construction, except for residential facilities providing shelter for persons with special needs ( homeless shelters, convalescent homes, halfway houses, and group homes).
- Purchase of construction equipment.

Note: The purchase or lease of furnishings, equipment, or other personal property (such as vehicles) needed for an eligible public service will not be considered under this allocation process. However, these expenses would be eligible under the City’s Aid to Agency process. Additional requirements and CDBG award limitations may apply, please contact Neighborhood Services staff to discuss.

Pre-Application Information:

Timeline:
- August 10, 2021: CDBG/HOME applications are available.
- August 31, 2021: CDBG / HOME Applications due to City of Iowa City by 12pm noon.
- September 16, 2021: HCDC meeting: question and answer discussion with applicants. Applicants are invited
to attend.
- October 1, 2021: HCDC ranking forms due to City staff.
- October 21, 2021: HCDC meeting: review of groupings and consensus funding scenario. Make award
recommendation.
- November 1, 2021: 30-day comment period begins for Substantial Amendment # 1 to FY22 Annual Action
Plan.
- November 15, 2021: CDBG / HOME Financial Verification Applications due.
- November 18, 2021: HCDC meeting: review Substantial Amendment # 1 and consider recommendation to City Council.
- November 30, 2021: 30-day comment period ends for Substantial Amendment # 1 to FY22 Annual Action Plan.
- December 7, 2021: City Council: public meeting for Substantial Amendment # 1 to FY22 Annual Action Plan.
- December 10, 2021: Substantial Amendment # 1 to FY22 Annual Action Plan submitted to HUD.

Assistance for CDBG/ HOME applicants is available until August 31, 2021. Contact Brianna Thul for assistance.

Only one project proposal may be submitted on each application. Use separate applications for each project proposal. HUD defines a project as a site or sites together with any building (including a manufactured housing unit) or buildings located on the site(s) that are under common ownership, management, and financing and are to be assisted with federal funds as a single undertaking. The project includes all the activities associated with the site and building. For direct assistance activities, project is defined as assistance to one or more families.

Reimbursements can be made after the contract has been formalized. Expenses incurred before July 1, 2021 or before a contract has been entered may not be reimbursable and may jeopardize all the CDBG/ HOME funds awarded to the project. Disbursements can be made upon receipt of 1) invoices for labor, materials and services rendered, and 2) signed lien waivers ( as appropriate) covering all amounts to be paid. In some instances, pre-agreement costs may be reimbursed to applicants; however, Neighborhood Services staff must be contacted prior to making any pre-agreement disbursements to verify if the cost may be reimbursed. In case of minor cost overruns or requests for additional funding, the City Manager and staff may approve a contract amendment that is non-substantial. In the case of substantial changes ( as defined in the Citizen Participation Plan) the Housing and Community Development Commission and City Council must approve the change and an amended agreement is required.

HOME funds are required to be matched at the rate of one match dollar for each four HOME dollars or 25% of the HOME funds being requested. The City has made a commitment to match local HOME dollars, however, we also expect applicants for local HOME funds to contribute to meeting this matching contribution.

Contact Information:

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

Apply online: https://www.iowa-city.org/Forms/CDBGHOME2022

Should you have any questions while completing the application contact Neighborhood Services staff at 319-356-5230 or by email at brianna-gabel@iowa-city.org.

Applicants may request additional assistance by contacting Brianna Thul at 319-356-5240 or brianna-thul@iowa-city.org.

URL for Full Text (RFP):

Geographic Focus:

USA: Iowa: Iowa City

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