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

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

Agency Type:

Local

Funding Source:

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

Conf. Date:

01/24/20

LOI Date:

01/31/20

Deadline Date:

05/01/20 Noon

Description:

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Grants to Iowa nonprofit organizations, for-profits, and housing providers to develop urban communities in eligible regions. A pre-application is required prior to submitting a full application. Funding is intended for affordable housing activities, including acquisition, rehabilitation, new construction, or direct assistance for renter- or owner-occupied housing. Projects should benefit Iowa City.

The CDBG program helps develop viable urban communities by providing decent housing and suitable living environments, and expanding economic opportunities, principally for persons of low and moderate income. The HOME program helps provide safe and decent affordable housing. Both programs are funded by the U.S. Department of Housing and Urban Development (HUD). 

First consideration for funding will go to housing (not including Community Housing Development Organizations [CHDO] operating expenses) and public facility projects of $50,000 or more.

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 befitting 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 at https://www8.iowa-city.org/weblink/0/edoc/1929061/FY21%20Application%20Guide.pdf#page=3.

GrantWatch ID#:

GrantWatch ID#: 166698

Estimated Total Program Funding:

$542,000

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-proposal Conference:

Applicants are strongly encouraged to attend one of the following events to learn more about these programs and the application process:

- Informational Workshop 1: Wednesday, January 15 at 11:00 am in Emma Harvat Hall, City Hall (410 E. Washington Street, Iowa City)

- Informational Workshop 2: Friday, January 24 at 11:00 am in Emma Harvat Hall, City Hall (410 E. Washington Street, Iowa City)

Individual workshops may be made available upon request to Kirk Lehmann.

Pre-Application Information:

The FY21 pre-app is due January 31, 2020. Full applications will be due after funding recommendations are provided the HCDC.

Pre-Application Timeline
- Pre-Applications Due: January 31, 2020 at noon
- HCDC Meeting – Question/Answer with Applicants: February 20, 2020 at 6:30 PM
- HCDC Meeting – Recommendations: March 12, 2020 at 6:30 PM
- Full Applications Due (Using Awarded Amounts): May 1, 2020 at noon

Reimbursements can be made after the contract has been formalized. Expenses incurred before July 1, 2020 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.

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, the City also expect applicants for local HOME funds to contribute to meeting this matching contribution.

More about the program:
https://www.icgov.org/city-government/departments-and-divisions/neighborhood-and-development-services/neighborhood-8

Grant and Loan Opportunities:
https://www.icgov.org/professionalassistance

Contact Information:

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

Pre-Application:
https://www8.iowa-city.org/forms/pre_cdbg

Questions can be directed to Neighborhood Services at 319-356-5230 or:
Kirk Lehmann
Community Development Planner
319-356-5247
Kirk-Lehmann@iowa-city.org

City of Iowa City
410 E. Washington St.
Iowa City, Iowa 52240

URL for Full Text (RFP):

Geographic Focus:

USA: Iowa: Iowa City

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