Small Cities Development Program

Grant to Minnesota Low-Population Counties and
Municipalities for Housing and Community Development

GrantWatch ID#: 175506
Agency Type:


Minnesota Department of Employment And Economic Development, United States Department of Housing and Urban Development (HUD)


02/23/17 4:30 PM Receipt

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Grants to Minnesota counties and municipalities with small populations to develop public infrastructure, housing, and commercial areas. A preliminary application is due by November 10. Projects must positively impact low- and moderate-income communities, reduce slum or blight, or address dangers to public health or safety.

The Small Cities Development Program (SCDP) which provides funding to non-entitlement communities. The goal of SCDP is to develop viable, eligible communities by providing financial assistance to address the need for decent, safe, affordable housing, economic development and public facility needs, and provide a suitable living environment by expanding economic opportunities.

State program rules subdivide grant funds into three general categories:

1) Housing Grants - Funds are granted to local units of government, which, in turn, lend funds for the purpose of rehabilitating local housing stock. Loans may be used for owner-occupied, rental, single-family or multiple-family housing rehabilitation. Loan agreements may allow for deferred payments or immediate monthly payments. Interest rates may vary, and loan repayments are retained by grantees for the purpose of making additional rehabilitation loans. In all cases, housing funds must benefit low- and moderate-income persons.

2) Public Facility Grants - Funds are granted for wastewater treatment projects, including collection systems and treatment plants; wells, water towers and distribution systems.

3) Comprehensive Grants - Comprehensive projects frequently include housing and public facility activities described above. In addition, comprehensive projects may include an economic development activity, which consists of loans from the grant recipient to businesses for building, rehabilitation related to facade improvements, code violations, and health and safety issues. The most common economic development activity is rehabilitation of local commercial districts.

Application Types:

1) The Single Purpose Application is used for a housing project which includes one or more activities designed to increase supply or quality of dwellings suited for the occupancy of the individuals and families, or public facilities projects which include one or more activities designed to acquire, construct, reconstruct, or install buildings or infrastructure which serve a neighborhood area or community. With the Single Purpose Application, aggregate funding amount cannot exceed $600,000. Two or more activities cannot exceed $600,000 in total.

2) The Comprehensive Application is used for projects that include a combination of at least two interrelated activities which are designed to address community development needs, which by their nature must be carried out in a coordinated manner and/or require a coordination of housing, public facilities, or community development/revitalization activities. These projects must be designed to benefit a defined geographical area. Aggregate funding amount cannot exceed $1.4 million and each activity within the application is limited to a maximum amount of $600,000.


-Single Purpose Application: Up to $600,000.
-Comprehensive Application: Up to $1,400,000 total, and up to $600,000 per activity.

The timeline to complete projects is normally 30 months, depending on project size and scope.

Eligible applicants are cities with a population under 50,000 and counties and townships with an unincorporated population under 200,000.

The amount of other funds required varies and is contingent upon the project type. However, the amount of leveraged resources plays a significant role in determining whether the project is funded.

Prior to the Application deadline, SCDP staff is available to provide technical assistance to questions regarding program regulations and defining terms in the Application package.

In addition, DEED may conduct Application Workshops to discuss the Small Cities Program Application. Potential Applicants with questions regarding the Application and/or CDBG Small Cities Program should contact the DEED representative assigned to their region.

-November 10, 2016, 4:30 PM: Deadline date for Preliminary Proposal;
-December 15, 2016: Preliminary project competitive status provided to applicants
-December 16, 2016: Start date for SCDP Application submission;
-February 23, 2017, 4:30 PM: Deadline date for SCDP Applications;
-May 2017: Funding Recommendations to DEED Commissioner;
-June 2017: Funding Agreements/Implementation Workshops

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

Counties of Kittson, Marshall, Norman, Pennington, Polk, Red Lake, Roseau, Cottonwood, Jackson, Lincoln, Lyon, Murray, Nobles, Pipestone, Redwood, Rock, Big Stone, Chippewa, Lac Qui Parle, Swift, Yellow Medicine, Becker, Clay, Douglas, Grant, Otter Tail, Pope, Stevens, Traverse, and Wilkin:

Natasha Kukowski
651-259-7461 / 800-657-3858

Counties of Carver, Scott, Aitkin, Carlton, Cook, Itasca, Koochiching, Lake, Cass, Crow Wing, Morrison, Todd, Wadena, Chisago, Isanti, Kanabec, Mille Lacs, and Pine:

Hillary Friend
651-259-7504 / 800-657-3858

Counties of Beltrami, Clearwater, Hubbard, Lake of the Woods, Mahnomen, Kandiyohi, McLeod, Meeker, Renville, Benton, Sherburne, Stearns, Wright, Blue Earth, Brown, Faribault, Le Sueur, Martin, Nicollet, Sibley, Waseca, Watonwan, Dodge, Fillmore, Freeborn, Goodhue, Houston, Mower, Olmsted, Rice, Steele, Wabasha, and Winona:

Patrick Armon
651-259-7455 / 800-657-3858

Submit Preliminary Proposals to:

Minnesota Department of Employment and Economic Development
1st National Bank Building
332 Minnesota Street, Suite E200
St. Paul, MN 55101-1351
Attn. Community Finance Division, SCDP

Minnesota, excluding the Counties of St. Louis, Anoka Dakota, Hennepin, Ramsey, and Washington

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USA: Minnesota

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