Two programs form the cornerstone of the U.S. Department of Housing and Urban Development’s (HUD’s) community development efforts—the HOME Investment Partnerships Program and the Community Development Block Grant (CDBG). Across the country, HOME and CDBG funds are helping communities develop new affordable housing for both renters and homebuyers, rehabilitate existing homes, and turn around troubled neighborhoods.
While HOME and CDBG share the same goals—the growth and improvement of America’s communities— the programs differ in important ways. For example, HOME and CDBG have different eligible activities, different approaches to meeting the needs of low- and moderate-income families, and different rules regarding matching funds.
By using HOME and CDBG funds strategically, communities can optimize their use of both funding sources, while working within the limitations and regulations of both programs.
HOME and CDBG: Working Together to Create Affordable Housing is the community development professional’s guide to using HOME and CDBG funds for affordable housing activities as strategically as possible. This model program guide begins by outlining how HOME and CDBG work and by identifying critical differences between the two programs. Next, the guide provides a detailed consideration of how to use HOME and CDBG to support rental housing, homeownership, rehabilitation, and comprehensive neighborhood revitalization projects, giving special attention to how to coordinate the two funding sources. The guide concludes with some final considerations for making strategic investment decisions using HOME and CDBG.
Throughout the guide, the discussion will focus on the importance of using program resources effectively, and how this can be done to meet local housing and community development needs, and to stay in compliance with Federal program rules.
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