How to Use this Model

How to Use this Model

This model program guide is intended for PJ staff to help communities use their HOME and CDBG funds strategically. The guide is designed to be a useful “crash course” in the programs and it highlights the differences that help practitioners invest these resources wisely. Each section describes the applicable program rules for each specific type of housing development—rental housing, homeownership, and rehabilitation—and includes a side-by-side comparison of the key requirements of the HOME and CDBG programs. This format should assist the community development practitioner in need of specific programmatic information for quick-reference.

This guide is organized in the following six sections:

Section 1: HOME and CDBG Basics introduces each program and provides general information on the eligible activities, program restrictions, and administrative requirements for each program. The section includes a chart that summarizes the key program requirements to facilitate comparison.

 Section 2: Using HOME and CDBG for Rental Housing describes rental housing requirements and illustrates how HOME and CDBG can be combined to support the development of affordable rental housing.

Section 3: Using HOME and CDBG for Homeownership Programs explores ways to assist homebuyers and considers the most effective ways that communities combine the two programs to develop housing units for purchase.

Section 4: Using HOME and CDBG for Homeowner Rehabilitation provides an analysis of using HOME and CDBG for homeowner rehabilitation.

Section 5: Using HOME and CDBG for Comprehensive Neighborhood Revitalization considers the use of HOME and CDBG funds for targeted community development within a specific neighborhood. Strategic use of HOME and CDBG along with other resources can allow communities a chance to breathe new life into a deteriorating neighborhood.

Section 6: Making Strategic Investment Decisions focuses on how communities can make the most of every subsidy dollar. Careful allocation of program funds, effective program design, and program performance review are all part of an effective use of HOME and CDBG.

Under the HOME Program, the recipient of HUD funds is known as a “participating jurisdiction” or “PJ.” Under the CDBG program, the recipient is known as a “grantee.” Throughout this guidebook, the general term “jurisdiction” will be used to mean the local or state government that receives HOME or CDBG funds. When specifically referring solely to the recipient of HOME funds, “PJ” will be used and when specifically referring solely to the recipient of CDBG funds, “grantee” will be used. Under the State CDBG Program, units of general local government that receive CDBG money from a state are sometimes known as “state grant recipients”. Under this guide they will be called units of general local government.

In addition, the guide uses the expression “low- and moderate-income” or “LMI” to refer to income-eligible persons or households under both HOME and CDBG. This is because persons or households who are at or below 80 percent of area median income, as determined and adjusted by HUD on an annual basis, are called “LMI” under the CDBG program, and “low-income” under the HOME Program. When the guide discusses the CDBG or HOME requirements of one of the programs specifically, it uses the terminology of that particular program.

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