Does CDBG have an affordability period?
CDBG funds may be used to implement eligible activities (defined at 24 CFR 570
How many years do you have to spend CDBG funds?
Eligible Beneficiaries Over a 1, 2, or 3-year period, as selected by the grantee, not less than 70 percent of CDBG funds must be used for activities that benefit low- and moderate-income persons.
Are CDBG grants taxable?
The CDBG dollars can be provided as a grant or a loan, as an interest reduction or a loan guarantee. If the city’s CDBG mortgages are structured so that they are fully forgiven over a specified period of time, the canceled amount would not be considered taxable income.
Is CDBG a grant or loan?
Assistance Type CDBG funds are provided as grants to non-entitlement jurisdictions. Grants can vary based on annual allocations and activity limits. Must address one of three national objectives: Benefit to low- and moderate-income persons.
Can a CDBG be used to pay for rent?
CDBG funds may not be used to provide on-going income payments such as paying for a tenant’s rent or a household’s mortgage. The only exceptions to this are: Income payments that are provided as a loan; or Income payments that are emergency in nature and do not exceed three consecutive months.
How do I apply for the CDBG program?
Qualify for a home loan through a participating lending institution, click here. Complete a Program application and submit all required program documentation. Complete the Property eligibility determination, including environmental review and property inspection. Complete the loan closing. Sign the Program’s terms and conditions disclosure.
How is excess program income calculated in CDBG?
Remittance of Program Income: The CDBG regulations require that, at the end of each program year, grantees must determine whether they have excess program income on hand and return any excess to its line of credit. Excess program income is calculated by: Assessing the aggregate amount of program income held by the grantee and its subrecipients.
How does the homebuyer assistance program ( HBA ) work?
Description: The Homebuyer Assistance Program (HBA) supports income-eligible and qualified, first-time homebuyers with financial assistance to be used towards the down payment and closing costs/eligible prepaids of a new home. The property purchased through this Program must be located in Puerto Rico.