Alphabet

Community Development Block Grant (CDBG)

These funds are block granted to Metropolitan Statistical Areas (MSA) To be an MSA, a city’s population must exceed 50,000. In Oregon MSA’s include Portland/Moultnomah County, Salem/Keizer, Eugene/Springfield, Corvallis and Medford/Ashland. 15% of a MSA’s allocation is set aside for social services. Each city holds public hearings to prioritize the use of these funds. All activities funded with CDBG dollars must benefit at least 51% low and moderate-income individuals. Eligible activities include infra structure improvements, accessibility improvements (curb cuts, ramps etc.), owner occupied or rental property rehabilitation, site acquisition for affordable housing or facilities, which benefit low and moderate-income persons.

We use CDBG for infra structure, site acquisition, and rehabilitation.

State CDBG: For non- MSA areas, CDBG comes through a state agency. These funds are applied for through the State entity. Non_MSA municipalities and Counties are the only eligible applicants for these funds. They may be used to improve water/sewer systems, develop infrastructure, build community facilities, and provide owner occupied rehabilitation funds. Technical Assistance grants of $10,000 to develop future projects are also available.

CDBG may be used for community facilities, accessibility modifications, infrastructure and water/sewer improvements require Federal Commercial Davis Bacon compliance.

Monitoring requirements depend on the amount of funds used, and the activity for which the funds were used.

HOME ( this is the one Federal funding source without acronym!)

HOME funds are block granted to MSAs annually. HOME funds can be used for some development activities including site acquisition, architectural and engineering activities. HOME dollars are primarily used for construction and rehabilitation. They can also be used for rental subsidies for very low-income households. 15% of an area’s HOME allocation must be reserved for Community Housing Development Organizations (CHDO’s) 5% of an area’s allocation can be used to fund CHDO operating costs.

Home ownership counseling and down payment assistance for low income first time home buyers are two additional eligible activities which may be funded with HOME dollars. HOME funds assisting home ownership construction have a 5-year monitoring period.

State HOME: These funds are administered by State Housing Finance Agencies, and are used in areas of the state not eligible for block grants. Eligible uses are the same as those for MSA’s.

HOME dollars require up to 20 years of compliance monitoring. HOME funds for construction require Davis Bacon for more than 12 units.

Affordable Housing Program (AHP)

These funds are administered by the Federal Home Loan Banks. An advisory board of practitioners and affiliates determines the funding priorities for each year. There are two to four funding rounds each year. Applications are developed by non-profits or for profits, and are sponsored by an FHLB member bank. AHP funds are commonly used to insure lower rents or sales price to a first time homebuyer. A subsidy of approximately $7,000 to $20,000 per unit is common. Funds can be used for construction or rehabilitation. This is a highly competitive process, and success depends upon funding priorities of the year.

Monitoring is done by the sponsoring FHLB Bank, and requires rent roll, income verification, and other compliance measures. They have just added support for Economic Development.

Federal Low Income Tax Credits (FLITC)

This is a complex but critical program. This is a very successful mechanism for funding the development of affordable housing. The federal government funds a pool of tax credits annually. States who do not use their allocations may receive additional tax credit dollars unused in other jurisdictions. A project determines the amount of eligible FLITC funding base it has, and request an allocation of that amount. If an allocation of tax credits is awarded, the non-profit finds a buyer for the tax credits and forms a limited partnership. The limited partnership then enjoys fifteen years of tax credit against earned income. The non-profit receives the equity from the sales of the credits to the Limited partnership. These dollars can be used for pre-development, development and construction activities. This is an IRS monitored program, and the compliance burden is substantial. All tenants residing in the FLIHTC complex must be income certified annually to insure that the credits can benefit the investor for that year. The Non-profit project sponsor must fund both Operating Reserves, Replacement Reserves and submit each partnership to an annual compliance and fiscal audit. FLITC is applied through your State Housing Finance Agency.

New Market Tax Credits

We are not there yet, but essentially will be a tax credit program for commercial revitalization and economic development. Program has a 7-year compliance period, and there is a total of 2.5 BILLION available this year. Visit www.cfed.org for more info.

USDA Rural Development

There are a number of Rural Development Programs. We are currently using the Home Repair Loan/Grant program dollars, and will be using the Mutual Self-Help housing program funds.

Oregon Housing Development Grant (OHDG): Oregon Specific Sources

These funds are available twice a year, in the Spring and Fall. Funds are allocated from the State general fund, and Lottery dollars. These dollars can be used for pre-development, development, construction and rehabilitation. The maximum per project allocation is $120,000.

Oregon Affordable Housing Tax Credits (OAHTC)

These dollars are allocated by the Legislature, and are administered by Oregon Housing and Community Services. These funds are designed to buy down the interest rate on the permanent financing for a project by two basis points. If the loan interest rate is 9% and your project needs 5% loan money to keep rents affordable, OAHTC funds are reserved to pay the 4% differential over the life of the loan.

HELP These funds were awarded to the State in the form of Bond Authority from the original Stewart B. McKinney Supportive Housing and Homeless Act of 1983. HELP funds can be used for construction or rehabilitation of projects which serve battered women, the homeless or migrant workers.

Other terms and sources:

A&D These funds are used to create drug and alcohol free housing, and come through the State

SDC's

Systems Development Charges.

HUD 811

A nationally competitive grant, which funds acquisition of land, pre-development, development and construction of housing for special needs populations. Service dollars and rental subsidies are included in the grants. Ulhorn Apartments are an example.

HUD 202

A nationally competitive grant which funds housing for seniors. This program provides sufficient subsidies to insure that very low-income seniors pay no more than 30% of their gross adjusted income in rent.

Continuum Of Care ( Super NOFA from HUD, generally released in March each year)

The Notice of Fund Availability (NOFA) lists all of the competitive HUD grants and includes 8-9 possible grants. We use the Continuum of Care Homeless Assistance grants for a 36 unit transitional housing program and 20 units of Chronically Homeless housing and services. These grants must be applied for as part of a local Continuum of Care, probably run through your CAP agency. There is supposed to be a year long planning process to identify gaps in housing and services, and the HUD grant dollars are supposed to meet the most critical gaps in homeless assistance needs.

Our grants pay for 4 case managers, counseling, parent education, and operating costs ( $221,220 per year) Our two other grants pay for rental subsidies in additional to case management.

There are literally hundreds of other funding sources that Community Development Corporations use to accomplish their mission, but these are the main sources used commonly used.