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Improvement and Expansion of Rental Housing

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These activities improve the availability and quality of affordable rental housing, as well as strengthen existing neighborhoods through the improvement of current rental housing stock and management. These activities generally help agencies acquire and/or renovate affordable rental housing units and use the housing as a base for other neighborhood improvement activities or create affordable rental opportunities in areas of the City where few such opportunities now exist. The activities include acquisition and/or rehabilitation. These objectives address Objective A3 in the Five-Year Plan and generally benefit households with incomes 50% of median or less.

One objective of some of these activities is to expand the supply of rental housing for those with special needs into areas of the larger community (and the County) where few such housing units exist. The national benchmark is to minimize the number of census tracts with concentrations of households with poverty level incomes greater than 40% of the census tract population. Local benchmarks are stated in the Fair Share Inventory and the Consolidated Plan. The positive statement of this benchmark is to increase the economic diversity of census tracts where less than 25% of the households are low and moderate income.

Some of these activities also improve the existing stock and the availability of special needs housing units, particularly in areas of the City (and, for some funds, the County) where such housing does not currently exist, or helps eligible households to afford such housing through direct subsidies. These projects generally help non-profit agencies to acquire and/or renovate housing which combines supportive services for particular populations, such as homeless persons or persons with AIDS. These activities address Objective A4 in the Five-Year Plan and generally benefit households at 30% of the median income or less.

Funds will be applied to the acquisition, construction or rehab of permanent or transitional rental housing with rents at or below 85% of the area's Fair Market Rent.

Housing projects shall be limited to the development of a total of 8 or fewer units, unless located in areas of the City which do not have a high concentration of lower income housing, or are part of a larger neighborhood revitalization effort.

The 2000 objective is to bring a minimum of 40 units to code in a manner which makes them affordable and supports neighborhood activities, as well as assist 255 households into more stable or improved rental situations.

For information on how to submit a proposal in this category, click here.


Funds will be limited to $35,000 per unit, except for the following high-impact activities which may be provided up to $45,000 per unit or the maximum subsidy amount per the HOME guidelines, whichever is less:

Projects meeting the criteria of the CDA Scattered Site Fund may be eligible for an additional subsidy as an incentive to locate particular types of housing in areas of the City which do not have a high concentration of lower income housing.


Existing not-for-profit housing is eligible only for funds available through the Housing Development Reserve Fund.

Activities may not exceed a total loan (or other secured funds) to value ratio greater than 115%.

Housing (after rehab) shall comply with all applicable State and local minimum housing and building codes.

Funding will be targeted to capital costs including acquisition or rehab, with a maximum of 15% of the funds allowable for the support of soft development costs.

Funding for capital costs shall be secured with a mortgage in the form of a recourse loan. Funds will be provided in the form of a long-term deferred loan payable upon sale of the property or change in the use of the property. Repayment will be calculated on the appreciated prorated share of the original funding compared to the appraised value of the property.

All activities must comply with the relevant funding source requirements. The CDBG Office will require that HOME-funded activities comply with the regulations in 24 CFR Part 92. The CDBG Office will require that ESG-funded housing projects comply with ESG requirements and be designed to serve homeless individuals as defined in 24 CFR 576. Eligible capital costs include renovation.

The Commission will assist activities which support a continuum of care strategy, and give priority for ESG funds to those projects which help expand the supply of transitional housing.

NOTE FOR BOTH RENTAL AND HOMEBUYER HOUSING: Fifteen percent (15%) of HOME funds available to the City are reserved for agencies which meet the HUD definition of a Community Housing Development Organization (CHDO), as defined in 24 CFR Part 92. As part of this reserve, the Commission will provide limited operating support to qualified CHDOs within the guidelines of the HOME regulations, based upon the CHDO's prorated share of the currently managed, owned or sponsored HOME units. This operating support would be available for both owned and renter qualified HOME CHDO units. CHDO-sponsored, -managed or -owned projects may be considered for predevelopment or technical assistance loans.


Ongoing / currently funded activities in this category include:

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About the Community & Neighborhood Development Program
Currently Funded Activities ||| Results
Proposal Qualifications and Process
Materials Available from Us ||| How To Contact Us