Many communities all over the country struggle with being able to provide decent, safe, and sanitary affordable rental housing to their residents. When you have a mission of creating a place for people to flourish, navigating the ins and outs of funding is vital. Community Development Block Grant (CDBG) funds are often used to acquire, rehabilitate, or construct multi-family rental housing.
The Housing and Community Development Act of 1974 and the CDBG regulations establish activities eligible for CDBG-DR funding. Regarding multi-family rental housing, possible eligible properties might receive the rehabilitation of damaged units, mitigation of units damaged and determined to be in environmentally sensitive areas (for example: 100-year flood plain), reconstruction of units, resiliency measures for damaged units, new construction of units or the relocation of units out of an environmentally sensitive area.
Eligible properties range from single structures to large complexes, including properties held by state housing authorities or public housing authorities. At HORNE, we are experts in determining what qualifies. There are many regulations and stipulations, such as:
- Each CDBG-DR assisted project must meet a national objective. Most often, a multi-family rental project will meet the low- and moderate-income (LMI) national objective.
- If a structure contains more than two dwelling units, at least 51% of the units must be occupied by a LMI household.
- Multi-family developments also fall under Davis Bacon and Related Acts:
- The Davis-Bacon and related Acts apply to contractors and subcontractors performing on federally funded or assisted contracts in excess of $2,000 for the construction, alteration, or repair (including painting and decorating) of public buildings or public works.
- Davis-Bacon Act and Related Act contractors and subcontractors must pay their laborers and mechanics employed under the contract no less than the locally prevailing wages and fringe benefits for corresponding work on similar projects in the area.
You can find out how you can help your community by providing an innovative and refreshing approach to affordable housing—where people and community come together, where everyone matters, and where families have the opportunity to thrive instead of just survive.
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