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Department of Housing and Urban Development

Program Description

Mission

The overall mission of the U.S. Department of Housing and Urban Development (HUD) is to increase homeownership, support community development and increase access to affordable housing free from discrimination. HUD has seven brownfield-applicable programs:

Brownfields Connections

Resources

Financial Assistance

Community Development Block Grant Program (CDBG)

The program increasingly has driven economic development activities, including brownfields redevelopment, that have the potential to stimulate job and business opportunities in low-income and blighted communities. CDBG addresses smaller neighborhood-based projects as well as larger projects, where initial resource injections are needed to help with site cleanup and related preparation. HUD funding can be used for cleanup of all types of contaminants as well as necessary redevelopment activities like demolition.

Eligibility Requirements: The CDBG funded activity must meet one of the program’s three objectives: 1) principally benefit low- and moderate-income persons; 2) prevent or eliminate slums or blight; or 3) meet other urgent community development needs.

Availability: Congress appropriated about $4,700,000,000 for the CDBG program for fiscal year 2005, including set-asides. HUD distributes 70 percent of the CDBG formula appropriations to more than 1,100 entitlement communities, and the remaining 30 percent of the formula funds go to the states for distribution to non-entitlement small cities and counties. Entitlement communities administer their own programs and have broad discretion in the selection of activities that they carry out each year. States have broad discretion in the method of distribution of funds to non-entitlement units of general local government. In Hawaii and U.S. territories, HUD makes grants directly to non-entitlement communities.

Uses/Applications:

Website: http://www.hud.gov/offices/cpd/communitydevelopment/programs/index.cfm

Community Development Block Grant Entitlement Communities Grants

The program provides annual grants on a formula basis to entitled cities and counties to develop viable urban communities by providing decent housing and a suitable living environment, and by expanding economic opportunities, principally for low- and moderate-income persons.

Eligibility Requirements: Eligible entities include: cities with populations of at least 50,000 and qualified urban counties with populations of 200,000.

Limitations: Acquisition, construction or reconstruction of buildings for government use are not eligible.

Availability: $2,876,000,000 in entitlements and $1,232,000 in non-entitlements were awarded in fiscal year 2005.

Uses/Applications:

Website: http://www.hud.gov/offices/cpd/communitydevelopment/programs/index.cfm

State Community Development Block Grant

States administer CDBG funds for non-entitlement small community areas.

Eligibility Requirements: States participating in the CDBG Program award grants only to units of general local government that carry out development activities

Uses/Applications:

Website: http://www.hud.gov/offices/cpd/communitydevelopment/programs/index.cfm

Section 108 Loan Guarantee Program

Section 108 provides federally guaranteed loans for large economic development and revitalization projects, housing and public infrastructure projects. Small cities must work through their states. CDBG recipients must provide security of the Section 108 guaranteed loan (often the assets of the assisted project) and are required to pledge a portion of their current and future CDBG grants to repay the debt in the event the project does not generate sufficient funds to repay the debt.

Eligibility Requirements: Eligible entities include CDBG entitlement recipients and states on behalf of non-entitlement jurisdictions.

Limitations: CDBG entitlement recipients and states may borrow an amount equal to five times the recipients’ latest CDBG entitlement grant.

Availability: HUD has $481,000,000 in new and carryover guarantee authority available for fiscal year 2005.

Uses/Applications:

Website: http://portal.hud.gov/hudportal/HUD?src=/program_offices/comm_planning/communitydevelopment/programs/108

Office of Community Renewal (RC/EZ/EC)

The Renewal Community/Enterprise Zone/Enterprise Community (RC/EZ/EC) Initiatives offer tax incentives and flexible funding. These efforts bring communities together through a strategic planning process to attract the investment necessary for sustainable economic and sustainable community development.

EZ/EC have had access to over $5,000,000,000 in tax incentives. These tax incentives include wage tax credits for employers, tax relief for business equipment purchases, tax-exempt bond financing for business property, and tax incentives for brownfields cleanup and redevelopment.

Limitations: Assistance is limited to already established Renewal Communities, Enterprise Zones, and Enterprise Communities. No new designations will be made.

Website: http://www.hud.gov/offices/cpd/economicdevelopment/programs/rc/index.cfm

Brownfields Economic Development Initiative (BEDI)

BEDI grants target economic development on brownfields and are intended to simulate private and public investments within local communities.

Limitations: BEDI grants must be used in tandem with new Section 108 loan guarantee commitments.

Website: http://www.hud.gov/offices/cpd/economicdevelopment/programs/edi/index.cfm

HOME Investment Partnerships Program

HOME is the largest federal block grant to create affordable housing. HUD directly distributes HOME funds to 632 state and local jurisdiction and four insular areas.

Eligibility Requirements: Annual grants are provided to participating jurisdictions, which include states, eligible cities and urban counties

Limitations: Participating jurisdictions are required to contribute or match 25 cents for each dollar of HOME funds spent on affordable housing.

Availability: HUD directly distributes HOME funds to 632 state and local jurisdiction and four insular areas.

Uses/Applications:

Website: www.hud.gov/offices/cpd/affordablehousing/programs/home/index.cfm

Lead-Based Paint Hazard Control Grant Program

HUD’s lead-based paint program was established to reduce young children’s exposure to lead paint hazards in their homes. Since 1993, HUD has awarded nearly $700,000,000 to more than 200 local and state jurisdictions. HUD provides states and local governments with grants, ranging from $1,000,000 to $2,500,000.

Eligibility Requirements: Homes selected for assistance under the grant program must have been constructed before 1978 and have lead-based paint hazards, which may include lead contaminated dust or soil. The housing must also be privately owned and occupied by or rented to low-income families.

Availability: HUD provides states and local governments with grants, ranging from $1,000,000 to $2,500,000.

Uses/Applications:

Website: http://www.hud.gov/offices/lead/lhc/index.cfm

SNAPSHOT
Yuma, Arizona

The historic Carver Park Neighborhood is a 22-block area located in the older part of Yuma, Arizona. The neighborhood has a high rate of unemployment with nearly half of its residents living in poverty. Much of the housing was substandard and for many years Carver Park was severely blighted with few prospects for revitalization. In March 200, Carver Park was declared a CDBG Neighborhood Revitalization Strategy Area. Significant housing improvements and additions have been made including: new town homes, rental housing, single-family homes; rehabilitated single-family units; and reconstructed homes. HUD also approved a Section 108 loan guarantee for homeownership activities. As part of the revitalization efforts, the Carver Park neighborhood opened the Dr. Martin L. King Neighborhood Community Center, a safe place for youth to gather. The improvements made in this neighborhood demonstrate grass roots community involvement and impressive leveraging of public and private funds and programs to maximize HUD CDBG funding. To date a total of $27.5 million has been leveraged for neighborhood revitalization from a total HUD investment of $4.1 million.

Additional Information

Stan Gimont, Director
Entitlement Communities Division
Office of Block Grant Assistance in Office of Community Planning and Development
451 7th Street, SW
Washington, DC 20410
202-708-1577 ext. 4559
stanley_gimont@hud.gov

Steve Johnson, Director
State and Small Cities Division
State CDBG Program
Office of Block Grant Assistance in Office of Community Planning and Development
451 7th Street SW
Washington, DC 20410
202-708-1322
steve_johnson@hud.gov

Bill Seedyke
BEDI/Competitive EDI
Office of Economic Development
451 7th Street, SW
Washington, DC 20410
202-708-3484 ext. 4445
william_seedyke@hud.gov

Paul Webster, Director
Financial Management and Section 108 Division
Office of Block Grant Assistance in HUD’s Office of Community Planning and Development
451 7th Street SW, Room 7180
Washington, DC 20410
202-708-1871
paul_webster@hud.gov

Pamela Glekas Spring, Director
Office of Community Renewal
Community Planning and Development
451 7th Street SW, Room 7130
Washington, DC 20410
202-708-6339
pamela_glekas@hud.gov

Mary Kolesar, Director
Office of Affordable Housing Programs
451 7th Street, SW
Washington, DC 20410
202-708-2684
mary_kolesar@hud.gov

HUD Brownfield Hotline: 800-998-9999

Main Site: http://www.hud.gov

Region 3 | Mid-Atlantic Cleanup | Mid-Atlantic Brownfields & Land Revitalization

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