How do Community Development Block Grants (CDBG) Benefit Beaumont?
Community Development Block Grants (CDBG) is an annual program that Beaumont participates in administered by the federal government’s Department of Housing and Urban Development (HUD). They provide eligible cities and states funding to communities across the country to improve the lives of residents on a local level. The amount of funding each municipality receives is calculated by a formula that considers poverty, population, housing overcrowding, age of housing, and population growth lag in relation to other metropolitan areas.
The funding can support a variety of items, including infrastructure, economic development projects, public facilities installation, community centers, housing rehabilitation, public services, clearance/acquisition, microenterprise assistance, code enforcement, and homeowner assistance. Each city comes up with its own priorities and rules for the program and determines how they administer funds, as long as the projects primarily benefit citizens of low-to-moderate-income levels.
Applications for CDBG Funds are available on the City of Beaumont Website. These cannot be submitted electronically as all supporting documents must be turned into the Community Development office (City Hall, second floor) for review.
Types of Grants Available:
Home Investment Partnerships Program (HOME)
The HOME program is the largest Federal block grant available to states and local governments, designed to create affordable housing for low-income households. HOME is an annual formula grant that can be used, often in partnership with local nonprofit groups and Community Housing Development Organization (CHDO), to fund a wide range of activities that build, buy, and/or rehabilitate affordable housing for rental or homeownership opportunities to low-income citizens. Eligible costs depend on the nature of the program but can generally be used for new construction, rehabilitation, reconstruction, conversion, site improvements, demolition, relocation costs, refinancing, and project-related expenses.
The majority of the funding is used for down payment assistance for low to middle income citizens to purchase their first home. The maximum award is $14,999 and the home cannot exceed $150,000 and must be move-in ready.
HOME-American Rescue Plan (ARP)
The HOME-American Rescue Plan (ARP) provides funding to assist individuals who are homeless, at risk of homelessness, and other vulnerable populations by providing housing, rental assistance, supportive services, and non-congregate shelter to reduce homelessness and increase housing stability across the country. 2022 was the first time Beaumont received this funding as part of the American Rescue Plan.
Who is eligible?
These funds are administered through HUD’s HOME Investment Partnerships Program (HOME) directly to the city. It is not something that citizens can apply for but is earmarked for nonprofits that apply for specific programs to provide essential services to the community. Eligibility requirements state that recipients benefitted must be low-income (an annual income that does not exceed 80 percent of area median income) or very low-income (an annual income that does not exceed 50 percent of area median income), which for Beaumont, is currently $77,750.
We look forward to hearing from you!
The City of Beaumont hosts an annual public meeting every January to explain the Community Development Block Grant (CDBG), HOME Investment Partnership Grant (HOME), and HOME-ARP process and garner input from citizens on how the funds should be allocated. Come support your favorite nonprofit and discuss ideas you think would benefit the community.
The US Department of Housing and Urban Development (HUD) encourages communities to seek new and innovative ways to spend their HOME and CDBG funds and get creative in finding solutions. Each program differs in eligibility and requirements, but these resources can be used in tandem. For example, HOME funds are used to support homeownership in targeted neighborhoods. HOME or CDBG can provide down payment assistance to help low-income families to finance the purchase of new homes in a targeted neighborhood.
For more information, contact Jes Prince at [email protected] or call (409) 880-4770.