Community Development Block Grant (CBDG)
The United States Department of Housing & Urban Development (HUD) has awarded the City of Hutchinson a $240,000 CDBG grant from Commerce for the purpose of housing rehabilitation within a target area. This program is designed to provide housing rehabilitation for low- to-moderate income individuals who own (or rent) a housing unit within the target area, which is bounded by Main street on the east, 6th Street to the South, Adams street on the west, and the south side of 8th Street to the North.
What the grants cover:
Housing Rehabilitation grants help maintain a house by paying for repairs to the structure, such as roofing, siding, windows, electrical, plumbing, etc. This grant will not pay for cosmetic changes to a home.
The maximum amount of CDBG federal grant funds to be spent on rehabilitation is $25,000 per unit. Private match is encouraged to fill the gap in financing if a rehabilitation will exceed this threshold.
For a more complete description of what the grant can cover, please view the 2020 Community Development Block Grant Housing Rehabilitation Plan.
- The property must be located in the target area.
- Total household income for all individuals 18 years or older living in the home must be less than the low- to moderate income guidelines set by HUD for Hutchinson, Reno County, Kansas.
Note: The LMI income limits will always use the most current income requirements as established by HUD.
No. in Household LMI Income 1 $34,450 2 $39,400 3 $44,300 4 $49,200 5 $53,150 6 $57,100 7 $61,050 8 $64,950
- The eligible home must be the primary residence of the applicant for owner-occupied units.
- For rental units, the renter must be income qualified.
- If the owner of the rental unit is also income-qualified, the City will pay 85 percent of the rehabilitation and the Owner will be responsible for 15 percent.
- If the owner is above income guidelines, he/she must contribute 25 percent of the rehabilitation cost.
- The owner of the unit must also sign a rent-freeze agreement for a three-year period
- The real property taxes and utilities must be current for all properties.
- Hazard insurance naming the City as an additional insured in at least the amount of the rehabilitation contract will be required. If repairs are necessary to obtain the hazard insurance, then evidence is required showing that coverage will be provided upon completion of the rehabilitation.
- The applicant must have owned the unit prior to the grant award, January 17, 2020.
- Additionally, the household residents cannot have access to net assets exceeding $100,000, excluding primary residence, personal vehicle, and household goods.
All income information will be kept confidential. All information will need to be verified.
For complete eligibility requirements, please view the 2020 Community Development Block Grant Housing Rehabilitation Plan. Applicants will be screened and rated in accordance with eligibility criteria as set out in this plan.