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Communities- Assistance Programs- Financial Resources- [Fact Sheet:1 Small Cities Dev... Page 1 of 2 <br /> <br />Small Cities <br /> <br />Fact Sheet <br /> <br />Development Program <br /> <br />Program purpose <br />To' provide decent housing, a suitable living environment and expanding economic <br />opportunities, principally for persons of low-and-moderate income. <br /> <br />How It Works <br />Provides federal grants from the U.S. Department of Housing and Urban <br />Development (HUD) to local units of government on a competitive basis for a <br />variety of community development projects. <br /> <br />Eligible Applicants <br />Cities and townships with populations under 50,000 and counties with populations <br />under 200,000. Indian tribal governments, which can receive funds directly from <br />HUD, are ineligible for this program. <br /> <br />Minimum requirements <br /> <br /> Small Cities Pro,am projects must comply with fair housing <br /> and equal opportunity requirements. HUD's web site has <br /> more information about fair housing and Equal opportunity <br /> ~,~ ,o,.,~,,.~. requirements. <br /> <br />Proposed projects must meet one of three national obi ectives: <br /> <br />1. Benefit to low-and-moderate income persons; <br />2. Elimination of slum and blight conditions; or <br />3. Elimination of an urgent threat to public health or safety. <br /> <br />In addition, proposed project activities must be eligible for funding, project need <br />must be documented, and the general public must be involved in the application <br />preparation. <br /> <br />Eligible projects <br />State program rules subdivide grant funds into three general categories: <br /> <br />Housing Grants. Small Cities Development Program (SCDP) funds are <br />granted to a local government which, in turn, loans funds for the purpose of <br />rehabilitating local housing stockJ Loans may be used for owner-occupied, <br />r, ental,.single-family or multiple family h9using rehabilitation. Loan <br />agreements may allow for deferred payments or immediate monthly <br />payments. Interest rates may vary, and loan repayments are retained by <br />grantees for the purpose of making additional rehabilitation loans. SCD._____~P <br />funds may also be used to assist new housing construction proiqcts. Funds <br />may also be used for land acquisition, site improvements, infrastructure or <br />housing unit construction. In all cases, housing funds must benefit low-and- <br /> <br />htm ://www.dted. state.nm.us/02x01 x01 x05. asp 1/31/2003 <br /> <br /> <br />