Laserfiche WebLink
Communities- Assistance Programs-Financial Resources- [Fact Sheet:] Small Cities Develo Page 1 of 2 <br /> 111 Fact Sheet <br /> Small Cities Development Program <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 /> 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 /> 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 /> Minimum requirements <br /> Small Cities Program 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 /> 6$4-14 uNrre requirements. <br /> Proposed projects must meet one of three national objectives: <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 /> 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 /> Eligible projects <br /> State program rules subdivide grant funds into three general categories: <br /> 1. 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 stock. Loans may be used for owner-occupied, <br /> rental, single-family or multiple family housing 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. SCDP <br /> funds may also be used to assist new housing construction projects. 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 /> http://www.dted.state.mn.us/02x01x01x05.asp 9/18/02 <br />