Small Cities Development Program
Overview
The Small Cities Development Program helps cities and counties with funding for housing, infrastructure and commercial rehabilitation projects that benefit people of low and moderate incomes.
Projects must meet one of three objectives:
- Benefit people of low and moderate incomes
- Eliminate slum and blight conditions
- Eliminate an urgent threat to public health or safety
In addition, need impact and cost effectiveness must be documented and the general public must be involved in the application process.
Cities with fewer than 50,000 residents and counties with fewer than 200,000 residents are eligible.
Eligible Projects
State program rules subdivide grant funds into three general categories:
1) Housing Grants - Funds are granted to local units of government, which, in turn, lend funds for the purpose of rehabilitating local housing stock. Loans may be used for owner-occupied, rental, single-family or multiple-family housing rehabilitation. Loan agreements may allow for deferred payments or immediate monthly payments. Interest rates may vary, and loan repayments are retained by grantees for the purpose of making additional rehabilitation loans. SCDP funds may also be used to assist new housing construction projects. Funds may also be used for land acquisition, site improvements and infrastructure and housing construction. In all cases, housing funds must benefit low- and moderate-income persons.
2) Public Facility Grants - Funds are granted for wastewater treatment projects, including collection systems and treatment plants; fresh water projects, including wells, water towers, and distribution systems; storm sewer projects; flood control projects; and, street projects.
3) Comprehensive Grants - Comprehensive projects frequently include housing and public facility activities described above. In addition, comprehensive projects may include an economic development activity, which consists of loans from the grant recipient to businesses for building renovation/construction, purchase of equipment, or working capital. The most common economic development activity is rehabilitation of local commercial districts.
Maximum Available
The maximum grant award for a Single Purpose project is $600,000. The maximum grant award for a Comprehensive project is $1.4 million.
Other Funds Required
The amount of other funds required varies and is contingent upon the project type. However, the amount of leveraged resources plays a significant role in determining whether the project is funded.
Terms
The timeline to complete projects is normally two years, depending on project size and scope.