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Housing Rehabilitation, Demolition or Neighborhood Development

This program provides funding to improve housing to benefit low- to-income households in areas of slum and blight. Funds are targeted for housing rehabilitation/demolition or neighborhood development.



Funding Limit


The community must match the cost of the environmental review



Funding Limit ($300,000 for housing rehabilitation and/or demolition and $200,000 for infrastructure)


The community must match 50% of the infrastructure portion (up to $200,000) and the cost of the environmental review for the housing portion

Accepted Year-Round

January 2, 2023, - December 1, 2023



  • done
    Have an acceptable use project
  • done
    Benefit low-to-moderate income households
  • done
    Cover environmental review costs


check qualifications programs and more


Program Overview

Funding Amounts

$2 million has been set aside for the Housing Grant program in 2023. Communities can receive up to $300,000 for housing rehabilitation and /or demolition, or up to $500,000 for neighborhood development with $300,000 allowed for housing and $200,000 for infrastructure. Communities must match 50% of the infrastructure funds.

Qualifying Projects

This program funds housing improvement projects to benefit low- to-income households in a target area. If the community selects to include demolition the national objective is slum and blight.

  • Single-family/owner-occupied or rental housing rehabilitation, upper-story housing, or renovation of a building to create housing.
  • Demolition of housing units and outbuildings on the same property.
  • Neighborhood development for housing rehabilitation or demolition, plus public facility improvements including street, drainage, curbs and public sidewalks.
  • Up to 20% of rehabilitation funds may be used in emergencies.
  • Other eligible activities include removal of architectural barriers in residential properties, energy use strategy activities relating to housing and relocation of households from dilapidated residences.
  • Administration costs for grant funds.

Selection Criteria

Grant applications are evaluated for funding based on project need, readiness, impact, sustainability and matching funds source and availability.

Key considerations include:

  • When completing a Housing Rehabilitation activity the household or tenant must meet the national objective of benefiting LMI (low-to-moderate income). If the landlord is LMI they must contribute 15% of the rehabilitation cost. If the landlord's household is non-LMI they must contribute 25% of the rehabilitation cost. The demolition national objective is slum and blight.
  • The LMI numbers are listed by the county in which the applicant is located.
  • CDBG staff will assist cities in selecting a target area to conduct an LMI survey for neighborhood development applications.
  • Download grant guidelines for more information on program requirements.


Is there a match requirement?

Yes, the application requires a 25% cash match.

Can the donation of land meet part of the match requirement?

Yes, it can but at least 10% of the match must be cash.

How to figure out the low- and moderate-income (LMI) requirements?

Cities and Counties can qualify by using the 2015 HUD Census data spreadsheet to determine their current LMI percent that HUD is reporting as a qualifier. If the community does not meet our 51 percent LMI requirement based on the data in that document, they can choose to do an income-based survey of the city or county that benefits from the project. Sometimes projects are not a city-wide or county-wide benefit, which results in target area benefit. To meet the 51 percent LMI requirement for this type of project, an income-based survey of the beneficiaries only in that area is required. Additional information on how to conduct an income-based survey can be requested from the CDBG team.

If we apply for more than one project will that hurt our applications rating or chances?

Cities are eligible to submit only one application per year for our Annual Competition. Counties may apply for two. They may apply for one for themselves or one on behalf of another organization or entity.

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Tips for Success

A strong elevation of community engagement, a resilient review of community housing needs, and a well-developed stakeholder group working to complete a well-thought-out completion of the Housing Assessment Tool (HAT).

A good target area with multiple serious applicants.

Contractors with Lead Safe Renovation requirements and training.

Strong local commitment, knowledgeable administrators, and qualified inspectors/risk assessors.

How to Apply


LMI help The Community Development Block Grant (CDBG) program requires that each CDBG funded activity must either principally benefit low- and moderate-income (LMI) persons, aid in the prevention or elimination of slums or blight, or meet a community development need having a particular urgency.

View LMI Family Income Limits for
Persons in
LMI Family Income Limit*

*LMI calculations are from 2015 Census and LMI by household are from 2022 HUD Section 8. Final LMI will be confirmed upon application review.


Find Assistance

Assistance from a professional with CDBG grant experience can help you streamline and strengthen your application. Some or all of the costs to engage help can be covered by your award.

Find Pros in Your Area

Have Questions?

Email Linda Hunsicker, CDBG Specialist,
[email protected]
(785) 215-4484