CDBG-Small Cities Housing Program

The Wisconsin Community Development Block Grant (CDBG) program, administered by the Wisconsin Department of Commerce, Division of Housing and Community Development (DHCD), provides grants to general purpose units of local government for housing programs which principally benefit low and moderate income (LMI) households. CDBG dollars are flexible and responsive to local needs.

Following grant completion, the local unit of government uses repaid CDBG housing loans to establish a local revolving loan fund (RLF) for housing repairs and homebuyer assistance. Many municipalities throughout the state have available RLF dollars. For a comprehensive list of previous CDBG housing grantees as a potential source of rehab dollars, go to the CDBG-RLF Housing contact list.

In addition to addressing LMI housing needs, CDBG can be used to leverage other programs or serve as a local match. The grant also can be used as an incentive to involve the private sector in local community development efforts or to respond to area needs. Often the CDBG program serves as a catalyst for other community development projects.

General purpose units of local government (i.e., towns, villages, and cities with populations of less than 50,000 and counties other than Milwaukee, Waukesha, and Dane) are eligible to apply.  Applications may be submitted individually or jointly with another jurisdiction where mutual action is needed to solve a shared problem.

Special purpose units of government such as redevelopment authorities, housing authorities, and sanitary districts cannot apply but may be chosen by grantees to operate the program.  Indian tribes are not eligible because there is a special Indian Block Grant Program administered directly by the U.S. Department of Housing and Urban Development.

• Rehabilitation of dwelling units.
• Removal of architectural barriers.
• Homeownership opportunities for renters.
• Payment of relocation costs and benefits.
• Small public facilities projects.
• Demolition or removal of buildings so site can be used for LMI housing.
• Conversion of buildings into LMI dwelling units.
• Acquisition of real property for the construction of LMI housing with other sources of funds.
• Site improvements for the construction of LMI housing with other sources of funds.

Housing proposals will be funded in order to upgrade the quality and expand the supply of decent, safe, and sanitary housing for LMI households.  Successful programs have included residential rehabilitation (including accessibility improvements for persons with disabilities); conversion of commercial property to residential units; assistance to LMI renters to become homeowners; and small public facilities projects.

Under the Rehabilitation program, available funding is approximately $7million per year with the average 22-month grant being approximately $450,000.  The maximum award per grantee is $650,000.

While the grant ceiling establishes the maximum which may be requested, individual grants will be awarded only in amounts commensurate with the size of the community, the capacity to complete the work in a timely manner and the scope of the proposed program.

Information regarding the CDBG-Small Cities Housing Program can be obtained by contacting Joanna Schumann at (608) 261-6535.

• CDBG Fact Sheet
• CDBG Funded Organizations
• CDBG HOME Entitlement Directory
• CDBG Revolving Loan Fund
• CDBG-RLF Housing Contacts
• Emergency Assistance Program (EAP)
• Past CDBG Recipients