HomeMy WebLinkAboutMontana Dept of CommerceTO:
FROM:
DATE:
SUBJECT:
Department ~
Montana Community Development Block Gra~--
Past Housing Grant Recipients
AUG 2 3 2006
CITY 0F Lf,,,UREL
Neal UIIman, CDBG Program Specialist, Housing and Public Facilities~,k.~,/
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August 22, 2006
2006 Program Income Reports - CDBG Funded Housing Projects
Each year by federal regulation, the Montana CDBG Program must request reports from
local governments that have generated program income on CDBG supported activities.
"Program Income" is any income earned by a grantee from a CDBG supported activity,
such as repayments of principal or interest to a local revolving loan fund program for
housing rehabilitation activities or economic development. These funds are often
received after a project has been completed and closed out and may be retained at the
local level, if authorized by the Montana Department of Commerce (MDOC), to be used
for community development activities eligible under the CDBG Program.
The CDBG Program is required to ensure that program income is used in a manner
consistent with the requirements of the U.S. Department of Housing and Urban
Development (HUD). The CDBG Program has instituted a grantee reporting process for
previously funded housing projects. This process requires that each local government
report the total program income fund's activity for the previous fiscal year July 1 to June
30. This applies to all CDBG housing projects that have been closed out and are
receiving loan repayments.
If your local government requested to retain program income received from its CDBG
funded housing project after project closeout, it would have had to complete a Program
Income Plan as part of the required project closeout report. This Program Income Plan
would have outlined the planned uses of program income received in conjunction with a
revolving loan fund for ongoing housing activities to assist Iow and moderate income
homeowners or renters, and may have included a goal to fund other eligible CDBG
activities as well, so long as a benefit to Iow and moderate income persons can be
documented.
For more information on eligible uses of program income and the reporting form
for program income, please see the enclosed 2005 Edition of the Community
Development Block Grant Program, Program Income and Revolving Loan Fund
Manual For housin,q revolvinq loan funds, please refer to Appendix B for the program
income reporting form.
If you have any questions please contact me at 841-2773. The program income report
should be mailed by November 15, 2006 to:
Neal UIIman, Program Specialist- Housing and Public Facilities
Community Development Block Grant Program
Montana Department of Commerce
301 S. Park Avenue
PO Box 200523
Helena, MT 59620-0523
PHONE: (406) 841-2773
E-MAIL: nul.lmen@mt.gov