CDBG and Housing Programs Division

HOME Program

Created by the National Affordable Housing Act of 1990 (NAHA) HOME is a federally funded, large scale grant program for housing. The intent of HOME is:

• To expand the supply of decent, safe, sanitary and affordable housing

• To strengthen the abilities of state and local governments to provide housing.

• To assure that federal housing services, financing and other investments are provided to state and local governments in a coordinated, supportive fashion.

Eligibility Requirements

The HOME Program must be used to promote low-income, affordable housing activities (defined as 80% or less of area median family income, adjusted for family size)

Community Development Block Grant

Created by Congress with Passage of Title I of the Housing and Urban Development Act of 1974. HUD's CDBG program was intended to:

• Consolidate programs and services

• Replace existing Urban Renewal and Model Cities programs and

• Place more responsibility in the hands of local governments concerning the expenditure of federal funds.

Eligibility Criteria

1. Benefits principally low and moderate income persons (Incomes at or below 80% of area median income)

2. Eliminates slum and blight (Required to remedy slum and blighting conditions, so this criteria is rarely used.)

3. Urgent Need (HUD has established a high threshold for this criteria, which includes tornado, flood, or other natural disasters .

4. Must be fundable activity, which is determined by the State of Arkansas

Citizen Participation

Little Rock is fortunate to have an in-depth participation process. While federal CDBG regulations require public hearings and citizen input into the planning process, Little Rock's Citizen Participation Plan truly works to promote maximum self-direction in local neighborhoods. During the early years of the CDBG Program, funding was awarded in the amounts sufficient to provide every designated CDBG neighborhood the opportunity to participate in planning and subsequently recommend projects to the Little Rock City Board of Directors. The organizing issue was not "whether" a low-income neighborhood could utilize CDBG funds for a project but "which" project the neighborhood would recommend to the Little Rock City Board of Directors.

Over the years as the number of entitlement cities increased and with growing concern over deficit spending by Congress, Little Rock's CDBG grants decreased. In recent years neighborhoods had to reduce the scope and number of projects recommended for funding. Citizens in each Ward now compete to secure a recommendation of their proposals to the Little Rock City Board of Directors.

The current Citizen Participation Plan is structured so that each Ward is represented on the Consolidated Planning Committee, which makes recommendations directly to the Little Rock City Board of Directors on proposed CDBG activities and funding.

Public Facility Projects

Approximately $2,824,701 in CDBG funds have been expended to improve streets, drainage, and infrastructure facilities. During the first 30 years of the CDBG Program, more than 30 miles of Little Rock streets have been improved, 23.5 miles of drainage facilities have been installed, and 38 miles of sidewalks have been constructed. Many residents continue to benefit from these improvements every day without realizing that CDBG funds made them possible.

Other Programs

Wheelchair Ramp Program

The City's CDBG Program, in conjunction with Mainstream Inc. and the Southwestern Bell Telephone Company Pioneers, provides the Wheelchair Ramp Program to low-income, disabled individuals in Little Rock, the CDBG Program purchases necessary materials, and the Southwestern Bell Telephone Company Pioneers build the ramps as a public service project.

The Wheelchair Ramp Program has been funded by CDBG for fifteen years and has completed 341 ramps at a total cost of $246,543. Because project labor is donated, the ramps can be constructed for the cost of materials alone, which averages approximately $723 each. This activity is another example of how CDBG touches and improves the lives of citizens in need of assistance.

Homebuyer Assistance Grants (HAGS)

Low-income first-time homebuyers are eligible for grants of $1,500 toward the minimum down payment, closing costs, and prepaid items that he or she would otherwise have to pay out-of-pocket at closing. The property may be located anywhere in the City and there is no maximum purchase price of the house. It must be inspected by a City Codes Inspector and must be free, before the closing, of codes deficiencies that are hazards to health or safety. Application is made through any mortgage lender and the process is started simply by making the offer to buy contingent upon the buyer obtaining a HAG from the City of Little Rock.

Save-A-Home

Low-income potential homebuyers may apply for the Save-A-Home Program. The City acquires from time to time a house that is basically sound, but needs extensive repairs. The City thoroughly rehabilitates the structure, then sells it to a low-income homebuyer at a cost as much as $10,000 below the total investment by the City if necessary to make it affordable.

A list of the houses available for sale can be obtained by calling (501) 371-6825

Community Housing Development Organizations (CHDOS)

Community Housing Development Organizations (CHDOs) are neighborhood based non-profits that partner with the City of Little Rock for funding to develop affordable housing. CHDOs are currently building in targeted areas throughout the City of Little Rock. To learn more about the current homes for sale by the CHDOs, they may be contacted directly at:

Black Community Developers
Darryl Swinton, Executive Director
(501) 379-1539

Central Little Rock CDC
Viola Belton, Executive Director
(501) 376-7206

College Station CDC
Woodrow Keown, Executive Director
(501) 490-1058

Downtown Little Rock CDC
Lisa Riahi, Executive Director
(501) 372-0148

Limited Home Repair Loans

Homeowners who are 62 years of age or older or disabled and whose income does not exceed 50% of the area median for households of the same size may be considered for a "Limited Home Repair Loan." This is a deferred payment loan of up to $8,000 to make repairs to one or more of the systems of the home that must be serviceable to make the home safe to live in: the roof, the heating system, the plumbing (water, sewer, and gas), and the electrical system. If the maximum loan will not be enough to put all four systems in a condition likely to last five years, no loan will be made. The house must be structurally sound, but need not meet Code standards fully after the work is done. The City requires a lien on the property to assure that the borrower continues to own and occupy his/her home, but releases the lien after five years if those conditions are met. If the owner moves, dies, or conveys title within five years, the loan must be repaid by the owner or the estate in order to get the lien released.

Leveraged Home Rehabilitation Loans

Low-income persons who own and occupy their home within Little Rock may apply at any time for a "Leveraged Rehabilitation Loan." Applicants must be willing and able to borrow 50% of the total rehabilitation costs from a bank. The remaining 50% of the costs will be provided by the City in the form of a forgivable loan. These funds are forgiven by the City over a period of five to ten years, depending on the amount of the loan, provided the homeowner continues to own and occupy the home.

The City gives technical assistance to help the homeowner determine Code deficiencies, describe the work needed, estimate costs, apply for the bank loan, find a reliable contractor who will do the work for a fair price, and assure that the contracted work is done in keeping with industry standards. The applicant must have a warranty deed to the property; that is, there may be a mortgage on the home, but a contract to buy is not acceptable. If the repairs will cost less than $3,000, assistance will not be provided. The structure must be sound and total indebtedness secured by the property, including both rehab loans, must not exceed 110% of the fair market value of the home after rehabilitation.

Housing and Counseling

The City of Little Rock currently contracts with three organizations to provide homebuyer and credit counseling to residents of the City who are interested in purchasing a home. Classes are designed to educate the client on proper use of credit, budgeting, and how to purchase a home. Convenient evening and weekend courses are available. Further information about these classes may be obtained by contacting:

Family Service Agency
(501) 753-0202

Arkansas Community Housing Corporation
(501) 376-7151

IN-Affordable Housing
(501) 221-2203