DEHCR > CDBG - Housing Regions and Small Cities Revolving Loan Fund Program

CDBG - Housing Regions and Small Cities Revolving Loan Fund Program

The Wisconsin Community Development Block Grant (CDBG) program, managed by the Wisconsin Department of Administration’s Division of Energy, Housing, and Community Resources (DEHCR), supports local governments in funding housing initiatives primarily benefiting low- to moderate-income (LMI) households. Grants are used for housing rehabilitation, homebuyer assistance, converting vacant or underused buildings into affordable housing, emergency assistance (EAP), and rehab and replacement for manufactured housing in manufactured housing communities. CDBG funds are flexible and responsive to local needs.

Beyond addressing LMI housing, CDBG funds can leverage other programs, provide local match funding, or incentivize private sector involvement. The program often sparks broader community development projects.

CDBG offers 0% interest loans to homeowners and homebuyers—either deferred or with low monthly payments. Rental rehab loans are 0% interest with monthly installments. Loans are repaid when the title transfers, the home is no longer the primary residence, or the property is sold. All funds must be used for CDBG-eligible activities.

Eligible Activities

Rehabilitation of dwelling units.
Repair or Replacement of manufactured homes located in manufactured housing communities.
Removal of architectural barriers.
Homeownership opportunities for renters.
Emergency Assistance when damage does not exceed $250,000.
Payment of relocation costs and benefits.
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.

Funding

Funds are distributed between all Wisconsin counties except Dane, Milwaukee and Waukesha. The state is divided into seven regions to administer the program. Homebuyers, home-owner rehabilitation and small public facility projects should contact the appropriate region for assistance.

Entitlement Communities 2024.pdf (with populations over 50,000) receive direct assistance from the U.S. Department of Housing and Urban Development. If you are seeking assistance and live in these areas, contact the appropriate community.

Local units of government use repaid CDBG housing loans to establish a local revolving loan fund (RLF). Many municipalities throughout the state have available RLF dollars. These funds are available for the same eligible activities.

Eligibility

Towns, villages, cities with populations under 50,000, and most counties in Wisconsin (excluding Dane, Milwaukee, and Waukesha) are eligible to apply for CDBG funds. The state is divided into seven regions to ensure equitable distribution of resources to non-entitlement communities. Funding is allocated based on factors like LMI household numbers, older housing stock, affordability, and unemployment rates—criteria also used to evaluate individual applications.

Indian tribes are not eligible, as they receive funding through a separate federal program.

To qualify for CDBG-Housing assistance, individuals must be part of a low- to moderate-income (LMI) household—defined as earning 80% or less of the county median income—or be a landlord renting to an LMI household. LMI renters may also be eligible for homebuyer assistance.

Application Information

For individuals interested in information and CDBG Housing program requirements in your community, contact your CDBG Housing representative:

HUD Entitlement Areas (CDBG) are cities with populations greater than 50,000 and counties with populations greater than 200,000 (Appleton, Beloit, Dane County*, Eau Claire, Fond du Lac, Green Bay, Janesville, Kenosha, La Crosse, Madison, Milwaukee, Milwaukee County, Neenah, Oshkosh, Racine, Sheboygan, Superior, Waukesha County**, Wausau, Wauwatosa and West Allis). HUD Entitlement Area residents should contact their CDBG entitlement-area housing representative for housing assistance.

Residents of non-entitlement areas should first contact their local CDBG RLF housing representative to inquire about RLF loans. If no local CDBG Housing representative exists, residents should contact the CDBG Housing Region Administrator for their CDBG Housing Region