CDBG - Homebuilding

Dane County is soliciting applications for a Community Development Block Grant (CDBG) Homebuilding program designed to develop affordable new housing for low-and-moderate income residents within the Dane County Urban County Consortium. The procurement seeks organizations to construct single-family housing units that will be sold to income-eligible buyers, with funding potentially available through CDBG or HOME Investment Partnership funds. The Request for Proposal (#42609-CDBG-HB) requires detailed project submissions focusing on developing affordable housing in participating Dane County municipalities, excluding Madison. Key deliverables include constructing housing units that meet specific criteria, such as sales prices not exceeding 95% of the median purchase price for single-family housing in Dane County. The evaluation criteria will assess applications across seven categories: National Objective - Need and Justification (20 points), Project Approach (35 points), Experience and Qualifications (15 points), Financial Information (15 points), Partnerships (5 points), Shovel-Ready Projects (5 points), and Past Performance (5 points). Proposal submissions are due on June 11, 2025, at 2:00 pm, with questions accepted until May 23, 2025, and potential contract execution anticipated in December 2025.

Eligible applicants include public or private non-profit agencies, faith-based organizations, local government units, and Community Housing Development Organizations. Prospective applicants must serve municipalities within the Dane County Urban County Consortium and meet specific requirements, such as passing environmental reviews and ensuring prospective homebuyers are first-time buyers who meet HUD income requirements. While no specific set-aside designations are mentioned, the program emphasizes supporting low-and-moderate income households through comprehensive eligibility screenings, including income verification and mandatory homebuyer education. The estimated funding for 2026 may include up to $1,100,000 in CDBG funds and $600,000 in HOME funds, with potential disbursement categories including Mortgage Reduction assistance. The program offers 0% interest loans ranging from $1,000 to a lifetime maximum of $100,000, which can be used for downpayment and closing cost assistance, subject to specific financial requirements such as maintaining a housing debt-to-income ratio not exceeding 38% and a total debt-to-income ratio not exceeding 55%.