CDBG - Mortgage Reduction

Dane County, Wisconsin is soliciting applications for a Community Development Block Grant (CDBG) Mortgage Reduction program designed to promote homeownership opportunities for low-and-moderate income residents within the Dane County Urban County Consortium. The procurement seeks organizations to operate a mortgage reduction assistance program that provides deferred payment loans ranging from $1,000 to $100,000 at 0% interest. Eligible costs include appraisal fees, credit reports, title insurance, recording fees, legal fees, and other closing-related expenses. The Request for Proposal (RFP) #2023-RFP-046PR was released on May 1, 2023, with a proposal submission deadline of June 30, 2023 at 2:00 pm. Evaluation criteria include a 100-point scoring system covering National Objective-Need and Justification (30 points), Project Approach (30 points), Experience and Qualifications (15 points), Financial Information (15 points), Past Performance (5 points), and Partnerships (5 points). Oral presentations by invited vendors are expected in the last two weeks of August 2023, with a notification of intent to award anticipated in the fourth quarter of 2023. The contract is expected to begin in the first quarter of 2024.

Eligible applicants include public or private non-profit agencies, faith-based organizations, units of local government, and Community-Based Development Organizations. The program requires first-time homebuyers to meet specific HUD income requirements and purchase properties within participating Dane County municipalities listed in Appendix A, which includes 55 municipalities such as Fitchburg, Sun Prairie, Verona, and Middleton. Total funding for 2024 is estimated at $1,000,000 in CDBG funds and $600,000 in HOME funds, with Dane County reserving the right to adjust the funding source. Borrowers must be owner-occupants and meet specific qualifications, including maintaining the property in good condition and carrying property insurance with Dane County listed as a mortgagee. The loan becomes immediately due and payable under certain conditions, such as property transfer, vacating the property, or refinancing with cash-out. While no specific set-aside designations for disadvantaged enterprises are explicitly mentioned, the program strongly emphasizes serving low-and-moderate income populations within the urban county consortium.