CDBG - Mortgage Reduction

Dane County is soliciting applications from organizations to operate a mortgage reduction program through the Community Development Block Grant (CDBG) and potentially HOME Investment Partnerships Program for 2026. The program aims to promote homeownership opportunities for low-and-moderate income residents within the Dane County Urban County Consortium. Eligible organizations will develop a comprehensive mortgage reduction initiative that provides financial assistance to first-time homebuyers meeting specific criteria, including income thresholds, homebuyer education requirements, and property location restrictions. The procurement requires a detailed proposal addressing seven key evaluation criteria: national objective/need justification (20 points), project approach (35 points), experience and qualifications (15 points), financial information (15 points), partnerships (5 points), project shovel-readiness (5 points), and past performance (5 points). Key submission dates include a question submission deadline of May 23, 2025, and a proposal submission deadline of June 11, 2025 at 2:00 pm, with electronic submissions required through the county's eProcurement Portal. Proposals must comprehensively outline program implementation strategies, outreach methods, and demonstrate the organization's capacity to effectively serve low-and-moderate income populations.

The procurement is open to organizations serving Dane County Urban County Consortium member communities, with no specific set-aside designations for disadvantaged enterprises explicitly mentioned. The program will offer 0% interest loans ranging from $1,000 to a lifetime maximum of $100,000, with an estimated total funding pool of up to $1,100,000 in CDBG funds and $600,000 in HOME funds for 2026. Eligible borrowers must be first-time homebuyers, complete a homebuyer education course, qualify for a first mortgage, and meet specific debt-to-income ratio requirements. Assistance can cover various costs including appraisal fees, credit reports, title closing fees, insurance, recording fees, legal fees, survey costs, loan origination fees, and homebuyer education expenses. The program targets single-family homes, condominiums, and manufactured homes within the Dane County Urban County Consortium, excluding the city of Madison. Borrowers must occupy the property within 60 days of acquisition and adhere to specific maintenance and financial requirements, with the loan becoming immediately due under certain conditions such as property transfer, vacancy, or cash-out refinancing.