mchcd: Funding Sources

Montgomery County, PA

P.O. Box 311, Norristown, PA 19404-0311
Courthouse Hours: 8:30a.m. to 4:15p.m.
Phone: 610-278-3000
Website: www.montcopa.org

Montgomery County Department of Housing & Community Development FUNDING SOURCES
 
 
I.        FEDERAL SOURCES (U.S. Department of Housing and Urban Development):   
 
 
1.   Community Development Block Grant (CDBG)
The Community Development Block Grant (CDBG) Program is an entitlement funding from HUD for the purpose of promoting community revitalization throughout the country.
CDBG funds are used for a wide range of community development activities including acquisition, rehabilitation, disposition, relocation, clearance, demolition, removal of architectural barriers, historical restoration, planning activities, public works projects, infrastructure improvements, public services, housing activities, new construction, and economic development.
Eligible activities must meet one of the CDBG’s three national objectives: (1) to benefit low- and moderate-income persons (primary objective); (2) to aid in the prevention or elimination of slums or blight; and (3) to meet other community development needs that present a serious and immediate threat to the health and welfare of the community.  Over a 1-3 year period, at least 70% of the funds spent by a grantee must be used for activities that benefit low- and moderate-income persons.

2.   HOME Investment Partnerships Program (HOME)
The HOME Investment Partnerships Program  (HOME) is an entitlement funding created primarily to support the development of affordable housing.   HOME provides general guidelines to local governments to design affordable housing strategies that address local needs and housing conditions. The funds may be used for such activities as tenant based rental assistance, homebuyer’s assistance, property acquisition, new construction, rehabilitation, site improvements, demolition, relocation, and administrative costs.
All HOME-based housing and rental assistance must be targeted to low-income households. Jurisdictions, such as Montgomery County, must reserve 15% of their HOME funds for housing to be developed, sponsored, or owned by Community Housing Development Organizations (CHDOs). A CHDO is a private, community-based non-profit organization that has among its purposes the provision of decent and affordable housing for low-income persons.
 
3.   Emergency Shelter Grants (ESG)
The Emergency Shelter Grants (ESG) program is designed to help improve the quality of existing emergency shelters for the homeless; make available additional shelters and transitional housing; meet the costs of operating shelters and providing essential social services to homeless individuals; and to help prevent homelessness.

ESG provides funding to states, cities and urban counties according to the formula used for the Community Development Block Grant (CDBG) program.  ESG funding may be used for renovation, rehabilitation, or conversion of buildings for use as emergency shelters or transitional housing; provisions of essential social services for the homeless; payment of operating costs for shelters; and the development and implementation of homeless prevention activities, such as short-term mortgage/rent or utility payments, security deposits, first month rent, landlord-tenant mediation, and tenant legal services.
 
 
4.  Continuum of Care Homeless Assistance Program
This is a competitive grant for housing and services for homeless individuals and families.  The goals of the program are to help homeless people obtain and remain in permanent housing, increase their skills and income, and achieve greater self-determination.  The Program has three components:
  • Supportive Housing Program (SHP) - Funds transitional housing or supportive services for homeless individuals and families.
  • Shelter Plus Care (SPC) - Funds rental assistance for permanent supportive housing for homeless persons with  disabilities.
  • Section 8 Moderate Rehabilitation Single Room Occupancy Program - Funds rental assistance and rehabilitation of a structure to become SRO units for homeless persons.
Montgomery County received Supportive Housing Program (SHP) funding in 1997 in the amount of $1,091,492 for the following projects: STEPS Program (direct), Indian Valley Housing Corporation (direct), Cooperative Transitional Housing Project and Supportive Housing for persons with mental illness.  The County did not receive Continuum of Care funding in 1998 and 1999 due to reduced federal funding.   However, Montgomery County will submit an application for the year 2000 funding. 
 
II.         STATE SOURCES:
 
1.   Department of Community and Economic Development (DCED)
Funding assistance for economic and community development is available through an application process with the Department or affiliated agencies (e.g., the Redevelopment Authority).
 
2.   Pennsylvania Housing Finance Agency (PHFA)
The Department has been able to leverage project-based funding from PHFA for six affordable housing developments since 1997.  
 
 
III.         LOCAL SOURCE:
 
1.   Affordable Housing Trust Fund (AHTF)
In 1993, the County Commissioners passed an ordinance to increase the recording fees of deeds and mortgages to support the County’s local affordable housing efforts.  It did so under enabling legislation from the state, which authorized all counties, except Philadelphia to double their existing recording fees.
The funds raised under such an ordinance are to be deposited in the general fund of the County.  The increased revenues must be used to fund affordable housing.  Affordable housing efforts are defined in the Act as "any program or project duly approved by the County Commissioners which increases the availability of quality housing, either sales or rental, to any county resident whose annual income is less than the County median income."
The ordinance provides that a minimum of 85% of the additional revenues go into the Affordable Housing Trust Fund to fund housing developments and programs. The County may use the remainder of the additional fees for administrative costs associated with these efforts.  To date, the Trust Fund realizes annual revenues of at least $1,000,000.