To all units of government with outstanding Community Development Block Grant (CDBG) for Economic Development (ED) Revolving Loan Funds (RLF) loans:
In response to the many challenges businesses are facing related to COVID-19, the Division of Energy Housing and Community Resources (DEHCR) is committed to timely responses for any business with an outstanding CDBG-ED RLF loan that has requested changes to their repayment schedule. Local units of government need to work directly with the business to create an amendment request. Once the amendment request is finalized and all necessary documentation is attached, the request should be submitted to DEHCR for review. DEHCR's priority will be the expeditious review and response. Units of government should contact DEHCR at DOADEHCRCommunityDevelopment@wisconsin.gov if they have any questions related to their CDBG-ED RLF loans.
Community Development Block Grant - CLOSE (CDBG-CLOSE) is designed to provide the necessary regulatory and financial flexibility for communities to address local needs while simultaneously addressing the U.S. Department of Housing and Urban Development’s (HUD) concerns regarding CDBG Economic Development Revolving Loan Funds. After completing the public input process, the Department determined that the best course of action is to liquidate the remaining funding and to ultimately close all CDBG Economic Development Revolving Loan Funds (CDBG ED RLF).
Under the CLOSE program, all locally held CDBG ED RLF's as well as current CDBG ED RLF accounts receivable will be held for the Units of General Local Government (UGLG) that administered the funds to have non-competitive access to as grants. UGLG's that buy out all outstanding loans may apply for up to three (3) projects totaling the amount of their RLF Closeout Account. UGLG's that do not buy out their outstanding loans may apply for up to two (2) projects totaling the amount of their RLF Closeout Account. In addition, UGLG’s may submit an application for up to one (1) additional Planning project. Depending upon the CDBG ED RLF Closeout Account balance, some communities may be eligible to apply for more projects.
Only existing Units of General Local Government (UGLG) that hold a CDBG ED RLF fund may apply for funding.
Eligible recipients may utilize their CDBG ED RLF Closeout grant award for the currently authorized programs as outlined in the State of Wisconsin 2015-2019 Consolidated Plan without the matching funds requirement:
1. Public Facilities;
2. Housing Rehabilitation Conversion;
3. Economic Development projects;
4. Public Facilities for Economic Development projects;
5. Planning projects
In addition to the programs identified above, the CDBG ED RLF Closeout Account can be used for the following special purposes:
6. Broadband/high speed internet access for low and moderate income (LMI) residents. Grant funds can be used by the Unit of General Local Government (UGLG) for public infrastructure projects to expand broadband internet access. Examples of eligible expenses include the purchase of materials and installation.
7. Mitigation measures specifically those that address natural hazard risks; must connect the mitigation development or action to address impacts on LMI residents.
8. Public services.
What types of projects can the UGLG undertake with the funds?
All projects must meet the national objective of Low-and Moderate-Income benefit or the prevention and elimination of slum and blight. If a project meets one of the above national objectives, eligible activities include comprehensive plans, downtown or redevelopment plans, housing plans, curb and gutter improvements, street and sidewalk expansion or improvement, wastewater treatment facilities, wells and other water facilities, sewer and water system improvements, community centers, libraries, senior centers, fire stations, ADA accessibility improvements to public buildings, blighted building acquisition and demolition or rehabilitation, environmental remediation, business grants, workforce housing, job training, food pantries, drug rehabilitation, healthcare or dental clinics, and literacy programs.
Closeout Report and Application Documents
DEHCR hosted a webinar for interested persons to learn more about the program's goals, eligible recipients and projects and how interested persons may stay informed and involved with the development of the program.
An income survey may be conducted to determine the low- and moderate-income (LMI) percentage of a service area for which no HUD LMI data are available or for which it is believed the HUD LMI data may be inaccurate. Access the current Income Survey Guide and Income Survey Data Forms documents under the “Resources" section of the Bureau of Community Development home page.