| Frederick's CDBG Activities |
The City utilizes CDBG funds for the following programs:
Housing Rehabilitation
Contact:
Single-Family Owner-Occupied Rehabilitation Program
The City of Frederick can assist qualified low-income homeowners with loans for rehabilitation using CDBG funds and or the Maryland Department of Housing and Community Development Single Family Loan Programs. Typical rehabilitation jobs include upgrades to sub- standard systems such as electrical, plumbing, heating and structural repairs such as roofs, gutters and downspouts, interior and exterior painting (especially lead hazard reduction work). Cosmetic work and remodeling are generally not included.
This program is available Citywide. There are no application fees. Maximum income limits do apply and applications are evaluated according to loan underwriting criteria including the owners’ credit history, ability to repay the loan, debt to value ratios and presence of liens or judgments on the property.
New HUD regulations on Lead-Based Paint Hazards became effective on September 15, 2000. In houses that were constructed before January 1, 1978 the rehabilitation work must include a lead hazards evaluation and may require lead hazard reduction work performed by qualified workers using safe work practices according to HUD and EPA standards. Clearance after the completion of work is required.
Sponsor Loans for Rental Owners / Lead Hazard Reduction Grant and Loan Program
The Department of Community Development is a local administrative agency for the Maryland Department of Housing and Community Development (DHCD) Single Family Rehabilitation Loan Programs. Under this program rental properties are eligible.
The City will help owners apply for rehabilitation loans and or lead hazard reduction grants from MD DHCD. Sponsor loans can be made to non-profit or for-profit owners. Md DHCD income limits, loan underwriting criteria and loan terms are employed. Once a unit has been rehabilitated under this program, there will be income limit requirements for the tenant, and caps on the rent that can be charged.
Lead hazard evaluation, qualified workers / safe work practices, lead hazard clearance are also requirements of this program.
Sold on Frederick II
Contact: Eileen Barnhard at 301 600-2842 or email ebarnhard@cityoffrederick.com
The City offers second mortgages of up to $15,000 to income eligible buyers.
The City is seeking participating lenders. If you are a bank, mortgage company, or credit union and wish to sign up click here for further information and a form.
-Sold on Frederick II Participating Lenders List
-Sold on Frederick II Program Requirements
Acquisition for Rehab
Contact: Naomi Bowers at 301-600-2843 or email nbowers@cityoffrederick.com
Through this program, the City of Frederick will identify and purchase dilapidated properties, rehabilitate them and sell to income eligible applicants.
The use of CDBG funds to acquire and sell properties requires that the purchaser(s) meet the eligibility criteria of low-to-moderate income based on the Washington Metropolitan Area Income pertaining to the grant year in which the property is being offered for sale. Program eligibility of income, credit worthiness and first-time homebuyer status will be independently verified by the Housing Programs Financial Specialist.
The Community Development Division is the lead department for the City's ongoing activities to affirmatively further Fair Housing. Division staff works to implement the activities included in the City's Fair Housing Strategy and assists the recently created Fair Housing Commission.
CDBG funds are also used by organizations (generally non-profits) working in the area of affordable housing and neighborhood redevelopment and improvement. Sub-recipients of CDBG funds receive loans for rehabilitation of facilities serving low-income persons; land for new housing; and/or homeownership loans.
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