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Posted on: July 26, 2016

Common CDBG-DR Terms


Acquisition
The utilization of CDBG funds to acquire real property. Acquisition-only is typically not considered a complete activity in the Program and must be combined with another eligible use (i.e. new construction).

Buyout Program
A buyout program uses CDBG-DR funds to purchase properties, both commercial and residential, in a target area with the intent to demolish the structures and create park amenities, open space, or flood storage/overflow areas.

Buyout vs. Replacement and Homeowner Relocation
Buyout Process – Cities or counties participating in this program must purchase properties at the pre-flood fair market value of the land and structure. Properties located in the designated area must be deed-restricted to remain green space in perpetuity.

Replacement Housing Award following Buyout – In addition to the pre-flood fair market value of the property, eligible owners may also receive a replacement housing award, with a maximum amount of award determined by the City. All awards are subject to the Robert T. Stafford Act, requiring that all funds used for disaster-related purpose must be deducted as a duplication of benefit.

Homeowner Relocation Voucher – The Relocation Grant is not to be used towards the purchase of a new home but, rather, is to be used for the relocation to that new home. The reinvestment (the purchase of an existing home, a newly constructed home, or the purchase of a lot and the contracting for home construction) must be concluded before the Voucher can be redeemed.

Duplication of Benefits
The Robert T. Stafford Disaster Assistance and Emergency Relief Act (Stafford Act) prohibits any person, business concern, or other entity from receiving financial assistance from CDBG Disaster Recovery funding with respect to any part of a loss resulting from a major disaster as to which he has already received financial assistance under any other program or from insurance or any other source.

Eligible receipts
Proof of payment for items that are strictly for rebuilding the disaster affected structure. Receipts must consist of permanent fixtures only such as wood panels, drywall, paint, carpet, etc.

Homebuyer Assistance Activity
The utilization of CDBG Disaster Recovery funding for up to 100% of the required down payment, reasonable closing costs, principal write-down assistance, subsidization of interest rates, and private mortgage insurance to facilitate the purchase of a new or existing home.

Homeowner Assistance Activity
The utilization of CDBG-DR funding to rehabilitate or reconstruct disaster -damaged homes in order for the applicant to remain in the original home at the original home site. The home to be assisted must have been owner-occupied at the time of the storm.

Ineligible receipts
Repairs that are completed on detached buildings such as garages or sheds. Personal items such as food and clothing, gasoline, tools and equipment are ineligible receipts as well.

Pre Flood Fair Market Value
The land and dwelling value for parcels, as determined by each subrecipient, prior to the disaster.

Reconstruction
Demolition and re-building of a stick-built or modular housing unit on the same lot in substantially the same footprint and manner. Activity also includes replacing an existing substandard manufactured housing unit (MHU) with a new or standard MHU or stick- built/modular housing unit. The number of units on the lot may not increase and the total square footage of the original, principal residence structure to be reconstructed may not be substantially exceeded; however, the number of rooms in a unit may be increased or decreased.

Rehabilitation
Repair or restoration of housing units in the disaster-impacted areas to applicable construction codes and standards.