Stimulus Funds for Housing

City to Receive Stimulus Funds for Housing

The U.S. Department of Housing and Urban Development has announced that the City of Indianapolis will receive $2.5 million in Community Block Grant (CDBG) and $3.9 million in Homeless Prevention Fund money as part of the American Recovery and Reinvestment Act of 2009 (Recovery Act).

The Recovery Act includes $13.61 billion for projects and programs administered by the Department of Housing and Urban Development, nearly 75 percent of which was allocated to state and local recipients on February 25, 2009. The remaining 25 percent of funds will be awarded through a competitive process in the coming months.

The CDBG program enables local governments to undertake a wide range of activities intended to create suitable living environments, provide decent affordable housing and create economic opportunities, primarily for persons of low and moderate income. Under the Recovery Act, recipients are directed to give priority to projects that can award contracts based on bids within 120 days of the grant agreement.

The Homelessness Prevention Fund will provide financial assistance and services to prevent individuals and families from becoming homeless and help those who are experiencing homelessness to be quickly re-housed and stabilized.

The funds under this program are intended to target individuals and families who would be homeless but for this assistance. The funds will provide for a variety of assistance, including short-term or medium-term rental assistance, housing relocation and stabilization services, mediation, credit counseling, security or utility deposits, utility payments, moving cost assistance, and case management.

At least 60 percent of funds must be spent within two years, and all funds must be spent within three years.