Previously, the City provided CDBG funds to Non-Profit Organizations undertaking the acquisition, development and/or rehabilitation of real property for the purpose of operating Special Needs Housing projects in the form of loans.

Over time, the City found that Special Needs Housing projects assisted with CDBG funds provided by the City served the most vulnerable members of our community but were also facing higher operating costs due to the need to provide supportive services, greater management oversight and lower client rents and fees.  In many instances, the providers of these services needed to seek operating subsidies from public and private sources to meet operating expenses and provide these much needed services

To address the strain and burden on the Non-Profit Organizations, the City adopted policies and procedures to convert loans from eligible Non-Profit Organizations in good standing with Federal, State and City requirements into grants in exchange for a new five year compliance period from the date which the loan is converted into a grant.

For more information, download the Loan to Grant workflow diagram and the City’s Policies and Procedures, which also contain sample documents that you can read and review.  Should you have any questions as to whether your Non-Profit Organization might be eligible to be considered for conversion, please call (808) 768-7749.