Small Cities Development Program (SCDP)
The City of Clarkfield is preparing an application for Minnesota's Small Cities Development Program (SCDP). The program helps eligible homeowners with funding to make improvements to their homes.
The Small Cities Development Program (SCDP) helps cities and counties with funding for housing, public infrastructure and commercial rehabilitation projects. This program is funded by the Minnesota Department of Employment and Economic Development.
Overview
- Projects must meet one of three federal objectives:
- Benefit people of low and moderate incomes
- Eliminate slum and blight conditions
- Eliminate an urgent threat to public health or safety
In addition; need, impact, and cost effectiveness must be documented and the general public must be involved in the application process.
Cities with fewer than 50,000 residents and counties with fewer than 200,000 residents are eligible.
Eligible Projects & Eligibility
Eligibility is based on the Housing and Urban Development (HUD) income guidelines:
- 1 Person Household | $36,600
- 2 Person Household | $41,800
- 3 Person Household | $47,050
- 4 Person Household | $52,725
- 5 Person Household | $56,460
- 6 Person Household | $60,650
- 7 Person Household | $64,800
- 8 Person Household | $69,000
State program rules subdivide grant funds into three general categories:
Housing Grants: Funds are granted to local units of government, which, in turn, lend funds for the purpose of rehabilitating local housing stock. Loans may be used for owner-occupied, rental, single-family or multiple-family housing rehabilitation. Loan agreements may allow for deferred payments or immediate monthly payments. Interest rates may vary, and loan repayments are retained by grantees for the purpose of making additional rehabilitation loans. In all cases, housing funds must benefit low- and moderate-income persons.
Public Facility Grants: Funds are granted for wastewater treatment projects, including collection systems and treatment plants; wells, water towers and distribution systems.
Comprehensive Grants: Comprehensive projects frequently include housing and public facility activities described above. In addition, comprehensive projects may include an economic development activity, which consists of loans from the grant recipient to businesses for building, rehabilitation related to facade improvements, code violations, and health and safety issues. The most common economic development activity is rehabilitation of local commercial districts.
2017 Applications
How the program works...
75% of the project cost in the form of a 7 year forgivable loan where 1/7th of the loan is forgiven each year turning it into a grant at the 7th year. 25% of the project cost is the responsibility of the homeowner, additional grants and loans may be available.