Community Development Block Grant-Disaster Recovery (CDBG-DR) Affordable Multi-family Housing Program

The U.S. Department of Housing and Urban Development (HUD) provides grants to help cities, counties, and states recover from Presidentially-declared disasters, especially in low-income areas. In response to these disasters, Congress may appropriate additional funding for the Community Development Block Grant (CDBG) Program as Disaster Recovery (-DR) grants to help rebuild the affected areas, provide crucial seed money to start the recovery process, and help communities and neighborhoods that otherwise might not recover due to limited resources. 

Important program Update

NOTICE OF INTEREST FORM DUE JULY 18, 2022, 5:00 PM 

The City of Malibu has published a Notice Inviting Interest in the CDBG-DR Affordable Multi-family Housing Program and is requesting that Eligible Developers interested in federal CDBG-DR funding available to cover funding gaps needed to finance new construction, reconstruction or rehabilitation for affordable multi-family housing projects in Malibu submit a Notice of Interest form (included as Attachment 1 to the Notice Inviting Interest) by email to the City Clerk at CityClerk@MalibuCity.org at or before 5:00 PM on Monday, July 18, 2022, after which time they will be reviewed by City staff in consultation with HCD.

CALIFORNIA DISASTERS ELIGIBLE FOR CDBG-DR 

On November 12, 2018, then-President Trump declared a major disaster in Butte, Ventura, and Los Angeles Counties in response to the Camp Fire and Woolsey Fire (FEMA Major Disaster Declaration DR-4407). On January 27, 2020, CDBG-DR funds were appropriated to the State of California to support unmet recovery needs related to FEMA Major Disaster Declarations, including DR-4407. 

Unmet disaster recovery Needs assessment

The California Department of Housing and Community Development (HCD) is the lead and Responsible Entity for administering the CDBG-DR funds allocated to the State. HCD performed an Unmet Needs Assessment that covered the areas affected by DR 4382 and DR 4407, and included data from FEMA, Small Business Administration (SBA), California’s Department of Forestry and Fire Protection (CAL FIRE), and California Department of Insurance (CDI). Based on the results of the needs assessment and federal funding requirements to address housing needs, HCD awarded the City of Malibu funds to cover funding gaps needed to finance new construction, reconstruction, acquisition, or rehabilitation for multi-family housing projects that meet federal objectives for increasing available low and moderate income housing. This allocation is based on the direct impact to the City’s renters and the remaining recovery need. 

HCD expanded the Disaster Recovery Multi-family Housing Program (DR-MHP) developed for disasters in 2017 to meet the housing needs identified as a result of the 2018 disasters. The City’s CDBG-DR allocation will be administered through this program. 

HOW CAN CDBG-DR FUNDS BE USED IN MALIBU 

The City of Malibu has approximately $15,803,348 of CDBG-DR funds intended to serve as gap funding for eligible affordable multi-family housing projects. Eligible multi-family projects include apartment buildings and mixed-use developments that benefit low- and moderate-income individuals and vulnerable populations, such as seniors, large families, people experiencing chronic homelessness in need of supportive housing, or those with special needs. Rents for these units must remain within the federal limits for affordability for up to 20 years depending on the type of project. Activities eligible for funding include but are not limited to clearance, demolition, removal, reconstruction, and rehabilitation of buildings and improvements and new housing construction.

CDBG-DR funding shall only be eligible as part of a development project for multi-family housing. In addition, such funds would only be available via reimbursement for an approved and fully-funded project at or after closing on the construction financing. Construction financing must be secured and closed by December 2023, and the projects must be completed by December 2026.

More information on the 2018 Disaster Recovery Multifamily Housing Program, including HCD’s Policies and Procedures, is available on the HCD website at HCD.CA.gov

CITY INVITES ELIGIBLE DEVELOPERS TO SUBMIT NOTICE OF INTEREST 

NOTICE OF INTEREST FORM DUE JULY 18, 2022, 5:00 PM 

The City of Malibu has published a Notice Inviting Interest in the CDBG-DR Affordable Multi-family Housing Program and is requesting that Eligible Developers interested in federal CDBG-DR funding available to cover funding gaps needed to finance new construction, reconstruction or rehabilitation for affordable multi-family housing projects in Malibu submit a Notice of Interest form (included as Attachment 1 to the Notice Inviting Interest) by email to the City Clerk at CityClerk@MalibuCity.org at or before 5:00 PM on Monday, July 18, 2022, after which time they will be reviewed by City staff in consultation with HCD.