- Granting Agency: Public and Indian Housing
- Appropriation Amount: $2,000,000
- Grant Amount: $1,000,000 (5% match)
- Announcement Date: June 14, 2023
- Closing Date: October 12, 2023
Purpose: The HOPE VI Main Street Program provides grants to communities smaller than 50,000 in population to assist in the renovation of a historic, traditional central business district, or “Main Street” area by replacing unused, obsolete, commercial space in buildings with affordable housing units. The obsolete building space property may be publicly or privately owned.
The objectives of the program are to:
i. Redevelop central business districts (Main Street areas);
ii. Preserve historic or traditional Main Street area properties by replacing unused commercial space in buildings with affordable housing units;
iii. Enhance economic development efforts in Main Street areas; and
iv. Provide affordable housing in Main Street areas.
Eligible Grant Activities:
Main Street Grant funds may be expended on the following activities:
a. Reconfiguration of commercial property, major rehabilitation of units that are not currently habitable or new construction to provide affordable rental or homeownership housing located within the Main Street Area. New construction and rehabilitation activities intrinsic to the development of the affordable housing units may extend to other portions of the Project, e.g. to the building envelope, to interior bearing walls of commercial space located below the affordable housing units, and to systems installation through commercial space located below or adjacent to the affordable housing units.
b. Acquisition of land or property for the purpose of developing, reconfiguring, or rehabilitating commercial space or non-habitable housing units into affordable housing in the Project. Acquisition of real property for a federally-funded program or project is subject to the URA and its implementing regulations at 49 CFR part 24. When funds from the NOFO are used for Acquisition, the total cost of acquisition is included in HUD’s maximum per unit Total Development Cost (TDC) limitation.
c. Long-term lease or transfer of Project title specifically for the purposes of obtaining tax credits or implementation of extended use restrictions, provided that the recipient owner entity of the title or lease includes the applicant.
d. Architectural or engineering activities, surveys, permits and other planning and implementation costs related to the construction and rehabilitation of the Project.
e. Tax credit syndication activities.
f. Costs arising from the relocation of persons as a direct result of acquisition, demolition, or rehabilitation of real property for the Project in accordance with the URA and its implementing regulations at 49 CFR part 24 and state and local relocation laws and regulations.
g. Manage improvements necessary for the proper development and management of the Project, such as:
i. Staff training including travel related to affordable housing development and management;
ii. Procedure manuals;
iii. Accounting systems, excluding accounting services or bookkeeping;
iv. Lease documents;
v. Resident screening procedures; and
vi. Data processing systems.
h. Leveraging non-HOPE VI funds and in-kind services. Leverage funds must be firmly committed, i.e., presented in accordance with the definitions of Commitment Letter and Leverage in the Definition of Terms, Section I. of this NOFO;
i. Community and Supportive Services, subject to a cap of fifteen percent (15%) of the requested grant amount;
j. Costs connected with the sale of homeownership (marketing, sales commissions) housing units within the Project; and
k. Section 3 activities delineated in the Section 3 Final Rule.
Eligible applicants are county governments, city or township governments, and special district governments. The local government whose jurisdiction includes the Main Street area is the only entity that is eligible to receive an award. Applications submitted by other entities, e.g., the private property owner, are not eligible for award.
The team includes the unit of local government that submits the application and where applicable, the Developer, property manager, architects, construction contractors, attorneys, investment partners that are part of an owner entity and other parties that may be involved in the development and management of the Project. To be considered as part of an Applicant Team, the entity must be included in the application.