Funding Sources

HOME Investment Partnerships Program (HOME)

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The HOME Investment Partnerships Program (HOME) provides formula grants to the City of Salinas to fund a wide range of activities including building, buying, and/or rehabilitating affordable housing for rent or homeownership or providing direct rental assistance to low-income people. HOME is the largest federal block grant to state and local governments designed exclusively to create affordable housing for low-income households. HOME funds are awarded annually as formula grants to participating jurisdictions (PJs). The program’s flexibility allows states and local governments to use HOME funds for grants, direct loans, loan guarantees or other forms of credit enhancements, or rental assistance or security deposits.

The program reinforces several important values and principles of community development:

  • Flexibility empowers communities to design and implement strategies tailored to their own needs and priorities.
  • Emphasis on consolidated planning and strengthens partnerships among private sector in the development of affordable housing.
  • Set-aside funding for qualified community-based nonprofit housing groups.
  • Requirement that participating jurisdictions match 25 cents of every dollar in program funds mobilizes community resources in support of affordable housing.

Community Development Block Grant Program (CDBG)

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Community Development Block Grant Program (CDBG)

The City of Salinas is a CDBG "Entitlement" city (i.e.; for cities with populations over 50,000). As a CDBG Entitlement city, the City of Salinas receives an annual allocation of CDBG funds. The grant amount is determined by the higher of two (2) formulas:

  1. Data based on overcrowded housing, population and poverty, or
  2. Data based on age of housing, population growth lag and poverty.

The CDBG program works to ensure decent affordable housing, economic development and public services; primarily to the benefit of low and moderate income (LMI) population (neighborhoods). LMI is defined as neighborhoods, families, households, and individuals whose income does not exceed 80 percent of the county median income, as indicated by the United States Department of Housing and Urban Development (HUD).

 

American Rescue Plan Act (ARPA)

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The American Rescue Plan Act of 2021, enacted in mid- March 2021, included funding for housing-related programs intended to assist with financing long-term affordable housing projects with loans and grant options, including those use the Low-Income Housing Tax Credit (LIHTC).

The Department of Treasury released updated FAQ's for additional guidance and an Affordable Housing How-To Guide as an informational tool for combining different sources of federal funds. 

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