The City of Durham has released Addendum Number 1 for its Common Federal Funding Applications for Affordable Housing and Community Development, providing clarifications to frequently asked questions from applicants.
Applicants are advised that there are no specific word limits or formatting requirements for responses. The city requests that answers be complete and recommends using a standard 12-point font. Applications should be submitted as a single PDF file. If email attachment size is an issue, applicants are encouraged to include only critical materials and coordinate with city staff if additional documentation needs to be transferred.
Organizations may submit applications for more than one project but must show they have the capacity to manage multiple proposals effectively. Regarding funding set-asides, $1,350,000 is allocated for HOME Community Housing Development Organization (CHDO) funding in this cycle, with 15% of future HOME funds also reserved for CHDOs.
There is no fixed maximum award per application; instead, applicants can request up to the available amount listed in the application materials. “Applications will be reviewed, scored, categorized by project type, and ranked by the review panel. As part of the review process, the amount of funding requested will be considered in tandem with the proposed scope of work,” according to city staff.
Awards operate on a reimbursement basis. Subrecipients must submit incurred expenses for payment in accordance with federal regulations.
Partnerships are optional rather than required. If partners are involved in a project team, their roles and experience should be clearly documented within the application. Support letters from partners outlining their responsibilities can strengthen an application.
For CHDO eligibility when partnering with organizations outside Durham, both the CHDO and relevant board representatives must be located within Durham and serve its community.
The CHDO qualification process is separate from applying for HOME Investment Partnerships (HOME) funding; however, both applications can be submitted at the same time.
Specific underwriting ratios related to HOME funds are detailed in the city’s underwriting policy document: City of Durham HOME Underwriting Subsidy Layering.
Accessory Dwelling Units (ADUs) may qualify for HOME program funding if they meet requirements specified under federal regulations: https://www.ecfr.gov/current/title-24/subtitle-A/part-92/subpart-E/subject-group-ECFRf448ea7bbdfb69a
Debt refinancing is permitted only when included as part of a rehabilitation project; it cannot be funded as a standalone activity through CDBG or HOME programs.
While planning activities can technically receive support when paired with another project code under CDBG matrix codes, planning and administration activities have already reached their cap at 20% of Durham’s annual CDBG allocation for fiscal year 2026-2027.
Past performance is considered during application reviews. “Yes, applicants are asked to provide examples of their past experience with similar projects. Reviewers will use this information to help gauge organizational capacity,” city staff stated.
Households receiving income-qualified support who later exceed income limits will not be required to move but may see changes in cost-sharing depending on assistance type.
If compliance requirements change after contracts are signed, “Subrecipients will be held to the compliance requirements contained within their signed subrecipient agreements.”
Properties subject to affordability restrictions retain those requirements even if sold before expiration of the restriction period: “The affordability requirement remains with the property or unit throughout the period of affordability.”
Future rounds of funding are expected as annual allocations from HUD continue: “Yes, we anticipate receiving annual allocations of CDBG and HOME funding from HUD. That funding will be included in future application cycles.”