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In 2016, the City of McPherson qualified for the Community Development Block Grant (CDBG). Funds were used to assist with housing rehabilitation in a specific target area with a maximum of $300,000 being spent on rehabilitating eight (8) homes. Several home demolitions were also included in the rehabilitation efforts. Due to the success of the 2016 grant program, the City of McPherson applied for an additional grant expected to approved by the end of 2017. A new target area has been identified with the goal of completing rehabilitation projects for 10 homes during 2018.
CDBG housing is a federal program designed to benefit low to moderate income families by providing housing improvements. Owner occupied properties that meet eligibility requirements are eligible for a maximum of $25,000 of rehabilitation work. For rental units, the renter must be income-qualified. If the owner of the rental unit is income-qualified, the City will pay 85 percent of the rehabilitation and the owner will be responsible for 15 percent. If they owner is above income guidelines, the owner must contribute 25 percent of the rehabilitation cost. The owner of the unit must also sign a rent-freeze agreement for a three-year period.