Department Of Commerce

Community Development Block Grant Housing

Montana's CDBG Housing grants help local governments fund primarily the rehabilitation of single-family or multi-family housing projects that benefit low- to moderate-income. Montanans, i.e., households earning less than 80% of the area median income. CDBG offers two distinct types of housing grants:
  • The competitive CDBG Affordable Housing Development and Rehabilitation Grant, for which applications are accepted every fall, and
  • The CDBG Housing Stabilization Program, for which applications are accepted on an ongoing basis.


CDBG Affordable Housing Development and Rehabilitation Grants
This grant is intended primarily for the rehabilitation of affordable housing projects. Typically, these housing projects are multi-family rental projects in which CDBG fills a funding gap. To view the CDBG Housing Application Guidelines, click on the Applying for Grants tab below. The next deadline is Sept. 15, 2026.

CDBG Housing Stabilization Program Grants
Successful applicants will qualify to access the CDBG HSP pool of funds for a period of five years. During that time, local governments are eligible to receive funds for the rehabilitation of single-family owner-occupied or rental units that benefit low- to moderate-income households. There is no maximum grant amount, and funds will be allocated based on the individual level of need and the scope of the project. Applications are accepted at any time. In 2026, Commerce is pausing the CDBG-HSP because all of our funds have been allocated. Commerce expects to receive 2026 funds in the Fall of 2026.

Commerce Community Housing invites you to help us streamline the Community Development Block Grant Housing Stabilization Program. Please give your input on this powerful, community program that enriches the lives of Montanans. Answer this four-question survey to weigh in.

The CDBG Administration Manual provides information and toolkits for administering CDBG Projects.

Eligible Projects

 

The activities that are eligible for funding under Montana's CDBG Program are limited to those set out by Congress in Title I of the Housing and Community Development Act of 1974.

CDBG Affordable Housing Development and Rehabilitation Grants

The following summarizes the major categories of assistance for the CDBG Affordable Housing and Rehabilitation Grants:
  • New construction of multi-family housing or multiple single-family housing developments, under certain circumstances
  • Rehabilitation of multi-family rental housing;
  • Temporary housing facilities such as homeless shelters or domestic violence shelters, and
  • Neighborhood revitalization and renewal activities, such as improvements to sidewalks, street lighting or neighborhood playgrounds.

These projects may include the following activities:

  • Rehabilitate substandard housing;
  • Support the construction of new, permanent housing under certain circumstances
  • Finance or subsidize the construction of new permanent residential units under certain circumstances
  • Site improvements or provision of public facilities to be used or sold for new housing;
  • Demolition of vacant, deteriorated housing units with the intent of making the site available for new construction of affordable housing
  • Acquiring sites for use or resale for new housing, and converting existing nonresidential structures for residential use; and
  • Neighborhood renewal activities such as cleaning up junk and debris or improving or constructing sidewalks, streets or neighborhood parks.

CDBG Housing Stabilization Program Grants

The following summarizes the major categories of assistance for the CDBG HSP Grants:

  • Rehabilitation of owner-occupied homes and residential properties determined to have critical health and safety deficiencies;
  • New construction of infill development residential properties on vacant lots under certain circumstances; and
  • Demolition of blighted structures that results in the replacement of housing on a one-for-one basis.

Requirements for eligible housing units:

  • All housing units proposed for rehabilitation must have an inspection completed by a professional to determine the specific health and safety deficiencies, and a report must be provided to Commerce;
  • All housing units proposed for rehabilitation must have an inspection completed to determine the ADA improvements needed, if applicable;
  • All housing units that are proposed for rehabilitation cannot exceed the median home price for the project area;
  • All proposed rehabilitation work cannot exceed either:
    • The median home price for the project area, or
    • The value of the property, after work has been completed, is based on an appraisal at the completion of the project.

Note:  new construction of permanent rental or for-sale homes cannot be undertaken by local governments and must be conducted by Community-Based Development Organizations, as defined by HUD at 24 CFR 570.

Eligible Applicants

Under federal law, eligible applicants are limited to general-purpose local government, for example, counties, incorporated cities and towns and consolidated city-county governments. Among municipalities, only Billings, Bozeman, Great Falls and Missoula are ineligible to apply to the State CDBG Program because they receive CDBG funds from a separate HUD allocation for communities with populations over 50,000. Indian tribes are eligible to receive CDBG funds from a separate HUD CDBG Program and are therefore not eligible to apply to the State program.

A general-purpose local government must apply on behalf of special-purpose agencies or organizations, such as:

  • Local economic development corporations;
  • Housing Authorities;
  • Community Housing Development Organizations;
  • Water or sewer districts; and
  • Private and nonprofit organizations.

Application Process

CDBG Housing Stabilization Program Grants

Commerce has paused acceptance of CDBG-HSP applications because all CDBG funds earmarked for Housing activities have been allocated.

Application submissions for CDBG-HSP are accepted on a rolling basis.

Applications to access the available pool of funds may be submitted at any time and must contain responses and supporting documentation commensurate with the current CDBG HSP Guidelines. The process and procedures outlined in these guidelines to complete critical health and safety improvements to bolster the community's affordable housing stock on a house-by-house basis for a five-year period, as CDBG funds are available. Once notified of their ability to access these funds, local governments may identify specific housing activities and make a funding proposal to Commerce according to the process set forth in the Grant Administration Manual. 

CDBG Affordable Housing Development and Rehabilitation Applications

Applications for proposals with CDBG-Housing funds are due Sept. 15, 2026.

The application guidelines are formally adopted through the State of Montana Administrative Rulemaking process, during which the public has an opportunity to comment on draft guidelines. Public comments will be considered before the final version is adopted. 

The final CDBG Application Guidelines consist of ranking criteria with specific questions requiring narrative responses and identifying supporting documentation that will improve the strength of the application. In order to avoid unnecessary duplication, the applicant can reference other pertinent portions of the application or appendices in the narrative responses to the criteria. However, the applicant should not reference another portion of the application, such as the PAR, without including a narrative statement that provides at least a summary of what is being referenced. 

Each application will be evaluated according to each CDBG ranking criteria and will receive points depending upon its overall response to each criterion, relative to local capacity and resources, and in comparison with the other applications submitted. Failure to respond to a criterion or to comply with a pertinent and important application requirement may result in no points being awarded for that criterion. For ease of reference, any documentation or exhibits related to the applicant's response to a CDBG ranking criterion should be placed in the application immediately following the applicant's narrative response to that criterion. 

One electronic copy of the CDBG application and the PAR or PER (as applicable) are required on or before the application due date.  

Updated Process: CDBG Housing applications are available through the Montana Grants and Loans Portal.

Successful and unsuccessful applicants will be notified once the final funding decision is made. All applicants will have the opportunity to meet with CDBG staff and discuss their application’s success and opportunities for improvement. These meetings are intended to help successful applicants identify areas of improvement for future CDBG applications and unsuccessful applicants prepare for resubmission the following year.

Application Forms

CDBG-Housing Stabilization Program Application Guidelines for Single-Family Rehabilitation (PDF) (Word)

2025 CDBG Housing Rehabilitation and Development Application Guidelines for Multi-Family Rental Properties (PDF) (Word)

Pro Forma and subsidies review spreadsheet for Multi-Family projects (Link)

Documenting Benefit to Low and Moderate Income Persons Handbook (PDF) 


Updated July 2020