Housing Rehabilitation & Demolition Program

Housing Rehabilitation & Demolition Program is sponsored by Kansas Department of Commerce. Provides funding to cities for housing rehabilitation and minor demolition projects benefiting low- to moderate-income households.

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Taxes, Credits, & Exemptions To The Stars: Kansas Business Awards Corporate & Professional Services Food Processing and Manufacturing Energy & Natural Resources Housing Rehabilitation & Demolition This program provides funding to support housing rehabilitation and minor demolition projects that benefit low- to moderate-income households within a city.

Get Program Notifications arrow_forward_ios Cost of the environmental review Benefit Low- to Moderate-Income households Cover environmental review costs Check qualifications, programs, and more The Housing Rehabilitation and Demolition Program is designed to assist cities in creating and operating a local housing rehabilitation program, with Commerce offering CDBG funds and the framework for a housing rehab program.

The awarded city will use CDBG funds to complete housing rehabilitation and minor demolition projects within its boundaries. Funds can be used to rehabilitate owner-occupied units or small-scale rental units (four or less units), as well as demolish vacant homes and associated outbuildings. A total of $1,200,000 has been allocated for the Housing Rehabilitation and Demolition program in 2026.

For an owner -occupied housing unit, the homeowners must be considered to be an LMI household. For a tenant -occupied rental unit, at least 51% of the assisted units must be occupied by a tenant that is an LMI household.

Eligible expenses include: Housing rehabilitation for owner occupied and/or rental units Demolition of uninhabitable, vacant housing units and associated outbuildings on the same property Inspections: lead based paint inspections, risk assessment, and clearance Administration costs for grant funds Only cities (not counties) can apply for the Housing Rehabilitation and Demolition Grant.

Large cities are considered entitlement communities and receive CDBG funds directly from HUD, while smaller communities apply through the state CDBG program. The following entitlement communities are NOT eligible to apply for the state CDBG program: Kansas City, Lawrence, Leavenworth, Manhattan, Overland Park, Topeka, Wichita, and all of Johnson County.

All CDBG projects must meet a national objective and involve an eligible activity under the Housing and Community Development Act of 1974.

The three CDBG national objectives are: Benefit Low- and Moderate-Income (LMI) Persons Prevention or Elimination of Blight Addressing an Urgent Need All activities proposed in applications for the Housing Rehabilitation and Demolition Grant Program must meet the national objective of benefiting LMI persons through the subcategory housing .

If demolition is included, all demolition activities must meet the national objective of eliminating blight on a spot basis. Grant applications are evaluated for funding based on project need, development of project, solution of need, and readiness to proceed. All assisted households will be required to provide documentation of their income, ownership, paid taxes, paid utilities, and home insurance.

Download the 2026 CDBG Housing Guidelines for more information on program requirements. For this program, the only required matching funds are for the city to complete the environmental review of the project.

To maximize the impact of rehabilitation funds, cities are encouraged to leverage additional grant funding, such as weatherization programs which pair particularly well with CDBG housing rehab by addressing the wide range of needs commonly found in assisted homes. All matching funds must be clearly documented and verifiable at the time of application.

For rental units, the landlord is required to contribute 25% toward rehabilitation costs for their unit(s) only. All housing activity fees are included in the maximum grant funding amount. Any expenses incurred prior to the grant award are ineligible for reimbursement, including application writing and inspections.

A pre-application must be submitted and approved by CDBG before an application can be submitted. The pre-application is used to determine project eligibility and readiness before proceeding to the full application stage. Commerce will review submissions within ten days and provide further instructions.

Only those with an approved pre-application may submit a full application, but approval of the pre-application does not ensure grant funding. Please discuss your project with CDBG staff before submitting a pre-application. You can contact a project manager at any time or email [email protected] .

Can a community apply for more than one project? Communities may apply for multiple CDBG categories but can only be awarded up to two projects total , with no more than one from a major category. Major categories include: Community Facilities: Large/Small, Blueprint to Build, Water and Sewer Infrastructure, and Regional Water Implementation.

For example, a city can submit applications for a Housing Rehabilitation and a Community Facilities: Large Grants project. However, a city cannot apply for both a Large and Small Community Facilities project. What are the public hearing requirements?

Citizen participation is a required component of the CDBG program. Any local government applying for CDBG funds must provide citizens with reasonable opportunities to participate in the planning and development of applications, especially residents of proposed project areas. Citizens must be provided adequate and timely information so they can be meaningfully involved in important decisions.

The purpose of the initial public hearing is to inform citizens about the proposed project, including its location, total cost, activities, and beneficiaries. Community members must be given a chance to suggest other project ideas and share their input, and the local governing body should carefully consider this feedback before submitting the application.

The initial public hearing must be held at least 15 FULL days before the CDBG application is submitted, and no earlier than 120 days. The total project funding and CDBG amount requested must match what appears in the public hearing notice. Public hearings must be held at a time and location convenient to potential or actual beneficiaries, with accommodations for non-English speaking residents and persons with disabilities.

Records of these efforts must be part of the grant files, including the public hearing notice, affidavit of publication, record of posting, public hearing attendance log, public hearing minutes, any written complaints and grantee response, and any other documented efforts to involve citizens throughout all stages of the project.

Requirements to Publish a Public Hearing Notice A notice about the hearing must be published at least 5 FULL days in advance (but no more than 20 days) in advance to allow citizens the opportunity to schedule their attendance. The day that the public hearing notice is first advertised and the day of the public hearing do NOT count towards the minimum 5 day period. What is a Tier II Environmental Review?

Since the applicant will not know the specific homes to be rehabilitated or demolished at application, the city must conduct a Tier II environmental review if awarded. There are laws and authorities that cannot be reviewed without the specific home (location) and those laws and authorities will be reviewed once the home has been identified. This Tier II review will consult with the State Historic Preservation Office (SHPO).

This responsibility cannot be delegated and the cost to conduct the review must be paid with local funds . Project activities may not begin until after Commerce issues the environmental release of project funds. What is the match requirement?

The city must pay the cost of the environmental review. For rental units, the landlord is required to contribute 25% toward rehabilitation costs for their unit(s) only. Demonstrate strong community engagement, a thorough assessment of local housing needs, and a well-developed stakeholder group working in partnership.

Leverage additional grant funding, such as weatherization programs which pair well by addressing the wide range of needs commonly found in assisted homes. Utilize contractors that meet Lead Safe Renovation requirements and have appropriate training. Maintain strong local commitment, knowledgeable administrators, and qualified inspectors/risk assessors.

See other communities that have received funding in past years The Community Development Block Grant (CDBG) program requires that each CDBG funded activity must either principally benefit low- and moderate-income (LMI) persons, aid in the prevention or elimination of slums or blight, or meet a community development need having a particular urgency.

Based on program participants View LMI Family Income Limits for LMI calculations are from the 2020 Census and LMI by household are from 2026 HUD Section 8. Final LMI will be confirmed upon application review. Assistance from a professional with CDBG grant experience can help you streamline and strengthen your application.

Some or all of the costs to engage help can be covered by your award. Here are the background documents for the Commercial Rehabilitation grant that will help you apply. 2026 CDBG Housing Guidelines (.

pdf) Housing Application Log (. pdf) Deadline: October 16, 2026 Get notifications for this year and next year Email Tim Parks, CDBG Specialist Incentives & Financing, Taxes, Credits & Exemptions, Site Selection, Doing Business in Kansas Infrastructure assessment, community planning, development support, and downtown activation Find a Job, Job Seeker Services, Employer Services Plan your trip to Kansas. Places to visit, things to do.

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