Community Development Block Grant Programs (CDBG)

Direct Homeownership Assistance Program

The Community Development Block Grant (CDBG) Direct Homeownership Assistance Program provides assistance to low or moderate income households with reducing their mortgage principal amount, paying reasonable closing cost, and/or required up-front private mortgage insurance premiums. The amount of mortgage principal reduction is determined by reducing the applicant(s) total housing cost to an affordable level. The affordable housing cost level shall be determined by reducing the applicant(s) total monthly costs for the following items to below 30% of the applicant(s) gross monthly income:

  • Principal
  • Interest
  • Taxes
  • Insurance
  • Mortgage insurance
  • Homeowner association fees
  • Electric
  • Gas
  • Sewer
  • Water
  • And other cost deemed by the Housing Specialist as necessary to include

The dwelling must be vacant or an owner-occupied dwelling that is currently for sale within the corporation limits of the City of Bowling Green. Assistance is in the form of a two-year forgivable loan secured by a secondary mortgage, providing the property is not sold and the homeowner(s) are still residing in the property as their primary residence at the end of the two-year period.

The property to be purchased can't require any major repairs or rehabilitation. A major repair is defined as any "level 3" deficiency with-in the Ohio Residential Rehabilitation Standard's Property Inspection List. Lastly, a pre-purchase counseling is required for all applicants to prepare the applicant(s) for homeownership. Pre-purchase counseling must be completed prior to purchasing of the home. The pre-purchase counseling is provided by a HUD certified counseling agency.

Rental Rehabilitation

In this program, zero interest loans are provided to landlords for a seven-year period. If property is sold or title is transferred before seven years, the loan amount will be due in full. At the end of seven years, the loan will be forgiven. This is provided that the owner has not been found in default of the program requirements, specifically, the one requiring rental to low/moderate-income persons. Defaulting on any program requirement will cause the loan amount to be due in full. A mortgage is placed on the property during the seven-year period. The landlord must put at least 50% construction costs into the project.

Maximum loans per bedroom size are as follows:

Number of BedroomsMaximum Assistance Allowed
0$10,000
1$13,000
2$15,000
3 or more$17.000


Rent must be below the current Fair Market Rents (established by HUD). Current Fair Market Rents are (subject to change; verify with the Housing Specialist):

  • Efficiency: $505
  • 1 Bedroom: $592
  • 2 Bedroom: $767
  • 3 Bedroom: $1,044
  • 4 Bedroom: $1,150

(Updated July 1, 2020)

The units must meet State of Ohio's Residential Rehabilitation Standards and Wood County Health, Safety and Sanitation Regulations upon completion of the rehabilitation. Units housing 51% or more very low, low and/or moderate-income families qualify for funding.

CDBG Elderly Home Repair

This program funds the repair or replacement of substandard systems for very low-, low- and moderate-income households 62 years of age or older. The property must be located within the Bowling Green City limits. The maximum grant is $8,000 to repair one substandard item. No mortgages are placed on the property. The homeowner is required to obtain 3 estimates to assure reasonable replacement costs. Substandard systems include, but are not limited to: roofing, plumbing, heating and electrical problems.

If a structure has more than one substandard condition, the owner is encouraged to participate in the City's Owner-Occupied Housing Rehabilitation program.

CDBG Home Repair

This program funds the repair or replacement of substandard systems for very low-, low- and moderate-income households in the City of Bowling Green. The property must be located within the Bowling Green City limits. The maximum grant is $8,000 to repair one substandard item. No mortgages are placed on the property. The homeowner is required to obtain 3 estimates to assure reasonable replacement costs. Substandard systems include, but are not limited to: roofing, plumbing, heating and electrical problems.

If a structure has more than one substandard condition, the owner is encouraged to participate in the City's Owner-Occupied Housing Rehabilitation program.

CDBG Mobile Home Repair

This program provides zero interest, forgivable loans to very low-, low- and moderate-income mobile home owners for essential repairs. The maximum loan is $3,500, and there is a requirement that the homeowner maintain principle residency in the unit for two years, after which time the loan is forgiven.