Community Development Division

Mission Statement:

The Mission statement of the Community Development Division is to improve the quality of life of Little Rock citizens through sound policies and innovative housing and community development programs.

Down Payment Assistance Program

The City of Little Rock has allocated funds to assist low and moderate-income first time homebuyers to purchase for owner occupancy residential properties within the city limits of Little Rock. The total of the down payment assistance from the City of Little Rock to the first-time buyer may not exceed six (6) percent of the purchase price, not to exceed $10,000.00. Please read below for additional information.

Consolidated Planning

Community Development Block Grant

Created by Congress with Passage of Title I of the Housing and Urban Development Act of 1974. HUD's CDBG Program was intended to:

Consolidate programs and services
Replace existing Urban Renewal and Model Cities Programs and
Place more responsibility in the hands of local governments concerning the expenditure of Federal Funds

Eligibility Criteria

Benefits principally low and moderate-income persons (Incomes at or below 80% of area median income)
Eliminates slum and blight (Required to remedy slum and blighting conditions, so this criteria is rarely used.)
Urgent Need (HUD has established a high threshold for this criteria, which includes tornado, flood, or other natural disasters.
Must be fundable activity, which is established by Federal guidelines.

Limited Home Repair (LHR)

Targeted to Homeowners who are sixty-two (62) years of age or older, or disabled, and whose income does not exceed program guidelines, may be considered for Limited Home Repair Program Forgivable Loan. The homeowner must have occupied and must be the primary residence of the applicant within the past 12 months prior to receiving assistance. This is deferred payment loan of up to $34,999. The loan is secured by a lien for a five (5) year period contingent upon owner continuing to own and occupy the structure. After 5 years, the lien is released if that requirement has been met. The rehabilitation performed must make the four (4) major systems of the house (roof, heating, plumbing, electrical) serviceable to allow continued occupancy for a period of five years. If the basic systems cannot be made serviceable for a five year period, no loan can be made.

Emergency Assistance Grant (EGP) (EAG)

Homeowners who are sixty-two (62) years of age or older, or disabled and whose income does not exceed program guidelines, may be considered for the Emergency Assistance Grant Program. The homeowner must have occupied and must be the primary residence of the applicant within the past 12 months prior to receiving assistance. This is deferred payment loan of up to $19,999. Emergency Assistance Grants may be made to pay for construction work to correct items that are determined to be of an immediate and necessary nature and which can have an imminent effect on improving the health and/or safety of the occupants and meets the following definition: An emergency is a situation or condition that occurred recently (generally within two weeks) without warning, that is detrimental to or a threat to life, health or safety, and requires immediate action. Immediate action is defined as action taken within three business days. Emergency grants may include, but are not limited to, items such as heating, electrical, plumbing systems, or emergency roof repairs/replacements.

Citizen Participation

Little Rock is fortunate to have an in-depth participation process. While Federal CDBG regulations require public hearings and citizen input into the planning process, Little Rock's Citizen Participation Plan truly works to promote maximum self-direction in local neighborhoods. During the early years of the CDBG Program, funding was awarded in the amounts sufficient to provide every designated CDBG neighborhood the opportunity to participate in planning and subsequently recommend projects to the Little Rock City Board of Directors. The organizing issue was not "whether" a low-income neighborhood could utilize CDBG Funds for a project but "which" project the neighborhood would recommend to the Little Rock City Board of Directors.

Over the years, as the number of entitlement cities increased and with growing concern over deficit spending by Congress, Little Rock's CDBG Grants decreased. In recent years, neighborhoods had to reduce the scope and number of projects recommended for funding.

The current Citizen Participation Plan is structured so that each Ward is represented on the Consolidated Planning Committee, which makes recommendations directly to the Little Rock City Board of Directors on proposed CDBG activities and funding.

Public Facility Projects

Approximately $2,824,701 in CDBG Funds have been expended to improve streets, drainage, and infrastructure facilities. During the first thirty (30) years of the CDBG Program, more than thirty (30) miles of Little Rock streets have been improved, 23.5 miles of drainage facilities have been installed, and thirty-eight (38) miles of sidewalks have been constructed. Many residents continue to benefit from these improvements every day without realizing that CDBG Funds made them possible.

Other Programs

Wheelchair Ramp Program

The City's CDBG Program, in conjunction with Mainstream, Inc., and the AT&T Telephone Company Pioneers, provides the Wheelchair Ramp Program to low-income, disabled individuals in Little Rock. The CDBG Program purchases necessary materials, and the AT&T Telephone Company Pioneers build the ramps as a public service project.

The Wheelchair Ramp Program has been funded by CDBG for fifteen (15) years and has completed 341 ramps at a total cost of $246,543. Because project labor is donated, the ramps can be constructed for the cost of materials alone, which averages approximately $723 each. This activity is another example of how CDBG touches and improves the lives of citizens in need of assistance.

HOME Program

Created by the National Affordable Housing Act of 1990 (NAHA) HOME is a Federally-funded, large scale grant program for housing. The intent of HOME is:

To strengthen the abilities of State and local governments to provide housing.
To assure that federal housing services, financing and other investments are provided to State and local governments in a coordinated, supportive fashion.

Eligibility Requirements

The HOME Program must be used to promote low-income, affordable housing activities (defined as 80% or less of area median family income, adjusted for family size)

Community Housing Development Organizations (CHDOS)

Community Housing Development Organizations (CHDOs) are neighborhood based non-profits that partner with the City of Little Rock for funding to develop affordable housing. CHDOs are currently building in targeted areas throughout the City of Little Rock. To learn more about the current homes for sale by the CHDOs, they may be contacted directly at:

Better Community Developers
Darryl Swinton, Executive Director
(501) 379-1539

Affordable Housing Inc.
Roma Isom, Executive Director
(501) 221-2203

University District Development Corporation
Barrett Allen, Community Development Program Officer
(501) 683-7356

Elderly Home Repair Program

Homeowners who are sixty-two (62) years of age or older, or disabled, and whose income does not exceed program guidelines, may be considered for an Elderly Housing Program Forgivable Loan. The homeowner must have occupied and must be the primary residence of the applicant within the past 12 months prior to receiving assistance. This is a deferred payment loan of up to $35,000 to make necessary repairs to bring the home up to the minimum housing code. If the maximum loan amount is not sufficient to bring the house up to minimum code standard, no loan will be made unless the homeowner has the ability to contribute the difference between the $35,000 program assistance and the total cost to repair the home. The City requires a lien against the home to ensure that the borrower continues to own and occupy the home. The lien will be released, with no further obligation to the City, after a period of five (5) – ten (10) years, depending on the amount of assistance provided. If the owner conveys title within this time period, the loan must be repaid by the owner in order to release the lien. This program is in very high demand, and the funds allocated for this program are exhausted every year.

This program is in very high demand, and the funds allocated for this program are exhausted every year. Please contact the Community Development Division at (501) 371-6825.

Leveraged Home Rehabilitation Loans

Low-income persons who own and occupy their home within Little Rock may apply at any time for a "Leveraged Rehabilitation Loan." Applicants must be willing and able to borrow 50% of the total rehabilitation costs from a bank. The remaining 50% of the costs will be provided by the City in the form of a forgivable loan. These funds are forgiven by the City over a period of five (5) to ten (10) years, depending on the amount of the loan, provided the homeowner continues to own and occupy the home.

The City gives technical assistance to help the homeowner determine Code deficiencies, describe the work needed, estimate costs, apply for the bank loan, find a reliable contractor who will do the work for a fair price, and assure that the contracted work is done in keeping with industry standards. The applicant must have a warranty deed to the property; that is, there may be a mortgage on the home, but a contract to buy is not acceptable. If the repairs will cost less than $3,000, assistance will not be provided. The structure must be sound and total indebtedness secured by the property, including both rehab loans, must not exceed 110% of the fair market value of the home after rehabilitation.

Housing and Counseling

The following organizations provide homebuyer and/or credit counseling to residents of the City who are interested in purchasing a home. Classes are designed to educate the client on proper use of credit, budgeting, and how to purchase a home. Convenient evening and weekend courses are available. Further information about these classes may be obtained by contacting:

HUD Approved Housing Counseling Agencies

For More Information

Community Development Manager
Tracey Shine
Little Rock City Hall Room
500 West Markham Street, Room 120W
Little Rock, AR 72201
(501) 371-6811
(501) 399-3461 (Fax)