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HUD's Community Development Block Grant Program (CDBG) The Block Grant Program can be used to fund a wide variety of projects, ranging from capital improvements to housing programs. In particular, housing projects have involved grant and /or loan assistance to home- owners for rehabilitation, provisions for the acquisition and demolition of dilapidated housing, and the relocation of the residents to alternative standard housing. MHFA's Home Improvement Loan Program This program provides funding for loans to individual property owners to rehabilitate residential properties more than 15 years old. The loans are made to eligible families by commercial banks, which in turn sell the notes to MHFA. Families with adjusted gross incomes of $16,000 or less that can demonstrate ability to repay the loan are eligible. The interest rate on the loan is determined by multiplying the applicant's adjusted gross income by .0005 and rounding to the nearest whole percent. The maximum loan on a single - family home is $10,000 and repayment can be spread over twelve years. The program is financed through the sale of bonds by MHFA, which uses loan repayments to pay the principal and interest on the bonds. A small subsidy is also included to lower the interest rates for lower families. This subsidy is derived from state general revenues through legislative appropriation. 4) MHFA's Home Improvement Grant Program This program provides grants up to a maximum of $5,000 to families with adjusted gross incomes of less than $5,000 for necessary health, safety and energy efficiency improvements to their homes. Under the enabling legislation for this program, it is required that at least 50 percent of the total grants in each county must be given to elderly families (families with at least one member aged 62 or older). The cities of Anoka, Ramsey, and Andover have been allocated a total of $33,033 for August 1979- August 1980. 25