County staff outline how Road to Housing could change CDBG and HOME use locally

Scott Bruton, director of the Montgomery County Department of Housing and Community Affairs, briefed the committee on how the Road to Housing Act could affect county-administered HUD programs.

Bruton explained that CDBG will allow certain affordable housing new construction as an eligible activity but limited to no more than 20% of a grantee’s allocation for that purpose; HOME will be reauthorized with expanded homeownership flexibility and higher income eligibility thresholds for some activities. "Previously only an eligible CDBG activity if carried out by a qualified community based development organization..." he said, describing the change in eligibility criteria. Bruton warned that federal constraints may limit near-term impact: "However, the current House bill reduces HOME, funding by 60%."

Bruton also highlighted implementation challenges such as the Build America Buy America (BABA) rules and Davis-Bacon labor requirements, which can raise costs for projects using federal funds. He said DHCA is preparing to navigate those compliance costs and is watching HUD’s rulemaking closely. On competitive grants in the law (planning, innovation funds), Bruton said the programs are promising but remain unfunded until appropriations and NOFOs are released.

The county committed to continue coordinating with state and federal partners and to brief the committee when HUD issues further guidance and funding decisions.