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What the CDBG program would fund in Keystone Heights and how eligibility works
Summary
At the May 12 hearing, the grant adviser explained the four Small Cities CDBG categories—housing rehabilitation, commercial revitalization, neighborhood revitalization and economic development—and HUD income thresholds and point incentives that affect competitiveness.
At a May 12 public hearing, Melissa Fox described the Small Cities Community Development Block Grant categories available to Keystone Heights and the program rules that determine competitiveness.
Fox said the four categories are housing rehabilitation (owner-occupied rehab/replacement), commercial revitalization (downtown streetscape, sidewalks and facade work in a service area that must be at least 51% low-to-moderate income), neighborhood revitalization (infrastructure like water or sewer line replacement in LMI residential areas) and economic development (public infrastructure to support business expansion or attraction tied to job creation).
She gave a 2026 LMI example: "a family of 4 living in Keystone Heights could make no more than $86,950" to be counted as low to moderate income. Fox also described scoring incentives: every $2,000 of city funds equals one extra point up to 25 points (a $50,000 contribution for the maximum leverage bonus), and submitting engineered construction plans and permit applications at submission can earn an additional 50 'shovel-ready' points.
Fox noted that program rules prohibit using CDBG funds for private property improvements and that acquisition-only applications are limited to acquisition, grant administration, closing costs and mandatory environmental assessments—renovation would need a later application if awarded.
