Both Loudoun County and Lovettsville have applied for Community Development Block Grant funds awarded by the Virginia Department of Housing and Community Development.

A number of Northern Virginia towns and jurisdictions applied for these federal grants last fall, but none were successful in their bid for the limited funds. CDBG applications will be accepted again in January.

Penny Grabb, coordinator for the Community Assistance Programs with the Northern Virginia Planning District Commission, said the grant proposal submitted two weeks ago by Loudoun County's housing staff stands a good chance of being funded.

"It's just the type of excellent project that this program was meant to support," said Grabb, who explained that the project would fund housing rehabilitation for 39 homeowners in the county who were found to live in substandard housing.

The request is for $530,000 in CDBG money. The project also would receive $200,000 in local bank loans and $10,000 from the county.

Grabb was less optimistic about the Lovettsville grant proposal asking for $635,000 to fund a sewer-system renovation and construction project.

"They have a dire need for the project. That is not contested," Grabb said. "It's just that at this point the project may not be competitive on a statewide basis."

Last year, only 22 of 150 proposals were funded. Grabb said the awards in this funding cycle would be announced by Labor Day.