How to Apply for Grants for Affordable Housing

HUD provides rehabilitation grants for affordable housing development.

The U.S. Department of Housing and Urban Development, or HUD, awards affordable housing grants to states and local governments. Developers can apply to their state or city for a grant to fund their affordable housing project. These grants are awarded to non-profit agencies or conventional developers who have partnered with a non-profit. In exchange for receiving grant funds, the developer must agree to allocate a portion of the units for low-income tenants. The non-profit agency can conduct the tenant selection, rent calculations and supportive services for the low-income tenants.

Things You'll Need

• Project Team Resumes
• Financial Statements
• By-laws
• Non-profit Status Letter
• Project Budget

Instructions

1. Research online for grants available. You can go to grants.gov and look for HUD grants to develop affordable housing. Your state, county and city departments also may have grants available for you to apply for. Write a list of all the grants you may be eligible for and a timeline of their due dates.

2. Form a partnership with a non-profit agency if you do not already have a 501(c)3 exemption. The non-profit agency should have experience providing supportive services to low-income populations. Foster youth, people with disabilities, low-income families or the homeless are examples of typical populations that can benefit from an affordable housing development.

3. Make an outline of the requirements that need to be included in the grant application. The granting agency will want your grant proposal to include an executive summary, a detailed project description, and description of your target population. Your grant proposal should be able to demonstrate your experience developing affordable housing. You goals and objectives for the project should be described as well how your project will meet the need of the target population. Also include a project budget.

4. Write the grant proposal. Be careful to follow the grant application instructions closely and address what is being requested. Most grant application instructions will have a breakdown of the scoring and how many points are allocated to each section of your grant proposal. Any data available that will make your application stronger should be included.

5. Include the requested attachments with the grant proposal. Resumes for all the project members are typically requested. Provide a list of the organizations board of directors. A copy of the organization by-laws and non-profit status should be included. The granting agency may also request two years of the organization's financial statements.

6. Format the proposal per the grant application instructions. The grant application will provide instructions on the proper formatting for the grant. There may be a page limitation that you must adhere to. When you are writing your grant, you should keep formatting issues in mind.

7. Submit your proposal early to the granting agency. Read the instructions on how the agency wants to receive the application, since delivery options may vary. Grants funding notices on grants.gov will require you to submit the proposal electronically unless a waiver is obtained. Other agencies may request you to submit the original grant proposal and a copy. Also be aware of instructions for how to bind the proposal.

8. Wait for a response. The awarding agency will typically outline a timeframe for proposal review and decision. If you are not awarded a grant, the agency may give you feedback on your grant proposal and how make your proposal stronger for the next round of funding.

References

• U.S. Department of Housing and Urban Development: Grants
• U.S. Department of Housing and Urban Development: A Guidebook on Grantees Subrecipient Oversight, pgs. 2-15-2-19