Planning Grants & Affordable Housing

The Federal Home Loan Bank's Affordable Housing Program has created more than 716,000 housing units.

The Department of Housing and Urban Development, or HUD, has several grant programs that allow states and local governments to create affordable housing projects that best meet the needs of their communities. Conventional developers are able to fund their projects with federal dollars as long as some units are set aside for low-income families. Grants funding is awarded on an annual basis. You can log onto Grants.gov to find out what grants are available.

Community Development Block Grant

HUD provides funding for the Community Development Block Grant, or CDBG, program to address several community needs. The grant is allocated to state and local governments on an annual basis. These agencies will often form a partnership with a community-based organization to administer the funding to the public. CDBG money can be used to acquire and rehabilitate affordable rental housing for low-income families. The agency must consider citizen input when determining which project to fund with CDBG money. CDBG money can also be used to develop employment centers that provides training and jobs to low-income individuals.

HOME

HUD also provides HOME funds to states and local governments. HOME funding is specifically for the development of affordable housing and first-time home buyer programs. The funding is designed to allow communities to address housing according to their needs. States are eligible to receive up to $3 million automatically on an annual basis. Many local jurisdictions are eligible to receive up to $500,000 annually. HOME funds serve populations with incomes that do not exceed 80 percent of the area median income.

Neighborhood Stabilization Program

HUD provides funding for the Neighborhood Stabilization Program, or NSP, that helps states, local governments, and community-based organizations purchase foreclosed or abandoned homes. The goal of the program is the eliminate slums and blight from a community. The agency or organization can rehabilitate a home and put it back on the market at an affordable price. They can also demolish the site and construct a new home. These new homes must be made available to low- to moderate-income families to purchase.

Affordable Housing Program

Federal Home Loan Banks across the country set aside 10 percent of their net profits each year to fund the Affordable Housing Program, or AHP. This funding can be used to acquire, rehabilitate, or construct affordable residential housing. The housing must benefit low- to moderate-income households. The grant funds must be used within four years of receiving the money. Applications for the grant are accepted every April and October.

References

• U.S. Department of Housing and Urban Development: Community Development Block Grant Entitlement Communities Grants
• U.S. Department of Housing and Urban Development: HOME Investment Partnerships Program
• U.S. Department of Housing and Urban Development: Neighborhood Stabilization Program Grants
• Federal Home Loan Banks: Affordable Housing Program