HUD Financial Assistance Programs – HOME Investment Partnerships Fund

by | Mar 6, 2020 | Housing

Recently an executive director who runs a two-person nonprofit that goes to motels to help homeless and economically disadvantaged people shared that she was at her wits end trying to get additional funding for her program. Someone suggested she look into whether her community participated in HUD’s Continuum of Care program. I also added a few other HUD assistance programs she could investigate.

To better understand available financial assistance from HUD, we combed through a number of sites including HUD Exchange, a site that is, in my humble opinion, one of the most comprehensive and resource rich sites developed for federal grantees.

The summary of relevant financial assistance programs from HUD was five pages long so details on each program will be published on this site one at a time. It is our hope that this basic summary will help organizations learn enough to investigate further and possibly pursue this assistance. If needed, our firm will be happy to help these organizations evaluate their readiness for the funding and apply when they are ready.

DISCLAIMER: This is our firm’s summary of some of HUD’s financial assistance programs. There are some program details that may change due to evolving funding priorities, availability of funding, and program, legal or regulatory revisions. Please visit HUD Exchange for complete information.

HOME Investment Partnerships Fund

  • Formula grants to states and localities that communities in partnerships with nonprofits use to fund a wide range of building, buying and rehabilitating of affordable housing for rent or homeownership or provide direct rental assistance to low-income people.
  • Largest federal block grant to states and localities designed to create affordable housing.
  • This includes Tenant-Based Rental Assistance Programs (TBRAs).
  • Some nonprofits apply to become Community Housing Development Organizations (CHDOs) as they get a guaranteed 15% set aside of HOME funds but must meet certain requirements.
  • Georgia-based example: Georgia Department of Community Affairs will make $3 million in Community HOME Investments Partnership (CHIP) funding to nonprofits, local governments and public housing authorities to provide housing rehabilitation of owner-occupied, single-family homes and new construction and reconstruction of affordable family housing units for sale to income-eligible homebuyers. 7 total awards planned with financial ceilings for the two priorities. 
  • HOME can be layered with other federal programs to expand its impact:
    • CDBG – Formula grant sent annually to states, cities and counties to develop urban communities that have decent housing, suitable living environments and expanding economic opportunities for low and moderate income persons. More details on CDBG will be provided in the next post.
    • Neighborhood Stabilization Program – Funding to states and cities that were hardest hit by foreclosures, abandoned properties and declining property values. Grants are distributed as a formula and supplements HUD’s CDBG appropriation to states and localities. Household income requirements and opportunities to provide new housing to persons with special needs available.
    • Housing Choice Voucher Program (Section 8) – Funding that allows low-income residents to choose to lease or in some cases purchase privately-owned housing. It is a TBRA; the subsidy is not housing-specific, it stays with the family.
    • Project-based Rental Assistance – Subsidy stays with the project and program participants received subsidized housing from staying in housing provided by the project. This is facilitated by a contract with HUD or a local housing agency and the private owner to provide rental assistance for low-income residents. Great details on PBRA here.
    • McKinney Act Programs (funding dedicated to addressing homelessness): PH – Permanent Housing (permanent housing and rapid rehousing), Transitional Housing, Supportive Services Only, HMIS – Housing Management Information Systems, HP – Homelessness Prevention
    • Section 202 Supportive Housing for the Elderly – Provided direct loans and capital advances from HUD to nonprofit entities to expand affordable with supportive services for the elderly. No funding since 2012 per HUD HRE but the previously funded housing programs still exist.
    • Housing Opportunities for Persons with AIDS (HOPWA) – HUD grant funds awarded to states, local communities and nonprofits to provide housing for low-income persons and their families living with HIV/AIDS. 90% of HUD’s HOPWA funding is statutorily mandated to be formula-based funding to eligible metropolitan statistical areas (MSAs) and states and 10% competitive funding based on national competition. A great HOPWA summary can be found here.
    • Section 811 Supportive Housing for Persons with Disabilitie– Project rental assistance to states to identify and innovative supportive housing programs for persons with disabilities. Funds are awarded to state housing agencies that are required to partner with state Medicaid and health and human services agencies that have identified extremely low-income people with disabilities to PRA units. Here is a recent 811 NOFA for $37 million to state housing agencies.
    • Low Income Housing Tax Credits – Incentive provided to private, profit-motivated entities to develop affordable housing. The tax reduction is tied directly to the proportion of low-income residents in the housing produced. Great summary here.
    • USDA Housing Assistance Programs – Provides homeownership, home renovation, and repair programs to rural Americans. USDA also provides financing to elderly, disabled and low-income rural residents in multi-unit housing.
    • Self-help Homeownership Opportunity Program (SHOP) – HUD awards grant funds to national and regional nonprofits and consortia to purchase home sites and develop or improve infrastructure needed to utilize the prospective homebuyer’s or volunteers sweat equity to construct or rehabilitate homes.  Applicants must experience in using homebuyer or volunteer labor to build housing and have completed 30 units of self-help homeownership housing in the last 24 months. Eligible homebuyers must apply to participate in the program offered by the current grantee or its affiliates.
    • Housing Trust Fund – Block grant funds allocated to states to serve people with very low incomes and have the most acute housing needs. States decide on funding priorities.  90% of HTF funds must be used for the production, rehabilitation and operation of affordable rental housing and up to 10% to support first-time homeownership programs. $267 million awarded to states in 2018 and represents a year over year increase from 2016.

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