Local Grants to Provide Low-Income Housing
- The Self-help Homeownership Opportunity Program helps low-to-moderate income households purchase a home. This program is administered through community-based organizations such as Habitat for Humanity or the Housing Assistance Council. The home buyer is required to help with the construction or rehabilitation of a home to be eligible to purchase it. She must put in 100 hours of work to be eligible to buy a property. The home buyer's income cannot exceed 80 percent of the area median income.
- HOME funding is provided to local governments to develop affordable housing programs in their communities. HUD allows HOME funds to be used for programs such as direct loans to qualified home buyers, a grant for down payment assistance, or a rental subsidy. Grant administrators must use the funding to benefit low- to moderate-income households. The local government agency must agree to reserve 15 percent of the grant money for community-based organizations. The funding is sub-granted to these organizations to develop affordable housing as well.
- The Community Development Block Grant, or CDBG, program is provided to local governments to develop housing and employment options for low-income households. Grant funds can be used to acquire and rehabilitate a piece of property. Funding must be used to prevent neighborhood blight. Community participation is required for the local jurisdiction to receive funding. Citizen input and feedback on CDBG-funded project ensures that community needs are being addressed. CDBG funds are provided on an annual basis to local jurisdictions.
- Neighborhood Stabilization Program, NSP, Grants are provided to local governments and community-based organizations to stabilize communities that have been impacted with foreclosures and abandoned homes. The agency can use the grant funds to purchase and rehabilitate an abandoned or foreclosed home. The home can then be resold at an affordable price. NSP funds can also be used to help a low-income family purchase a home. To qualify for help, the home buyer's income cannot exceed 120 percent of the area median income.
