HUD, White House Announce $5.5B In Housing Grants

The White House and HUD announced funding for urgently needed affordable housing and community development.

More than 1,000 communities will receive $5.5 billion in grants. The money will go toward various housing-related areas, including resources for homebuilding, supporting renters and homeowners, and assistance for the homeless.

“Homeownership is an essential part of the American Dream that represents so much more than a roof over our heads,” Vice President Kamala Harris said.

“That is why President Biden and I are expanding on our historic investments in housing by announcing $5.5 billion that will increase access to affordable housing, invest in economic growth, and address homelessness in communities throughout America. This funding will build more affordable homes and support renters and homeowners while also lowering costs, building wealth, and creating jobs.”

There are multiple grants spanning the different development areas.

The Community Development Block Grants are annual grants that will provide decent housing and economic opportunities for low- and moderate-income people. 

Through the HOME Investment Partnerships Program, $1.3 billion will go to 668 grantees to create affordable rental and owner-occupied housing for low-income families through building, buying, or rehabbing properties.

Emergency Solutions Grants will provide $290 million to 357 grantees to address homelessness, and $30 million goes to 23 States and D.C. to support recovery from substance use disorder through stable transition housing.

An additional $455 million will go to 130 grantees to connect people with HIV/AIDS to housing and support.

Finally, $214 million will be provided to every state to increase the supply of affordable housing. Recipients will use these funds for eligible activities, including real property acquisition, site improvements and development hard costs, related soft costs, demolition, financing costs, relocation assistance, operating cost assistance for rental housing (up to 30% of each grant), and reasonable administrative and planning costs.

“For 50 years HUD has provided flexible grant funding so that communities nationwide can make their own choices about addressing their most urgent challenges. These funds will be used to create permanent housing, offer temporary shelter, provide downpayment assistance for ready homebuyers, support community infrastructure – like water and sewer projects – and invest in small businesses,” said Marion McFadden, Principal Deputy Assistant Secretary for Community Planning and Development.

Communities receiving these grants now need to ask the public for feedback on their proposed use of the funds.

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