Federal Grant Program for Low-Income Housing Double-Funded in 2021
One of the topics that we’ve covered here at GrantNews is affordable housing. After all, safe and secure housing is so critical to the quality of life. This is why nonprofits and government agencies can apply for grants to help struggling families with this need. Some of these grants come from federal housing programs. During the global pandemic, which has seen high unemployment in many states, this has never been more crucial. And that’s why, according to the U.S Department Department of Housing and Urban Development, one such federal program doubled this year.
(And while we’re talking about affordable housing news, here’s a grant for Oregon nonprofits, educational institutions, and agencies to provide affordable housing.)
Federal Program Doubled To Help More Low-Income Families
So, how much funding is this federal program (The Housing Trust Fund) receiving this year?
Why is it receiving more than double the amount as last year?
How can the funds be used?
Who will be receiving these funds?
And why is all of this so important?
Housing Grant Program Poised to Help States Help Citizens
So, let’s make sure we hit all of these questions. Firstly, the total amount allocated for this program in 2021 is $689,565,492, more than double the $322,564,267 than the prior year. Part of the reason has to do with the mortgage boom. When rates fell earlier this year, many homeowners chose to refinance their mortgages. And, there’s also a housing problem caused by the COVID-19 pandemic. Housing prices continue to rise all over the country and supply is scarce.
Here’s what U.S Secretary for Housing And Urban Development Marcia Fudge had to say about this program increase: “This past year has reminded us just how important it is to have access to safe and stable housing. But too many Americans are struggling to keep or find an affordable home.”
The Housing Trust Fund was created in 2008 in the wake of a massive economic crisis and recession. Part of this crisis was caused by sub-prime loans that banks used to charge lower-income individuals high tax rates, which led to major defaults. The Housing Trust Fund started making payments to states in 2016.
Here’s a bit on how it works: The grants are awarded directly to state governments. Each state that receives a grant must spend 80% of each yearly grant for rental housing, and 10% for homeownership. The rest will be spent on administrative and planning costs. The fund can be used for:
- acquisition
- new construction
- reconstruction
- rehabilitation of properties
This is a positive development because it will allow for more people to have access to affordable, safe housing, and especially more families. Since the fund can rehabilitate properties, as well as construct new homes, state recipients have to be held to a certain standard.
GrantWatch Knows the Importance of Affordable, Accessible Housing
We understand how critical programs like this are. Safe housing is essential for families to have a positive quality of life. This is why we’re so proud that we have an entire category for housing-related grants. We also have an additional category of grants for Homelessness-related grants. Our paid subscribers can also use the search tool to locate grants using specific keywords to narrow the results to find the right grant for them.
If you have any questions regarding these grants or any other grant category on our site, feel free to reach out! You can reach our incredible support team members by calling 561-249-4129!