Grants for Affordable Housing

As a result of the collapse of the housing market, triggered by the economic downturn, more and more people find buying a house nearly an improbable task. While home prices are at their lowest levels, they are still beyond the reach of most people who are still recovering from loss of jobs or decrease in their income. The federal government, the government of the different States, nonprofit groups and other philanthropic organizations came up with different grants for affordable housing to help lower-income families get their own homes. Millions of dollars had been devoted to the development of homes that are moderately priced and funding initiatives are being offered through organizations that help people buy their own homes.

HOME Grants

A program of the U.S. Department of Housing and Urban Development, offers the largest block grant program of the federal government that is made available to the States. Every year, States are awarded rough $2 billion for the creation of affordable housing. Recipients of HOME grants are allowed to use the grant money to renovate or to build affordable housing units, to acquire a site for an affordable home, demolish neglected housing units and develop the same for low income families, and to provide assistance to those homeowners who are in need. The HOME grants for affordable housing give States a formula amount or $3 million.

In addition to the HOME program, the Federal Home Loans Bank also provide grants for affordable housing. It awards loans and grants for the different affordable housing projects – single or multi-family houses or rental units, including renovated homes.

New York’s Affordable Housing Corporation Grants

Many States and local organizations also offer grants for affordable housing such as New York’s Affordable Housing Corporation that awards grants for affordable housing to governments, charitable and non-profit organizations. Through the organization’s Affordable Home Ownership Development Program, candidates who meet their eligibility requirements can get up to $35,000 for each housing unit. New York State offers $40,000 grant per unit in higher cost projects that are financed by the U.S. Department of Agriculture Rural Development Service loans.

The State of Maryland provides grants for affordable housing through its Affordable Housing Trust and its Community Development Block Grant. The State of California, through its Department of Housing and Community Development, offers more than 20 programs that provide loans and grants for affordable housing.

Home Depot Foundation Grants

Private organizations are not left out in providing grants for affordable housing. The Home Depot Foundation, founded in 2002, awards grants for affordable housing to 401(c)(3) public charities in the country. Home Depot selects grantees that put emphasis on the construction of energy-efficient homes built with materials that are environmentally friendly.

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