Category: Federal Incentives, Grants & Loans
AGENCY: U.S. Department of Agriculture (USDA) Rural Development (RD), Rural Housing Service (RHS)
DESCRIPTION: The Housing Preservation Grant (HPG) Program provides grants to sponsoring organizations for the repair or rehabilitation of low- and very low-income housing. Housing Preservation Grant assistance is available from grantees to assist very-low and low-income homeowners to repair and rehabilitate their homes. The grants are competitive and are made available in areas with a population of 20,000 or less and where there is a concentration of need. The objective of the HPG Program is to repair or rehabilitate individual housing, rental properties, or co-ops owned and/or occupied by very low- and low-income rural persons.
• Grantees will provide eligible homeowners with financial assistance through loans, grants and interest reduction payments for necessary repairs and rehabilitation, including providing accessibility for handicapped persons.
• Those assisted must own very low- or low-income housing, either as homeowners, landlords, or members of a cooperative. Very low income is defined as below 50% of the area median income (AMI); low income is between 50% and 80% of the AMI.
• Eligible sponsors include state agencies, units of local government, Native American tribes, and non- profit organizations. HPG funds received by the sponsors are combined with other programs or funds and used as loans, grants, or subsidies for recipient households based on a plan contained in the sponsor's application. Funds must be used within a two-year period.
• Assistance is also available to rental property owners to repair and rehabilitate their units providing they agree to make such units available to very-low and low-income families.
• Maximum Program Benefits: Varies by state.
• Term: Funded under the terms of a grant agreement for a period of up to two years.
• Program for state, commonwealth, trust territory or other political subdivision; public non-profit corporation; Indian Tribe, band, group, nation including: Alaskan Indians, Aleuts, Eskimos, and any Alaskan native village of the United States; and private non-profit organizations.
• Applications are accepted under a NOFA process.
• Visit the programs page at http://www.rurdev.usda.gov/wa/MFHhpg.htm, the multifamily programs at http://www.rurdev.usda.gov/wa/MFHPrograms.htm, and http://www.rurdev.usda.gov/rhs/mfh/brief_mfh_hpg.htm for more information.
• Rural Development Homepage: http://www.rurdev.usda.gov/rbs/index.html.