What does this program do?
It provides grants to sponsoring organizations for the repair or rehabilitation of housing occupied by low and very low income (1) people.
Who may apply for this program?
- Most State and local governmental entities
- Nonprofit organizations
- Federally Recognized Tribes
- Individual homeowners are not eligible
Additional requirements include:
- Applicants must have the necessary background and experience with proven ability to perform the responsibility of repair and rehabilitation of low-income housing
- Applicants are required to make quarterly progress reports and a final audit on their accomplishments
What is an eligible area?
Areas that may be served include:
- Rural areas and towns with 20,000 or fewer people--Check eligible addresses
- Federally Recognized Tribal lands
How may funds be used?
- Applicants provide grants or low-interest loans to repair or rehabilitate housing for low- and very-low-income (1) homeowners
- Rental property owners may also receive assistance if they agree to make units available to low- and very-low-income (1) families
- Eligible expenses include:
- Repairing or replacing electrical wiring, foundations, roofs, insulation, heating systems and water/waste disposal systems
- Handicap accessibility features
- Labor and materials
- Administrative expenses
- For a complete list, see Code of Federal Regulations (CFR) 1944.664
How do we get started?
Applications are accepted on an annual basis through a Notice of Funding Availability (NOFA) in the Federal Register.
Who can answer questions?
Contact your RD State office.
What governs this program?
- Code of Federal Regulation, 7 CFR 1944-N
- RD Instruction 1944-N
- RD Instruction 1940-L, Methodology and Formulas for Allocation of Loan and Grant Program Funds
- RD Instruction 1940-G, Environmental Program
- RD Instruction 1901-E, Civil Rights Compliance Requirements
- This program is authorized by Title V of the Housing Act of 1949
NOTE: Because citations and other information may be subject to change, please always consult the program Instructions listed in the section above titled "What Law Governs this Program?" You may also contact your State office for assistance.
(1) Very-low-income and low income: Very-low-income is below 50% of area median income; low-income is 50-80% of area median income.