Today, HUD Secretary Marcia Fudge announced the allocation of nearly $5 billion in American Rescue Plan funds to help create affordable housing and services for people experiencing or at risk of experiencing homelessness. The supplemental funding is allocated through the HOME Investment Partnerships Program to 651 grantees, included states, insular areas, and local governments. A full list of grantees can be found here.
The funding gives states the flexibility to meet the needs of people experiencing or at risk of experiencing homelessness. Funding can be used to develop affordable housing, tenant-based rental assistance, supportive services, and acquisition and development of non-congregate shelter units. The funding is also the first of two homelessness-related funding opportunities from the American Rescue Plan (ARP) that HUD will release.
HUD’s press release can be found here.
Earlier this week, HUD announced the allocation of over $689 million through the nation’s Housing Trust Fund (HTF) for affordable housing. The HFT is capitalized through contributions made by Fannie Mae and Freddie Mac. The 2021 allocation represents an increase in funding of over $367 million from 2020. A list of state allocation can be found here.
The HTF is specifically focused on housing for the most vulnerable populations. States must use at least 80 percent of their annual grant for rental housing, up to 10 percent for homeownership, and up to 10 percent for reasonable administrative and planning costs. HTF funds can be used for the production or preservation of affordable housing through acquisition, new construction, reconstruction, and/or rehabilitation of non-luxury housing with suitable amenities. HTF-assisted units for a minimum affordability period of 30 years.