The government agency has allocated $10 billion of the funding it is receiving using a formula-based methodology--meaning it has been allocated using set program criteria that do not require grantees to apply for the funds. The remaining $3 billion will be competitively awarded later, and will focus on promoting green jobs and mitigating the destabilizing effects of foreclosures on communities.
HUD is dispensing the $10 billion in the following categories:
- Nearly $3 billion to 3,134 public housing agencies to develop or rehab public housing. It will competitively award another $1 billion to local housing agencies to support catalytic investments--investments that leverage private sector financing to retrofit public housing and enhance energy conservation.
- Shovel-Ready Projects and Assisted Housing Improvements. These are community development projects that are ready to go. Many have been held up for lack of private investment due to fallout from the broader economic crisis and credit crunch.
- The Tax Credit Assistance Program will receive $2.25 billion. Funded under HUD's HOME Program, TCAP grants will help State Housing Finance Agencies to begin production of stalled affordable rental housing projects that rely on Low-Income Housing Tax Credits. The funds will be distributed competitively with priority given to housing projects that can begin construction immediately.
- HUD is allocating $2 billion to invest in full 12-month funding for Section 8 project-based housing contracts.
- HUD is allocating nearly $1 billion to approximately 1,200 state and local governments through the Department's Community Development Block Grant program.
- Nearly $1.5 billion will go to state and local governments to re-house homeless persons and families who enter shelters.
- Loan limits of mortgages insured by the Federal Housing Administration will be temporarily increased, up to $729,750 from their current cap of $625,500.
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.