Cheap housing grants make development, lease or purchase of housing that is affordable more attainable. Several different entities offer housing grants, including federal government agencies, local government authorities and nonprofit organizations. The specific amounts and requirements for affordable housing grants vary by location and purpose. People and organizations that acquire affordable housing grants typically have to give detailed strategies and financial statements.
Identification
The local cost of living and also the income target of the specific project impact how a programmer or grant-giving organization defines affordability. The U.S. Department of Housing and Urban Development (HUD) normally defines affordable rent or mortgage payments as that which is no more than 30% of the family income. HUD also offers the area median income (AMI) as a localized measure of worth. Developers of affordable housing will frequently describe the affordability of the housing units as a percentage of the AMI.
Developers
Certain agencies and organizations provide grants to developers who intend to build affordable housing. The John D. and Catherine T. MacArthur Foundation offers tens of thousands of dollars every year in affordable housing grants to programmers and policy organizations all around the nation that research, plan and build affordable housing. This organization and many others like it seek to provide programmers a financial incentive to build affordable housing.
Renters
Housing grants are offered for low-income tenants who need assistance securing appropriate housing. Such grants can help subsidize the cost of housing or pay for necessary improvements. California’s Department of Housing and Communication offers Exterior Accessibility Grants to low income leasing renters with disabilities. The grants are used to alter entryways and common areas to accommodate disabled residents.
Homeownership
Potential homeowners who meet certain criteria are eligible for grants that make homeownership possible and affordable. The Federal Home Loan Bank of San Francisco administers the Workforce Initiative Subsidy for Homeownership program, also Called WISH. WISH features bank clients whose income is 80 percent or less of the Area Median Income and who finish homeownership classes around $3 of matching money for every $1 the homebuyer puts toward purchasing a new residence. The grants could be for up to $15,000. Requirements for almost any homeownership grant program are made in the discretion of the entity.
Alternative
Though technically not a grant, a tax break would be a financial incentive for affordable housing advocates to promote the development and use of affordable housing. A tax break reduces or even eliminates the total amount of money a individual or organization must pay the local or federal government. For an affordable housing tax break, this kind of incentive is tied to a program or development that supports the creation or retention of affordable housing.