Funds Available for Housing in Rural Communities
HUD is making $25 million in grants available to help rural and tribal communities struggling to address distressed housing conditions and concentrated poverty. The agency's new Rural Innovation Fund will promote an “entrepreneurial approach” to affordable housing and economic development in rural areas.
In announcing the funding, HUD Secretary Shaun Donovan said the grants will “stimulate new approaches to old problems, particularly in areas struggling with poor housing conditions and deep poverty.”
The grants, of up to $2 million each, will go to eligible applicants, including federally recognized Indian tribes, state housing finance agencies (HFAs), state community development agencies, local rural nonprofit organizations, community development corporations, or consortia of these groups. Grantees can use their grant funding to support a variety of housing and economic development activities including construction, preparation of plans, land acquisition, demolition, homeownership counseling, and financial assistance.
Applicants may apply for only one of three grant types:
Single-purpose grants. At least $7.5 million will be awarded to certain applicants that identify a specific area of need, with maximum individual grants of up to $300,000. HUD is encouraging, though not requiring, applicants to address both housing and economic development needs within the defined “project area.”
Comprehensive grants. HUD will award up to $2 million to certain applicants that comprehensively examine the social, housing, and economic needs of a target area and address those needs through activities that leverage other sources of public and private financing. Eligible activities under this grant category are broader than those outlined in the single-purpose grant category. Highly ranked applicants can also be expected to work closely and leverage resources with regional entities in order to promote economic competitiveness beyond the local level.
Economic development and entrepreneurship for federally recognized tribes. At least $5 million will be awarded to support economic development and entrepreneurship opportunities for federally recognized tribes, with maximum individual grants up to $800,000.
More information is available on the HUD Web site at: www.hud.gov/offices/adm/grants/nofa10/grpruralinno.cfm and at www.grants.gov.