HUD Distributes Nearly $5.7 Billion for Housing

Regulation | April 09, 2021 | by Linda Couch

Within 48 hours during the week of April 5, HUD has announced dispersal of nearly $5.7 billion to state and local governments for housing for people experiencing or at risk of homelessness or other people with low or extremely low incomes.

Within 48 hours during the week of April 5, HUD has announced dispersal of nearly $5.7 billion to state and local governments for housing for people experiencing or at risk of homelessness or other people with low or extremely low incomes.

On April 6, HUD announced the allocation of $679.5 million to states from the national Housing Trust Fund. The Housing Trust Fund is capitalized through the contributions made by Fannie Mae and Freddie Mac. This year’s allocation is a significant increase in funding from last year’s allocation of $322.5 million.

On April 8, HUD announced the allocation of nearly $5 billion in American Rescue Plan funds through HUD’s HOME program (“HOME-ARP” funds) to help communities across the country create affordable housing and services for people experiencing or at risk of experiencing homelessness. The grants, expected to end homelessness for approximately 130,000 people over the next 12 – 18 months, can be used to provide temporary or permanent housing, including buying and converting hotels and motels so people experiencing homelessness can have a more private and safe place to live than in congregate shelters. In the coming weeks, HUD is expected to announce the allocation of an additional $5 billion for emergency vouchers for people experiencing and at-risk of homelessness; these vouchers were also provided by the American Rescue Plan.

The national Housing Trust Fund, established in 2008, is specifically focused on housing for the lowest income people. HUD annually allocates HTF funds by formula to states; states must use at least 80% of each annual grant for rental housing; up to 10% for homeownership; and up to 10% for the grantee's reasonable administrative and planning costs. HTF funds may be used for the production or preservation of affordable housing through the acquisition, new construction, reconstruction, and/or rehabilitation of non-luxury housing with suitable amenities. All HTF-assisted units will be required to have a minimum affordability period of 30 years.

The $4.925 billion in HOME-ARP funding gives states the flexibility to best meet the needs of people experiencing or at risk of experiencing homelessness, including through development of affordable housing, tenant-based rental assistance, supportive services, and acquisition and development of non-congregate shelter units. Funds must be spent by 2030. The supplemental funding is allocated through the HOME Investment Partnerships Program to 651 grantees, including states, insular areas, and local governments.

The list of state Housing Trust Fund allocations is here.

The list of HOME-ARP recipient states, cities, and insular areas is here.