The U.S Department of Housing and Urban Development (HUD) offers extensive programs to help out communities across America. Part of this aid comes in the form of HUD grants that are awarded to organizations and groups for a variety of purposes. While this money comes from the federal housing branch, it is actually administered by city and municipality authorities across the various states. Grants are most commonly awarded to assist in housing and home ownership for low income families, the elderly, the homeless, people with disabilities, and people with AIDS.
In applying for government HUD funding to purchase a new home there are several important points for applicants to keep in mind. First and foremost is that no grant will cover 100% of the cost of a house. Individuals need to show proof that they qualify for a mortgage, and the grant money will go to subsidize those mortgage costs. This is to ensure that money granted is used for its intended purpose, rather than individuals receiving the grant and then not being able to purchase a home.
Furthermore, individuals purchasing their first home and hoping for a HUD grant to subsidize costs will be required to attend a HUD approved Housing Counseling class. They help people get their finances organized so they will qualify for a mortgage.
For individuals that are not in a position to qualify for a mortgage and are still in need of government housing assistance, there is good news. Not only is money being granted to municipalities to create more public housing, but they will be improving existing buildings as well. This can be seen through the HOPE VI program. Through this program HUD grants are being administered for the demolition, construction, and rehabilitation of public housing, development of replacement housing, and community and supportive services. HUD is also granting money to individuals in public housing to take workshops, job training and college preparation classes with the hope to get them back into the workforce and financially self-sufficient. Public housing residents sign a contract to participate, which outlines their responsibilities towards completion of training and employment objectives up to a five-year period.
Affordable housing specifically for seniors and persons with disabilities will also finally see an increase in grant funding. This year with the HUD is directing more than $700 million to help these persons find adequate living accommodations. Seniors and persons with disabilities are given special consideration for these grants as congress recognizes the need to preserve housing specifically designed to meet their special needs.
Another perhaps largely overlooked group are homeless individuals, as they are difficult to locate. This year the HUD is giving grants to emergency shelters that are intended to provide homeless persons with basic shelter and essential support services. This money is also used as a preventative measure in grants provided to individuals who are at imminent risk of losing their housing due to a variety of financial reasons.
