Chapter 15

Federal Subsidies and Grants for Housing

Learning Objectives

• Describe the major federal government programs that are in place to assist low-and moderate-income families in obtaining housing

• Discuss the motivation behind the programs

• List the restrictions and requirements placed on the recipients of the benefits by the federal government

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Department of Housing and Urban Development (HUD)

• Fights for fair housing

• Increases affordability of housing

• Reduces homelessness

• Promotes jobs and economic opportunity

• Empowers people and communities

15-2

HUD Programs• Community Development Block grants promote

economic development and housing rehabilitation

• Subsidized Housing, Section 8 provides vouchers for low-income households

• Subsidized Public housing provides housing for low-income households

• Homeless Assistance through local nonprofit organizations

• HOME Investment Partnership Act Block Grants help develop affordable housing

15-3

HUD Programs Con’t

• Fair Housing Act enforces fair housing laws

• Mortgage and Loan Insurance

• Support of secondary mortgage activities through Ginnie Mae

15-3

Community Development Block Grant (CDBG)

• Established in 1974 to help develop economically depressed areas

• Allocates 70% of funds to entitlement communities (populations less than 50,000) and 30% to states

• Jurisdiction submits a consolidated plan

• Loan guarantee program provides financing to communities

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Assisted Housing

• Section 8 provides rental subsidies through vouchers and certificates

• Rent subsidies pay difference between market rent and what tenant can afford to pay

• Eligibility is determined by the local housing agency and is based on income and family size

15-5

Homeless Assistance

• Provides funds to state and local governments to assist homeless people

• Assistance is carried out through the Office of Community Planning and Development

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Home Investment Partnerships Program

• Created in 1990 and provides funds for affordable housing development

• Funds are distributed on a formula basis and administrated on the local level

• Funds can be used for home purchase or rehab assistance to low-income families

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Fair Housing and Enforcement

• Enforcement administered by the Assistance Secretary for Fair Housing and Equal Opportunity (FHEO)

• FHEO conducts compliance reviews of HUD funds recipients and ensures that HUD programs provide equal opportunity

• Helps state and local governments become certified as having substantially equivalent fair housing laws

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