Grants & Funding

Money that helps the property carry itself.

Federal pass-through and local programs that can help fund affordable and Section 8 rental housing. These move slowly — but they're real.

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HOME Investment Partnerships Program (HOME)
U.S. Dept. of Housing & Urban Development (HUD)

Federal block grant that flows to states and local governments. Cities use HOME funds to support affordable rental housing — including acquisition, rehab, and new construction for units rented to lower-income tenants.

How to access: Apply through your city, county, or state housing department (not directly with HUD).
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Community Development Block Grant (CDBG)
HUD — passed through to local governments

Flexible federal funding cities use for housing rehab, neighborhood revitalization, and projects that benefit low-to-moderate income residents. Often pairs with HOME on the same project.

How to access: Apply through your local CDBG entitlement city or state CDBG office.
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Low-Income Housing Tax Credit (LIHTC)
IRS — administered by state housing finance agencies

The largest source of affordable housing financing in the U.S. Investors get federal tax credits in exchange for building or rehabbing rent-restricted units. Better suited to larger projects and partnerships.

How to access: Apply through your state Housing Finance Agency (HFA).
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National Housing Trust Fund (HTF)
HUD — passed through to states

Dedicated federal funding to build, preserve, and rehabilitate housing for extremely low-income households. States set their own application priorities.

How to access: Apply through your state's designated HTF administrator.
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Section 203(k) Rehabilitation Loan
FHA / HUD

Not a grant, but a financing tool that wraps purchase + rehab into one FHA-insured loan. Useful when a Section 8-friendly property needs work to pass inspection.

How to access: Apply through any FHA-approved lender.
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USDA Rural Development — Section 515 / 538
U.S. Department of Agriculture

Loans and guarantees for affordable rental housing in eligible rural areas. Worth checking if your target market is a smaller town or rural county.

How to access: Apply through USDA Rural Development state offices.
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Federal Home Loan Bank — Affordable Housing Program (AHP)
Federal Home Loan Banks (regional)

Competitive grants awarded through member banks to support affordable rental and ownership housing. Each regional FHLBank runs its own annual round.

How to access: Apply with a member financial institution as your sponsor.
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State & Local Housing Trust Funds
State and city housing departments

Many states and cities run their own housing trust funds with grants, forgivable loans, or gap financing for affordable rental projects. Search your state name + 'housing trust fund'.

How to access: Apply through your state or city housing finance office.
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A note on grants
Most housing grants are awarded through cities, states, or housing finance agencies — not directly to individual investors. Programs, deadlines, and eligibility change often. Always verify current rules with the administering agency in your local market before you plan around a specific funding source.