The U.S. Department of Housing and Urban Development (HUD) and the White House announced $5.5 billion in funding on Tuesday that will be distributed through more than 2,400 grants to 1,200 communities in various states, urban areas and other localities.
The funding is designed to address a series of local needs including affordable housing, homelessness assistance and community development. This includes “flexible resources to build homes, support renters and homeowners, provide life-saving assistance to people experiencing homelessness, create jobs, and improve public facilities, community resilience, and local economies,” HUD explained in a news release.
The initial announcement was made by Vice President Kamala Harris during a self-described “nationwide economic opportunity tour,” and will be expanded upon by HUD acting secretary Adrianne Todman during a press conference in Reno, Nevada, on Tuesday.
Of the total funding, $3.3 billion will be distributed through the Community Development Block Grant (CDBG) program to 1,254 recipients. This money was awarded “on a formula basis to states, cities, counties, and insular areas to develop stronger, more resilient communities” by providing housing, suitable living environments and the “expansion” of economic opportunities, HUD explained.
Another $1.3 billion will go to 668 recipients specifically for the construction of new affordable housing units through the HOME Investment Partnerships Program. In 2023, HOME “helped create over 13,000 units of housing and more than 13,000 households were assisted with tenant based rental assistance,” according to HUD.
More than $450 million will go to 130 grantees to connect people with HIV/AIDS to housing and support; $290 million will go to 357 grantees to address homelessness; $30 million will go to 23 states and the District of Columbia to support recovery from substance use disorder; and $214 million will be distributed across each of the 50 states in an effort to increase affordable housing supply under the Housing Trust Fund (HTF).
“For people all across our nation, a home represents financial security, the opportunity to build wealth and equity, and a foundation for a better future for themselves, their children, and future generations,” Harris said in a statement. “That is why President Biden and I are expanding on our historic investments in housing by announcing $5.5 billion that will increase access to affordable housing, invest in economic growth, and address homelessness in communities throughout America.”
Todman added that in order to address the nation’s housing challenges, a “coordinated whole-of-community approach” is needed to support everyone that could be impacted by this funding.
“The funding made available today serves as building blocks to empower communities to take ownership of community development investments and put the needs of residents first,” Todman said.
The White House detailed some of the projects being supported by the funds, including the conversion of a historic building in Cleveland to affordable homes under the Section 108 Loan Guarantee program; support for affordable homes for seniors and people with disabilities in East Greenwich, Rhode Island; construction of affordable housing for homeless seniors and veterans in Vista, California; and funding of new water and wastewater systems in Pennsylvania.
HUD added that the “next step is for communities to seek public feedback on their proposed use of the funds,” which can be done by finding local grantees on the HUD Exchange website.
A full list of grantees across all 50 states, the District of Columbia and U.S. territories is available on HUD’s website.
