Housing Rehabilitation Grants
Whether you're buying a fixer-upper or repairing the family homestead, you may be able to receive a housing rehabilitation grant to help with your efforts. From installing new windows to renovating the plumbing, many federal, state and local agencies offer housing rehabilitation grants to homeowners for needed repairs. Does this Spark an idea?
Definition
A housing rehabilitation grant is a monetary award to complete needed home renovations or repairs; the grant never has to be repaid. Depending on the program, a grant may be awarded as a lump sum to a homeowner to complete a number of needed repairs, or a grant may be given to fix or replace one specific item, such as a new energy-efficient water heater.
Available grants
The government and some non-profit agencies offer housing rehabilitation grants at the federal, state and local levels. A number of housing grants are available through the U.S. Department of Housing and Urban Development for individuals living in cities, and the U.S. Department of Agriculture awards housing grants to individuals in more rural places. Contact your local HUD or USDA representative for more information or to apply.
Grants and low-interest loans are also available through a number of state programs, like California's, which is dually sponsored by both the federal and state government. However, criteria and amounts awarded by state programs vary from state to state. Contact your state's housing department to see what grants are available in your area.
Local programs also offer home repair grants and loans to individuals who qualify. To learn more about housing rehabilitation grants in your area, check with your city and county government offices.
Who's eligible?
The U.S. Department of Housing and Urban Development typically requires applicants to be either low- or middle-income families and to make below a certain income level based on the department's figures, which can be found on the HUD website. The U.S. Department of Agriculture's Home Repair Grant requires that the applicant be over age 62. Requirements for housing rehabilitation grants vary by program and awarding agency.
However, most agencies and programs require applicants to live in and keep the renovated residence for at least three years after being awarded a housing rehabilitation grant.
How much can I get?
Housing rehabilitation grant amounts vary by program and purpose. An awarded grant can be as little as the cost of a new energy-efficient water heater, approximately $250 to $300, or it can be large enough to renovate and repair an entire kitchen and bathroom. However, most grant programs have a cap on the amount a single individual or family can receive. Cap amounts vary by program but are typically $25,000 to $35,000.
Alternatives
Individuals who do not qualify for a housing rehabilitation grant through a federal, state or local program may be able to obtain a low-interest loan. The U.S. Department of Housing and Urban Development and the U.S. Department of Agriculture both have loans available at interest rates as low as 1 percent to individuals who are not eligible for their grant programs.
Tags: housing rehabilitation, rehabilitation grant, federal state, Department Agriculture, Department Housing
