The federal government offers assistance for home improvement projects through several grant and loan programs. Funding assistance is available to both urban and rural areas and is specifically geared toward low- to moderate-income households. State and local programs use government funding to improve property conditions within neighborhood communities. Areas affected by natural disasters also qualify for assistance with home-improvement projects.
Community Development Block Grant Program
States and local governments have access to government funding for home-improvement assistance through the Community Development Block Grant Program or CDBG program. Administered by the federal government, the CDBG program issues a wide range of grants and loans to state programs, which in turn distribute available monies to local community agencies. Grant funding is designed to assist low- to moderate-income households with home-improvement needs and to rehabilitate rundown neighborhoods within urban and rural communities.
Rural Housing Repair and Rehabilitation Loans
Through the Rural Housing Repair and Rehabilitation Loans Program, the federal government offers loans for rural home improvement projects to low- or moderate-income homeowners who are unable to obtain credit through other means. Homeowners can use these loans to improve energy efficiency through appliance and insulation updates. The removal and repair of health and safety hazards, such as mold or structural damage, can also qualify for assistance under this program. Loan amounts carry a 1 percent rate and must be repaid within a 20-year time period. Homeowners 62 years and older may qualify for grant assistance for home improvements project that involve health and safety hazards.
Weatherization Assistance Program
The Weatherization Assistance Program provides government funding for home-improvement projects that improve energy-efficiency usage rates within residential properties. This program offers grant assistance from the U.S. Department of Energy to state and local government agencies to assist low-income households with home improvement needs. Government agencies distribute available monies to community-action agencies and nonprofit organizations. Projects covered under the Weatherization Assistance Program include updates made to home heating, cooling and electrical systems and appliance upgrades.
Disaster Recovery Grant Programs
Areas affected by natural disaster events such as floods or earthquakes can receive emergency government funding through disaster recovery grant programs. To qualify, an area must be declared a disaster zone by the president of the United States. Grant monies are distributed through state and local government agencies to low- and moderate-income households affected by a disaster. Homes in need of restoration to meet local housing code requirements can qualify for funding assistance. Eligible projects include homes that have suffered structural damage or damage to electrical and sewage systems.
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