1. Chapter 15 Federal Subsidies and Grants for Housing

2. 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 15-1

3. 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

4. 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

5. 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

6. 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 15-4

7. 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

8. 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 15-6

9. 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 15-7

10. 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 15-8