U.S. Department of Housing announces $5.5 billion in grants

The Department of Housing and Urban Development will provide $5.5 billion in grants to build and preserve affordable housing and combat homelessness, the White House announced Tuesday.

Funding will be distributed to states, cities, Washington, D.C. and Puerto Rico to benefit 1,200 communities across the country.

“A coordinated, community-wide approach is crucial to building strong, resilient communities, investing in decent housing, creating healthy environments, expanding economic opportunities accessible to low-income households, and supporting future homebuyers and homeless people,” said Acting HUD Secretary Adrianne. Todman said in a statement.

“The funding made available today provides the foundation for communities to take ownership of community development investments and prioritize the needs of residents,” she said.

More than half of the new HUD funding ($3.3 billion) will go toward Community Development Block Grants aimed at expanding housing and expanding economic opportunities for low- and moderate-income people. An additional $1.3 billion will flow to HUD’s Real Estate Investment Partnerships program to help states and local governments build, purchase or rehabilitate affordable rental and owner-occupied housing for low-income families or provide them with direct rental assistance.

Each state will receive $214 million to increase the supply of affordable housing for extremely low and very low-income households, including people experiencing homelessness. HUD will award $455 million to provide housing assistance and supportive services to people living with HIV/AIDS and $290 million for homeless shelters and homelessness prevention programs.

About 653,000 people experienced homelessness in the United States in 2023, a 12% increase from 2022, according to the National Alliance to End Homelessness. This is the largest number of homeless people recorded since data collection began in 2007, according to the group.

The HUD funding announcement comes as housing becomes increasingly unaffordable. Redfin reported this month that the median sales price of homes in the 50 most populous metro areas increased or stayed the same in April compared to last year. The median sales price of a home in April was $383,188, an increase of 4.8% from 2022. The median rental price in the United States is $2,100, according to Zillow.