Obama Making Homes Affordable: Funding Affordable Housing Projects

For developers and housing advocates, finding the money needed to develop quality, affordable housing can be difficult. The U.S. Department of Housing and Urban Development knows this, which why it has created Obama making homes affordable programs aimed at assisting with affordable housing development. Each year, HUD allocates hundreds of millions of dollars to help create or rehabilitate affordable housing, related infrastructure and public service issues that affect under-resourced populations.

In 2010, the largest allocation was for homeless assistance grants. The money is intended for projects that create bed space for the homeless and increase their access to employment and educational opportunities.

HUD Secretary Shaun Donovan said this latest round of funding was in keeping with the Obama administration’s commitment to end “the preventable tragedy of homelessness…” The funding was made available through HUD’s Continuum of Care (CoC) program designed to assist the homeless. Also in 2010, several states received disaster recovery grants, which will be provided through Community Development Block Grants (CDBG). The money will be used to rebuild both residential homes and infrastructure.

Finally, HUD made several million dollars available for colleges that have high percentages (at least 25 percent) of full-time, undergraduate Hispanic or African-American students. The funding can be used to purchase and rehabilitate existing properties, demolish severely damaged buildings and rebuild on the same land, improve public facilities, and support public services like child care and job training. In this instance, they were used to develop affordable housing and related needs in the communities surrounding the colleges.

HUD’s numerous programs and grants have requirements that vary by program. Deadlines and application processes vary, too. However, I have learned that all *banks* that are holding notes are on board to implement the government program (once the monies are received of course). But if your note is held by an investor and managed by a mortgage servicer and you are getting passed around or told that the government program isn’t available – don’t just accept that as the gospel.

Learn more about Obama Making Home Affordable Mortgage Program.