The United States Department of Housing and Urban Development (HUD) and private foundations provide funding for nonprofit agencies to help low-income families with their housing needs. Nonprofit organizations must submit a proposal detailing their project goals and budget to apply for a grant. The organization must be able to demonstrate it has experience and ability to develop affordable housing. If the agency is awarded a housing grant, it must comply with the conditions that the housing will be affordable for low- to moderate-income families.
Self-Help Homeownership Opportunity Program
HUD's Self-Help Homeownership Opportunity Program provides funding to nonprofit agencies committed to affordable housing development. This program specifically allows nonprofits to offer assistance in purchasing a home through the family's sweat equity. The household must put in 100 hours of work toward constructing its home to qualify for the purchase. To participate in the program, the family's income cannot exceed 80 percent of the area median income. The family must meet income and citizenship requirements. Habitat for Humanity is an example of a SHOP grant recipient.
Neighborhood Stabilization Program
The Neighborhood Stabilization Program provides funding to local governments and nonprofit agencies to purchase or rehabilitate abandoned and foreclosed homes. Once the homes are renovated, the agency can put the property up for sale or establish rental housing for low-income families. NSP funds must be used to serve families with low to moderate income. Some nonprofit agencies demolish an abandoned home site and construct new housing in its place. NSP funding is allocated on a competitive and noncompetitive basis.
AHP
Federal Home Loan Banks across the country provide funding to nonprofit organizations to develop assisted housing in their communities. On an annual basis, each Federal Home Loan Bank sets aside 10 percent of its net income to fund the Affordable Housing Program. Nonprofit agencies can apply to receive funding for their projects. Funding may be used to acquire, construct or rehabilitate rental housing. The nonprofit also can use the funding for a down payment program for families ready to purchase a home.
Wells Fargo Homeownership Grant Program
The Wells Fargo Homeownership Grant Program provides $7,000 to nonprofit agencies. The grant is used to help low- to moderate-income families achieve homeownership. You can find out apply for the grant at Wells Fargo's Housing Foundation website (see References). Land acquisition projects are not eligible for this grant, however, the funding can be used for construction and rehab of owner-occupied homes, homebuyer education, down payment assistance and home repairs. Only 501(c)(3) tax-exempt organizations or government agencies are eligible to apply for a Homeownership Grant with Wells Fargo.
