Affordable housing essentially means housing that has a sales price or rental price that is within the means of a low- or moderate-income family. The government housing agencies periodically come up with affordable programs for the low- or moderate-income class.

If you are looking for information on affordable housing grants and programs, you will need to be aware of certain industry terms. This guide covers some affordable housing grant terminology, such as AHP (Affordable Housing Program), HOME program, area median income and CRA (Community Reinvestment Act).

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AHP (Affordable Housing Program)

AHP is a program by the Federal Housing Finance Board (FHFB) that subsidizes the cost of housing for people in the low-to-medium income groups. The subsidy could be in the form of a low interest rate or a federal grant. All 12 Federal Housing Loan banks implement this scheme.

I recommend: To learn more about the AHP, read through the information at the Federal Housing Finance Board, the regulator of Federal Housing Loan banks.

HOME Investment Partnership

This program provides a federal grant to states and localities to cater to diverse needs. The source of funding is flexible. The agencies channel these funds for construction, rehabilitation and down payment assistance.

I recommend: You can read through information at the U.S. Department of Housing and Urban Development, the institution overseeing housing affairs of the nation.

AMI (Area Median Income)

AMI is the median income for communities across the country that is calculated by the federal government each year. Moderate-income households are classified as earning between 80-120 percent of the AMI of an area, with low-income households earning much less. Subsidies are given on the basis of percentage of income against AMI.

I recommend: For the definition of this term, read through the glossary at AFL-CIO Housing Investment Trust, an investment company.

CRA (Community Reinvestment Act)

This act provides a framework for depository institutions and community organizations to promote availability of credit for underserved communities.

I recommend: You can get detailed information about the CRA at The Office of the Comptroller of the Currency, an institution that regulates and supervises all national banks.

CDBG (Community Development Block Grants)

CDBG is a program that provides communities with resources to address community development needs. Under this program, local and state governments receive grants annually on a formula basis.

I recommend: For further information about CDBG programs, read through description at North Carolina Department of Commerce.

HUD section 202 program

The HUD section 202 program is an initiative to provide funds to corporations to develop affordable housing for low-income senior citizens. On meeting HUD requirements, a senior citizen can take advantage of rental assistance through the federal program.

I recommend: Read through information at Housing Assistance Council, a non-profit organization helping to create affordable rural housing in the US.

If you are an investor interested in providing affordable housing solutions in your neighborhood, an affordable housing grant may be able to help. An affordable housing grant can help you come up with the funds you need for a down payment or mortgage insurance for your investment project. Federal and state agencies want to provide affordable housing and often are willing to help out investors to make it happen and even give you tax credits. A low income housing grant can help you to:

1. Get mortgage insurance to help you qualify for a mortgage.

2. Get on an affordable housing grant list to get the funds needed for a down payment on an investment property.

3. Get an affordable housing grant to help you pay for improvements to your investment property.

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See if you qualify for an affordable housing grant

There are many state and federal restrictions to receiving an affordable housing grant, so your first step should be to make sure that you qualify. Many states have rules regarding the amount for which you may qualify or the demographics of the people who can live in your property.

I recommend: Grants.gov has an affordable housing grant directory that you can search for federal grants. Also RentLaw has a section for landlords on its website which explains how they can qualify to receive housing vouchers from their renters.

Research tax credits and tax-exempt bonds available for affordable housing

An added benefit to providing affordable housing is that the state and federal government are often willing to help lift the tax burden off of the shoulders of investors. Make sure that you apply for all of the applicable tax credits you can get in your investment property.

I recommend: Affordable Housing Finance Magazine offers a state-by-state contact list of resources to help you get your affordable housing tax credits. Also, Fannie Mae can help you find financing and tax credit solutions for your affordable housing project.

Use an affordable housing grant provider to help save you money

There are several ways you can use an affordable housing grant to your advantage. You can use an affordable housing grant if you need down payment assistance or even help fixing up the investment property that you just bought.

I recommend: An organization like USA Grant Team can help you find all of the affordable housing grants that you can qualify for. The HOME grant through HUD designates money to state and local agencies to provide affordable housing solutions in their communities. The Federal Housing Finance Board can help finance your affordable housing project.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Even if you don't think you would qualify for an affordable housing grant, it still may be worth the time in research. You may be surprised by what you find is available.
• •  Expect to have high turnover in your affordable housing investment property. Try to keep your property maintained and designed in such a way that it can withstand the turnover without costing you a lot in the process.

An affordable housing grant is a supplement of money that allows a potential home buyer to solidify a mortgage by gaining a favorable interest rate compared to the current market, or providing financial aid in terms of down payment assistance. Affordable housing grants are popular with first time home buyers, city and state workers and other groups of people that qualify for assistance in lieu of obtaining a traditional loan.

Take the time to familiarize yourself with affordable housing grant information so that you can determine if you qualify for one or multiple programs. Here are some resourceful links to get you started. Think of this tutorial as "affordable housing grant for beginners."

1. Find affordable housing grant info by reading websites sponsored by the federal, state and county governments.

2. Locate an affordable housing grant directory and use the search database to see what is available to your business or your family.

3. Seek out banks and other associations to learn about affordable housing grant information.

Action Steps
The best contacts and resources to help you get it done

Learn about an affordable housing grant by reading official government websites

There are many affordable housing programs within the United States of America that are sponsored by the government. These range from job based grants for public workers like teachers and police officers, to first time home buyer grants that assist with lower interest rates and down payments so that people can buy their first home. Read up on the grants in your state and county that may be available to you.

I recommend: Visit the website for the US Department of Housing and Urban Development for additional information on a low income housing grant. Also go to the website for the California Housing Finance Agency for more information on state and city affordable housing programs within the state.

Browse through an affordable housing grant directory to see if you qualify for any programs

Searching through an affordable housing grant list is a great way to determine what loans and assistance you might qualify for when purchasing a home. Be sure to take note of what programs may be combined with others as well as notating the terms of the assistance. There are often stipulations like the residence must be your primary one in order to qualify for the loans.

I recommend: Both Down Payment Solutions.com and the website Federal Grants Wire are directories for affordable housing grants within the United States. Peruse these directories to see what affordable housing grants are available to you.

Think about banks or associations as an affordable housing grant provider

There are many lending institutions and other associations that provide affordable housing grants to people. These grants are obtained through a myriad of ways. Some rely on hardship, while others are contests, while others still are related to your occupation. Seek out these other entities to learn if you qualify for any additional affordable housing grants.

I recommend: Visit the website for Chase Bank (formally Washington Mutual) to read about the affordable housing programs and partnerships they offer. The National Association of Realtors also offers affordable housing grants.