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HUD   >   Programs of HUD   >   American Recovery and Reinvestment Act of 2009 (Recovery Act Programs)
American Recovery and Reinvestment Act of 2009 (Recovery Act Programs)
(Public Law 111-5, approved February 13, 2009)

Neighborhood Stabilization Program 2

The Recovery Act included an additional $2 billion appropriation for the Neighborhood Stabilization Program (commonly referred to as NSP2), as authorized in HERA and described above, for the redevelopment of abandoned and foreclosed homes and residential properties. NSP2 provides competitive grant awards to states, units of general local government, and nonprofit organizations to undertake eligible activities as provided under HERA, as amended.

The Recovery Act also authorized the establishment of the NSP Technical Assistance (NSP-TA) program to improve the capacities of NSP grantees and the implementation of their programs. Fifty million dollars of the $2 billion Recovery Act appropriation is set aside for this purpose. Eligible applicants for competitive NSP-TA awards are states, units of general local government, nonprofit organizations, and other organizations capable of providing technical assistance to NSP grantees.

Administering Office: Assistant Secretary for Community Planning and Development, U.S. Department of Housing and Urban Development, Washington, DC 20410-7000.

Green Retrofit Program for Multifamily Housing

The Recovery Act included a $250 million appropriation for the Assisted Housing Energy & Green Retrofit. Grants and loans are made for eligible property owners to make energy and green retrofit investments in the property, to ensure the maintenance and preservation of the property, the continued operation and maintenance of energy efficiency technologies, and the timely expenditure of funds. Eligible Applicants are owners of properties receiving project-based assistance pursuant to section 202 of the Housing Act of 1959, section 811 of the Cranston-Gonzalez National Affordable Housing Act, or Section 8 of the United States Housing Act of 1937. Physical and financial analyses of the properties are conducted to determine the size of each grant and loan. Incentives are available to participating owners.

Grants and loans are available up to $15,000 per eligible unit based upon the needs and opportunities identified, and the agreed-upon retrofit plan. The terms of the grants or loans include continued affordability agreements. Grant and loan funds must be spent by the receiving property owner within two years.

Administering Office: Office of Affordable Housing Preservation (OAHP), Assistant Secretary for Housing, U.S. Department of Housing and Urban Development, Washington, DC 20410-4000.

Healthy Homes Demonstration Grant Program and Technical Studies Grants

The Recovery Act appropriated $17 million for the Healthy Homes Demonstration Grant Program. This program assists not-for-profit institutions and for-profit firms (provided no fees are charged for services), state and local governments, housing authorities, federally-recognized Indian Tribes, and colleges and universities located in the US develop, demonstrate, and evaluate cost-effective, preventive measures to correct multiple residential safety and health hazards that produce diseases and injuries in children and other sensitive subgroups such as the elderly, with a particular focus on low income households.

In addition, $1.8 million was appropriated for the Healthy Homes Technical Studies Grants. The grants assist academic institutions, non-profit and for-profit organizations, states, Native American Tribes and local governments to conduct research to gain knowledge on improving the efficacy and cost-effectiveness of methods for evaluation and control of residential lead-based paint hazards.

Administering Office: Office of Healthy Homes and Lead Hazard Control, Washington, DC 20410-3000.

Homelessness Prevention and Rapid Re-Housing Program (HPRP)

The Recovery Act included a $1.5 billion appropriation for the Homelessness Prevention and Rapid Re-Housing Program (HPRP). The program provided formula grants to States, U.S. territories, metropolitan cities, and urban counties to provide temporary rental assistance and housing relocation and stabilization services to homeless families and individuals and low-income families and individuals at risk of homelessness. The program requires grantees to expend 60 percent of their grant funds by September 30, 2011 and to complete the expenditure of their funds by September 30, 2012.

Administering Office: Assistant Secretary for Community Planning and Development, U.S. Department of Housing and Urban Development, Washington, DC 20410-7000.

Lead-Based Paint Hazard Control Grant Program and Lead Hazard Reduction Demonstration Grant Program

The Recovery Act appropriated $77.9 million for the Lead-Based Paint Hazard Control Grant Program and $2.6 million for the Lead Hazard Reduction Demonstration Grant Program. Both programs undertake inspections, risk assessments, temporary relocations, workforce training, abatement, and interim control of lead-based paint hazards in eligible privately owned, single family housing units, and multifamily buildings that are occupied by low-income families. The Demonstration Grant Program assists areas with the highest lead paint abatement needs.

Administering Office: Office of Healthy Homes and Lead Hazard Control, Washington, DC 20410-3000.

Indian Housing Block Grants (Formula)

The Recovery Act included a $510 million appropriation for the Indian Housing Block grants (IHBG) and of that amount, $255,000,000 was disbursed based on a formula.

IHBG (formula) funds new construction, acquisition, rehabilitation, including energy efficiency and conservation, and infrastructure development activities. Funds can also be used to leverage private sector financing for new construction, renovation and energy retrofit investments. In selecting projects to be funded with Recovery Act funds, recipients shall give priority to projects for which contracts can be awarded within 180 days from the date that such funds are available to the recipient. Formula funds were obligated within 30 days of enactment of the Recovery Act.

Administering Office: Assistant Secretary for Public and Indian Housing, U.S. Department of Housing and Urban Development, Washington, DC 20410-4000.

Indian Housing Block Grants (Competitive)

The Recovery Act included a $510 million appropriation for the Indian Housing Block grants (IHBG) and of that amount, $242,250,000 was allocated competitively.

IHBG (competitive), authorized by the Native American Housing Assistance and Self-Determination Act of 1996 (NAHASDA), assists tribes in developing, operating, maintaining, and supporting affordable housing for rental and homeownership housing. Funds can be used for acquisition, new construction, rehabilitation of affordable housing, site improvement, development and rehabilitation of utilities and infrastructure, utility services, conversion, demolition, financing, administration and planning, improvement to achieve greater energy efficiency, mold remediation, investments that leverage private sector funding or financing for renovations, and energy conservation retrofit investments. HUD was required to obligate competitive funds by September 30, 2009.

Administering Office: Assistant Secretary for Public and Indian Housing, U.S. Department of Housing and Urban Development, Washington, DC 20410-4000.

Public Housing Capital Fund (Formula)

The Recovery Act included a $4 billion appropriation for the Public Housing Capital Fund, to be used for capital and management activities for public housing agencies (PHAs), as authorized under Section 9 of the United States Housing Act of 1937 ("the 1937 Act"), as amended. The Recovery Act requires that $3 billion of these funds be distributed by the same formula used for amounts made available in fiscal year 2008, except that the Secretary of HUD has the discretion not to allocate funding to public housing agencies currently designated as troubled or to public housing agencies that elect not to accept such funding.

The use of funds varies based on each PHA's specific needs and its assessment of priorities. Specific activities are those eligible under the Capital Fund, which include physical improvements such as new building systems (heat, water and electrical), structural systems (roofs and exteriors) and other renovation and rehabilitation work that corrects building deficiencies and improves living conditions for public housing residents. If repair and/or renovation of existing public housing units does not meet the needs of public housing residents nor does it enable the public housing project to blend into the existing community, the PHA may consider the development of new housing either at a demolished site or elsewhere.

Administering Office: Assistant Secretary for Public and Indian Housing, U.S. Department of Housing and Urban Development, Washington, DC 20410-4000.

Public Housing Capital Fund (Competitive)

The Recovery Act included a $4 billion appropriation for the Public Housing Capital Fund, to be used for capital and management activities for public housing agencies (PHAs), as authorized under Section 9 of the United States Housing Act of 1937 ("the 1937 Act"), as amended. The Recovery Act requires that $1 billion of these funds be distributed through a competitive process. The Public Housing Capital Fund may be used to rehabilitate, develop, and retrofit public housing units and provide employment for construction workers and skilled laborers.

Administering Office: Assistant Secretary for Public and Indian Housing, U.S. Department of Housing and Urban Development, Washington, DC 20410-4000.

Tax Credit Assistance Program (TCAP)

The Recovery Act appropriated $2.250 billion for the Tax Credit Assistance Program (TCAP), a grant program to provide funds for capital investments in stalled Low-Income Housing Tax Credit (LIHTC) projects, via a formula-based allocation to 52 State housing credit agencies (the 50 states plus the District of Columbia and the Commonwealth of Puerto Rico).

The housing credit agencies in each State distribute these funds competitively and according to their qualified allocation plan. Projects awarded low income housing tax credits in fiscal years 2007, 2008, or 2009 are eligible for funding, but housing credit agencies give priority to projects that are expected to be completed by February 2012.

Administering Office: Office of Affordable Housing Preservation (OAHP), Assistant Secretary for Community Planning and Development, U.S. Department of Housing and Urban Development, Washington, DC 20410-4000.