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California HUD Housing Block Grant Programs

For Rural California Communities

The HOME Investment Partnerships Program is the largest federal block grant to state and metropolitan local governments designed exclusively to create affordable housing for low-income households. A block grant is a federal grant made by formula every year that gives the grantee discretion to undertake specific activities.

HUD provides HOME block grant funds directly to urban areas and to the California Department of Housing and Community Development. The state then provides these resources to applicants on a competitive basis. Both urban and rural areas can apply to the state for funding. Eligible applicants include city and county governments not already receiving HOME funds directly from HUD and current state-certified nonprofit Community Housing Development Organizations (or CHDOs).

The amount of HOME funding California receives each year is determined by a need-based formula as verified by US Census data released every 10 years. For the fiscal year of 2004, the State of California received about $60.9 million.

Funding from the HOME Investment Partnership Program can be used for homeowner and rental housing development, as well as owner-occupied housing rehabilitation. By federal law, 15 percent of HOME funding is set aside for Community Housing Development Organizations, which are nonprofits especially created to undertake housing development.

HUD also provides block grant funds through the State of California to prevent homelessness and to assist persons with HIV/AIDS through the HUD Special Needs Assistance Programs. For more information about the programs, contact the California Department of Housing and Community Development.

[Chart: California Department of Housing]
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