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HUD   >   Program Offices   >   Community Planning and Development   >   Economic Development   >   Economic Development Programs   >   Rural Housing and Economic Development (RHED)
Rural Housing and Economic Development (RHED)


The Rural Housing and Economic Development (RHED) Program provides for capacity building at the state and local level for rural housing and economic development and to support innovative housing and economic development activities in rural areas.

Type of Assistance

Funds made available under this program are awarded competitively on an annual basis through a selection process conducted by HUD.

Definition of a Rural Area

This program is established to assist nonprofit organizations in rural communities across America. HUD defines rural in three ways:

  1. A place having fewer than 2,500 inhabitants;
  2. A county or parish with an urban population of 20,000 inhabitants or less;
  3. Any place with a population not in excess of 20,000 inhabitants and not located in a Metropolitan Statistical Area.


Eligible Grantees

Eligible applicants are local rural non-profits, community development corporations (CDCs), federally recognized Indian tribes, state housing finance agencies (HFAs), and state community and/or economic development agencies.

Eligible Activities

Possible activities include: preparation of plans, architectural drawings, acquisition of land and buildings, demolition, provision of infrastructure, purchase of materials and construction costs, use of local labor markets, job training and counseling for beneficiaries and financial services such as revolving loan funds and Individual Development Accounts or IDAs. Other possible activities include: homeownership and financial counseling, application of innovative construction methods; provision of financial assistance to homeowners, businesses, and developers; and the establishment of CDFIs, lines of credit, revolving loan funds, microenterprises, and small business incubators.

Rating Factors

There are five rating factors that will be used to evaluate and rate your application. They are:

  1. Capacity of the Applicant and Relevant Organizational Experience
  2. Need and Extent of the Problem
  3. Soundness of Approach
  4. Leveraging Resources
  5. Achieving Program Results and Evaluation


Please refer to the specific program NOFA for further clarification.


After HUD publishes a Notice of Funding Availability (NOFA) for the Rural Housing and Economic Development Program, applicants must submit specific information about a proposed project or activities in their application. After HUD makes conditional selections, applicants must then submit additional information.

Funding Status

Funding Status
FY Amount Appropriated Applications Received Grants Awarded
2005 $23,677 million 306 103
2004 $24,853 million 404 105
2003 $24,838 million 305 87
2002 $25,000 million 279 101
2001 $24,945 million 331 111
2000 $25,000 million 649 103
1999 $27,000 million 700 91

Technical Guidance

The Rural Housing and Economic Development program is authorized by the Departments of Veteran's Affairs, Housing and Urban Development and Independent Agencies Appropriations Act of 1999 (Pub. L. 105-276). The Office of Rural Housing and Economic Development in HUD's Office of Community Planning and Development administers the program. Contact: Mr. Thann Young, Community Planning and Development Specialist, 451 7th Street, SW, Washington, DC 20410, 1-877-787-2526 or (202) 708-2290. Hearing Impaired users may call the Federal Information Relay Service at 1-800-877-8339.

The Rural  Gateway is an information clearinghouse providing technical assistance, training, and information resources to support rural housing and economic development.

To contact the Rural Gateway staff, call 1-877-RURAL-26 (1-877-787-2526) or Email.

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