Federal Funding Directory

Affordable housing activities often rely on multiple federal funding streams, plus state and local sources. This means that projects need to comply with complex and overlapping program requirements. Localities should consider whether they have the capacity and expertise to navigate these requirements on their own or whether they should seek support from an experienced partner, such as a nonprofit, a mission-driven for-profit developer, or a public housing authority.

Jurisdictions should consider how to strategically layer federal funds with other resources from state, local, and philanthropic or private investments. These resources are often less restrictive than federal funds and can cover a broader range of activities or assist households that would otherwise be ineligible for federal support. In addition, some federal programs for housing, such as the HOME Investment Partnerships Program and Capital Magnet Fund, require grantees to secure matching funds from non-federal sources.

Even when local funding is scarce, jurisdictions can use other policy tools to help maximize and extend the impact of federally funded housing programs. For example, localities can support the development of rental housing by introducing zoning or property tax incentives, facilitating acquisition projects by establishing a land bank, and improving residential stability through tax abatements.

To maximize the impact of temporary programs, such as those created in response to disasters, jurisdictions should be aware of their individual timelines and plan to expend these funds before they expire.

Under the Davis-Bacon Act, construction, rehab, or repair projects funded by some federal housing programs (such as HOME and Community Development Block Grants) may be subject to federal prevailing wage standards. Jurisdictions should determine whether their projects are subject to the Davis-Bacon Act and assess how this might affect their cost and complexity. In some cases, it may be more efficient to use state or local funds, especially for small-scale projects. Note that the Low-Income Housing Tax Credit does not, by itself, trigger prevailing wage requirements.