Funding may also be used for other necessary and reasonable activities related to the development of non-luxury housing, such as site acquisition, site improvements, demolition and relocation. Ten percent of a participating jurisdiction's allocation may be used for administrative costs. Funds may not be used for public housing modernization, matching funds for other Federal programs, operating subsidies for rental housing, Annual Contributions Contracts, or activities under the Low Income Housing Preservation Act. Contact appropriate HUD field office or regional office. HUD passes most of their housing programs through state and local governments.
Financing is through the sale of tax-exempt bonds.
Owners can then apply for federal Low Income Housing Tax Credits on any of the units that meet the criteria. Interest rates are determined by the private market based on the security of the credit enhancement. Twenty percent of the units must be occupied by households with incomes less than 50 percent of the median, or 40 percent of the units by tenants under 60 percent of median. This federal program provides rent subsidies for low income people who find their own housing in private homes and apartment buildings. The program also provides training to the participating contractors in the areas of estimating, budgeting, cash management, cost control and financial reporting.