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Arizona HUD Housing Block Grant Programs

For Rural Arizona 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 a grantee discretion to undertake specific activities.

HUD provides HOME block grant funds directly to urban areas and to the Arizona Department of Housing. The state combines its HOME funds with State Housing Trust Funds (made possible by unclaimed property tax proceeds) and provides these resources to applicants on a competitive basis. Both urban and rural areas can apply to the state for funding. Local and county governments, tribal governments, housing authorities, councils of governments and nonprofit organizations are eligible applicants.

The amount of HOME funding Arizona receives each year is determined by a need-based formula as verified by US Census data released every 10 years. In 2002, the State of Arizona received $6.9 million. In 2003, the state is expected to receive approximately $8.3 million in part due to rapid population growth occurring from 1990 to 2000.

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 Arizona 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 Arizona Department of Housing.

flow chart, HUD to local entities