In recent years, the issue of affordable rental housing has come to the forefront of national discussions. With the rise of gentrification and increased housing costs, many individuals and families struggle to find housing that is not only safe and sanitary but also affordable. In response to this growing need, local governments have begun implementing policies that aim to increase the availability of affordable rental housing.
The LHIA grant program is one such policy that aims to support the production and preservation of affordable rental housing in order to help municipalities meet their negotiated LCA housing goals.
Making Affordable Housing a Reality
The LHIA grant program is designed to provide financial support for developers and property owners who are interested in creating affordable rental housing units. These grants cover gap financing costs such as land/property/structure acquisition, demolition, site preparation (such as water, sewer, roads), general construction/structural additions, alterations, and rehabilitation, interior and exterior finishing, roofing, electrical, plumbing, heating, and ventilation.
By covering these costs, the program seeks to make the process of creating affordable housing units more financially feasible for property owners and developers.
Prioritizing Racial Equity and Geographic Choice
The grant program also prioritizes two key areas of need: racial equity and geographic choice.
- The racial equity priority seeks to create homeownership opportunities for Black, Indigenous, and other ethnic or racial groups that own homes at lower rates than white households in the region. This priority recognizes that inequities in homeownership can have severe economic and social consequences and aims to address these systemic issues through policy interventions.
- The geographic choice priority focuses on creating affordable homeownership opportunities in parts of the region where it is most challenging to do so. This priority recognizes that some parts of the region have more barriers to affordable homeownership than others and seeks to intervene where the need is greatest.
By prioritizing both racial equity and geographic choice, the grant program aims to create policy solutions that address the complex and intersecting issues related to affordable homeownership.
Unlocking Funding for Affordable Housing Initiatives
One key benefit of the LHIA grant program is its ability to leverage additional funding for affordable housing initiatives. By providing gap financing for affordable rental housing, the program can help property owners and developers access other sources of funding such as Low-Income Housing Tax Credits and traditional bank loans. This leverage helps to increase the number of affordable housing units that can be created through the grant program and ensures that more individuals and families can access safe, affordable, and stable housing.
Conclusion
Overall, the LHIA grant program is an important policy intervention in the fight to increase the availability of affordable rental housing in the region. By providing financial support for property owners and developers, the grant program can help to create more affordable housing units and improve the economic and social outcomes for individuals and families. As local governments continue to negotiate LCA housing goals, the LHIA grant program will play a critical role in meeting these targets and building stronger and more equitable communities for all.
Check out this webinar for more information on qualifying and applying:
Reach out to a Caspian broker to learn more about creative funding opportunities!
