How to Build Low Income Housing

HUD, or US Department of Housing and Urban Development, offers grants to non-profit organizations and local government agencies to build low-income housing. The builders must agree to maintain affordable renting costs for low-income tenants. Typically, low-income housing units charge 30 percent of your household income. Builders and developers can find funding through Grants.gov or state, county or city websites to build low-income housing. 

1. Visit Idealist.org or an equivalent to find non-profit organizations in your area that offer services to families, individuals with disabilities and seniors who need low-income housing. 


2. Visit Grants.gov or state, country or city websites that offer grants that help you fund low-income housing units in your local community. Many grant agencies only provide funds for homeless supported housing or for housing for the elderly. Check each grant project and the eligibility requirements before you prepare a grant application. 


3. Download a grant application. In addition, decide what type of community partnerships you need in order to make the housing project qualify for funding. Many grant agencies require you to have a non-profit organization to help and be part of your housing development team.


4. Write your grant application. The application should describe the number of people in your team and you should include a housing project description. In addition, your grant application must include non-profit status, project budget, project partner resumes, financial statements and a list of board of directors. Many grants want housing developers to match the grant amount with their personal funds. You may have to proof you have your own funding in the application, as well.


5. Submit your grant application according to the grant website's format. For example, Grants.gov wants an application to be submitted electronically. Some grant websites want the application in multiple copies. Some grant sites want the application sent via postage mail. You need to know the application deadline. You must submit it before the deadline or your application will be useless. 


6. Begin developing and building low-income housing once you are approved for the grant you applied for. 


7. Comply with the grant conditions. You must provide annual reports to your grant agency of the funds you have used. In addition, report how many people live in the low-income housing and other conditions.