Housing Preservation Grants

What does this program do?
It provides grants to sponsoring organizations for the repair or rehabilitation of housing owned or occupied by low- and very-low-income rural citizens. USDA will award a total of $12,200,000 in Housing Preservation Grant Program funding for the repair and rehabilitation of rural housing units.

$2,200,000 of this funding is for organizations to help people repair homes they own or rent that were damaged in a calendar year 2022 Presidentially declared disaster areas ($50,000 maximum award).

Who may apply for this program?

• Most State and local governmental entities
• Nonprofit organizations
• Federally Recognized Tribes
• Individual homeowners are not eligible

Additional requirements include:

• Applicants must have the necessary background and experience with proven ability to perform the responsibility of repair and rehabilitation of low-income housing
• Applicants are required to submit quarterly reports to show grant progress.

What is an eligible area?
Areas that may be served include:

• Rural areas and towns with 20,000 or fewer people--Check eligible addresses
• Federally Recognized Tribal lands 

The FY2024 Housing Preservation Program funding is $12,200,000. 

• The funding total is comprised of: 
  • Distribution: $8,800,000
  • Rural Economic Area Part Zones: $200,000
  • Persistent Poverty: $1,000,000
  • Presidentially Declared Disaster Areas: $2,200,000 ($50,000 maximum award)

To assist with any inquiries and/or resources in your area, please see the Rural Development State Office for your state. 

How may funds be used?

• Applicants provide grants or low-interest loans to repair or rehabilitate housing for low- and very-low-income (1) homeowners
• Rental property owners may also receive assistance if they agree to make units available to low- and very-low-income (1) families
• Eligible expenses include:
  • Repairing or replacing electrical wiring, foundations, roofs, insulation, heating systems and water/waste disposal systems
  • Handicap accessibility features
  • Labor and materials
  • Administrative expenses
  • For a complete list, see Code of Federal Regulations (CFR) 1944.664

Fiscal Year 2023 Disaster Funding

In addition to regular program funding, $2,200,000 was made available under the Consolidated Appropriations Act of 2023 to help people repair homes they own or rent that were damaged by a Presidentially declared disaster in calendar year 2022.

• Properties proposed for repair must have sustained damage in a Presidentially declared disaster in calendar year 2022. A list maintained by the Federal Emergency Management Agency (FEMA) is available at this link: FEMA Website. In the dropdown boxes on that webpage, select the year 2022, and then choose “Major Disaster Declaration” or “Fire Management Assistance Declaration” as the declaration type.
• A maximum award of $50,000

How do we get started?
Applications are accepted on an annual basis through a Notice of Solicitation of Application (NOSA) in the Federal Register.

Who can answer questions?
Find the contact information on the Contact tab.

What governs this program?

• Code of Federal Regulation, 7 CFR 1944-N
• Code of Federal Regulation, 7 CFR Part 1970 A-O
• RD Instruction 1944-N
• RD Instruction 1940-L, Methodology and Formulas for Allocation of Loan and Grant Program Funds
• RD Instruction 1901-E, Civil Rights Compliance Requirements
• This program is authorized by Title V of the Housing Act of 1949

NOTE: Because citations and other information may be subject to change, please always consult the program Instructions listed in the section above titled "What Law Governs this Program?" You may also contact your State office for assistance.

(1) Very-low-income and low income: Very-low-income is below 50% of area median income; low-income is 50-80% of area median income.