There is a great and growing need for affordable housing. But, developing such housing can be difficult and expensive. Developers often face costly and time-consuming barriers. And, most affordable housing development projects need multiple funding sources to be successful.

The multilayered financing of affordable housing projects entails more planning and greater risks than market-rate projects. Make sure you explore all funding sources, federal, state and other, before you begin. And, be sure to understand the barriers you face, and the extent of the planning needed.

Veterans Administration:

Loan Guarantee Program for Transitional Housing - program from the VA for development of transitional housing for homeless veterans

Department of Housing and Urban Development and the Federal Housing Administration:

Section 202 Supportive Housing for the Elderly Program - provides capital advances to finance the construction, rehabilitation or acquisition of supportive housing for very low-income elderly, and provides rent subsidies

Section 811 Supportive Housing for Persons with Disabilities - provides funding to nonprofit organizations to develop rental housing with supportive services for very low-income adults with disabilities, and provides rent subsidies

Multifamily Housing Development Programs - Federal Housing Administration (FHA) maintains several programs to assist in the development of multifamily affordable housing

Department of Agriculture - Rural Development:

Rural Housing Site Loans - provide funding for non-profit organizations to buy and develop building sites, including infrastructure - developed sites may be sold to organizations providing housing assistance to lower-income families

Rural Rental Housing Loans - mortgage loans to provide affordable multifamily rental housing for lower-income families, the elderly, and persons with disabilities

Housing Preservation Grants - competitive grants to organizations for the repair or rehabilitation of low- and very low-income housing

Guaranteed Rental Housing Program - loan program for the construction, acquisition, or rehabilitation of affordable rural multi-family housing

Rental Assistance Program - provides assistance to lower-income persons, the elderly, and persons with disabilities; may be used in conjunction with other Rural Development affordable housing programs