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.

Federal Home Loan Bank:

Affordable Housing Program - subsidizes the cost of affordable housing through grants and interest-rates subsidies on loans

Community Investment Program - member banks and thrift institutions can obtain loans at a discounted rate of interest

Community Development Financial Institutions:

CDFIs were established to serve low-income people and communities lacking adequate access to affordable financial products and services. The U.S. Department of Treasury provides funding to individual CDFIs through a competitive application process.

CDFI State Locator - information to find a local certified CDFI from the Coalition of Community Development Financial Institutions

Other Organizations:

Local Initiatives Support Corporation provides loans, lines of credit, grants, and equity investments to help CDCs and other organizations revitalize their neighborhoods

Enterprise Community Partners Financial Products - a variety of technical and financial assistance programs to help developers from pre-development through construction