Who Is Eligible for a Government Home Improvement Grant?
EA
Summary:
Home improvement grants are incredible financial resources that the government offers to help homeowners improve their properties. These grants focus on safety, accessibility, and comfort. They also come with specific eligibility requirements. As a low-income family, a veteran, a senior citizen, a person with disabilities, or a Native American, you’ll find that understanding the eligibility criteria for these grants can open doors to funding life-changing home improvements.
Home repairs are expensive. And, sometimes, people need them for their safety and well-being. To assist people who cannot afford the expenses on their own, the U.S. government offers home improvement grants. In fact, The U.S. Department of Housing and Urban Development pledged $10.3 billion toward grants for housing and community development activities across the U.S. in fiscal year 2022.
Keep reading to learn about who qualifies for these life-changing grants and the eligibility requirements for some of the best home improvement grants out there.
Compare Home Equity Loans
Compare rates from multiple Home Equity Loan providers. Discover your lowest eligible rate.
What is a home improvement grant?
Home improvement grants — also known as home repair grants — are one way the local, state, or federal government provides financial assistance to homeowners for property improvements. These improvements typically address immediate needs for safety, accessibility, and comfort.
While the eligibility requirements for these grant programs are strict, hundreds are available for those who really need them. Let’s look at who is eligible for some of these grants.
Low-income homeowners
Calling budget-savvy homeowners! One of the main groups to receive government-sponsored financial aid is low-income families. Homeowners with limited financial resources may need help to afford necessary repairs or upgrades. As a result, tailor-made USDA and HUD programs provide grants for essential repairs, accessibility improvements, or energy efficiency upgrades. So let’s check out the eligibility requirements for these grants.
Single Family Housing Repair Loans & Grants
The United States Department of Agriculture (USDA) offers this program under The Housing Act of 1949. Otherwise known as the Section 504 Home Repair Program, this initiative provides loans of up to $40,000 to very low-income households. The program aims to strengthen communities by helping families thrive in their own homes and build savings over time. As a low-income loan recipient, you must meet the following requirements according to the USDA Rural Development Department:
- Be at least 18 years old
- Be the homeowner and occupy the house
- Be unable to obtain affordable credit elsewhere
- Have a household income that does not exceed the very low limit for your county
- Live in an eligible rural area
- Loans may be used to repair, improve, or modernize homes, or to remove health and safety hazards
Pro tip
Are you contemplating applying for a Section 504 home repair loan? Make sure you understand the loan terms and requirements. For example, Section 504 loans have a fixed interest rate of 1% over 20 years. Check out the USDA website for more information.
Home Investments Partnership Program (HOME)
Brought to you by the U.S. Department of Housing and Urban Development (HUD), HOME is a powerful force for change in communities nationwide. With access to grants and loans, participants embark on high-impact projects that involve constructing, rehabilitating, or acquiring affordable housing units. It’s both a grant and a dynamic partnership between communities and individuals. The following eligibility requirements help determine who receives grant money.
- Family income must be 60% or less of the HUD-adjusted median family income for the area.
- For rental projects with five or more assisted units, 20% or more of the units must house families earning less than 50% of the HUD-adjusted median income.
- Household income for those receiving HUD assistance must be less than 80% of the area median.
- Grant applicants must connect with their local or state government. Requirements and program operations change from area to area, and HUD does not directly assist individuals or organizations.
Senior citizens
Maintaining and adapting our homes to meet their changing needs becomes crucial as we age. Recognizing this, governments have implemented grant programs to assist senior citizens with home improvements. Eligibility for these home improvement grants often depends on age and income. The financial aid may cover accessibility modifications such as installing ramps, handrails, or wheelchair-accessible bathrooms. These grants, therefore, can help you age gracefully in a home fitted to your comfort and safety needs.
Section 504 Home Repair Program
Section 504 is the same program discussed above, or Single Family Housing Repair Loans and Grants, but with additional grant offerings for senior citizens. The USDA Rural Development Department offers loans of up to $40,000 and grants of up to $10,000 to senior citizens who meet the following criteria.
- Be the homeowner and occupy the house
- Be unable to obtain affordable credit elsewhere
- Live in an eligible rural area
- Have a household income that does not exceed the very low limit for your county
- Be age 62 or older to receive a grant
- Loans may be used to repair, improve, or modernize homes, or to remove health and safety hazards
- Grants must be used to remove health and safety hazards
Area Agency on Aging
Area Agencies on Aging (AAA) are public and private agencies with districts across the country determined by geographic location. Many districts offer home repair grants to help improve the accessibility, livability, and safety of homes for older people. Eligibility requirements vary by district, but the following are some standard criteria.
- Age 60 or older living in the home needing the repairs
- Must be the homeowner of record or have a recorded life estate or life lease with documentation
- Entire household income at or below 50% of the county median income or total household income of 200% of the federal poverty level (FPL)
- Completion of application and release of information authorizations
Veterans
Service to the nation deserves a home that provides comfort, safety, and peace. Recognizing the sacrifices made by veterans and the challenges they face in society, some government programs offer home improvement grants tailored to them. These grants can cover a range of improvements, including accessibility modifications, energy efficiency upgrades, and general repairs. Eligibility criteria for these grants consider a veteran’s service record, disability status, and income level.
Specially Adapted Housing (SAH) and Special Home Adaptation (SHA) Grants
The U.S. Department for Veteran Affairs offers two remarkable initiatives, the Specially Adapted Housing (SAH) and Special Home Adaptation (SHA) programs, to empower disabled veterans to live independently in homes designed to meet their needs. The program provides grants of up to $109,986 and $22,036, respectively, to eligible veterans with service-connected disabilities to modify or construct homes that are accessible and barrier-free. The only difference between the two grants’ eligibility requirements is the qualifying service-connected disabilities. To be eligible to receive a SAH grant, you must meet these criteria:
- Own or will own your home
- Have a qualifying service-connected disability
Temporary Residence Adaptation (TRA) Grant
Temporary Residence Adaptation (TRA) grants are available through the U.S. Department of Veteran Affairs for those disabled veterans who don’t own the home they’re living in. The following are the requirements to be eligible for a TRA grant.
- You qualify for a SAH or SHA grant, and
- You’re living temporarily in a family member’s home that needs changes to meet your needs
People with disabilities
Living with a disability shouldn’t limit your ability to create a dream home accommodating your unique needs. The government, therefore, makes home improvement grants available for individuals with disabilities, allowing them to make their homes more accessible and accommodating. These grants may cover modifications like widening doorways, installing wheelchair ramps, removing obstacles, or adapting bathrooms. For those who meet the eligibility requirements, these grants can enhance their quality of life and promote independent living.
People with disabilities may receive assistance or — depending on their income, age, and veteran status — automatically qualify for the following government programs:
- Section 504 Home Repair Program
- SAH, SHA, or TRA grant programs
- AAA Home Repair programs
- Department of Health and Human Services Low Income Home Energy Assistance Program (LIHEAP)
- Department of Energy’s Weatherization Assistance Program (WAP)
Native Americans
As part of its commitment to supporting indigenous communities, the U.S. government offers financial aid to help Native Americans enhance their living spaces. Whether you reside on tribal lands or have a tribal affiliation, these grants lend a helping hand for repairs, renovations, energy efficiency improvements, or even new home builds.
Housing Improvement Program
The Housing Improvement Program (HIP), administered by the Bureau of Indian Affairs (BIA), benefits Native Americans. Grants under the HIP assist those who need home repair, renovation, replacement, and new housing but cannot secure the resources elsewhere. The following are the eligibility requirements to receive a HIP grant:
- Be a member of a federally recognized American Indian Tribe or be an Alaska Native
- Live in an approved tribal service area
- Have an income that does not exceed 150% of the U.S. Department of Health and Human Services (HHS) poverty guidelines
- Have present housing that is substandard, as defined by the regulations
- Have no other resource for housing assistance
- Have not acquired your present housing through a federally sponsored housing program that includes such housing assistance.
Expert take: you have other options
If you don’t quite meet the requirements for home improvement grants, you have other options, such as unlocking some of your home equity.
Gagan Saini, a real estate investor and Acquisition Director at JiT Home Buyers, advises that “alternative financing options for those not qualifying for grants include home equity loans, personal loans, and energy-efficient or community-based assistance financing programs.”Click to Tweet
FAQ
What types of home improvement projects are typically covered by government grants?
Government grants typically cover many home improvement projects, including repairs, accessibility modifications, energy efficiency upgrades, and safety enhancements.
Are government home improvement grants available for both homeowners and renters?
Government home improvement grants are primarily available for homeowners, not renters. Some programs, like the VA Temporary Residence Adaptation grant, assist people in modifying a home they don’t own.
What are the eligibility criteria for applying for government home improvement grants?
Eligibility requirements for government home improvement grants vary depending on the specific program. Typical criteria include income limits, residency status, veteran status, and special needs or circumstances.
How can one find and apply for government home improvement grants?
To find and apply for government grants, research and contact relevant agencies. Visit the U.S. Department of Housing and Urban Development (HUD) or the U.S. Department of Agriculture (USDA) websites and follow their application procedures carefully.
Related reading: Government involvement in the economy is certainly not limited to providing grants to homeowners making improvements. To learn about another way government intervenes in the U.S. economy, read about quotas meant to help domestic producers here.
Are there any income restrictions or limitations associated with government home improvement grants?
Many government home improvement grants have income restrictions or limitations, often based on the applicant’s household income and the area’s median income levels. These restrictions help target assistance to those with the greatest financial need.
What are the potential benefits and advantages of utilizing government grants for home improvement projects?
Utilizing government grants for home improvement projects can offer several benefits, including financial assistance to cover project costs, access to specialized programs tailored to specific needs, and the opportunity to improve safety, comfort, and energy efficiency in one’s home without incurring substantial financial burdens.
Key takeaways
- Government-funded home improvement grants focus on safety, accessibility, and comfort, benefiting low-income families, veterans, senior citizens, individuals with disabilities, and Native Americans.
- The U.S. Department of Housing and Urban Development (HUD) and the U.S. Department of Agriculture (USDA) are two prominent providers of home improvement grants. They offer financial assistance for essential repairs, accessibility improvements, energy efficiency upgrades, and removal of health and safety hazards.
- Eligibility requirements for government home improvement grants include income limits, residency status, veteran status, tribal affiliation, and special needs.
No home to improve yet? Reading for first-time homebuyers
Are you a first-time homebuyer looking for financing options for your dream place? Take the next step by seeing if you can use one of these 13 programs for first-time home buyers!
Share this post: