These are grants that the Department of Housing and Urban Development (HUD) makes to state, local, tribal, and territorial housing authorities under statutory procedures. Each state and territory determines the number of grants allocated for that state or territory. For each grant, the program director determines what to spend the grant on. To ensure that funding is spent on programs for which there are significant housing needs, the Office of Housing and Urban Development (HUD) has developed criteria for measuring and evaluating the spending of all grants. It also establishes criteria for measuring and evaluating the spending of certain discretionary grants.

A discretionary grant is a single grant that the Secretary of Housing and Urban Development (HUD) makes to a local, community development corporation (CD corporation) under statute. HUD’s Office of Housing and Urban Development manages this grant program, which is also known as HUD-FHA.

HUD provides HUD-FHA the discretionary funds necessary to administer and manage the federal programs provided in this part and in the section. HUD will not award any program for which HUD is unable to expend its total funds and, therefore, cannot administer or manage the entire program according to the terms of this part; or

A discretionary grant is a small amount of funds that HUD makes to state and local, tribal, and territorial agencies which has been designated by HUD to provide housing assistance or support other programs that need housing assistance. This part does not define how the amount of federal funds can be increased. (For more about this type of grant, see Grants for the Developmental Disadvantaged in chapter 3 of this guide.)

State and local programs

HUD provides the state and local programs under the sections of this part for which it does not have federal funding available. See Federal assistance to HUD’s programs.

Frequently Asked Questions

What is HUD?

HUD (Department of Housing and Urban Development) is a federal department that administers federal housing programs.

In a nutshell, HUD is the federal government’s administrative office on housing and supports the HUD-FHA program, which is the federal government’s most recent and largest home ownership and rental assistance program. See Federal assistance to HUD’s programs section.

What is HUD’s use of funds?

HUD administers and manages its programs through a combination of appropriations, waivers, and direct and indirect use. HUD also uses its own resources by purchasing and operating buildings, providing assistance services, paying contractors, and collecting fees and other administrative costs.

How is HUD funded?

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