HTF Eligible Activities and Costs
HTF funds may be used for the production or preservation of affordable housing. This includes acquisition, new construction, rehabilitation, or reconstruction of non-luxury housing. Each state’s HTF allocation plan further defines which of the HTF activities the state’s program will fund based on its priorities.
Eligible costs include:
- Real property acquisition
- Site improvements and development costs
- Related soft costs
- Demolition
- Financing costs
- Relocation assistance
- Operating cost assistance for rental housing (up to 30 percent of each grant)
- Reasonable administrative and planning costs
HTF can be provided to the project in the form of an equity investment, loan, or grant. The state may be able to provide other forms of assistance with approval from HUD.
Eligible and Ineligible Costs
Grantees will want to review the HTF eligible and ineligible costs, to ensure that project financing is structured to cover all the project costs with an appropriate funding source.