Help With Rent & Deposit

President Barack Obama and the U.S. Department of Housing and Urban Development have implemented the Homelessness Prevention and Rapid Re-Housing Program (HPRP) under the American Recovery and Reinvestment Act of 2009. The programs helps very low-income families pay for rent and security deposits to avoid homelessness. This is not a mortgage assistance program, however, homeowners who have lost their home to foreclosure are eligible to apply for help to secure new housing and temporarily pay their rent. Contact a HUD-approved housing counselor to find out where to obtain an HPRP grant.

Rental Assistance

HPRP funds pay for up to 18 months of rent, including six months of payments in arrears. The months do not have to be consecutive. A legal lease must be in place for the family to receive help. The family cannot receive other forms of rental assistance, such as Section 8, and get an HPRP grant. If the family includes a child under the age of six, housing units built prior to 1978 must undergo a visual assessment for lead-based paint.

Security and Utility Deposit

HPRP also pays for the security and utility deposits to secure permanent housing. The security deposit grant is an addition to the money provided for rental assistance. The grant can pay for up to 18 months of utility fees, which includes payments in arrears. These fees include heat, electricity, water, sewage and garbage collection. Cable and telephone are not eligible fees. The money provided for utility fees does not have to run concurrently with the rental assistance.

Moving and Other Eligible Costs

Moving costs that can be paid for include a rental truck, moving company or up to three months of storage fees. A motel voucher can be provided for up to 30 days while the family is transitioning to permanent housing. The voucher is only provided if permanent housing has already been identified and there are no shelter beds available. HPRP funds can be used to provide the family housing placement and case management services, or credit repair counseling.

Eligbility

To qualify for help the family's income cannot exceed 50 percent of the area median income. The family must be homeless or at-risk of being homeless. They must lack financial resources to obtain or remain in their home and have no other housing options. HUD's definition of homeless includes those that reside in emergency shelters, public places, or victims of domestic violence. The family must provide documentation of their financial hardship to determine their eligibility for HPRP assistance.

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