Personal Grants for Relocation, Escrow and First Month's Rent
In February 2009, President Barack Obama and the U.S. Department of Housing and Urban Development provided $1.5 billion to the Homelessness Prevention and Rapid Re-Housing Program -- or HPRP -- through the American Recovery and Reinvestment Act of 2009. The money from this program helps low-income families pay for relocation expenses. The program is meant to provide a bridge to long-term stability to families that have experienced a financial hardship.
Benefits
Qualified families can receive grants to pay for up to 18 months of rent. The grant also can be used for a security deposit and a moving truck. The security deposit does not count toward the 18-month limit on rental assistance. A family can also receive help to pay for up to 18 months of utility fees. These fees include heat, electricity, water, sewage and garbage collection. If the housing unit is not readily available to move into, the family can get a motel voucher for up to 30 days.
Eligibility
To qualify for help, the family must be homeless or at risk of becoming homeless. The family must have a documented financial hardship. Families facing eviction, those who have lost a home to foreclosure or victims of domestic violence are eligible for help. The family's income cannot exceed 50 percent of the area median income. Verification of income is requested, and Section 8 voucher recipients are not eligible for help because they are already receiving federal assistance. The family must lack their own resources to obtain housing and have no other housing options.
Other Requirements
Habitability inspections are conducted for all units connected with HPRP funds. A HUD-certified visual inspector will conduct an on-site inspection of rentals built prior to 1978 for lead-based paint only when the renter is pregnant or has children under the age of 6. The family is not required to pay for the cost of these inspections. In addition to the rental unit passing inspection, a family is required to certify eligibility every three months if they continue to require assistance.
Where to Get Help
HUD allocates money for the Homelessness Prevention and Rapid Re-Housing Program to states, territories, metropolitan cities and urban counties. These local governments may have sub-granted a portion of their funding to non-profit organizations committed to affordable housing. Call a HUD-approved housing counselor to find out where you can obtain a relocation grant. The housing counselor can also help determine whether you qualify for help. HUD expect the grants funds to be fully expended by 2012.
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