Rural Innovation Fund Addresses Poverty and Housing Distress in Rural Communities

Recently, the Department of Housing and Urban Development (HUD) announced details of the Rural Innovation Fund, which will support ground-breaking approaches to revitalizing rural areas. With an estimated $25 million in available funding, the Rural Innovation Fund seeks applicants with a demonstrated capacity to undertake projects that address both concentrated rural housing distress and community poverty. Local rural nonprofit organizations, community development corporations, federally recognized Indian tribes, and state housing finance agencies are eligible to apply.

According to the press release, applicants may apply for only one of three grant types:  

• Single Purpose Grants – At least $7.5 million will be awarded to certain applicants that identify a specific area of need, with maximum individual grants of up to $300,000. HUD is encouraging, though not requiring, applicants to address both housing and economic development needs within the defined ‘project area.’

• Comprehensive Grants – HUD will award up to $2 million to certain applicants that comprehensively examine the social, housing and economic needs of a target area and address those needs through activities that leverage other sources of public and private financing. Eligible activities under this category of grant are broader than those outlined in the Single Purpose Grant category. Highly ranked applicants can also be expected to work closely and leverage resources with regional entities in order to promote economic competitiveness beyond the local level.

• Economic Development and Entrepreneurship for Federally Recognized Tribes – At least $5 million will be awarded to support economic development and entrepreneurship opportunities for federally recognized tribes, with maximum individual grants up to $800,000.

HUD will not be accepting or soliciting applications until the Rural Innovation Fund NOFA is made available on grants.gov. For more information.