The Department of Housing and Urban Development will provide $5.5 billion in grants to build and preserve affordable housing and to address homelessness, the White House announced Tuesday.

The funding will be distributed to states, cities, Washington, D.C., and Puerto Rico to benefit 1,200 communities across the country.

What You Need To Know

  • The Department of Housing and Urban Development announced $5.5 billion in grants to build and preserve affordable housing and to address homelessness

  • The funding will be distributed to states, cities, Washington, D.C., and Puerto Rico to benefit 1,200 communities across the country

  • The bulk of the funding will go to states and local governments to build, buy or rehabilitate affordable rental and owner-occupied housing for low-income families or provide them with direct rental assistance

  • The funding announcement comes as housing and rental prices are near record levels

“A coordinated whole-of-community approach is crucial to build strong and resilient communities, invest in decent housing, create healthy environments, expand economic opportunities accessible to low-income households and support aspiring homebuyers and those experiencing homelessness,” Acting HUD Secretary Adrianne Todman said in a statement.

“The funding made available today serves as building blocks to empower communities to take ownership of community development investments and put the needs of residents first,” she said.

More than half of the new HUD funding ($3.3 billion) will go toward Community Development Block Grants to develop housing and to expand economic opportunity for low- and moderate-income individuals. Another $1.3 billion will go to HUD’s Home Investment Partnerships Program to help states and local governments build, buy or rehabilitate affordable rental and owner-occupied housing for low-income families or provide them with direct rental assistance.

Each state will receive $214 million to increase the supply of affordable housing for extremely low- and very low-income households, including people experiencing homelessness. HUD will grant $455 million to provide housing assistance and supportive services for people living with HIV/AIDS and $290 million for homeless shelters and homeless prevention programs.

About 653,000 people experienced homelessness in the United States in 2023 — a 12% increase compared with 2022, according to the National Alliance to End Homelessness. It is the highest number of homeless people counted since data collection began in 2007, according to the group.

The HUD funding announcement comes as housing is becoming increasingly unaffordable. Redfin reported this month that the median home-sale price in the 50 most populous metropolitan areas either increased or was the same in April compared with a year ago. The median sale price for a house in April was $383,188 — a 4.8% increase compared with 2022. The median U.S. rental price is $2,100, according to Zillow.