Millions of Dollars for Rehabilitating Housing Can Be Used More Effectively

CED-80-19: Published: Dec 7, 1979. Publicly Released: Dec 7, 1979.

Additional Materials:


Office of Public Affairs
(202) 512-4800

Annually, about $240 million in Federal funds are not being used effectively for rehabilitating housing under the Department of Housing and Urban Development's (HUD) Section 312 Rehabilitation Loan Program and its Community Development Block Grant Program.

Borrowers are refinancing existing home mortgages with low-cost rehabilitation loans, thereby diverting substantial funds from housing rehabilitation. Some borrowers receive low-payment loans even though they could afford higher payments. Communities often award direct grants to cover all rehabilitation costs rather than requiring homeowners to finance part of the cost from other sources or using loans that, when repaid, will return money to community rehabilitation programs. Many communities are inconsistent or ineffective in giving funding priority to low- and moderate-income borrowers. They award loans to higher income borrowers who could obtain financial assistance from commercial sources instead of to more needy, lower income homeowners who require assistance.

Dec 16, 2020

Dec 15, 2020

Dec 8, 2020

Aug 13, 2020

Jul 29, 2020

Jul 27, 2020

Jun 26, 2020

Apr 30, 2020

Mar 17, 2020

Mar 3, 2020

Looking for more? Browse all our products here