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The purpose of the Housing Preservation Grant Program is to provide funds to eligible applicants to operate a program which finances repair and rehabilitation activities to individually owned housing, or to owners of rental properties for very low-and low-income persons in rural communities.

Eligible Applicants Must be an organization authorized to administer Housing Preservation Grant (HPG)funds:
  • State, commonwealth, trust territory, other political subdivision, or public not-for-profit corporation authorized to receive and administer HPG funds
  • Consortium of units of government and/or private nonprofit organizations which is otherwise eligible to receive and administer HPG funds
  • Private nonprofit corporation that is owned and controlled by private persons or interest for purposes other than making gains or profits for the corporation, is precluded from distributing any gains or profits to its members
  • American Indian tribe, band, group, or nation which is considered an eligible recipient under the Indian Self-Determination and Education Assistance Act or under the State and Local Fiscal Assistance Act of 1972

Application Deadline
Dates governing the invitation and review of HPG pre-applications will be published in the Federal Register. Applicants then have 90 days from publication to file a pre-application.

Project Selection Criteria The Project Selection Criteria form (Exhibit D) is used to determine eligibility and priority points. Priority points are assigned for the following criteria: percentage of very-low persons proposed to be assisted, population, percentage of funds which will be used for administrative purposes, component for alleviating overcrowding, leveraged funds, and administrative capacity to carry out the objectives of the grant.

Term of Grant The objectives of the grant shall normally be accomplished between 1 to 2 years.

Eligible Grant Purposes
  • Installation and/or repair of sanitary water and waste
  • Energy conservation measures such as insulation and combination screen-storm windows and doors
  • Repair or replacement of the heating system
  • Electrical wiring
  • Repair of, or provision for, structural supports and foundations
  • Repair or replacement of the roof
  • Additions to any dwelling only when it is clearly necessary to alleviate overcrowding or to remove health hazards to the occupants
  • Replacement of severely deteriorated siding, porches, or stoops
  • Alterations of the unit's interior or exterior to provide greater accessibility for any handicapped person
  • Repairs to manufactured housing provided the recipient owns the home and the site and has occupied that home on that site for least 1 year prior to receiving assistance and the manufactured housing is on a permanent foundation or will be put on a permanent foundation with HPG funds [(1944.664 (c) (10)]
  • Up to 20% of the HPG funds may be used for administrative purposes (salaries, office supplies, utilities, telephone services and equipment, audit, workers' compensation, etc.)

Reporting Requirements and Compliance The Grantee is required to submit a Financial Status Report (SF-269) and a performance report (Exhibit E-1) quarterly which should relate to the activities accomplished during the report period. USDA Rural Development will be responsible for reviewing the quarterly reports and final reports to determine if the grantee is complying with the Grant Agreement, Statement of Activities and the budget, and that the HPG project activity is completed and approved. At the close of the grant, the Grantee will be required to provide a final audit.

Last Modified:06/22/2012 
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