Unit 1 Concept Application: Housing and Urban Development Grant FRQ

Republican President Gerald Ford signed the Housing and Community Development Act of 1974, which created a new grant program. The new program replaced many of the housing programs directly administered by the Department of Housing and Urban Development (HUD). Prior to the act, the federally administered HUD programs drew frequent criticism for their lack of bureaucratic efficiency. Rather than a one-size-fits-all national program, the grant program provided access to federal funding to states, local governments, nonprofits, and businesses to help support community development.

The grants from the Housing and Community Development Act of 1974 are awarded by state or local governments to various projects. Big cities are automatically entitled to a certain level of funding but must submit a plan to HUD each year. Local governments may also obtain funding but must apply through their state governments.

The grants require community input about projects and encourage local participation in project development. These projects can include providing housing, building libraries, renovating old buildings, and supporting food banks. Congress allocated $3.4 billion in fiscal year 2020 to the program.