HUD Archives: News Releases

HUD No. 10-259
Brian Sullivan
(202) 708-0980
For Release
December 2, 2010

New innovation fund to help rural and tribal areas tackle distressed housing and concentrated poverty

WASHINGTON - The U.S. Department of Housing and Urban Development today announced that $25 million in grants is available to help rural and tribal communities struggling to address distressed housing conditions and concentrated poverty. In a speech to the Housing Assistance Council in Washington, HUD Secretary Shaun Donovan said HUD's new Rural Innovation Fund will promote an 'entrepreneurial approach' to affordable housing and economic development in rural areas.

"All across this country, there are rural and tribal communities with forward-thinking plans on how to address their housing and employment challenges and we need to support this innovation," said Donovan. "These grants will stimulate new approaches to old problems, particularly in areas struggling with poor housing conditions and deep poverty."

HUD's new Rural Innovation Fund offers grants of up to $2 million to support innovative housing and economic development activities. Eligible applicants include federally recognized Indian tribes, state housing finance agencies (HFAs), state community development agencies, local rural non-profit organizations, community development corporations, or consortia of these groups. Grantees can use their grant funding to support a variety of housing and economic development activities including construction, preparation of plans, land acquisition, demolition, homeownership counseling, and financial assistance.

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 anticipates posting its funding notice on by December 10th. The posting on will begin the solicitation of grant applications. To read the full text of the funding notice for the new Rural Innovation Fund, visit HUD's website.


HUD's mission is to create strong, sustainable, inclusive communities and quality affordable homes for all. HUD is working to strengthen the housing market to bolster the economy and protect consumers; meet the need for quality affordable rental homes: utilize housing as a platform for improving quality of life; build inclusive and sustainable communities free from discrimination; and transform the way HUD does business. More information about HUD and its programs is available on the Internet at and


Content Archived: June 12, 2017