Rural Housing Preservation Grant 2025

The Rural Housing Service (RHS), operating within the United States Department of Agriculture (USDA), has released the Notice of Funding Opportunity for the Section 533 Housing Preservation Grant (HPG) for Fiscal Year 2025. This grant program, administered by RHS’s Single Family Housing Programs division, offers approximately $13.1 million to support housing repair and rehabilitation initiatives in rural areas. The funding includes specific allocations for disaster recovery efforts, such as $2.1 million for 2022 disaster declarations and $500,000 each for recovery projects in Puerto Rico (Hurricane Fiona) and Tennessee (Hurricane Helene). The HPG program targets public agencies, private nonprofit organizations, and federally recognized tribes that can provide grants or low-interest loans to very-low and low-income homeowners for the repair or rehabilitation of their homes in rural areas. Assistance may also be extended to rental and cooperative housing properties provided the units are made available to qualifying income-level tenants for at least five years. Specific eligibility regulations are outlined under 7 CFR part 1944, subpart N, and grantees must not have an “identity of interest” with the property owners to receive HPG funding. The application process begins with the submission of a detailed preapplication, which includes a proposal of activities, financial plans, budget estimates, compliance with environmental and civil rights regulations, and documentation of legal and operational capacity. Eligible applicants must submit completed preapplications by September 4, 2025. Paper submissions must be received by 4:30 p.m. local time, while electronic submissions via Grants.gov are due by 11:59 p.m. Eastern Time on the same day. Applicants are encouraged to confirm receipt of their materials as late or incomplete submissions will not be considered. Applications are evaluated based on a scoring system that includes factors such as the percentage of very-low-income individuals served, efficient use of HPG funds, prior experience in housing programs, and the extent to which the project supports underserved or remote areas. The Agency expects to make approximately 100 to 120 awards, with grant amounts typically ranging from $30,000 to $100,000. Disaster recovery awards may not exceed $50,000 each. No single entity may receive more than half of a state’s allocation if multiple qualifying applications are submitted from that state. Grant recipients must execute the official grant agreement (7 CFR 1944 Subpart N, Exhibit A) before beginning any funded activities. Reporting obligations include quarterly performance and financial reports, adherence to environmental review standards, and full audit compliance in accordance with 2 CFR 200.501. The program prioritizes rural housing improvement, disaster recovery, and support for vulnerable populations while requiring a transparent and fair application and selection process. Questions about the opportunity should be directed to Mandy Couture, Finance and Loan Analyst in the Single Family Housing Direct Division, who can be reached at Mandy.Couture@usda.gov or by phone at (515) 418-2188. Program information, application materials, and a list of Rural Development State Offices (RDSOs) can be found at https://www.rd.usda.gov/programs-services/single-family-housing-programs/housing-preservation-grants.

Ensure public notice for 15-day comment period; comply with environmental review requirements using RD templates; use separate accounting for HPG vs. non-HPG funds.