HUD Awards $100 Million to Boost U.S. Housing Supply

The U.S. Department of Housing and Urban Development (HUD) has awarded $100 million in grants to 18 winners benefitting communities across 15 states to cut red tape, build more homes, and lower the costs of renting and buying a home.

These funds are provided through HUD’s Pathways to Removing Obstacles to Housing (PRO Housing) program, to remove barriers to local housing production. The announcement is part of the Biden Administration’s whole-of-government work to build more homes and lower housing costs, as outlined in the Housing Supply Action Plan. These grants build upon the $85 million to more than 20 communities that Vice President Kamala Harris and HUD Agency Head Adrianne Todman awarded in July 2024.

“We need to build more homes to meet the needs of our growing communities–and we need to deploy every strategy available. The Biden-Harris Administration has been laser-focused on providing resources to local leaders to boost the supply of affordable housing,” said HUD Agency Head Todman. “Today, we are delivering a historic $100 million to lower housing costs by removing barriers to building more homes to rent and buy.”

A first of its kind program, PRO Housing helps communities continue to:

  • Address restrictive land use or regulatory policies;
  • Improve and implement housing strategies;
  • Invest in local neighborhoods and increase community resilience; and
  • Facilitate the construction of new housing and repairs to existing homes.

Grants to local governments, states, metropolitan planning organizations (MPOs), and multi-jurisdictional entities range from $1 million to $7 million.

The awards are the second round of the PRO Housing competition, after making them available in August 2024. Previously, HUD awarded $85 million to communities across 19 states and the District of Columbia.

Common barriers to housing identified in the round two PRO Housing applications include the high cost of land and development, lack of available units, underutilized vacant land and property, aging housing stock, inadequate infrastructure, displacement pressures, risks of extreme weather or environment hazards, and outdated local land-use and permitting policies and processes

“The communities that were awarded PRO Housing funding demonstrated a commitment to overcoming local barriers. These funds will accelerate critical investments in housing, housing enabling infrastructure, and regional strategies to meet community needs,” said Marion McFadden, Principal Deputy Assistant Secretary for Community Planning and Development. “Given the number of applicants who expressed interest in addressing barriers to development and boosting housing supply, HUD will continue to share resources for communities to advance their proposed housing strategies”

Winners of the PRO Housing competition will update state and local housing plans, revise land use policies, streamline the permitting process for housing construction, and take other actions to create more housing-forward communities. Grants will also be used to preserve existing affordable housing units, provide development subsidies to create new affordable units, and increase access to homeownership.

Click here for a list of winners from the second round of the PRO Housing.

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Eric C. Peck

MortgagePoint Managing Digital Editor Eric C. Peck has 25-plus years’ experience covering the mortgage industry. He graduated from the New York Institute of Technology, where he received his B.A. in Communication Arts/Media. After graduating, he began his professional career in New York City with Videography Magazine before landing in the mortgage finance space. Peck has edited three published books, and has served as Copy Editor for Entrepreneur.com.
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