Low-Income Housing in Alabama

There are non-profit and federal programs available in Alabama to assist those in need of housing assistance since low-income earners often find it difficult to access quality housing with safe and sanitary conditions. This article will discuss the housing assistance programs available for Alabama residents.

Assistance to Individuals and Households

The Individual and Households Program (HP) provides housing assistance, including temporary housing, repair and replacement, and housing construction services to Alabama residents in need of support. Run by the Federal Emergency Management Agency (FEMA), the program offers funds to homeowners to repair damage caused to their homes, and that insurance does not cover. The goal is to ensure residents live in safe and functioning conditions in their homes. FEMA can also help in the repair and replacement of damaged properties at home. For instance, FEMA may offer up to $33,300 for home replacement. Learn more about FEMA in Alabama at https://ema.alabama.gov/assistance-to-individuals-and-households/.

FEMA Disaster Assistance

Renters in Alabama can apply and qualify for FEMA Disaster Assistance. This program is for those homeowners whose homes and properties were damaged by Hurricane Zeta. The FEMA Individual Assistance program is also available for renters and homeowners and can support those in need to pay for temporary housing. The initial grant offered should last for 60 days but can be reviewed for further assistance if there is a need to do so.  The deadline for application is Feb. 8, 2021. Renters can still qualify for FEMA’s Other Needs Assistance Program which is specifically designed for property damage due to disaster-related issues. Apart from repair and replacement of furniture, appliances, clothing, and school supplies, the program offers support towards expenses for primary vehicles, medical bills, or job-related equipment you may require as a self-employed person. Visit http://disasterassistance.gov/ to apply for Disaster Assistance. Find out more about these programs at https://www.fema.gov/press-release/20201218/renters-can-apply-fema-disaster-assistance.

Public Housing

The local Public Housing Agencies in Alabama provide low rent public housing units to eligible low-income individuals, including the seniors and the disabled. The Public Housing is established and managed by the local PHAs within the income limits and guidelines set by HUD.

The Hardest Hit Fund

The Hardest Hit Fund is a federal fund established in 2008 under the Emergency Economic Stabilization Act. The Federal government allocated $162 million under the fund to support homeowners facing foreclosures in Alabama. The program offers up to $60,000 to homeowners eligible for assistance. Find out more at https://www.hardesthitalabama.com/.

Eligibility Requirements for the Hardest Hit Fund

• The household income must be $91,420 or less, including 18 years or older occupants.
• You must be residing in Alabama.
• The property/house must be located in Alabama.
• You must be unemployed or underemployed to receive benefits.

NOTE: The program excludes homeowners in active bankruptcy, convicted for mortgage-related felonies, and those with rental property. It also excludes homeowners with second homes and does not cover those properties which are seller-financed.

Making Home Affordable

The Making Home Affordable Program is also funded by the federal government and is designed to help homeowners in Alabama through the economic hardships. The program offers several options that allow Alabama homeowners to stay in their homes without facing distress. Some of the options include helping homeowners reduce their monthly payments and lowering their interest rates on home loans. Find out more at https://helpingamericansfindhelp.org/alabama/al-housing/al-making-home-affordable/.

Grants for Housing and Community Development from HUD

Every year, HUD provides grants to local governments, non-profit organizations, and other eligible grantees who are committed to providing housing and community development services in Alabama. Do you want to find out if there is any housing or homeownership assistance currently available or repair and replacement support? Well, why don’t you check with HUD grantees at http://portal.hud.gov/hudportal/HUD?src=/states/alabama/community/cdbg and http://portal.hud.gov/hudportal/HUD?src=/states/alabama/community/home?

Jefferson County Housing Authority

Established in 1941, the Jefferson County Housing Authority provides safe and affordable housing to qualified residents of Jefferson County in Alabama. The Housing Authority is committed to providing quality housing to low-income earners in the area. The goal is to enable the residents to live in improved housing conditions in the community through increased availability of housing for low-income and vulnerable groups like single moms and seniors in Alabama. Please visit https://www.jcha.com/.

The Enterprise Housing Authority’s Housing Choice Program

The Enterprise Housing Authority is committed to ensuring residents of Alabama can access decent and affordable housing and promote economic independence and self-sufficiency among in the State. This program is federally funded and is designed to assist low-income families, the disabled, and the seniors afford safe and affordable housing in the private market. The applicants can find their housing, including townhouses and single-family housing. Find out more at https://www.enterprisehousing.org/.

Mobile County Down Payment Assistance Program

The County government of Mobile in Alabama recognizes the need to financially support homebuyers who lack the funds required to make down payments on their new homes. The Mobile County Down Payment Assistance program is designed to assist homebuyers facing challenges in settling down payments. Eligible applicants for this program receive between $1,000-$10,000 in form of grants. Qualified individuals can use the funds to settle their down payment and the closing costs that come with a mortgage transaction. Find out more at https://www.mobilecountyal.gov/uploads/2019DPABrochure.pdf.

Eligibility Requirements

• You must be a first-time homebuyer.
• The household’s annual income must not exceed 80% of the current median family income for the County of Mobile.

The Alabama Housing Finance Authority (AHFA)’s Step Up Program

AHFA is committed to making the mortgage process simpler and more affordable to eligible individuals who are looking to buy new homes but need some financial support to reach their goal. The Step-Up program assists homebuyers in settling upfront costs associated with settling in a new place, including down payment, prepaid items, and closing costs. The program assists up to 3% of the purchase price to be used towards the down payment. Visit https://www.fha.com/grants/step-up-program-alabama for more information.

Eligibility Requirements

• You must have a credit score of at least 620.
• Your annual income must not exceed $97,300. This is regardless of the number of family members or location.
• You must complete a homeownership education course.
• Your property should also be financed by an AHFA-approved conventional loan through a participating lender.

Alabama Section 8 Housing

The Alabama Section 8 Housing provides housing assistance to eligible families and individuals in form of Vouchers. The program is run rub the local agencies spread across Alabama. The vouchers provided are used to pay a mortgage and rent. The Alabama local Public Housing Authorities (PHA’s) processes the applications for the program in the State. The demand for housing assistance is high and support depends on the availability of federal funds. The number of vouchers qualified individuals receive depend on the income levels, size of the households, availability of seniors, and the disabled in the families. Normally, the amount of voucher provided is the difference between the individual’s or the household’s income and the rent arrears. For more information, please visit https://www.hud.gov/states/alabama/renting.

USDA’s Single-Family Housing Direct Home Loans in Alabama

This program offers financial assistance through loans to Alabama rural residents to improve their homes. the funds provided can be used for renovation, repair, and modernizing the houses of the low-income earners in the state. To be eligible, your income must not exceed the applicable low-income limit for the area you wish to buy a house. You must also demonstrate a willingness to repay the loan. The loans are offered at low-interest rates and are payable over 20 years. For more information, please visit https://www.rd.usda.gov/programs-services/single-family-housing-direct-home-loans/al.

USDA’s Single-Family Housing Repair Loans & Grants in Alabama

The USDA’s Single-Family Housing Repair Loans & Grants in Alabama offers payment assistance to homeowners with low income. Payment assistance is offered in form of loans meant to improve homes and grants for the seniors in the community to enable them to remove the health and safety hazards in their homes. If the property is sold, the applicant must repay the grant in less than three years. To determine eligibility, ensure you check the address of your home at http://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do?pageAction=sfpd. For more information about the program please visit https://www.rd.usda.gov/programs-services/single-family-housing-repair-loans-grants/al.

National Housing Trust Fund

The HTF is a formula grant program established in 2008, under the Housing and Economic Recovery Act. The program is administered by States. The HUD allocates funds for Alabama National Housing and is meant to assist individuals and families with low-income, with preference to the homeless and those at risk of becoming homeless. The AHFA proposes the allocation of the National Housing Trust Funds in Alabama. Find out more at https://www.ahfa.com/multifamily/multifamily-programs/housing-trust-fund/