St. Louis Launches $16M Grant Program to Boost Affordable Housing

Written by David Dodge 

This spring, St. Louis is launching a series of grant programs totaling more than $16 million to promote affordable housing, neighborhood revitalization, and public space enhancements. These initiatives, led by the St. Louis Community Development Administration (CDA), seek to stimulate housing production, particularly in historically underdeveloped areas.

Boosting Housing Development Through Grants

The CDA has announced the third year of its Neighborhood Transformation Grant program, aimed at incentivizing housing construction and rehabilitation where development has traditionally been challenging. According to CDA Public Information Officer Tom Nagel, "If you are in the home construction business, now is the time to apply."

According to Samir Knox from St. Louis Business Journal, the agency, established in 1974 to manage federal housing funds, intends to use these grants to support new projects and refurbishments in areas where private investment alone may not be feasible. Mayor Tishaura Jones emphasized the importance of community collaboration in the development process, stating, "The Neighborhood Transformation Grants are a great example of how we create more affordable housing, equitable development, and neighborhood revitalization."

Breakdown of the Grant Opportunities

The funding is divided across five major programs, each designed to address a different aspect of housing and community development:

1. Affordable Housing Production Grant ($6 million): The largest funding pool, this grant will support the construction and renovation of residential and mixed-use properties. Additionally, it will provide financial assistance to homebuyers purchasing city-subsidized homes. Funding comes from the U.S. Department of Housing and Urban Development's (HUD) Community Development Block Grant program and the HOME Investment Partnerships fund.

2. HOME-ARP Permanent Supportive Housing Grant ($4.98 million): This program utilizes federal American Rescue Plan Act (ARPA) funds to develop housing projects aimed at supporting vulnerable populations, including individuals recovering from addiction, those living with AIDS, and the homeless.

3. PRO Housing Grant ($3.25 million): Funded through a HUD grant, this initiative seeks to identify and address barriers to affordable housing development. A portion of these funds will support innovative housing construction in neighborhoods like The Ville, where vacant lots owned by the Land Reutilization Authority could be transformed into new residential spaces.

4. Neighborhood Planning Implementation Grant ($1.5 million): Sourced from a 2017 sales tax for economic development, these funds will help execute neighborhood plans adopted since 2019. Communities such as Downtown, Covenant Blu Grand Center, Skinker DeBaliviere, and the West End could benefit from this grant.

5. Community Development Grants: Neighborhood Beautification & Green Spaces ($500,000): This program, with awards ranging from $50,000 to $100,000, aims to enhance vacant lots through beautification efforts. Unlike smaller-scale community gardens, these grants will support more ambitious projects, such as maintenance staff hiring, organized cleanup initiatives, or infrastructure improvements.

How to Apply

To ensure equitable distribution, these funds will be allocated across multiple projects rather than concentrated in single initiatives. Developers and organizations interested in applying are required to attend a mandatory NOFA (Notice of Funding Availability) workshop on April 24. The application deadline for these grants is June 13.

CDA Executive Director Nahuel Fefer highlighted the significance of these grants in tackling longstanding housing challenges: "The Neighborhood Transformation Grants are a critical tool for addressing vacancy, improving public spaces, and expanding affordable housing opportunities. We are eager to see how local organizations and developers use these funds to implement impactful projects that address the historic effects of segregation and redlining."

Last summer, the CDA awarded $3.7 million through this program, which originally launched in 2023 using ARPA funds. Additionally, a second round of awards, focusing on social programs, is expected later this year.

For more details on how to apply, visit the CDA’s official website or attend the upcoming workshop to learn more about these funding opportunities.

Reference: Original Article from St. Louis Business Journal