USDA Section 533 Housing Preservation Grants

Quick Facts About Section 533

How USDA Section 533 Works

USDA Rural Development awards federal grant money to a sponsoring organization. The organization designs a local program, finds eligible households or properties, inspects repair needs, arranges the work, tracks spending, and reports progress to USDA.

The local organization can use Section 533 funds to provide loans, grants, interest reduction payments, or comparable assistance. That means two counties can use the same federal program in very different ways. One nonprofit may offer no-cost safety repairs. Another may use a deferred or low-interest loan. A county may require a lien or affordability agreement.

The federal rules are in 7 CFR Part 1944, Subpart N. A local grantee may add reasonable rules needed to run its program, as long as those rules follow the federal award and civil rights requirements.

Section 533 and Section 504 are different

For a broader view of both USDA and non-USDA options, see rural repair assistance.

Current Funding Status and Latest Official Round

The official USDA page currently says the Housing Preservation Grant application window is closed. It also says applications will be accepted after USDA publishes a funding notice.

The latest posted round is funding opportunity USDA-RD-HCFP-HPG-2025. The official Grants.gov listing shows $13.1 million in total program funding, no mandatory cost share, and an archive date of September 5, 2025. The 2025 notice expected about 100 to 120 awards, with anticipated awards commonly between $30,000 and $100,000 depending on the state allocation and eligible demand.

The FY 2025 notice also reserved about $2.1 million for qualifying calendar year 2022 presidentially declared disaster projects. Those disaster awards were capped at $50,000 per awarded organization. That was a special part of the closed funding round, not a current $50,000 homeowner benefit.

Use the Grants.gov opportunity search and search for Assistance Listing 10.433 or “Housing Preservation Grant.” Also ask your Rural Development state office to add your organization to funding alerts.

Who May Receive Help Through a Local Grantee

USDA sets the federal floor for eligibility. The grantee then verifies each household, property, and repair. Local funding may be narrower than the federal rules.

Homeowner rules

• Income: The household must meet the low-income or very-low-income limit used for the property location and household size. USDA describes very low income as below 50% of area median income and low income as 50% to 80%.
• Rural location: The dwelling must be in an eligible rural area.
• Ownership: The homeowner generally must have owned the dwelling for at least one year before receiving assistance.
• Occupancy: The homeowner must intend to occupy the home after the work.
• Repair need: The dwelling must need eligible preservation, rehabilitation, or approved replacement work.

The federal homeowner eligibility rule allows more than a standard recorded deed in some cases. Possible evidence can include a life estate, certain leasehold interests, tribal land assignments, tax records, other legal instruments, or community affidavits when a deed cannot be provided. The grantee decides what evidence is acceptable for the file.

This flexibility can help people with inherited or family property, but it does not guarantee approval. Gather ownership papers early. The repair document checklist explains common proof problems.

Rental properties and cooperatives

A rental owner or cooperative may receive help through a grantee when the property is rural, needs eligible work, and serves tenants with low or very low income. The owner must sign an affordability agreement with the grantee.

The rental ownership rule requires assisted units to remain available to income-eligible tenants for at least five years. HPG help for rental or cooperative repairs cannot exceed 75% of the eligible repair cost. The owner may have to contribute other funds and provide a security instrument. A violation can create a repayment debt.

A nonprofit cannot use HPG to repair a property when a prohibited identity of interest exists between the nonprofit and the owner. Organizations should have USDA review possible related-party issues before including a property.

Check the location and income limits

Use the USDA eligibility tool as a screening step. The local grantee and USDA make the final location and income decisions. Income limits vary by county, household size, and current program tables, so do not rely on an old national dollar figure.

What Section 533 May Pay For

The federal rules allow work that protects health, safety, structural condition, basic sanitation, accessibility, and long-term housing use. The local grantee must approve the scope and supervise or inspect the work.

The full list appears in the authorized-use rule. A local program does not have to offer every federally allowed repair.

Limits and costs that may not be covered

• Cosmetic work cannot be the main purpose. Limited items such as painting, flooring, cabinets, or landscaping may be allowed only with eligible preservation work and within federal limits.
• HPG generally cannot refinance old debts or obligations.
• New construction is not a normal repair use, except approved replacement housing for an eligible owner-occupied home.
• Rental replacement housing is not allowed under the replacement provision.
• Work in the Coastal Barrier Resources System is not eligible.
• Work started before the required approval, environmental review, inspection, or agreement may not be reimbursed.

How an Individual Homeowner Should Look for Section 533 Help

There is no national homeowner application form for Section 533. The practical task is finding a current or recent grantee that serves your address.

Documents a local program may request

• Photo identification and household member information.
• Income proof for everyone counted in the household.
• Deed, life-estate document, leasehold document, tax record, tribal land assignment, manufactured-home title, or other ownership proof.
• Property tax, mortgage, insurance, and lien information.
• Photos, code notices, inspection reports, or contractor estimates showing the repair need.
• Disability or accessibility documentation when the work is tied to access.
• Tenant income and lease records for rental or cooperative units.

For other local entry points, use where to start and find local programs.

How an Eligible Organization Prepares to Apply

Section 533 is a competitive federal grant. A short deadline can be difficult for an organization that has not already registered, mapped its service area, gathered public input, and designed its repair process.

Who can apply

Eligible applicants generally include state and local governments, public nonprofit corporations, private nonprofit organizations, federally recognized tribes, faith-based and community organizations that meet the rules, and consortia of eligible entities. The organization must show relevant experience or the management ability to run a rural repair and rehabilitation program.

Individual homeowners, private contractors acting alone, and for-profit repair companies are not direct applicants for this grant.

Prepare before the notice opens

How USDA scores proposals

The federal selection criteria reward programs that serve a high share of very-low-income households, leverage other funds, show strong administrative experience, reach small or remote rural communities, keep administrative costs below 20%, and address overcrowding.

The latest Grants.gov listing showed no mandatory cost-sharing requirement. However, the scoring system can favor proposals that stretch HPG dollars with other funds, owner contributions, volunteer labor, weatherization money, Community Development Block Grant funds, or other documented resources.

Award terms and administration

Federal rules allow an HPG project period of up to two years. Grantees must keep household, property, work, and financial records; supervise and inspect repair work; submit quarterly reports; follow environmental and historic-preservation requirements; and complete grant closeout.

Administrative expenses cannot exceed 20% of HPG funds. A proposal using more than 20% for administration is not eligible under the scoring rule. The grantee must also protect program income and track any loan repayments or other funds generated by the local program.

Organizations should read the new notice, forms, and award agreement each year. Do not copy an old application without checking updated federal terms, certifications, deadlines, contacts, and submission instructions.

If Help Is Closed, Delayed, or Not Available

Section 533 is a small competitive program. A county may have no current grantee. A recent grantee may have used all funds, stopped intake, limited help to certain towns, or chosen repair priorities that do not match your need.

Ask whether the answer is a denial, waitlist, closed intake, outside service area, or wrong repair type. Those are different problems and need different next steps.

Backup programs to check

• USDA Section 504: A direct USDA loan and limited grant path for eligible very-low-income rural homeowners.
• City or county rehabilitation: Many local programs use CDBG or HOME funds. See CDBG and HOME repairs.
• Energy and heating help: Weatherization or LIHEAP may help with insulation, heating systems, and related health or safety work. See LIHEAP repair help.
• Nonprofit repairs: Habitat for Humanity, Rebuilding Together, Community Action Agencies, and local faith or volunteer groups may have limited repair programs.
• Manufactured-home programs: Replacement or major rehabilitation programs may fit when repair is not practical. Review manufactured-home replacement.

For a written denial, missing-document problem, or unclear decision, use denied repair assistance. Ask the agency for the reason and any review deadline in writing.