• Under many grant programs, both existing and newly constructed properties are eligibe for conversion to low-income housing units.small house, big house image by Nino Pavisic from Fotolia.com
  
  For many in the United States, affordable housing is scarce. Where it is available, the neighborhoods are often blighted and the housing units in dire disrepair. To incentivize the development of vibrant low-income housing, the federal government offers special grants to real estate developers and other entities to convert existing properties into low-income housing. While many federal departments administer grant programs for low-income individuals, the Department of Housing and Urban Development (HUD) specifically monitors conversion programs.
  
  

Assisted-Living Conversion Program

• Perhaps the most well-known low-income housing conversion program is the ALCP, authorized in the Housing Act of 1959 and operated in the HUD Office of Multifamily Housing. This grant program provides nonprofit property owners with grant funding to convert housing units into assisted-living facilities for the low-income elderly individuals and people with disabilities who require assistance. These converted units must be state licensed and provide services such as personal care, transportation, meals, housekeeping, and laundry at the owners' or a third-party's expense.
  
  

HOME Investment Partnerships Program

• Authorized under the Cranston-Gonzalez National Affordable Housing Act, the HOME program provides grants to states and localities to construct, purchase or convert affordable housing for low-income individuals. This is a block grant program, meaning it is distributed to state and local governments on a formula basis (with a maximum award of $3 million) rather than through a competition. Participating states and localities are required to match 25 percent of the program grant with other community resources to ensure local buy-in and support for the investment.
  
  

Self-Help Homeownership Opportunity Program

• Authorized by the Housing Opportunity Program Extension Act of 1996, HUD's SHOP program administers grants to nonprofit organizations and consortia thereof to purchase, develop or improve the infrastructure for low-income families and individuals to become homeowners. The unique concept behind SHOP is that potential homebuyers must contribute to the construction of the housing units through volunteer labor. Eligible grantees must have completed 30 units of housing within the previous two years.