Did you know that HOAs can apply for grants? It’s true! But be warned, your team will have to put in some work in order to obtain one.

Keep reading to find out if your community might be eligible.

Table of contents

• What is a grant?
• Types of grants
• Eligibility requirements
• Average size of grants
• Discovering grant opportunities
• Using the grant

What is a grant?

An HOA grant is a sum of money awarded to a homeowners association by another organization, such as a government agency, nonprofit, or private company, to fund projects or improvements. 

Unlike loans, grants don’t require repayment, which is why they are so enticing.

On average, HOA homes cost at least 4% –   or $13,500 – more than non-HOA homes, according to a 2019 study in the Journal of Economics. But those property values can vary significantly by location. Monthly fees or dues for maintenance and upkeep factor into that higher number.

Plus, this study was completed before the cost of insurance, labor and materials skyrocketed. HOAs are doing everything they can to ensure there is enough money to pay bills and keep up with maintenance, but it’s proving to be a challenge for many communities.

Grants provide a bit of extra financial help to HOAs that have big ambitions but limited budgets.

Types of grants

There are different types of grants that HOAs can search for and apply for. Below are some examples to help you get a better idea of where to find financial assistance.

Matching grants

Matching grant programs are offered for critical improvements to developments or neighborhoods within a certain area. As the name implies, matching grant programs require the HOA to match whatever money the grantor awards the community.

Matching grants are often provided for:

• Installation of bike racks
• Installation of benches
• Commissioning public art projects
• Improvements to local vegetation or landscaping
• Restoration of green spaces
• Improvements to parks
• Restoration or replacement of public lighting

Federal grants

On occasion, federal grants are made available to individuals who live in homeowners associations. For example, the U.S. Department of Energy’s (DOE) Weatherization Assistance Program (WAP) reduces energy costs for low-income households by increasing energy efficiency of their homes, while ensuring their health and safety are not compromised.

The program provides weatherization services to approximately 32,000 homes every year using DOE funds. Low-income homeowners are eligible to apply for this program, so long as certain income requirements are met.

The U.S. Department of Agriculture offers a Home Repair grant to elderly, very-low-income homeowners to remove health and safety hazards.

Use the USDA Eligibility Site to determine if you could be eligible.

Moreover, you must be the homeowner and occupy the house, be unable to obtain affordable credit elsewhere, have a household income that does not exceed the very low limit by county, and be at least 62 years old.

State/local grants

Much like federal grants, state and local grants aim to strengthen the social fabric and organizational networks of the community.

For instance, in Centennial, Colorado, HOAs can apply for a community grant. The Neighborhood Engagement grant provides small monetary grants to residents, HOAs and community organizations located in the city to support community building events such as neighborhood block parties, movie nights and social gatherings.

Grant recipients receive up to $500 per event to assist in covering costs.

Private grants

Private companies and foundations also offer grants to help HOAs pay for expenses.

Cause IQ is a good resource for private grants, but you will need to do some digging. Many of the descriptions will not explicitly mention HOAs, but communities have received as much as $5,000 from private foundations.  

Eligibility requirements

The specific eligibility requirements for an HOA grant will vary depending on what the grantor requests.  

Some grants may be targeted towards low-income homeowners, while others are designated for specific types of projects. 

Average size of grants

Grant money probably won’t cover as much as you may have hoped. Amounts will vary, but funding generally starts at $500. Grants can be as much as $5,000; it’s rare to see an HOA grant exceed that amount. Again, it really depends on who is awarding the money and what it is intended for.

Discovering grant opportunities

Finding and securing grants for HOAs can take some time.

Here’s what you should know about the process and how to optimize your chances of obtaining grant money:

Use grant directories

Platforms like GrantWatch are excellent starting points for discovering available grants. However, the grants listed for HOAs are not always up to date.

While you can search for free, you can also pay to have a better search experience and more accurate grant matches.

Try ChatGPT

This is one really great way to use free programs like ChatGPT or Perplexity. Ask the bot to find grants available to HOAs in your city or state. Specify deadlines so that you aren’t getting results for grants that are no longer taking applications.

Think broadly
Discovering grants explicitly tailored for HOAs is not exactly easy. If it were, every HOA would apply for them. However, your association could rightfully apply for grants listed under broader categories such as “community development” or “neighborhood improvements.”

Similarly,if a grant’s focus doesn’t perfectly match your needs, that doesn’t mean you shouldn’t apply. For example, if a grant focuses on community wellness and your HOA needs playground equipment, position the playground as an initiative to promote healthy habits for children.

Be strategic when applying

Some grants are highly specific, but that can work to your advantage if you need additional funds for a specific project. Applying for grants takes time and thought, so choose the ones that fit best with your funding requirements.

Using the grant

If your application is successful and you get a grant, the HOA is obligated to spend the award as instructed in the proposal. To ensure the money is spent correctly:

• Develop a plan to track expenditures. Track all spending so that you can tie it back to the funded project
• Ensure staff and volunteers understand the requirements of the grant. They are the ones who will be tracking spending and collecting data
• Set internal deadlines for report submissions, and respect any other deadlines you must meet

What happens if something doesn’t go according to plan though? That’s okay, but make sure you connect with the grantor as soon as possible.

 Explain the circumstances and work with them to modify the terms. In most cases, they won’t have any issues with the changes, but it’s always better to let them know than stay silent. As long as the spirit of the grant is not damaged, they’ll work with you to develop a new plan.

Conclusion

HOA grants can provide communities with additional funding for projects or repairs. Sometimes, individual HOA owners who are experiencing financial hardships can also obtain grants to assist with home improvements or HOA dues.

Your board, or staff, must complete a formal submission process to obtain a grant, so be prepared to share a detailed plan about why the money is needed and how it will be used.

HOA grants won’t generally cover the entire cost of a project, but any extra money never hurts!