New HUD Grant Program Targets Blighted Neighborhoods, Requires 15% Local Match for Cleanup and Affordable Housing

The “Revitalize Our Neighborhoods Act of 2025” establishes a competitive grant program through the Department of Housing and Urban Development (HUD) aimed squarely at tackling blight and boosting affordable housing in struggling areas. The core idea is simple: cash for communities to fix up or tear down abandoned buildings and manage vacant land. Specifically, the money can be used for things like demolition, boarding up vacant properties, and renovating existing blighted structures. Crucially, it also covers the construction or preservation of affordable rental or owner-occupied housing. All these activities must take place within low-income communities, as defined by existing IRS tax code (Section 45D).

The Blight Buster Toolkit: What Gets Funded

This bill gives local governments, states, and regional entities a flexible toolkit. If you live near an eyesore—say, an abandoned factory or a row of decaying houses—this grant is designed to get rid of it. The funds can be used for deconstruction, waste removal, and site clearance. For a city planner, this means they can finally tackle that long-vacant corner lot that’s dragging down property values. For everyday folks, it means cleaner, safer streets and the potential for a new affordable apartment complex where a hazard used to stand. However, there’s a key restriction: you can’t use the grant money to acquire any occupied residential dwelling unit. This keeps the focus strictly on truly abandoned or blighted properties, not displacing current residents.

The Catch: Finding the Local Match

While the federal government is offering the cash, they aren't footing the entire bill. Every applicant must secure matching funds equal to at least 15 percent of the total grant amount. This match can come from the applicant’s own budget, proceeds from property sales, or even other federal programs. This 15% requirement is where the rubber meets the road for local governments. For a small town or county struggling financially, raising that 15%—which could be hundreds of thousands of dollars—might be a significant hurdle, potentially limiting who can even apply for this competitive program. It means the program might favor larger cities or states that have deeper pockets or more robust existing programs.

The Five-Year Plan and Public Accountability

To apply, eligible entities must submit a detailed five-year plan outlining exactly where they will invest the money, what activities they’ll undertake, and how they’ll secure the matching funds. This planning requirement forces local leaders to think strategically and long-term, which is good news for residents who want to see lasting change rather than temporary fixes. Furthermore, there’s a strong emphasis on transparency: grant recipients must report annually on how they used the money, what other resources they leveraged, and what families were assisted. HUD must then make these reports publicly available, meaning citizens will be able to track the progress and hold their local officials accountable for the promised revitalization efforts.

The Fine Print on Blight

One area to watch is the definition of “blighted.” The bill defines it as a structure with “sufficient deterioration to threaten human health, safety, and public welfare,” but leaves the final determination up to the HUD Secretary. While the definitions for “abandoned” (unoccupied, 90+ days delinquent on payments) are fairly specific, the definition of “blighted” is a bit subjective. This means the criteria HUD uses to determine blight will be crucial. If the criteria are too broad, it could lead to disputes. If they are too narrow, it might leave out structures that are clearly problems for the neighborhood. Ultimately, this program is a major investment in physical neighborhood improvements, but its success will hinge on local capacity to secure the match and smart, strategic execution of the required five-year plans.