ABSTRACT
This chapter explores landscape of state and local housing policy, focusing on the uses for which block grants and other funds are invested. It discusses role of community development corporations and other nonprofit organizations as a partner to state and local government in delivering housing assistance. The chapter provides special attention to four of most widespread ways by which states and local governments fund or otherwise support low- and moderate-income housing: federal block grants; tax-exempt bond financing; housing trust funds; and inclusionary zoning. The importance of non-profit sector is reflected in requirement imposed by several major housing programs that state and local governments designate a minimum percentage for their funding to nonprofit housing groups-a percentage frequently exceeded by wide margins. Recognizing the importance of the nonprofit sector to the development of affordable housing, many state and local housing trust funds support the operations of these groups by providing funds for predevelopment costs, organizational capacity building, and administrative costs.
