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Directory of NYC Housing Programs

Housing Development Action Grants (HODAG)

The Housing Development Action Grant (HODAG) program – sponsored by Senators Christopher Dodd (D-CT) and Charles Schumer (D-NY) – was a federal program that replaced 15 years of rental subsidies with a one-time, up-front grant to developers designed to reduce debt-service costs, which in turn would reduce rents. Under the program, at least 20 percent of the units had to be set aside for low- and moderate-income households, and other incentives existed to set aside more. The rest of the units rented at the market rate. The HODAG program targeted areas with a tight housing market and a severe shortage of rental housing, and funds were competitively awarded. The units were to remain affordable for 20 years to households earning less than 80 percent of Area Median Income (AMI). Congress eliminated the program in 1990 as it attempted to reduce the costs of multiple housing programs.

Program Information Help Icon

  • Alternative Name(s): Dodd-Schumer Program
  • Supply/Demand: Supply
  • Category: Land and Financing, Rental Subsidies and Assistance
  • Scale: Small Scale (between 1 and 999 units)
  • Timeframe: 1983 - 1990
  • Occupancy tenure: Rental
  • Construction Type: Rehabilitation, New Construction
  • Building Type: Multi-family
  • Developers/Owners: For-profit
  • Geographic Restrictions: Areas must have a tight housing market and a severe shortage of rental housing.
  • Income Restrictions: Low-income, Moderate-income

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