Securing a loan directly from the Public Housing Fund (PHF) is generally not feasible as the PHF primarily provides grants, not loans. The PHF, managed by the U.S. Department of Housing and Urban Development (HUD), allocates federal dollars to public housing authorities (PHAs) for capital improvements such as building repairs, modernization, and infrastructure upgrades. These funds are distributed as competitive grants, requiring PHAs to submit proposals and meet specific criteria. While PHAs may explore alternative financing mechanisms, such as low-interest loans from HUD’s Capital Magnet Fund or partnerships with private lenders, the PHF itself does not offer direct loans.

The distinction between grants and loans is critical. In 2022, the PHF distributed approximately $5 billion in grants to PHAs nationwide, reflecting its focus on equity-driven capital investments rather than debt financing. Loans would require repayment terms and interest, which conflict with the PHF’s mission to address affordable housing needs without imposing long-term financial burdens on PHAs. For example, HUD’s Section 24(h) Loan Program, which targets lead abatement, provides up to $100 million annually but is narrowly focused and requires matching funds from PHAs. Additionally, a 2021 report by the National Association of Housing Finance Agencies noted that only 10% of PHAs accessed loan-based programs, compared to 85% relying on PHF grants. This data underscores the PHF’s role as a grant vehicle rather than a lending institution. Therefore, while loans may supplement PHF grants, they are not a primary tool for accessing federal housing capital.