What HOPWA does
The Housing Opportunities for Persons With AIDS (HOPWA) program provides housing assistance and supportive services to low-income persons living with HIV/AIDS and their families. Authorized by the AIDS Housing Opportunity Act of 1990 and administered by HUD's Office of HIV/AIDS Housing, HOPWA is the only federal housing program designed specifically for households affected by HIV/AIDS. Annual appropriations have been approximately $430-505 million in recent years; FY 2025 HOPWA funding was $505 million.
HOPWA operates through two grant channels: formula grants to eligible states and metropolitan areas, and competitive grants for projects of national significance. The formula allocates 90% of HOPWA funding based on living HIV/AIDS cases — the formula was modernized from cumulative AIDS case counts to living HIV/AIDS cases by the Housing Opportunity Through Modernization Act of 2016 (HOTMA), P.L. 114-201, § 701 (signed July 29, 2016), effective beginning with the FY2017 allocation. The remaining 10% is awarded competitively through periodic HUD NOFOs. Formula grantees may use up to 3% of grant funds for administrative costs; project sponsors are capped at 7%.
Eligible activities
HOPWA grantees can use funds for a broad range of housing-related activities at 24 CFR Part 574:
- Tenant-Based Rental Assistance (TBRA). Direct rental subsidies to eligible households, the largest single use of HOPWA funds.
- Short-Term Rent, Mortgage, and Utility (STRMU) assistance. Emergency assistance up to 21 weeks in a 52-week period.
- Permanent Housing Placement (PHP). Application fees, security deposits, first month's rent, and similar move-in costs.
- Facility-based housing. Acquisition, rehabilitation, conversion, or construction of housing units. May be project-based rental assistance, operating costs of HOPWA-assisted facilities, or community residences.
- Supportive services. Case management, mental health and substance use treatment, nutritional counseling, transportation, and other services that maintain housing stability.
- Resource identification. Capacity building to expand the supply of housing for HOPWA-eligible households.
Eligibility
HOPWA-assisted households must include at least one member who is medically diagnosed with HIV/AIDS. Income eligibility is set at 80% of area median income — higher than many other HUD programs — recognizing the medical-cost burden on persons living with HIV/AIDS. Grantees may set lower income limits if they choose.
Labor standards — Davis-Bacon
HOPWA facility-based housing construction triggers federal Davis-Bacon prevailing-wage requirements (HUD direct federal financial assistance for housing construction). HOPWA TBRA, STRMU, supportive services, and resource identification activities are not construction and do not themselves trigger Davis-Bacon. State and local prevailing-wage laws apply independently.
LIHTC pairing
Facility-based HOPWA grants are sometimes paired with 4% or 9% LIHTC for permanent supportive housing serving HOPWA-eligible households. When grant-structured, HOPWA capital funds reduce LIHTC eligible basis under IRC § 42(d)(5)(A); converting to a loan with bona fide repayment obligations generally avoids the basis-reduction haircut. Project-based HOPWA TBRA functions similarly to Section 8 PBRA for compliance and rent-setting purposes when LIHTC is layered. HUD CoC PSH operating subsidy and HOPWA can flow to the same LIHTC project on different unit sets serving different sub-populations.
For full capital-stack mechanics — HOPWA-as-loan structuring, dual-population unit set-asides, and triple-stacking patterns — see the dedicated guide: LIHTC Deal Structures Guide.
Post-OBBBA implications
OBBBA did not amend HOPWA. The program continues to operate under the existing statutory framework. Practitioners should monitor annual HUD appropriations for funding level changes.
Sources
- AIDS Housing Opportunity Act of 1990, P.L. 101-625, Title VIII
- 42 U.S.C. §§ 12901-12912 (HOPWA codified)
- 24 CFR Part 574 (HOPWA implementing regulations)
- HUD CPD Notice 23-04 and predecessor HOPWA program guidance
- FY 2025 Consolidated Appropriations (HOPWA funding level)
- P.L. 119-21, One Big Beautiful Bill Act, enacted July 4, 2025
Disclaimer
HOPWA is administered by HUD-designated state and local grantees. Eligible activities, income limits, and program rules vary by grantee. Practitioners should consult HUD's Office of HIV/AIDS Housing and the relevant grantee's HOPWA program before structuring a transaction. This is educational content and is not legal, tax, or financial advice.