You can get free money from the government for home improvements if you meet stringent criteria, but most people who grab for government cash are likely to get scammed.

"Billions of dollars go out our doors to cities and larger urban counties and to states to do all kinds of things, and among those things people can use that money for is for rehab activities," says Brian Sullivan, a spokesman for the U.S. Department of Housing and Urban Development.

Some of this money is in the form of loans, but some, too, goes out as grants, Mr. Sullivan says.

Of course, there's a catch: Most of the money is designated for low-income families. The recipient cannot earn more than 80 percent of the area's median income, Mr. Sullivan says. If you meet those qualifications, contact your local public housing agency or city hall and ask whether there are any federal, state or locally funded programs for rehabilitation.

You may be able to get financial help if you're in a community that's been designated for revitalization, for instance. Among the types of funding distributed by HUD are block-grant funds, which go to communities to promote development.

Local officials and nonprofit organizations award these grants through programs that are designed to improve neighborhoods. Check with your local housing agency or visit HUD's Web site at www.hud.gov/improvements for a list of programs organized by state.

The U.S. Department of Agriculture Rural Development also offers grants of up to $7,500 to low-income individuals over the age of 62 who live in areas defined as rural by the federal government.

"Generally, small towns of about 10,000 or less," says Jay Fletcher, public affairs specialist for USDA Rural Development.

In this instance, the money cannot be used for luxuries, such as adding a deck or upgrading the kitchen, but rather must be designated for repairs that are necessary for the safety or health of the homeowner, such as renovations to accommodate a wheelchair, or upgrades to the home's electrical wiring necessary for safety.

Apply through a housing office, since the money is disbursed through local government rather than the USDA. An applicant should visit a local county office of rural development and talk to a counselor, who will then send an adviser to the home to inspect it and determine if repairs are needed for health or safety.

Sadly, however, the money available attracts con artists who try to take money away from applicants rather than help them get grants.

"People get phone calls from somebody claiming to be from the government and offer grants for some purpose. Some of them are these home improvement deals," says Susan Grant, director of the National Consumers League's Fraud Center.

If you get such a call, beware. The government does not call people to offer free money.

"That's the red flag," Ms. Grant says.

In some of these scams, homeowners are told they will receive information about grant money for a fee or if they submit personal information. Some scammers even ask for checking account information so they supposedly can deposit grant funds directly. Natural disaster zones with widespread property damage, like neighborhoods ravaged by tornadoes or hurricanes, are particularly inviting to con artists, who sometimes call promising government aid because of the disaster.

The best way to protect yourself is to arm yourself with knowledge:

Know the process. The federal government generally disburses money to local authorities and nonprofit organizations and only rarely gives to individuals.

Needs vs. wants. The government is not going to finance your dream vacation or your dream home. Grant money is designated for improvements necessary for safety, not to add a little more luxury to your life.

If it sounds too good ... Be wary of anyone who offers you money or to help you find "free" government money. If someone claims to represent the government, get the name of the agency first and contact it to verify authenticity.

No strings. Don't pay someone to get funding promised by a grant. If one of the stipulations of receiving grant money is a financial investment on your part, contact local authorities and the National Consumers League's Fraud Center.