Opportunity Information: Apply for FR 6400 N 07
The Section 4 Capacity Building for Community Development and Affordable Housing grant is a discretionary funding opportunity from the U.S. Department of Housing and Urban Development (HUD) designed to strengthen the on-the-ground organizations that develop affordable housing and carry out community development work in low- and moderate-income communities. Rather than funding local projects directly, this program works by funding national intermediary organizations that, in turn, build the capacity of community development corporations (CDCs) and community housing development organizations (CHDOs). The overall purpose is to make these local nonprofit developers and community-based organizations more effective, better staffed, and better equipped to plan, finance, and implement affordable housing and community development activities that benefit low- and moderate-income families and individuals.
The program restricts how funds can be used, focusing on capacity-building rather than bricks-and-mortar construction costs. One major eligible use is providing training, education, ongoing support, and technical advice that improves the technical and administrative capabilities of CDCs and CHDOs. This can include practical assistance with organizational operations and project readiness, as well as building their ability to engage in key local and regional planning processes. HUD explicitly highlights capacity building related to participation in consolidated planning (the process communities use to assess housing and community development needs and allocate HUD formula funds), fair housing planning, and Continuum of Care (CoC) homeless assistance planning. The intent is to help CDCs and CHDOs contribute meaningfully to community-wide needs assessments, broaden their community consultation and engagement, and work collaboratively with other stakeholders to plan for the use of limited resources in a comprehensive way. It also includes strengthening organizations so they can help evaluate performance under these planning and coordination efforts, and connect local plans with neighboring communities to support regional approaches where appropriate.
A second core eligible activity is providing pass-through financial assistance that directly increases the capacity of CDCs and CHDOs to carry out community development and affordable housing activities. The opportunity allows intermediaries to provide this support in several forms, including subgrants, loans, predevelopment assistance, and other types of financial assistance. The emphasis is on helping organizations get to the point where they can successfully develop or implement activities serving low-income or low- and moderate-income households, which often requires early-stage resources for staffing, feasibility work, project planning, or strengthening internal systems that make future project execution possible.
A third category provides flexibility for additional capacity-building activities, as long as they are determined by the grantees in consultation with the HUD Secretary (or the Secretary's designee). This allows HUD and the selected intermediaries to align certain activities with emerging needs in the field, while still keeping the overall focus on strengthening the institutions that deliver affordable housing and community development outcomes.
The funding opportunity is identified as FR 6400 N 07 and is associated with CFDA number 14.252. It was posted on March 10, 2021, and the original application deadline was May 11, 2021, with submissions due by 11:59:59 p.m. Eastern time. The award ceiling listed is $36,000,000, and HUD anticipated making three awards, indicating a competitive national-level funding round likely intended for a small number of large intermediaries with the infrastructure to deploy resources broadly. Eligible applicants include nonprofit organizations with IRS 501(c)(3) status (excluding institutions of higher education), along with other eligible entities as described in the opportunity's additional eligibility guidance. Overall, the program is best understood as a national capacity-building and technical assistance investment that strengthens the pipeline and performance of CDCs and CHDOs so they can more successfully plan, finance, and deliver affordable housing and community development activities benefiting low- and moderate-income people.Apply for FR 6400 N 07
- The US Department of Housing and Urban Development in the community development sector is offering a public funding opportunity titled "Section 4 Capacity Building for Community Development and Affordable Housing" and is now available to receive applicants.
- Interested and eligible applicants and submit their applications by referencing the CFDA number(s): 14.252.
- This funding opportunity was created on Mar 10, 2021.
- Applicants must submit their applications by May 11, 2021 The application deadline is 115959 pm Eastern Standard time on. (Agency may still review applications by suitable applicants for the remaining/unused allocated funding in 2026.)
- Each selected applicant is eligible to receive up to $36,000,000.00 in funding.
- The number of recipients for this funding is limited to 3 candidate(s).
- Eligible applicants include: Nonprofits having a 501(c)(3) status with the IRS, other than institutions of higher education, Others (see text field entitled Additional Information on Eligibility for clarification).
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Section 4 Capacity Building for Community Development and Affordable Housing (HUD) - FAQs
What is the Section 4 Capacity Building for Community Development and Affordable Housing grant?
It is a discretionary funding opportunity from the U.S. Department of Housing and Urban Development (HUD) focused on strengthening organizations that develop affordable housing and carry out community development work in low- and moderate-income communities.
What is the main purpose of this program?
The purpose is to improve the effectiveness of on-the-ground nonprofit developers and community-based organizations by building their capacity (for example, staffing, systems, skills, and readiness) to plan, finance, and implement affordable housing and community development activities that benefit low- and moderate-income families and individuals.
Does this grant fund local affordable housing projects directly?
No. Rather than funding local projects directly, HUD funds national intermediary organizations. Those intermediaries then provide capacity building and support to community development corporations (CDCs) and community housing development organizations (CHDOs).
Who are the intended beneficiaries of the program?
The program is intended to strengthen CDCs and CHDOs working in low- and moderate-income communities, so they can deliver better affordable housing and community development outcomes for low- and moderate-income people.
Who can apply to HUD for this funding?
Eligible applicants include nonprofit organizations with IRS 501(c)(3) status (excluding institutions of higher education), along with other eligible entities as described in the opportunity's additional eligibility guidance.
What types of organizations does HUD expect to receive awards?
HUD anticipated making a small number of awards (three), which suggests the competition is geared toward national-level intermediary organizations that have the infrastructure to deploy resources broadly and build capacity across a wide network of local organizations.
What are CDCs and CHDOs in the context of this opportunity?
They are local nonprofit developers and community-based organizations involved in affordable housing and community development. This program is designed to make these organizations more effective, better staffed, and better equipped to carry out their work.
How can grant funds be used?
Funds are restricted to capacity-building purposes rather than direct construction ("bricks-and-mortar") costs. Eligible uses emphasized in the opportunity include: (1) training and technical assistance, (2) pass-through financial assistance to build organizational capacity, and (3) additional capacity-building activities determined with HUD consultation.
Are construction costs eligible under this program?
The program focuses on capacity building rather than bricks-and-mortar construction costs. The eligible uses described emphasize building organizational capability and readiness instead of paying for construction.
What kinds of training and technical assistance activities are eligible?
Eligible activities include training, education, ongoing support, and technical advice that improves the technical and administrative capabilities of CDCs and CHDOs. This can include practical assistance with organizational operations, project readiness, and strengthening their ability to engage in key planning processes.
What planning processes does HUD specifically highlight for capacity building?
HUD explicitly highlights capacity building related to consolidated planning, fair housing planning, and Continuum of Care (CoC) homeless assistance planning.
What does "consolidated planning" mean in this context?
It is the process communities use to assess housing and community development needs and allocate HUD formula funds. The program aims to help CDCs and CHDOs participate meaningfully in that process.
How does the grant support participation in community-wide planning and coordination?
The intent is to help CDCs and CHDOs contribute to community-wide needs assessments, broaden community consultation and engagement, collaborate with stakeholders to plan the use of limited resources comprehensively, and strengthen their role in evaluating performance under planning and coordination efforts.
Does the program support regional approaches across neighboring communities?
Yes. The opportunity notes that capacity building can include connecting local plans with neighboring communities to support regional approaches where appropriate.
What is meant by "pass-through financial assistance" under this program?
It refers to intermediary-provided financial support intended to directly increase the capacity of CDCs and CHDOs to carry out community development and affordable housing activities.
What forms can pass-through financial assistance take?
The opportunity allows intermediaries to provide support in forms such as subgrants, loans, predevelopment assistance, and other types of financial assistance.
What is the emphasis of the pass-through assistance?
The emphasis is on helping organizations reach the point where they can successfully develop or implement activities serving low-income or low- and moderate-income households, including early-stage resources for staffing, feasibility work, project planning, or strengthening internal systems needed for future execution.
Are there any other eligible activity categories besides training/TA and pass-through assistance?
Yes. A third category provides flexibility for additional capacity-building activities, as long as they are determined by the grantees in consultation with the HUD Secretary (or the Secretary's designee).
Why does the opportunity include a flexible category for additional activities?
It allows HUD and selected intermediaries to align certain activities with emerging needs in the field while keeping the overall focus on strengthening the institutions that deliver affordable housing and community development outcomes.
What is the opportunity identifier for this funding notice?
The funding opportunity is identified as FR 6400 N 07.
What is the CFDA number associated with this program?
The opportunity is associated with CFDA number 14.252.
When was this funding opportunity posted?
It was posted on March 10, 2021.
What was the original application deadline?
The original application deadline was May 11, 2021, with submissions due by 11:59:59 p.m. Eastern time.
What is the award ceiling listed for this opportunity?
The award ceiling listed is $36,000,000.
How many awards did HUD anticipate making?
HUD anticipated making three awards.
What types of communities and residents are intended to benefit?
The program targets work in low- and moderate-income communities, with activities intended to benefit low- and moderate-income families and individuals (including activities serving low-income or low- and moderate-income households).
In one sentence, how should this program be understood?
It is a national capacity-building and technical assistance investment that strengthens CDCs and CHDOs so they can more successfully plan, finance, and deliver affordable housing and community development activities benefiting low- and moderate-income people.
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