Opportunity Information: Apply for FR 6700 N 07
The Section 4 Capacity Building for Community Development and Affordable Housing grant is a discretionary funding opportunity from the US Department of Housing and Urban Development (HUD) designed to strengthen the organizations that do affordable housing and community development work on the ground. The program’s core goal is to build the capacity of community development corporations (CDCs) and community housing development organizations (CHDOs) so they can more effectively plan, finance, and deliver activities that benefit low- and moderate-income families and individuals. Rather than primarily funding local projects directly, HUD uses this program to fund national intermediary organizations that then provide training, technical help, and financial support to local CDCs and CHDOs, increasing their ability to produce and preserve affordable housing and carry out community development efforts.
Funding under Section 4 is limited to a defined set of eligible uses. First, grantees can provide training, education, support, and advice aimed at improving the technical and administrative skills of CDCs and CHDOs. This can include practical capacity-building that helps these organizations take part in key community-wide planning processes such as consolidated planning, fair housing planning, and Continuum of Care homeless assistance planning. The idea is to ensure broad community participation in identifying needs and shaping priorities, while also improving the ability of CDCs and CHDOs to coordinate with local governments and partners. This training and support can also focus on helping organizations navigate and leverage expanded federal housing and community development resources, and on directing federal investments toward underserved communities. In addition, the program emphasizes community engagement and coordination: consulting broadly within the community, planning cooperatively for how resources are used in a comprehensive and holistic way, evaluating performance under these planning and coordination efforts, and linking local plans with neighboring jurisdictions to support regional planning.
Second, the funds can be used as pass-through financial assistance to CDCs and CHDOs, including grants, loans, predevelopment assistance, or similar support. The intent of this component is not just to cover project costs, but to increase organizational capacity, for example by helping groups pay for early-stage development work, strengthen staffing and systems tied to project delivery, or take on new affordable housing and community development activities that serve low-income or low- and moderate-income households. Third, HUD allows additional activities as determined by the grantees, but only in consultation with the HUD Secretary or a designated representative, which gives some flexibility while keeping activities aligned with program goals.
Eligibility is oriented toward nonprofit entities, specifically organizations with IRS 501(c)(3) status (excluding institutions of higher education), along with other eligible applicants as clarified in the full notice. The assistance is cataloged under CFDA number 14.252 and is offered as a grant. The opportunity (Funding Opportunity Number FR 6700 N 07) was posted on September 7, 2023, and originally closed on November 7, 2023, with an application deadline of 11:59:59 PM Eastern Time. HUD anticipated making about three awards, with an award ceiling listed at $41,000,000. Overall, the program is structured to create a multiplier effect: investing in strong intermediaries that can, in turn, equip many local CDCs and CHDOs with the skills, resources, and partnerships needed to deliver affordable housing and community development benefits at scale for communities with the greatest need.Apply for FR 6700 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 Sep 07, 2023.
- Applicants must submit their applications by Nov 07, 2023 The application deadline is 115959 PM Eastern 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 $41,000,000.00 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 grant opportunity from the U.S. Department of Housing and Urban Development (HUD) intended to strengthen the on-the-ground organizations that carry out affordable housing and community development work. The program focuses on building the capacity of community development corporations (CDCs) and community housing development organizations (CHDOs) so they can more effectively plan, finance, and deliver activities benefiting low- and moderate-income families and individuals.
What is the main purpose of this program?
The core purpose is capacity building. Instead of primarily paying for local projects directly, Section 4 invests in national intermediary organizations that then provide training, technical assistance, and financial support to local CDCs and CHDOs. The intent is a multiplier effect: stronger intermediaries can support many local organizations, increasing affordable housing production and preservation and improving community development outcomes at scale.
Who does HUD fund directly under this opportunity?
HUD funds national intermediary organizations under this program. Those intermediaries then provide training, technical help, and financial assistance to local CDCs and CHDOs to increase their capacity to perform affordable housing and community development work.
Who ultimately benefits from the program?
The program is designed to benefit low- and moderate-income families and individuals by strengthening the CDCs and CHDOs that plan, finance, develop, preserve, and implement affordable housing and community development activities serving those households.
What types of activities are eligible uses of Section 4 funds?
Funding is limited to a defined set of eligible uses. Based on the opportunity description, eligible activities include:
- Training, education, support, and advice to improve the technical and administrative skills of CDCs and CHDOs.
- Capacity-building support that helps CDCs and CHDOs participate in community-wide planning processes (such as consolidated planning, fair housing planning, and Continuum of Care homeless assistance planning).
- Training and support to help organizations navigate and leverage expanded federal housing and community development resources and to help direct federal investments toward underserved communities.
- Community engagement and coordination efforts, including broad community consultation, cooperative planning, performance evaluation, and linking local plans with neighboring jurisdictions to support regional planning.
- Pass-through financial assistance to CDCs and CHDOs, such as grants, loans, predevelopment assistance, or similar support, intended to increase organizational capacity.
- Additional activities determined by the grantees, but only in consultation with the HUD Secretary or a designated representative.
Does this funding pay for local housing projects directly?
The program is described as not primarily funding local projects directly. Instead, it funds national intermediaries that strengthen local CDCs and CHDOs through capacity-building and pass-through financial assistance. The intent of the pass-through component is to build organizational capacity, rather than simply covering project costs.
What does "capacity building" mean in this program?
In this context, capacity building refers to strengthening the ability of CDCs and CHDOs to plan, finance, and deliver affordable housing and community development activities. This includes building technical and administrative skills, improving participation in key planning processes, enhancing coordination with local governments and partners, and strengthening staffing and systems tied to delivering projects and services.
What kinds of training and technical assistance are specifically highlighted?
The opportunity highlights training, education, support, and advice that improve technical and administrative skills. It also specifically mentions practical support to help CDCs and CHDOs participate in consolidated planning, fair housing planning, and Continuum of Care homeless assistance planning, as well as support to better leverage federal housing and community development resources and guide investments toward underserved communities.
How does the program support community planning and coordination?
The program emphasizes broad community participation and coordination by supporting activities such as consulting broadly within the community, planning cooperatively for comprehensive and holistic use of resources, evaluating performance under planning and coordination efforts, and linking local plans with neighboring jurisdictions to support regional planning.
What is pass-through financial assistance under Section 4?
Pass-through financial assistance refers to funds that grantees (the intermediaries) provide to CDCs and CHDOs. The description states this can include grants, loans, predevelopment assistance, or similar support. The intent is to increase organizational capacity, including supporting early-stage development work, strengthening staffing and systems tied to project delivery, or enabling organizations to take on new affordable housing and community development activities serving low-income or low- and moderate-income households.
Can Section 4 funds be used for predevelopment assistance?
Yes. The opportunity description explicitly includes predevelopment assistance as an example of pass-through financial assistance that intermediaries can provide to CDCs and CHDOs.
Are there any flexible or "other" activities allowed?
Yes, but with a condition. HUD allows additional activities as determined by the grantees only in consultation with the HUD Secretary or a designated representative. This provides flexibility while keeping activities aligned with the program's goals.
Who is eligible to apply for the grant?
Eligibility is oriented toward nonprofit entities, specifically organizations with IRS 501(c)(3) status, excluding institutions of higher education. The description also notes that other eligible applicants are clarified in the full notice.
Are institutions of higher education eligible?
No. The eligibility description explicitly excludes institutions of higher education.
What type of federal assistance is this?
It is offered as a grant.
What is the CFDA number for this opportunity?
The assistance is cataloged under CFDA number 14.252.
What is the Funding Opportunity Number?
The Funding Opportunity Number listed is FR 6700 N 07.
When was the opportunity posted and when did it close?
The opportunity was posted on September 7, 2023. It originally closed on November 7, 2023.
What was the application deadline time zone and exact deadline time?
The deadline was 11:59:59 PM Eastern Time.
How many awards did HUD anticipate making?
HUD anticipated making about three awards.
What was the award ceiling?
The award ceiling listed was $41,000,000.
What is meant by a "multiplier effect" in this program?
The multiplier effect refers to HUD investing in strong national intermediaries that can then equip many local CDCs and CHDOs with skills, resources, and partnerships. This approach is intended to expand the impact of federal funding by strengthening multiple organizations that deliver affordable housing and community development benefits, particularly in communities with the greatest need.
Which local organizations are the primary focus of capacity building?
The program focuses on building the capacity of community development corporations (CDCs) and community housing development organizations (CHDOs).
What kinds of households are intended to be served through supported activities?
Supported activities are intended to benefit low- and moderate-income families and individuals. The description also references serving low-income or low- and moderate-income households through new affordable housing and community development activities.
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