Section 4 Capacity Building for Community Development and Affordable Housing
Open Opportunities (1)
Live Grants.gov opportunities funded under this program — you can apply now.
- Section 4 Capacity Building for Community Development and Affordable Housing Deadline: Jul 6, 2026 · up to $42M
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Program Funding
Annual program obligations reported to SAM.gov.
Program Objective
The Section 4 program builds the capacity of Community Development Corporations (CDCs) and Community Housing Development Organizations (CHDOs) to serve their communities and low-income families with community development and affordable housing activities.
Eligibility
Eligible Applicants
- Nonprofit Organization
By law, there are only three eligible applicants for the Section 4 program. The competition is limited to the organizations identified in Section 4 of the HUD Demonstration Act of 1993 (Public Law 103-120, 107 Stat. 1148, 42 U.S.C. 9816 note), as amended. These organizations are: 1. Enterprise Community Partners, Inc. (formerly The Enterprise Foundation); 2. the Local Initiatives Support Corporation (LISC), and 3. Habitat for Humanity International. Specifically, the only applicants eligible for this competition are the three organizations located at the following addresses: 1. Enterprise Community Partners, Inc., 11000 Broken Land Parkway, Suite 700, Columbia, MD 21044. 2. Local Initiatives Support Corporation, 28 Liberty, 33rd Floor, New York, NY 11201. 3. Habitat for Humanity International, 322 Lamar, Americus, GA 31709. Affiliates and local offices of these organizations and their community partners are not eligible to compete either directly or independently for capacity building grants under this notice, but rather may seek funding from the above organizations.
Beneficiaries
- Federally Recognized Tribal Government
- Local
- State
- Tribal
- Nonprofit Organization
- Engineer / Architect
- Builder/Contractor/Developer
- Other
Community Development Corporations (CDCs) and Community Housing Development Organizations (CHDOs) are the only eligible beneficiaries.
How to Apply
Award Procedure
Based upon the requirements published in the General Section and Program Section of the NOFO, respondents are notified of acceptance or rejection. Upon selection, the applicant and HUD shall negotiate and execute a grant agreement.
Decision Timeline
- Approval: From 60 to 90 days
Rating:HUD will rate all eligible applications that meet the Threshold Requirements
against the criteria in Rating Factors 1 through 5 and assign a rating score. The maximum
total rating score for the five Rating Factors is 100 points. An applicant can receive
Preference Points if it scores a minimum of 75 points for the five Rating Factors. An
applicant can receive a possible total of 104 points which includes Rating Factors 1
through 5 and possible Preference Points.
Minimum Rating Score: Applicants must receive a total rating score of 75 points or
more for Rating Factors 1 through 5 (without the addition of the Preference Points) to be
eligible for funding. HUD will reject any application that does not meet the minimum
rating score requirements.
Ranked Order: After adding any Preference Points, HUD will place eligible applications
that meet the minimum rating score requirements in ranked order. Applicants scoring 75
or more points will be considered for funding in ranked order up to the amount requested,
or in a lesser amount if sufficient funds are not available. Meeting the minimum score of
75 points does not guarantee a funding award will be made. HUD reserves the right to
adjust funding to meet urgent policy priorities.
Grant Award Adjustments: Successful applicants selected to receive a grant award that is less than they applied for are required to participate in the negotiation process to create an updated program budget and plan reflecting actual award.
Program details & compliance
Description
Through funding of national intermediaries, the Section 4 Capacity Building program (Section 4) enhances the capacity and ability of community development corporations (CDCs) and community housing development organizations (CHDOs) to carry out affordable housing and community development activities that benefit low-income families and persons. The Section 4 program is authorized by Section 4 of the HUD Demonstration Act of 1993 (Public Law 103-120, 107 Statute 1148, 42 U.S.C. 9816 note), as amended. These organizations are: 1. Enterprise Community Partners, Inc. (formerly The Enterprise Foundation), 11000 Broken Land Parkway, Suite 700, Columbia, MD 21044; 2. the Local Initiatives Support Corporation (LISC), 28 Liberty, 33rd Floor, New York, NY 11201; and 3. Habitat for Humanity International, 322 Lamar, Americus, GA 31709. Affiliates and local offices of these organizations and their community partners are not eligible to compete either directly or independently for capacity building grants under this notice, but rather may seek funding from the above organizations.
Mission Categories
Primary: Rural Community Development
Other categories:
Work EducationHomebuying, HomeownershipRural HousingAmerican Indian or Alaskan Native Housing
Use of Funds
Allowed Uses
Eligible Activities and Priorities. Funds may be used to provide the following services: 1. Training, education, support, and advice to enhance the technical and administrative capabilities of CDCs and CHDOs. This includes building the capacity of CDCs and CHDOs to: o Participate in consolidated planning, fair housing planning and Continuum of Care homeless assistance efforts that help ensure community-wide participation in assessing area needs; o Consult broadly within the community; o Cooperatively plan for the use of available resources in a comprehensive and holistic manner; and o Assist in evaluating performance under these community efforts and in linking plans with neighboring communities in order to foster regional planning. 2. Loans, pass-through grants, development assistance, predevelopment assistance, or other financial assistance to CDCs and CHDOs to carry out community development and affordable housing activities that benefit low-income families and persons, and community and economic development activities that create jobs for low-income persons. 3. Such other activities as may be determined by the grantees in consultation with the Secretary or his or her designee. Currently only Section 4 related Administration activities are eligible under this category.
Restrictions
Prohibition on Fees or Profit.
No fee or profit may be paid to any recipient or subrecipient of an award under this Section 4
NOFO.
Contractor and Subrecipient Rate Determination: Prior to beginning work on an activity, the
grantee must have a contract with any hired contractors and subrecipients. In addition to the
requirements laid out in 2 CFR 200.331, the contract with any contractor or subrecipient must
clearly state the work expected to be performed, the expected performance outputs (deliverables)
from that work, the period of performance for the contract, the expected number of hours of
work, and the hourly rate of pay to be applied. The contract must establish if the hourly rate of
pay is a “fully-loaded” or “unloaded” rate. “Fully-loaded” rates are rates that include the wage
rate, fringe benefits, and overhead for the contractor or subrecipient as clearly stated in the
contract, while “unloaded” rates only include the hourly wage rate.
High Rate Contractors and Consultants. Section 4 program funds may not be used, directly or
indirectly, to pay or provide reimbursement for payment of the salary of a contractor or
subrecipient at more than the “unloaded” hourly equivalent of the rate paid for the OPM General
Schedule Grade 15, Step 10 (based on the locality of the consultant, contractor, or subrecipient’s
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primary work address) without prior written approval from HUD. For more information on
OPM's General Schedule, please see the Office of Personnel Management (OPM) website at
https://www.opm.gov/policy-data-oversight/pay-leave/salarieswages/salarytables/pdf/2020/DCB.pdf.
Additionally, Section 4 program funds may not be used, directly or indirectly, to pay or provide
reimbursement for payment of the salary of a contractor or subrecipient at more than the
“loaded” rate of $150 an hour without prior written approval from HUD. If the grantee believes
there is sufficient need or cause for hiring a contractor or subrecipient at a high rate, it may
submit a request to HUD and a written justification for review and consideration, and it must
receive HUD’s approval prior to commencing services with the high rate contractor, consultant,
or subrecipient. In all cases, the grantee must receive approval from HUD before commencing
any Section 4 program work with a high rate contractor or subrecipient.
Indirect Cost Rate
Normal indirect cost rules under 2 CFR part 200, subpart E apply. If you intend to charge
indirect costs to your award, your application must clearly state the rate and distribution base you
intend to use. If you have a Federally negotiated indirect cost rate, your application must also
include a letter or other documentation from the cognizant agency showing the approved rate.
Successful applicants whose rate changes after the application deadline must submit the new rate
and documentation to assure the award agreement incorporates the applicable rate.
Required Documentation
This program is subject to the provisions of 24 CFR Part 84 (Uniform Administrative Requirements), 2 CFR Part 230 (OMB Circular A-122) (Cost Principles for Nonprofit Organizations), and OMB Circular A-133 (Audits of States, Local Governments, and Non-Profit Organizations). After selection for funding but prior to award, applicants must submit financial and administrative information and certifications to comply with applicable requirements. Applicants also must submit a certification from an Independent Public Accountant or the cognizant government auditor, stating that the applicant's financial management system meets prescribed standards for fund control and accountability.
Matching Requirements
Each dollar awarded must be matched by three dollars in cash or in-kind contributions obtained from private sources.
Reporting & Compliance
Applicable 2 CFR 200 Subparts
- Subpart B — General Provisions
- Subpart C — Pre-Federal Award Requirements
- Subpart D — Post-Federal Award Requirements
- Subpart E — Cost Principles
- Subpart F — Audit Requirements