Section 4 Capacity Building for Affordable Housing and Community Development Grants

To help improve the capacity of community organizations to develop affordable housing and other community development projects.

Agency - Department of Housing and Urban Development

The Department of Housing and Urban Development's mission is to increase homeownership, support community development and increase access to affordable housing free from discrimination. HUD fulfills this mission through high ethical standards, management and accountability, and by forming partnerships with community organizations.

Program Accomplishments

In FY 2007, the capacity building program demonstrated success in several areas relating to increasing the organizational capacity of CDCs and CHDOs. Section 4 funds were used: (1) to renovate, preserve, or build 11,727 homes; (2) to provide 326 trainings to CDCs and CHDOs; and (3) to leverage $1.87 billion in total development costs of community development projects funded by CDCs and CHDOs. The investment ratio of total project development costs to Section 4 funding was over 63:1.

Uses and Use Restrictions

Grantees may use the grant for one or more of the following activities relating to capacity building for affordable housing and community development: (1) Training, education, support, and advice to enhance the technical and administrative capabilities of community development corporations (CDCs) and community housing development organizations (CHDOs); (2) Loans, 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 (3) Such other activities as may be determined by the grantees in consultation with the Secretary or his designee.

Eligibility Requirements

Applicant Eligibility

Four organizations, as specified in the authorizing legislation and amendment, are eligible: Living Cities/The National Community Development Initiative, Enterprise Community Partners, Inc.

(formerly The Enterprise Foundation), Local Initiatives Support Corporation, and Habitat for Humanity International.

Beneficiary Eligibility

Community Development Corporations, Community Housing Development Organizations, and other nonprofit community based organizations that develop affordable housing and community development projects and programs.


This program is subject to the provisions of 24 CFR Part 84 (Uniform Administrative Requirements), 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.

Aplication and Award Process

Preapplication Coordination

This program is excluded from coverage under E.O.12372.

Application Procedures

Applications may be submitted in response to the annual publication of the Capacity Building Notice of Funding Availability (NOFA) in the Federal Register. The General Section of the SuperNOFA and the Capacity Building NOFA detail the submission requirements. There is no application kit.

Award Procedures

Based upon the requirements published in the Federal Register SuperNOFA, respondents are notified of acceptance or rejection. Upon selection, the applicant and HUD shall negotiate and execute a grant agreement.


As indicated in the Federal Register NOFA publication.


Section 4, HUD Demonstration Act of 1993,Public Law 103-120, 107 Stat. 1148, 42 U.S.C. 9816 note; as amended, Consolidated Appropriations Act, 2008, Public Law 110-161.

Range of Approval/Disapproval Time

From 60 to 90 days.




Not applicable.

Assistance Considerations

Formula and Matching Requirements

Each dollar awarded must be matched by three (3) dollars in cash or in-kind contributions obtained from private sources.

Length and Time Phasing of Assistance

The performance period for the capacity building grants is 4 years. Funds must be expended within 5 years of the grant start date.

Post Assistance Requirements


Grantees shall submit semiannual and annual performance and progress reports and final closeout reports.


Grantees and sub grantees shall be subject to the audit requirements contained in the Single Audit Act Amendments of 1996 (31 U.S.C. 7501-7507) and revised OMB Circular No. A-133, "Audits of States, Local Governments, and Non-Profit Organizations."


All records applicable to the program must be kept for three years following closeout.

Financial Information

Account Identification



(Grants) FY 07 $29,590,000; FY 08 est $33,500,000; and FY 09 est $0. (NOTE: Amounts reported reflect allocation of new budget authority rather than obligation amounts.)

Range and Average of Financial Assistance

For fiscal year 2007 there were two grant awards of $13,070,000.

Regulations, Guidelines, and Literature

The statute and the Capacity Building for Affordable Housing and Community Development NOFA constitute the regulations.

Information Contacts

Regional or Local Office


Headquarters Office

Karen Daly, Office of Policy Development and Coordination, Community Planning and Development, Department of Housing and Urban Development, 451 7th Street, SW, Washington, DC 20410. Telephone: (202) 402-5552. E-mail:

Criteria for Selecting Proposals

Applications are reviewed according to the rating factor requirements set forth in the Capacity Building for Affordable Housing and Community Development NOFA and SuperNOFA.

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