Section 4 Capacity Building for Community Development and Affordable Housing

 

The Section 4 program builds the capacity of Community Development Corporations (CDCs) and Community Housing Development Organizations (CHDOs) to serve their communities and low- and moderate-income families with community development and affordable housing activities.

General information about this opportunity
Last Known Status
Active
Program Number
14.252
Federal Agency/Office
Assistant Secretary For Community Planning and Development, Department of Housing and Urban Development
Type(s) of Assistance Offered
B - Project Grants
Program Accomplishments
Fiscal Year 2022 In implementing grant award funding received from 2017 – 2020 Capacity Building appropriations, the three Capacity Building program grantees have so far achieved the following outputs: Served 7,661 eligible organizations;  Provided 584 trainings;  Constructed 15,100 new housing units;  Rehabbed, sustained, and/or reconstructed 13,991 housing units;  Placed 41,809 housing units into the development process; and,  Awarded a total of $74,329,697 in sub-grants to 1,525 subgrantees. Section 4 funds have also been used to provide much needed disaster recovery relief. Specifically, these funds have been used to assist communities impacted by Hurricanes Katrina, Sandy, Harvey, Irma, Maria, and Michael and the California wildfires.
Authorization
Public Law 103-120, 42 U.S.C. 9816 note, Statute 107,1148
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. Funding for this program is provided by the Consolidated Appropriations Act, 2022 (Public Law 117-103, approved on March 15, 2022), and the Consolidated Appropriations Act, 2023 (Public Law 117-328, approved on December 29, 2022).
Who is eligible to apply/benefit from this assistance?
Applicant Eligibility
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.
Beneficiary Eligibility
Community Development Corporations (CDCs) and Community Housing Development Organizations (CHDOs) are the only eligible beneficiaries.
Credentials/Documentation
Not applicable.
What is the process for applying and being award this assistance?
Pre-Application Procedure
Preapplication coordination is required. Preapplication coordination is not applicable. Environmental impact information is not required at the time of application to this program. This program is excluded from coverage under E.O. 12372.
Application Procedure
2 CFR 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards applies to this program. The annual publication of HUD's Capacity Building for Community Development and Affordable Housing (Section 4) NOFO details the submission requirements. Applications may be submitted in response to the annual publication of the Notice of Funding Opportunity (NOFO) for the Capacity Building for Community Development and Affordable Housing (Section 4) Program on Grants.gov.
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.
Deadlines
Contact the headquarters or regional location, as appropriate for application deadlines
Approval/Disapproval Decision Time
From 60 to 90 days.
Appeals
Not applicable.
Renewals
Not applicable.
How are proposals selected?
Applications are reviewed according to the Threshold Requirements and Rating Factor requirements set forth in the Section 4 Capacity Building for Community Development and Affordable Housing Program NOFO. Applicants are assessed for the organization's capacity, understanding of the capacity building needs of eligible beneficiaries, the soundness of their approach in their proposed Capacity Building program, their commitment to leveraging other funding, and their performance evaluation and past performance on previous Section 4 grant awards.
How may assistance be used?
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 or low- and moderate-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.
What are the requirements after being awarded this opportunity?
Reporting
Performance Reports: HUD will conduct on-site monitoring.
Auditing
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) .
Records
All records applicable to the program must be kept for 3 years following closeout.
Other Assistance Considerations
Formula and Matching Requirements
Statutory formula is not applicable to this assistance listing.

Matching is mandatory. Each dollar awarded must be matched by three dollars in cash or in-kind contributions obtained from private sources.

MOE requirements are not applicable to this assistance listing.
Length and Time Phasing of Assistance
The performance period for the capacity building grants is four years (48 months). Funds must be expended within four years (48 months) of the grant start date. Method of awarding/releasing assistance: Funding is committed through grant agreements and released to grantees as voucher reimbursements on a regular basis. Funds are available for draw down from HUD's Line of Credit Control System (LOCCS).
Who do I contact about this opportunity?
Regional or Local Office
None/Not specified.
Headquarters Office
La Ticia Wilson
451 7th Street SW
Washington, DC 20410 USA
Laticia.Wilson@hud.gov
Phone: 202.402.5890
Website Address
https://www.hudexchange.info/programs/section-4-capacity-building/
Financial Information
Account Identification
86-0176-0-1-176
Obligations
(Project Grants) FY 22$0.00; FY 23 est $41,000,000.00; FY 24 est $83,000,000.00; FY 21$36,000,000.00; FY 20$36,000,000.00; FY 19$35,000,000.00; FY 18$35,000,000.00; FY 17$35,000,000.00; FY 16$35,000,000.00; -
Range and Average of Financial Assistance
In FY 2022, the program used FY 2021 source years funds to provide the minimum grant award possible $1,000,000 and the maximum grant award was $41,000,000. The maximum award eligible was $17,000,000 and the minimum was $9,000,000. 3 awards were made, and they ranged from 9,000,000 to $17,000,000. The projected obligations for FY2023 are $83,000,000; indicative of combined FY2022 and FY2023 appropriations.
Regulations, Guidelines and Literature
Not applicable.
Examples of Funded Projects
Not applicable.

 


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