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
Program Number
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
Not applicable.
Public Law 103-120, 42 U.S.C. 9816 note, Statute 107,1148
The Capacity Building program is authorized by Section 4 of the HUD Demonstration Act of 1993 (Pub. L. 103-120, 107 Stat. 1148, 42 U.S.C. 9816 note), as amended. Funding for the FY 2019 Section 4 Capacity Building for Community Development and Affordable Housing program made available through this NOFA are authorized by the Consolidated Appropriations Act, 2019 (Public Law 116-6, approved February 15, 2019).
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 (Pub.L. 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, 501 Seventh Avenue, 7th Floor, New York, NY 10018 3. Habitat for Humanity International, 121 Habitat Street, 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.
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) NOFA details the submission requirements. Applications may be submitted in response to the annual publication of the Notice of Funding Availability (NOFA) for the Capacity Building for Community Development and Affordable Housing (Section 4) Program on
Award Procedure
Based upon the requirements published in the General Section and Program Section of the NOFA, respondents are notified of acceptance or rejection. Upon selection, the applicant and HUD shall negotiate and execute a grant agreement.
Contact the headquarters or regional location, as appropriate for application deadlines
Approval/Disapproval Decision Time
From 60 to 90 days.
Not applicable.
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 NOFA. Applicants are assessed for the organizations 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, including the acquisition, construction, or rehabilitation of housing for 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?
Performance Reports: HUD will conduct on-site monitoring.
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) .
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
Diane Schmutzler
451 7th Street SW
Washington, DC 20410 USA
Phone: 2024024385
Website Address
Financial Information
Account Identification
(Project Grants) FY 19$35,000,000.00; FY 20 est $36,000,000.00; FY 21 est $36,000,000.00; FY 18$35,000,000.00; FY 17$35,000,000.00; FY 16$35,000,000.00; -
Range and Average of Financial Assistance
There have been three grant awards made each fiscal year ranging from $5 million to $15 million over the past three years.
Regulations, Guidelines and Literature
Not applicable.
Examples of Funded Projects
Not applicable.


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