Opportunity Information: Apply for CPD 2600 DC 0007
The Section 4 Capacity Building for Community Development and Affordable Housing opportunity is a HUD discretionary grant program designed to strengthen the on-the-ground ability of Community Development Corporations (CDCs) and Community Housing Development Organizations (CHDOs) to deliver community development and affordable housing work. The overall intent is not to directly fund a single housing project, but to improve the organizational capacity, systems, and readiness of CDCs and CHDOs so they can more effectively plan, finance, and implement activities that benefit low-income people. The notice also highlights specific populations that should benefit from strengthened capacity and resulting activities, including people experiencing homelessness, physically disabled persons, first responders, and veterans. In addition, HUD includes set-asides intended to ensure capacity building reaches rural communities and also Native Hawaiian, American Indian, and Alaska Native communities and populations, including in rural areas.
Funding can only be used for a defined set of eligible activities. First, funds may support training, education, technical support, and advisory services that build the technical and administrative skills of CDCs and CHDOs. HUD frames this as practical capacity building that helps organizations navigate federal housing and community development resources and better direct federal investments toward high-need areas for the target populations. The training emphasis can include best practices for using Opportunity Zones as incentives for community investment, as well as cooperative planning so that available resources are used in a comprehensive, coordinated, and holistic way. The notice also ties this planning assistance to broader federal priorities, including support connected to EO 14296 and technical assistance for beneficiaries that can provide services aligned with the National Center for Warrior Independence, with an explicit focus on helping veterans regain self-sufficiency. Training and support can also include performance evaluation of these planning and coordination efforts and work that links plans across neighboring jurisdictions to support regional approaches rather than isolated projects.
Second, Section 4 funds may be used to provide pass-through financial assistance that increases the capacity of CDCs and CHDOs to carry out community development and affordable housing activities. This can take the form of subgrants, housing financing, loans, predevelopment assistance, or similar support. The key requirement is that these funds are used to build capacity and enable community development and affordable housing activities that benefit low-income persons, including low-income families that include people who are homeless, physically disabled, first responders, and veterans. In practice, this category is meant to help CDCs and CHDOs get to the point where they can successfully structure deals, complete predevelopment, strengthen internal controls, and execute projects and programs with greater scale and effectiveness.
Third, the statute allows for other activities determined by the grantee in consultation with HUD leadership, but HUD significantly narrows what is allowed under this specific notice. At this time, the only eligible activities under this third category are HUD-reviewed and HUD-approved reasonable administrative costs that are directly tied to the grantee’s management of its Section 4 program. Examples provided include developing Section 4 action plans, preparing required Section 4 reports, and managing implementation of the eligible training/technical assistance activities and the eligible pass-through financial assistance activities. The notice also makes an important intellectual property point: if Section 4 funds result in intangible products such as curricula, trainings, data sets, or research findings, those products fall under the federal rules in 2 CFR 200.315. Under that regulation, the federal government retains a royalty-free, nonexclusive, irrevocable right to reproduce, publish, or otherwise use the work for federal purposes, and to authorize others to do so.
HUD’s program priorities stress that capacity building should not happen in a vacuum. Activities are expected to build pipelines and support implementation of other HUD and federal place-based or housing efforts, including Opportunity Zones, Promise Zones, National Center for Warrior Independence facilities, and voucher programs supporting homeless veterans, with a specific mention of the Los Angeles metropolitan area as well as nationwide needs. The notice also points toward comprehensive neighborhood revitalization and encourages alignment with projects that catalyze job growth, economic recovery, and neighborhood reinvestment. Where regional planning or sustainable economic development strategies already exist, grantees are encouraged to help CDCs and CHDOs align their investments and plans with those broader regional efforts.
Eligibility is highly restricted and is a defining feature of this competition. Although the work ultimately benefits CDCs and CHDOs nationwide, only three specific national nonprofit organizations identified in Section 4 of the HUD Demonstration Act of 1993 (as amended and funded through FY 2024 and FY 2025 appropriations) may apply and receive awards under this notice: Enterprise Community Partners, Inc.; Local Initiatives Support Corporation (LISC); and Habitat for Humanity International. Affiliates, local offices, and community partners of these organizations are not eligible to apply directly, but they may seek funding through these national intermediaries once awards are made. Individuals, foreign entities, and sole proprietorships are not eligible.
From the competition details provided, the opportunity is issued by the U.S. Department of Housing and Urban Development under Funding Opportunity Number CPD 2600 DC 0007 and CFDA 14.252. The instrument is a grant, the opportunity category is discretionary, and HUD anticipates making three awards, consistent with the three eligible applicants. The total award ceiling listed is $42,000,000. The opportunity was created on 2026-06-05, with an original closing date of 2026-07-06.Apply for CPD 2600 DC 0007
- The 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 2026-06-05.
- Applicants must submit their applications by 2026-07-06. (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 $42,000,000.00 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.
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FAQs: HUD Section 4 Capacity Building for Community Development and Affordable Housing (CPD 2600 DC 0007)
What is the Section 4 Capacity Building for Community Development and Affordable Housing opportunity?
It is a HUD discretionary grant program intended to strengthen the on-the-ground capacity of Community Development Corporations (CDCs) and Community Housing Development Organizations (CHDOs) to carry out community development and affordable housing work.
What is the main purpose of this funding?
The purpose is to improve organizational capacity, systems, and readiness so CDCs and CHDOs can more effectively plan, finance, and implement activities that benefit low-income people.
Is this grant meant to directly fund a single affordable housing project?
No. The overall intent is not to directly fund a single housing project, but to build the capacity of organizations so they can carry out community development and affordable housing activities more effectively.
Who should ultimately benefit from strengthened capacity and resulting activities?
Activities are intended to benefit low-income persons. The notice specifically highlights people experiencing homelessness, physically disabled persons, first responders, and veterans as populations that should benefit from strengthened capacity and resulting activities.
Are there geographic or community-focused set-asides?
Yes. HUD includes set-asides intended to ensure capacity building reaches rural communities and also Native Hawaiian, American Indian, and Alaska Native communities and populations, including in rural areas.
Who is eligible to apply for this HUD opportunity?
Eligibility is limited to three national nonprofit organizations identified in Section 4 of the HUD Demonstration Act of 1993 (as amended and funded through FY 2024 and FY 2025 appropriations): Enterprise Community Partners, Inc.; Local Initiatives Support Corporation (LISC); and Habitat for Humanity International.
Can local affiliates or local offices of the eligible national organizations apply directly?
No. Affiliates, local offices, and community partners of the eligible national organizations are not eligible to apply directly under this notice.
If my organization is a CDC or CHDO, can we apply directly to HUD?
No. While the work is meant to benefit CDCs and CHDOs nationwide, only the three specified national intermediaries may apply and receive awards. CDCs and CHDOs may seek funding through these national intermediaries after awards are made.
Are individuals eligible to apply?
No. Individuals are not eligible.
Are foreign entities eligible to apply?
No. Foreign entities are not eligible.
Are sole proprietorships eligible to apply?
No. Sole proprietorships are not eligible.
What types of activities can Section 4 funding support?
Funding is limited to a defined set of eligible activities: (1) training, education, technical support, and advisory services for CDCs and CHDOs; (2) pass-through financial assistance to increase the capacity of CDCs and CHDOs; and (3) a narrowed set of HUD-approved reasonable administrative costs tied to the grantee's management of its Section 4 program.
What does HUD mean by training, education, technical support, and advisory services?
These are practical capacity-building services designed to strengthen the technical and administrative skills of CDCs and CHDOs, including their ability to navigate federal housing and community development resources and to direct federal investments toward high-need areas for the targeted populations.
Can the training and technical assistance include support related to Opportunity Zones?
Yes. The notice states the training emphasis can include best practices for using Opportunity Zones as incentives for community investment.
Does the opportunity encourage coordination and planning across jurisdictions?
Yes. The notice emphasizes cooperative planning so resources are used in a comprehensive, coordinated, and holistic way, including performance evaluation of planning and coordination efforts and work that links plans across neighboring jurisdictions to support regional approaches.
How does this funding connect to broader federal priorities mentioned in the notice?
The notice ties planning and technical assistance to broader federal priorities, including support connected to EO 14296 and technical assistance for beneficiaries that can provide services aligned with the National Center for Warrior Independence, with an explicit focus on helping veterans regain self-sufficiency.
What is pass-through financial assistance under this program?
Pass-through financial assistance is support intended to increase the capacity of CDCs and CHDOs to carry out community development and affordable housing activities. The notice describes possible forms including subgrants, housing financing, loans, predevelopment assistance, or similar support.
What is the key requirement for pass-through financial assistance?
The key requirement is that these funds are used to build capacity and enable community development and affordable housing activities that benefit low-income persons, including low-income families that include people who are homeless, physically disabled, first responders, and veterans.
What kinds of capacity improvements are expected from pass-through assistance?
In practice, it is meant to help CDCs and CHDOs get to the point where they can successfully structure deals, complete predevelopment, strengthen internal controls, and execute projects and programs with greater scale and effectiveness.
Are there any "other activities" allowed under the statute?
The statute allows for other activities determined by the grantee in consultation with HUD leadership, but under this specific notice HUD significantly narrows what is allowed. At this time, the only eligible activities under that third category are HUD-reviewed and HUD-approved reasonable administrative costs directly tied to managing the Section 4 program.
What administrative costs are eligible under this notice?
Examples include developing Section 4 action plans, preparing required Section 4 reports, and managing implementation of the eligible training/technical assistance activities and the eligible pass-through financial assistance activities, provided they are HUD-reviewed and HUD-approved.
Does the notice mention anything about intellectual property created with grant funds?
Yes. If Section 4 funds result in intangible products such as curricula, trainings, data sets, or research findings, those products fall under 2 CFR 200.315. Under that regulation, the federal government retains a royalty-free, nonexclusive, irrevocable right to reproduce, publish, or otherwise use the work for federal purposes, and to authorize others to do so.
What kinds of outcomes or approaches does HUD prioritize?
HUD prioritizes capacity building that supports pipelines and implementation of other HUD and federal place-based or housing efforts, including Opportunity Zones, Promise Zones, National Center for Warrior Independence facilities, and voucher programs supporting homeless veterans. The notice also points toward comprehensive neighborhood revitalization and alignment with efforts that catalyze job growth, economic recovery, and neighborhood reinvestment.
Does the notice encourage alignment with regional strategies?
Yes. Where regional planning or sustainable economic development strategies already exist, grantees are encouraged to help CDCs and CHDOs align their investments and plans with broader regional efforts.
Does the notice mention any specific area of focus related to veterans?
Yes. It specifically mentions voucher programs supporting homeless veterans, with a specific mention of the Los Angeles metropolitan area as well as nationwide needs.
Which federal agency is issuing this opportunity?
The opportunity is issued by the U.S. Department of Housing and Urban Development (HUD).
What is the Funding Opportunity Number (FON)?
The Funding Opportunity Number is CPD 2600 DC 0007.
What is the CFDA number for this program?
The CFDA number is 14.252.
What type of award instrument is this?
The instrument is a grant.
What category of funding opportunity is this?
This is a discretionary funding opportunity.
How many awards does HUD anticipate making?
HUD anticipates making three awards, consistent with the three eligible applicants.
What is the total award ceiling listed in the notice?
The total award ceiling listed is $42,000,000.
When was this opportunity created?
The opportunity was created on 2026-06-05.
What is the original closing date?
The original closing date is 2026-07-06.
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