Automated Permitting Systems Demonstration NOFO

The Automated Permitting Systems Demonstration NOFO is a federal funding opportunity administered by the Department of Housing and Urban Development to support innovation in housing-related administrative processes. This program is part of HUD’s broader efforts to modernize systems and improve efficiency in housing and community development activities through the application of technology and research. By focusing on permitting systems, the program addresses a critical bottleneck in housing development and construction workflows, which can significantly impact project timelines and costs. The primary purpose of this demonstration program is to fund jurisdictions that will implement automated building code permitting systems and evaluate their effectiveness in real-world environments. These systems are intended to streamline the permitting process by reducing manual workloads, accelerating review timelines, and improving overall workflow efficiency. Through this initiative, HUD seeks to generate actionable insights into how automation can enhance permitting operations and support faster, more efficient housing development processes. Award recipients will be responsible for deploying automated permitting platforms within their jurisdictions and collaborating with HUD to assess their performance. The evaluation component is a central feature of the program and will examine multiple factors, including processing timelines, staff roles, applicant experience, operational costs, and governance requirements. The findings from these demonstrations are expected to inform future policy decisions and support broader adoption of automated systems across state and local governments. The program has an estimated total funding of $3 million and anticipates making approximately six awards. Individual awards will range from $300,000 to $1.5 million. Funding is provided through cooperative agreements, indicating an ongoing partnership between HUD and recipients throughout the project lifecycle. There is no cost-sharing or matching requirement, which lowers the barrier to participation for eligible government entities. Eligibility for this opportunity is limited to governmental jurisdictions, including state governments, county governments, city or township governments, and federally recognized Native American tribal governments. Individuals, foreign entities, and sole proprietorships are explicitly excluded. This eligibility structure reflects the program’s focus on implementing permitting systems within official government regulatory environments where building codes and permitting processes are administered. The application process is expected to open shortly after the estimated posting date in mid-May 2026, with applications due in early July 2026. Submissions must be completed electronically by the deadline. While detailed application components are not specified in the forecast notice, applicants will likely need to outline their proposed system implementation, evaluation methodology, and capacity to manage both technical deployment and data collection activities. Awards are anticipated to be announced in early September 2026, with project activities beginning in October 2026. HUD will play an active role in overseeing the demonstration and ensuring that data collected from participating jurisdictions contributes to a broader understanding of automated permitting systems. This opportunity is not identified as recurring and represents a targeted effort to test and evaluate innovative technology solutions in the housing sector.