Section 4 Capacity Building for Community Development and Affordable Housing

The Section 4 Capacity Building for Community Development and Affordable Housing program is administered by the United States Department of Housing and Urban Development through its Community Planning and Development office. The program is authorized under the HUD Demonstration Act of 1993 and is designed to strengthen the capacity of national intermediary organizations that support local community development corporations and community housing development organizations. These intermediaries play a critical role in expanding access to affordable housing and community development resources for low income populations, including individuals experiencing homelessness, persons with disabilities, first responders, and veterans. The primary purpose of the program is to enhance the ability of community based organizations to carry out housing and economic development activities by providing both technical assistance and financial support. The program emphasizes building organizational strength so that local entities can more effectively plan, finance, and implement projects that increase housing supply and improve community conditions. It also prioritizes geographic equity by encouraging investments in rural areas, small towns, and designated opportunity zones, as well as targeted support for Native Hawaiian, American Indian, and Alaska Native communities. Funding under this opportunity totals approximately 84000000 dollars across two fiscal years, with at least 10000000 dollars reserved for rural capacity building activities and an additional required investment directed toward Native communities. The funds may be used for a range of eligible activities including training and education, technical assistance, pass through grants, loans, and other financial tools that help local organizations expand their development capacity. Administrative costs directly related to program management are also allowable within defined limits, but no profit or fee may be earned by recipients or subrecipients. Eligibility for this funding opportunity is highly restricted. Only three national nonprofit organizations are eligible to apply: Enterprise Community Partners, Local Initiatives Support Corporation, and Habitat for Humanity International. These organizations must demonstrate strong experience managing large federal grants and delivering capacity building services at scale. They are responsible for distributing resources and support to local organizations that meet program criteria and align with HUD priorities. Applicants must provide a comprehensive submission that includes standard federal forms, a detailed budget, and a narrative addressing five rating factors. These factors include organizational capacity, understanding of community needs, proposed approach, leverage of additional resources, and methods for measuring outcomes. The application must clearly define activities, expected outputs, and outcomes, along with a detailed implementation plan and performance measurement framework. Applications are reviewed through a threshold and merit based process, with a minimum score required to be considered for funding. The program requires a significant cost sharing component. For every federal dollar awarded, recipients must provide three dollars in matching funds from private sources, which may include cash or in kind contributions. This requirement ensures strong partnership with private sector stakeholders and increases the overall impact of federal investments. Additional leveraged funding beyond the required match is encouraged and contributes to application competitiveness. Applications must be submitted through Grants.gov by July 6 2026 at 115959 PM Eastern Time. Awards are anticipated in August 2026, with a four year period of performance beginning in September 2026 and ending in September 2030. The program is typically offered on a recurring basis as part of HUD funding cycles, although each notice of funding opportunity may include updated priorities and requirements. Successful applicants will enter into grant agreements for each fiscal year and must comply with all reporting, monitoring, and administrative requirements throughout the award period.

Focus heavily on measurable outcomes and leverage ratio; clearly align proposed activities with HUD priorities and demonstrate strong past performance