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OFH-2600-DC-021C

Fair Housing and Equal Opportunity

U.S. Department of Housing and Urban Development

FAIR HOUSING INITIATIVES PROGRAM

PRIVATE ENFORCEMENT INITIATIVE

Table Of Contents OFH-2600-DC-021C Page 2 of 79

I. BASIC INFORMATION

A. Summary

B. Agency Contact(s)

II. ELIGIBILITY

A. Eligible Applicants

B. Eligible Applications

C. Cost Sharing or Matching

III. PROGRAM DESCRIPTION

A. Purpose

B. Goals and Objectives

C. Authority

D. Unallowable Costs

E. Indirect Costs

F. Program History

G. Other Information

IV. APPLICATION CONTENTS AND FORMAT

A. Standard Forms, Assurances, and Certifications 28

B. Budget

C. Narratives and Other Attachments

D. Other Application Content

V. APPLICATION REVIEW INFORMATION

A. Threshold Review

B. Merit Review

C. Risk Review

D. Selection Process

E. Award Notices

VI. SUBMISSION REQUIREMENTS AND

DEADLINES

A. Deadlines

B. Submission Methods

C. Other Submission Information

D. False Statements

VII. POST-AWARD REQUIREMENTS AND

ADMINISTRATION

A. Administrative, National and Departmental Policy

Requirements, and General Terms and Conditions

B. Environmental Requirements

C. Remedies for Noncompliance

D. Reporting

VIII. CONTACT AND SUPPORT

A. Agency Contact

B. Grants.gov

C. SAM.gov

D. Debriefing

E. Applicant Experience Survey

F. Other Online Resources

APPENDIX

Appendix I. Definitions

TABLE OF CONTENTS

Before You Begin OFH-2600-DC-021C Page 3 of 79

If you are a good candidate for this funding opportunity, register in the required systems and review the application materials. If you are already registered, confirm that your information is current and active.

SAM.gov Registration You must have an active and up-to-date account with SAM.gov, at the time of application and throughout the life of any award.

To register, go to SAM.gov Entity Registration and click Get Started. From the same page, you can also click the Entity Registration Checklist for the information you will need to register.

It can take several weeks to register in SAM.gov, so get started now if you are planning to apply. SAM.gov also provides each organization with a unique entity identifier (UEI). A valid UEI is required to apply for funding.

Grants.gov Registration You must have an active Grants.gov registration. This requires a Login.gov registration as well. See step-by-step instructions at the Grants.gov Quick Start Guide for Applicants. You must apply for funding using Grants.gov, unless HUD has approved your waiver request.

See Section VI.B. Submission Methods.

Find the Application Package Use the Grants Search at Grants.gov and search for opportunity number OFH-2600-DC- 021C . The application package has all the online forms you need to apply. You also need to access the Download Instructions link and review the content before you apply.

If you have other technical difficulties using Grants.gov, contact the Support Center on Grants.gov.

To get updates on changes to this notice of funding opportunity (NOFO), click Subscribe from the View Grant Opportunity page on Grants.gov.

Application Deadline

HUD Listserv To get email alerts about current and future funding opportunities, subscribe to HUD's Funding Opportunities listserv.

BEFORE YOU BEGIN

https://sam.gov/ https://sam.gov/content/entity-registration https://sam.gov/ https://sam.gov/ https://grants.gov/ https://login.gov https://www.grants.gov/quick-start-guide/applicants https://grants.gov/ https://grants.gov/ https://grants.gov/ https://grants.gov/ https://www.hud.gov/subscribe/signup?listname=HUD%20Funding%20Opportunities&list=HUD-FUNDING-OPPORTUNITIES-L https://www.hud.gov/subscribe/signup?listname=HUD%20Funding%20Opportunities&list=HUD-FUNDING-OPPORTUNITIES-L

I. Basic Information

II. Eligibility III. Program Description

IV. Application Contents and

Format

V. Application Review

Information

VI. Submission Requirements and

Deadlines

VII. Post-Award Requirements and

Administration

VIII. Contact and Support

Appendix

I. BASIC INFORMATION

I. Basic Information

A. Summary

B. Agency Contact(s)

II. Eligibility III. Program Description

IV. Application Contents and

Format

V. Application Review

Information

VI. Submission Requirements and

Deadlines

VII. Post-Award Requirements and

Administration

VIII. Contact and

I. Basic Information OFH-2600-DC-021C Page 5 of 79

I. BASIC INFORMATION See Contact and Support section of this NOFO.

A. Summary Federal Agency Name:

United States Department of Housing and Urban Development (HUD) HUD Program Office:

Fair Housing and Equal Opportunity Announcement Type:

Initial Program Type:

Discretionary Paperwork Reduction Act Information:

2501-0044, 2529-0033 Due Date for Intergovernmental Review:

See Section VI.C.1.

1. NOFO Summary The Private Enforcement Initiative (PEI) is one of several initiatives of the Fair Housing Initiatives Program (FHIP), and provides competitive awards to eligible private, nonprofit fair housing enforcement organizations, to conduct testing and other investigative activities to enforce the rights granted under the Fair Housing Act, and State or local laws with equivalent

Key Facts Opportunity Name:

FAIR HOUSING INITIATIVES PROGRAM PRIVATE

ENFORCEMENT INITIATIVE

Opportunity Number:

OFH-2600-DC-021C

Federal Assistance Listing(s):

14.418

Key Dates Application Due Date:

11:59:59 PM Eastern Time on:

11/02/2026 Anticipated Award Date:

02/28/2027 Estimated Performance Period Start Date:

07/01/2027 Estimated Performance Period End Date:

06/30/2029

II. Eligibility III. Program Description

IV. Application Contents and

Format

V. Application Review

Information

VI. Submission Requirements and

Deadlines

VII. Post-Award Requirements and

Administration

VIII. Contact and

I. Basic Information OFH-2600-DC-021C Page 6 of 79 rights and remedies. This NOFO announces the availability of approximately $13,546,112 to fund new FY2026 grant awards. The remaining amount of approximately $26,953,888 in FY2026 appropriations for PEI is allocated to fund continuing FY2024 (second year) and FY2023 (third year) grantees outside of this NOFO.

FHEO will sponsor applicant training in furtherance of Executive Order 14332, to increase potential applicant understanding of the federal grant application process and of the Fair Housing Initiatives Program with the goal of expanding the applicant pool so that discretionary grants might be awarded to a broad range of eligible recipients.

2. Funding Details Type of Funding Instrument G (Grant) PEI- General (PEI-G) awards will be in the form of grant agreements.

PEI- State and Local Housing Discrimination Component (PEI-SLHDC) awards will be in the form of cooperative agreements.

Under a cooperative agreement, HUD will exercise the right to approve, and have substantial involvement in, all proposed deliverables, as well as the Work Plan or Statement of Work

(SOW).

Where HUD determines that substantial Federal involvement is appropriate, awards may be administered as cooperative agreements. Substantial involvement may include: collaborative project planning; technical consultation; review of significant deliverables; coordination of national initiatives; dissemination of project deliverables; other activities identified in the cooperative agreement. The nature and extent of HUD Participation will be described in the award agreement.

Available Funds Funding of approximately $13,546,112 is available through this NOFO.

Additional funds may become available for award. Use of these funds is subject to statutory constraints. All awards are subject to the selection process contained in this NOFO.

Estimated Number of Awards 13 awards from available funding FHEO anticipates that approximately 13 awards will be made from available funding. The number of awards may vary based upon the quantity, quality and eligibility status of the applications received.

Length of Performance Period:

Other Length of Periods Explanation:

PEI General (PEI-G): The maximum award is $1,000,000 for a 24-month project period consisting of two separate consecutive 12-month performance and budget periods, with a

II. Eligibility III. Program Description

IV. Application Contents and

Format

V. Application Review

Information

VI. Submission Requirements and

Deadlines

VII. Post-Award Requirements and

Administration

VIII. Contact and

I. Basic Information OFH-2600-DC-021C Page 7 of 79 maximum amount of $500,000 and a minimum amount of $250,000 per each 12-month consecutive performance and budget period. FHEO expects to make approximately 12 awards under this component. These awards will be issued in the form of grant agreements.

PEI- State and Local Housing Discrimination Component (PEI-SLHDC): The maximum award is $1,500,000 for a 24-month project period consisting of two separate consecutive 12-month performance and budget periods, with a maximum amount of $750,000 and a minimum amount of $250,000 per each 12-month consecutive performance and budget period. FHEO expects to make approximately 1 award under this component. These award(s) will be issued in the form of cooperative agreement(s).

HUD determined the anticipated funding available for each component after considering the statutory purposes of the Private Enforcement Initiative, the anticipated cost of conducting eligible investigative and enforcement activities, the complexity of the work to be performed, the organizational capacity required to maintain effective investigative operations, prior program performance, the expected public benefit of successful enforcement actions, the availability of qualified applicants, and the Department's objective of maintaining a balanced national private fair housing enforcement infrastructure. Funding allocations reflect the differing resources reasonably necessary to accomplish the authorized activities associated with each component and should not be interpreted as reflecting differing levels of program importance. Rather, they represent the Department's administrative judgment regarding the most effective allocation of available appropriations to strengthen private fair housing enforcement nationwide.

NOTE: All recipients must expend funds within the specific time periods established and for the purposes approved in annual negotiations.

B. Agency Contact(s) See Contact and Support section of this NOFO.

II. ELIGIBILITY

II. Eligibility

A. Eligible Applicants

B. Eligible Applications

C. Cost Sharing or Matching

II. Eligibility III. Program Description

IV. Application Contents and

Format

V. Application Review

Information

VI. Submission Requirements and

Deadlines

VII. Post-Award Requirements and

Administration

VIII. Contact and

II. Eligibility III. Program Description

IV. Application Contents and

Format

V. Application Review

Information

VI. Submission Requirements and

Deadlines

VII. Post-Award Requirements and

Administration

VIII. Contact and

II. Eligibility OFH-2600-DC-021C Page 9 of 79

II. ELIGIBILITY

A. Eligible Applicants If your organization is not an eligible applicant, your application won't be reviewed or scored, and you won't receive funding from HUD.

1. Eligible Entity Types:

25 (Others (see text field entitled "Additional Information on Eligibility" for clarification)) Additional Information on Eligibility You cannot apply as an individual.

Faith-based organizations may apply just like any other organization. HUD does not have any policies or practices that unfairly target these institutions.

HUD will make awards from FY2026 FHEO appropriations through this Notice of Funding Opportunity.

Applicants for FY2026 PEI grants cannot have received a FY2023 or FY2024 PEI MultiYear (MY) award.

a. Eligible Entities. In accordance with 42 U.S.C. 3616a, to receive an award under this NOFO you must be either a:

• Qualified Fair Housing Enforcement Organization (QFHO) with at least two years of experience in all of the following fair housing enforcement related activities in the three years prior to filing the application hereunder: complaint intake, complaint investigation, testing for fair housing violations, and enforcement related experience of meritorious claims; or a

• Fair Housing Enforcement Organization (FHO) with at least one year of experience in all of the following fair housing enforcement related activities in the two years prior to filing the application for funding hereunder: complaint intake, complaint investigation, testing for fair housing violations, and enforcement related experience of meritorious claims.

A parent organization that is a QFHO or an FHO with a separate Employer Identification Number does not mean that an affiliate organization automatically gets QFHO or FHO status.

Instead, FHEO will determine if the affiliate organization has the requisite experience to qualify, independent of the parent organization.

You must complete Appendix B, Certification for PEI Applicants, to certify QFHO or FHO status.

If your organization does not currently qualify as a QFHO or FHO (see 24 CFR §§ 125.103 and 125.401), you may be eligible to apply under the FHIP Education and Outreach Initiative (EOI), or Fair Housing Organizations Initiative (FHOI) NOFOs. Please see each NOFO for specific eligibility requirements. If an applicant applies for both a PEI and FHOI Continuing Development Component grant and receives an award for both, HUD will rescind funding for the FHOI award if the activities for both awards are exactly alike or substantially similar.

https://www.ecfr.gov/current/title-24/part-5/appendix-Appendix%20A%20to%20Subpart%20A%20of%20Part%205 https://www.federalregister.gov/documents/2025/02/12/2025-02611/eradicating-anti-christian-bias https://www.federalregister.gov/documents/2025/02/12/2025-02611/eradicating-anti-christian-bias

II. Eligibility III. Program Description

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Format

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VII. Post-Award Requirements and

Administration

VIII. Contact and

II. Eligibility OFH-2600-DC-021C Page 10 of 79

Co-applicants or members of a consortium are not eligible applicants under this NOFO.

Additional Eligibility Requirements:

b. Current or Pending 501(c)(3) Tax-Exempt Organizations Applicants must be a 501(c)(3) tax-exempt organization or have a 501(c)(3) application pending prior to the application deadline date and must maintain 501(c)(3) status throughout the period of performance. Applications must include the IRS report showing 501(c)(3) status or pending application status. See Application Contents, IV. C.

If your organization has a pending 501(c)(3) application and is selected for an award, your 501(c)(3) application/renewal must be approved prior to release of funding. If the pending application is denied, HUD will rescind award selection.

2. Restrictions

a. Statutory and Regulatory Requirements You must meet the current General Statutory and Regulatory Eligibility Requirements. If you do not meet these requirements, your application won't be scored, and you won't receive funding from HUD. This is a threshold requirement for all HUD funding.

b. Resolution of Civil Rights Matters If you have any outstanding or unresolved judgments for violating civil rights laws, you must settle them before you apply. If you don't, settle the civil rights law violations before you apply, your application won't be scored, and you won't receive funding from HUD. This is a threshold requirement for all HUD funding.

Applicants with outstanding, unresolved matters or judgments against them for violations of civil rights laws must resolve those judgments before the application submission deadline or the applicant will be deemed ineligible. (1) An applicant is ineligible for funding if the applicant has received notice of a judgment imposed against them for violations of: (a) the Fair Housing Act or a substantially equivalent state or local fair housing law for discrimination because of race, color, religion, sex, national origin, disability or familial status; or (b) Title VI of the Civil Rights Act of 1964, Section 504 of the Rehabilitation Act of 1973, Section 109 of the Housing and Community Development Act of 1974, the Americans with Disabilities Act, or the Violence Against Women Act or substantially equivalent state or local laws. (2) HUD will determine if actions to resolve the judgment taken before the application deadline date will resolve the matter. Examples of actions that may be sufficient to I. Basic Information II.

Eligibility III. Program Description IV. Application Contents and Format V. Application Review Information VI. Submission Requirements and Deadlines VII. Post-Award Requirements and Administration VIII. Contact and Support Appendix II. Eligibility CPD-2600-DC-0025 Page 11 of 128 resolve the matter include, but are not limited to: (a) Current compliance with a voluntary compliance agreement signed by all the parties; (b) Current compliance with a HUD-approved conciliation agreement signed by all the parties; (c) Current compliance with a conciliation agreement signed by all the parties and approved by the state governmental or local administrative agency with jurisdiction over the matter; (d) Current compliance with a consent order or consent decree; or (e) Current compliance with a final judicial ruling or administrative ruling or decision. Applicants with unresolved civil rights matters at the https://www.hud.gov/sites/dfiles/OCHCO/documents/Eligibility-Requirements-Addendum-FY2025.pdf

II. Eligibility III. Program Description

IV. Application Contents and

Format

V. Application Review

Information

VI. Submission Requirements and

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II. Eligibility OFH-2600-DC-021C Page 11 of 79 application deadline are deemed ineligible.

B. Eligible Applications

1. An application from an eligible entity is considered for funding if it meets basic threshold requirements and passes merit review.

2. Your application must support the goals of this NOFO.

3. Awards made under this NOFO will not be used to conduct activities that subsidize or facilitate illegal racial preferences or other forms of illegal discrimination, including activities where race or intentional proxies for race will be used as a selection criterion for employment or program participation.

Program Restrictions on Eligibility:

4. FY2023 and FY2024 PEI MultiYear (MY) Award Recipients. An applicant for FY2026 funding under this NOFO cannot be a recipient of a FY2024 or FY2023 FHIP PEI MY award or have a parent or affiliate/subsidiary that is a recipient of a FY2024 or FY2023 PEI MY award.

5. Budget and Statement of Work (SOW) Requirements. You must submit a separate SOW and a separate Form HUD-424-CBW Budget with your application, for each consecutive 12-month performance and budget period that comprise the 24-month project period, or your application will be deemed ineligible and will not be reviewed. See also Appendix I Definitions.

6. Awards for Parent/Affiliate Organizations. HUD will not fund both a parent organization and its affiliate/subsidiary organization under this NOFO for the same component. HUD prohibits affiliate and parent organization staff sharing protocols whereby the parent organization shares key staff with an affiliate(s). All funded organizations must be fully independent functional fair housing enforcement organizations able to conduct business on an ongoing basis without support from a parent or its staff to complete proposed program activities and must be set apart from the parent organization.

7. Performance Assessment Rating. An applicant cannot have received a "poor (unsatisfactory)" rating on a performance assessment on any prior FHIP grant within the past five (5) years. If your organization received a "poor" rating on a performance assessment on any prior FHIP grant within the past five (5) years, the organization is ineligible for funding for a period of five (5) years from the date of the performance assessment. However, if the organization provides evidence that the rating was overturned by FHEO or that another resolution was accepted by FHEO to improve future performance, HUD may reconsider your eligibility.

Additionally, if your organization receives a "poor (unsatisfactory)" performance rating on another FHIP grant after being selected for an award or after receipt of funding under this NOFO, HUD will rescind all remaining grant funds awarded/received under this NOFO, and the organization will remain ineligible for funding for a period of five years, unless it provides evidence as stated above.

8. Your application must meet the following requirements:

a. Fair Housing Related Activities. All program activities and costs within the SOW and

II. Eligibility III. Program Description

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Format

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II. Eligibility OFH-2600-DC-021C Page 12 of 79 budget must be fair housing related activities and must demonstrate an explicit connection to the non-discrimination provisions of the Fair Housing Act, and/or State or local laws with equivalent rights and remedies.

b. Fair Housing Act Protected Characteristics. All FHIP-funded projects must address housing discrimination based on race, color, religion, sex, disability, familial status or national origin.

9. Funding Request Within the Award Limits. Applicants are ineligible for funding if the amount requested in the application is not within the minimum and maximum award limits, unless HUD determines that the error is a minor error (such as a typographical error) and that the application clearly requests a funding amount within the award limits.

10. Inconsistencies in the Requested Amount. If inconsistent amounts are requested in an application selected for an award, the amount on the SF-424 will be deemed the controlling amount for purposes of determining eligibility and the award amount.

11. Rating Factors. An application that does not include a narrative response to each of the four Rating Factors will be deemed ineligible and will not be reviewed.

12. Nonprofit Status. Applicants must be a private nonprofit charitable 501(c)(3) tax-exempt organization as determined by the Internal Revenue Service (IRS). All recipients must maintain 501(c)(3) status throughout the grant period. Applicants must verify 501(c)(3) status in accordance with 24 CFR 5.109(l). See Eligible Entity Types (II.A.1.b).

13. Operating Budget. In order to ensure funding supports sustainable fair housing partnerships, and consistent with the requirements of 42 USC 3616a(c)(1), FHIP funding may not provide more than 50% of the operating budget of the recipient organization for any one year.

14. Ineligible Applicants. HUD will not evaluate applications from ineligible applicants, including those that do not meet the threshold review requirements (V.A), eligible entity requirements (II.A.1), and statutory and regulatory requirements (II.A.2).

C. Cost Sharing or Matching This Program does not require cost sharing or matching.

If your application budget(s) include(s) cost sharing or matching, you will be required to provide those proposed funds if selected for an award, or the award will be rescinded. In accordance with Section V. B. 1. Rating Factor 1, applicants that can demonstrate diversified funding resources will receive higher scores for this factor.

https://www.ecfr.gov/current/title-2/part-200/section-200.1#p-200.1(Cost%20sharing%20or%20matching)

III. PROGRAM DESCRIPTION

III. Program Description

A. Purpose

B. Goals and Objectives

C. Authority

D. Unallowable Costs

E. Indirect Costs

F.

II. Eligibility III. Program Description

IV. Application Contents and

Format

V. Application Review

Information

VI. Submission Requirements and

Deadlines

VII. Post-Award Requirements and

Administration

VIII. Contact and

II. Eligibility III. Program Description

IV. Application Contents and

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III. Program Description OFH-2600-DC-021C Page 14 of 79

III. PROGRAM DESCRIPTION

A. Purpose Congress amended the Fair Housing Act in 1988 to establish the Fair Housing Initiatives Program (FHIP) with the purpose of providing funding to entities to work alongside HUD to "prevent or eliminate discriminatory housing practices" 42 USC § 3616a(a). Congress determined in 1987, and affirmed each year since then through appropriations, that HUD can only achieve its fair housing mission and obligations by supporting a network of organizations helping to educate the public about and enforce fair housing rights. Initially a demonstration program, Congress made FHIP permanent through the Housing and Community Development Act of 1992. The program was expanded in 1992 to address building capacity in unserved areas, establish a national media campaign, and fund a National Fair Housing Month.

FHIP provides funds to eligible organizations through competitive grants under four initiatives:

the Fair Housing Organizations Initiative (FHOI), the Private Enforcement Initiative (PEI), the Education and Outreach Initiative (EOI), and the Administrative Enforcement Initiative (AEI).

These initiatives are complementary, rather than overlapping. For example: FHOI builds organizations; EOI educates the public; PEI enforces the Fair Housing Act through private organizations; and AEI strengthens state and local administrative enforcement.

This NOFO funds the PEI to provide grants to a nationwide network of eligible private, nonprofit fair housing enforcement organizations to conduct testing and investigate violations of and enforce the Fair Housing Act, and State or local laws with equivalent rights and remedies.

The overarching purpose of the Private Enforcement Initiative (PEI) is to advance the purposes of the Fair Housing Act by supporting private fair housing enforcement activities that identify, investigate, resolve, and remedy discriminatory housing practices. The initiative is intended to strengthen fair housing enforcement through strategic investments in investigative capability, legal capacity, case development, testing, and sustainable enforcement infrastructure.

Program Overview:

Through annual Notices of Funding Opportunity (NOFOs), HUD invests in activities that complement the Department's own enforcement responsibilities and strengthen the Nation's fair housing infrastructure. The Private Enforcement Initiative (PEI) is HUD's strategic investment program for developing and sustaining the Nation's private fair housing enforcement infrastructure.

The Private Enforcement Initiative (PEI) is the enforcement component of the Fair Housing Initiatives Program (FHIP). Its purpose is to strengthen the Nation's capacity to identify, investigate, test, conciliate, and litigate discriminatory housing practices through nonprofit fair housing organizations and other eligible entities carrying out private fair housing enforcement activities.

New PEI - State and Local Housing Discrimination Component (PEI -SLHDC): This new component of the PEI program provides funding for fair housing organizations to conduct

II. Eligibility III. Program Description

IV. Application Contents and

Format

V. Application Review

Information

VI. Submission Requirements and

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VII. Post-Award Requirements and

Administration

VIII. Contact and

III. Program Description OFH-2600-DC-021C Page 15 of 79 enforcement activities to respond to government-sanctioned housing discrimination that violates the Fair Housing Act. See also 42 USC §3615. This includes enforcement activities to identify potential violations of the Fair Housing Act by state or local jurisdictions and public housing agencies (PHAs) receiving federal funds for housing and urban development that maintain programs that in any way consider a protected characteristic, except where explicitly required or authorized by federal law. For example, actions taken under the pretext of asserted furtherance of preventing displacement and/or increasing housing choice.

Targeted Focus for PEI-General (PEI-G) Component: Amounts for this component are solely for the investigation, enforcement of and claims asserted under the Fair Housing Act or cognizable under the Fair Housing Act pursuant to equivalent state and local laws with rights and remedies consistent with the Fair Housing Act. PEI-G testing activity is generally limited to complaint-based testing. Any audit-based testing proposed in your application will only be included in the grant agreement subject to approval through the grant negotiation process, and all testing activities must be pre-approved by FHEO HQ prior to commencement (Specific restrictions will be identified within the Grant Agreement).

PEI complements the Administrative Enforcement Initiative and the Fair Housing Assistance Program by supporting private enforcement efforts that identify and remedy violations of the Fair Housing Act while contributing to the overall effectiveness of the Nation's fair housing enforcement system.

Private fair housing organizations play an indispensable role in identifying, investigating, documenting, and helping to remedy violations of the Fair Housing Act. Through complaint intake, testing, investigation, evidence development, referral, litigation support, and related enforcement activities, these organizations expand the Nation's ability to detect discriminatory housing practices that may otherwise remain unidentified or unaddressed.

Housing markets, technologies, and business practices continue to evolve. As a result, discriminatory practices may become more complex, less visible, or more difficult to detect through traditional complaint-driven enforcement alone. Maintaining an effective system of fair housing enforcement therefore requires sustained investment in investigative capacity, professional expertise, testing methodologies, data analysis, strategic partnerships, and the ability to identify emerging patterns or practices of discrimination before they become entrenched.

Consistent with this objective, the FY2026 Private Enforcement Initiative supports projects that strengthen investigative capability, expand enforcement capacity, encourage strategic collaboration, and improve the ability of qualified private fair housing organizations to identify, investigate, and respond to both longstanding and emerging violations of the Fair Housing Act. By investing in durable organizational capacity and specialized investigative expertise, HUD seeks to ensure that the Nation's private fair housing enforcement infrastructure remains responsive to evolving housing markets and capable of protecting the rights guaranteed by federal law.

Recent developments in the administration and enforcement of the Fair Housing Act reinforce the importance of maintaining a strong and adaptable private fair housing enforcement infrastructure. Although the statutory purpose of the Private Enforcement Initiative (PEI) has remained consistent since the establishment of the Fair Housing Initiatives Program (FHIP), II. Eligibility III. Program Description

IV. Application Contents and

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III. Program Description OFH-2600-DC-021C Page 16 of 79 the environment in which discrimination occurs continues to evolve. As housing markets, financing mechanisms, governmental programs, technologies, and institutional practices become increasingly complex, effective fair housing enforcement requires corresponding investments in investigative expertise and organizational capacity.

Evolution of the Private Enforcement Initiative Since the establishment of the FHIP, the PEI has served as HUD's principal mechanism for supporting private nonprofit organizations that investigate and enforce violations of the Fair Housing Act. While the statutory purpose of PEI has remained consistent, the Department has periodically refined eligible activities and funding priorities through annual Notices of Funding Opportunity to respond to changing enforcement needs, emerging forms of discrimination, advances in investigative practices, and lessons learned through program administration.

Historically, PEI has supported special investigations, fair housing testing, litigation support, collaborative enforcement initiatives, capacity building, and specialized projects addressing new or increasingly sophisticated forms of housing discrimination. These refinements reflect HUD's longstanding practice of adapting annual funding priorities while maintaining the underlying statutory and regulatory framework of FHIP. Over time, HUD has also encouraged collaborative investigative approaches, performance-based funding, and strategic investments that strengthen the Nation's long-term private enforcement capacity.

The FY2026 competition continues this tradition by emphasizing investigative excellence, organizational capability, strategic coordination, and the development of sustainable enforcement capacity capable of addressing both current and emerging fair housing challenges.

Strategic Investments HUD administers the Private Enforcement Initiative as an integrated portfolio of complementary investments designed to strengthen the Nation's private fair housing enforcement infrastructure.

The Department recognizes that effective enforcement requires sustained investments in investigative capability, fair housing testing, legal expertise, data analysis, strategic partnerships, and organizational resilience. Accordingly, funding under this NOFO is allocated among complementary activities that collectively improve the Nation's ability to identify, investigate, and address both longstanding and emerging violations of the Fair Housing Act.

Differences in funding levels reflect differing enforcement strategies, anticipated project scope, expected public benefit, and the level of investment reasonably necessary to achieve meaningful and sustainable enforcement outcomes. Funding allocations should not be interpreted as reflecting the relative importance of one enforcement activity over another.

Rather, they represent HUD's administrative judgment regarding the most effective distribution of available resources to strengthen the Nation's private fair housing enforcement infrastructure.

B. Goals and Objectives The PEI goal is to increase, expand, and/or enhance fair housing enforcement related

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III. Program Description OFH-2600-DC-021C Page 17 of 79 activities in communities throughout the nation to address, prevent and eliminate housing discrimination so that everyone has access to quality, affordable housing. The enforcement priorities identified in this NOFO represent contemporary applications of the longstanding statutory purpose of the Private Enforcement Initiative. HUD periodically identifies enforcement priorities based on current patterns of housing discrimination, emerging enforcement needs, available resources, and congressional appropriations while remaining consistent with the statutory objective of supporting private enforcement of the Fair Housing Act.

HUD's Office of Fair Housing and Equal Opportunity (FHEO), and by extension, the FHIP program, is returning to the core of the Fair Housing Act's enforcement regime – protecting individuals from intentional discrimination based on race, color, national origin, religion, sex, disability, or familial status. FHEO rejects expansive interpretations of the Fair Housing Act that exceed the statutory text; will eliminate from the FHIP program ideologically driven enforcement priorities that do not serve Americans experiencing actual discrimination; and will ensure equal treatment under the law regardless of race – including through enforcement against government programs that promote or otherwise engage in illegal forms of unlawful discrimination. By restoring the FHIP program to its original goals, HUD will focus enforcement resources on cases of intentional discrimination that are causing real harm to real people and ensure that all American's rights to fair housing access are protected.

Past implementation of activities not supported by original FHIP program goals resulted in FHEO not fully meeting its intended goals, leading to waste of taxpayer dollars, and too often the production of low-quality, redundant deliverables. This was reflected in the conclusions in the Office of Inspector General report, dated September 24, 2024, that found that the prior administration left a backlog of unresolved cases and failed to comply with its statutory obligations. FHEO has found that in part this was due to a lack of prioritization for actual intentional cases of discrimination. This backlog reflected HUD's priorities that were passed on to the FHIPs programs and grant awards. (FHEO Faces Challenges in Completing Investigations Within 100 Days | Office of Inspector General, Department of Housing and Urban Development.)

In addition, the manner in which HUD historically administered the FHIP program created an expectation that FHIP funding would be awarded in a manner akin to formula-based funding to largely the same list of grantees rather than through a truly competitive process. Few first-time applicants received grants, undermining the competitive nature of the program. With this NOFO, efforts have been made to increase coordination between national, state and local partners and FHEO. Future PEI deliverables will also be consistent with each other and administration priorities.

The PEI goal is to increase, expand, and/or enhance fair housing enforcement related activities in communities throughout the nation to address, prevent and eliminate housing discrimination so that everyone has access to quality, affordable housing.

Expanding Competition.

In order to restore the competitive nature of the FHIP PEI award, this NOFO includes preference points for new applicants under the FHIP program. The inclusion of these preference points in this NOFO incentivizes new, first-time applicants to apply for the https://www.hudoig.gov/open-recommendation/2024-bo-0005-001-fheo-faces-challenges-completing-investigations-within-100 https://www.hudoig.gov/open-recommendation/2024-bo-0005-001-fheo-faces-challenges-completing-investigations-within-100 https://www.hudoig.gov/open-recommendation/2024-bo-0005-001-fheo-faces-challenges-completing-investigations-within-100

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III. Program Description OFH-2600-DC-021C Page 18 of 79 available FHIP awards. This is consistent with the direction provided in the recent executive order (EO 14332: Improving Oversight of Federal Grantmaking – The White House) to broaden participation in federally funded programs. This is also consistent with the intent of the authorizing statute and the implementing regulations. FHEO intends to expand the number and types of organizations engaging in fair housing enforcement and outreach through the FHIP program. Outreach to a broader pool of applicants opens the possibility of benefiting from those with additional experience outside of the FHIP program that may have helpful insights. FHEO is offering training opportunities to support new entrants to the program.

Grantee Funding Requirements.

With this NOFO, FHEO encourages applicants to secure other resources to supplement the HUD award. To ensure FHIP funding supports sustainable fair housing partnerships, FHIP funding awards will not provide more than 50% of the operating budget of the recipient organization for any one year. The authorizing statute for FHIP requires that awards to fair housing organizations "...may not provide more than 50 percent of the operating budget of the recipient organization for any one year." (42 USC 3616a(c)(1)).

This is consistent with the history of the FHIP program. Historically, "organizations that appl[ied] for FHIP awards receive[d] points if they demonstrate[d] that they ha[d] other sources of funding to support fair housing activities. Therefore, the expectation is that FHIP awards will not provide 100 percent of grantees' total funding." (HUD PD&R Study of the Fair Housing Initiatives Program, 2011)

Ending Waste, Fraud and Abuse.

The Administration has recently established a waste fraud and abuse task force of which HUD is a member. (EO 14395: Establishing the Task Force to Eliminate Fraud – The White House)

In addition, Executive Order14332: Improving Oversight of Federal Grantmaking – The White House) addresses the risk of waste, fraud and abuse in discretionary grant making, and the need for enhanced management and oversight of these awards. The order was promulgated "to improve the process of Federal grantmaking while ending offensive waste of tax dollars."

"The harm imposed by problematic Federal grants" includes but "does not stop at propagating absurd ideologies" as, "...even for projects receiving Federal funds that serve an ostensibly beneficial purpose, the Government has paid insufficient attention to their efficacy..." and, in fact, "the best proposals do not always receive funding, and there is too much unfocused research of marginal social utility... In short, there is a strong need to strengthen oversight and coordination of, and to streamline, agency grantmaking to address these problems, prevent them from recurring, and ensure greater accountability for use of public funds more broadly. The Government holds tax revenue in trust for the American people, and agencies should treat it accordingly."

Waste, fraud and abuse were issues that commenters raised in the public comments docket when the initial FHIP regulation was finalized in 1995. At the time of the FHIP rulemaking, commenters "stressed the need for regulatory controls to ensure" that FHIP agencies are "objective and credible." They also "stressed the need for the Department to ensure that https://www.whitehouse.gov/presidential-actions/2026/03/establishing-the-task-force-to-eliminate-fraud/ https://www.whitehouse.gov/presidential-actions/2026/03/establishing-the-task-force-to-eliminate-fraud/ https://www.whitehouse.gov/presidential-actions/2025/08/improving-oversight-of-federal-grantmaking/

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III. Program Description OFH-2600-DC-021C Page 19 of 79 grantees do not have any conflicts of interest which might interfere" with, and that FHIP agencies have "the integrity to conduct" fair housing enforcement activities.

This NOFO will take a number of actions in furtherance of the efforts to eliminate waste, fraud and abuse, including enhancing the documentation around our risk-based review of grantees.

For example, we have increased the weight of the risk score. In addition, we have included new Criminal Background, Conflict of Interest, and Integrity Sections in the NOFO. We have also expanded the performance history review to 5 years. Applicants with unresolved civil rights matters at the application deadline are deemed ineligible.

C. Authority FHIP is authorized by the Fair Housing Act, as amended by section 561 of the Housing and Community Development Act of 1987 (42 U.S.C. 3616a). The Private Enforcement Initiative is specially authorized under 42 U.S.C. 3616a(b). The FHIP implementing regulations are found at 24 CFR part 125 and PEI is outlined at Section 125.401.

Funding for this program is provided by the Consolidated Appropriations Act, 2026 (Public Law 119-75, approved February 3, 2026).

Nothing in this NOFO modifies or supersedes applicable statutory or regulatory requirements.

Rather, this NOFO identifies the funding priorities, eligible activities, evaluation criteria, and administrative procedures that HUD will apply in administering this PEI NOFO competition.

D. Unallowable Costs

1. Retainer Fees. FHIP recipients are under specific restrictions (outlined in the grant agreement documents) regarding establishment of retainer agreements and recovery of legal fees from HUD-funded cases. Data on fees, settlements, and verdicts are matters of public record. Awardees must provide this information to HUD annually.

Neither the grantee nor the individual(s) on whose behalf any action is filed can request that HUD waive these provisions. See also Section III. G. 3. a. herein.

2. Compensation. Grantees cannot charge more than Level IV of the Federal Executive Schedule annually for an individual's compensation even if the individual earns more than the capped amount. This compensation cap does not require grantees to limit the amount paid to individuals under this grant; however, the individual's remaining compensation over the cap must be paid from an alternative organization funding source. HUD reserves the right to determine whether compensation is reasonable and customary for the skill set provided and the areas being served.

3. Eligible Activities. HUD will not fund ineligible activities in a proposal and will not fund a proposal with more than 50% ineligible activities. Activities must be fair housing activities. Housing counseling activities are not eligible costs under the program.

4. Award Specific Activities. Recipients may only use funding awarded under this NOFO for the specific activities included in the application submitted under this PEI NOFO and approved though negotiations, only. Funded applicants may not co-mingle funds to support other FHIP grant activities.

5. Allowable Costs. Recipients may only use funds for allowable costs, as defined in 2 CFR 200.403 and further detailed in the Terms and Conditions, such as costs https://www.govinfo.gov/content/pkg/USCODE-2023-title42/pdf/USCODE-2023-title42-chap45-subchapI-sec3616a.pdf https://www.govinfo.gov/content/pkg/USCODE-2023-title42/pdf/USCODE-2023-title42-chap45-subchapI-sec3616a.pdf https://www.ecfr.gov/current/title-24/subtitle-B/chapter-I/part-125

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III. Program Description OFH-2600-DC-021C Page 20 of 79 necessary and reasonable to carry out eligible activities. See 2 CFR 200 Subpart E for detailed rules on cost principles.

6. Projects aimed solely at research or data gathering are not eligible activities. If a successful application contains research and related activities, only the eligible portions of the application will be funded; the ineligible research and related activities may not comprise more than 50% of the applicant's proposed grant activities or the application is ineligible for funding. In addition, all proposed surveys/data gathering must be approved by HUD and the OMB under the Paperwork Reduction Act before the application submission, or the activity is deemed ineligible.

7. Suits Against the United States. FHIP Grantees may not use HUD funds to pay expenses related to litigation against the United States. If your organization has been involved in litigation against the United States within the past three years, you will be required to provide documentation that demonstrates all FHIP grant funds were segregated and not co-mingled with the funds used to engage in such litigation.

8. Other Litigation. Applicants cannot propose to use funds under this NOFO application, or have used HUD funds to fund or support the settlement of a claim, satisfy a judgment, or fulfill a court order in any defensive litigation involving HUD or housing providers funded by HUD within the past three years. 42 U.S.C. §3616a(i).

E. Indirect Costs If you expect to charge indirect costs to the award, submit the Indirect Cost Information for Award Applicant/Recipient form (HUD-426) with your application.

1. Indirect Costs Indirect costs are costs incurred for common or joint purposes, such as general overhead and costs of general management, oversight, and coordination. These costs benefit more than one cost objective and cannot be readily identified with a particular final cost objective without effort disproportionate to the results achieved. Examples of indirect costs:

• Fiscal tracking of grants funds.

• Accounting staff wages and benefits.

• Depreciation of office equipment, general insurance, and general office supplies incurred for common or joint purposes.

One hundred percent of the salaries and fringe benefits related to general management or oversight functions serving a common or joint purpose are indirect costs. Salaries and benefits related to implementing your project or program elements of your grant agreement are direct costs.

2. Direct Costs As defined in 2 CFR 200.413, direct costs are those that can be identified specifically with a particular final cost objective, such as a federal award, or other internally or externally funded activity, or that can be directly assigned to such activities relatively easily with a high degree of accuracy. You will need to specify costs in your Budget Narrative and Budget Worksheet, https://www.ecfr.gov/current/title-2/part-200/section-200.1#p-200.1(Indirect%20cost)

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HUD-424-CBW.

Salaries and fringe benefits related to the implementation of the project or program element of the grant agreement are not considered administrative costs. For example, the salaries and fringe benefits for technical staff to conduct work to accomplish specific Fair Housing goals outlined in the program are not administrative costs.

Examples of direct costs usually chargeable to FHIP grants…