z

OFH-2600-DC-021D

Fair Housing and Equal Opportunity

U.S. Department of Housing and Urban Development

Fair Housing Initiatives Program - Administrative Enforcement Initiative

Table Of Contents OFH-2600-DC-021D Page 2 of 73

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 24

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-021D Page 3 of 73

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- 021D . 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-021D Page 5 of 73

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 FHIP's Administrative Enforcement Initiative (AEI) provides competitive awards to State and local fair housing enforcement agencies administering substantially equivalent fair housing laws (24 CFR 125.201) to strengthen the administrative capacity of governmental fair housing enforcement agencies. This NOFO announces the availability of approximately $10,000,000

Key Facts Opportunity Name:

Fair Housing Initiatives Program - Administrative Enforcement Initiative Opportunity Number:

OFH-2600-DC-021D

Federal Assistance Listing(s):

14.417

Key Dates Application Due Date:

11:59:59 PM Eastern Time on:

08/06/2026 Anticipated Award Date:

09/30/2026 Estimated Performance Period Start Date:

02/01/2027 Estimated Performance Period End Date:

01/31/2029

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-021D Page 6 of 73 to fund new FY2026 grant awards from FY2025 funding under two components: the AEI- Technology and Efficiency (AEI-TE) and AEI-Religious Discrimination (AEI-RD). AEI awardees will implement projects to prevent or eliminate discriminatory housing practices, to develop, implement, carry out, or coordinate programs or activities designed to obtain enforcement of the rights granted by the Fair Housing Act, and/or to implement education and outreach programs designed to inform the public its concerning rights and obligations the Fair Housing Act and substantially equivalent state and local laws. Eligible fair housing activities for proposed projects as outlined in the Fair Housing Act include: capacity building for increased effectiveness, enforcement activity, and education and outreach.

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) Both AEI-Technology and Efficiency (AEI-TE) and AEI-Religious Discrimination (AEI-RD) awards will be in the form of grant agreements.

Available Funds Funding of approximately $10,000,000 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 3 awards from available funding FHEO expects to make approximately 3 awards from available FY2025 funds.

Length of Performance Period:

24-month project period and budget period Length of Periods Explanation:

HUD has made $10,000,000 available for the Administrative Enforcement Initiative (AEI). The funding is divided among the following components:

AEI – Technology and Efficiency (AEI-TE) - $9,000,000: The maximum award for AEI-TE is $4,500,000 for a 24-month project period consisting of two separate consecutive 12-month performance and budget periods, with a maximum amount of $2,250,000 and a minimum amount of $1,000,000 per each 12-month consecutive performance and budget period.

FHEO expects to make approximately 2 awards under this component. These awards will be issued in the form of grant agreements.

AEI – Religious Discrimination (AEI-RD) - $1,000,000: The maximum award for AEI-RD is $1,000,000 for a 24-month project period consisting of two separate consecutive 12-month

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-021D Page 7 of 73 performance and budget periods, with a maximum of $500,000 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 awards will be issued in the form of grant agreements.

HUD determined the anticipated funding available for each initiative and component after considering the statutory purposes of the Fair Housing Initiatives Program, the anticipated cost of successfully carrying out eligible activities, the complexity of the work to be performed, the expected public benefit of funded activities, the need to maintain national and regional enforcement capacity, the availability of qualified applicants, prior program performance, and the Department's objective of maintaining a balanced portfolio of fair housing education, enforcement, accessibility, and capacity-building activities. The allocation of funds among initiatives and components does not reflect differing program priorities but rather the differing resources reasonably necessary to accomplish the authorized activities.

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-021D Page 9 of 73

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.

a. Eligible Entities. In accordance with 42 U.S.C. 3616a(a), to receive an award under this NOFO you must be a State or local government or their agency or other public entity that is formulating or carrying out programs to prevent or eliminate discriminatory housing practices.

This can include:

• a State or local government or their agency that participates in the Fair Housing Assistance Program (FHAP). 24 CFR § 115.

Eligible applicants under the authorizing statute and implementing regulation include State, local, and other governmental agencies that administer fair housing laws determined by HUD to be substantially equivalent to the Fair Housing Act, including agencies participating in FHAP and other governmental agencies that administer substantially equivalent fair housing laws but not currently participating in FHAP. Receipt of an award under this NOFO does not constitute a determination of substantial equivalency for purposes of 24 CFR Part 115, nor does it confer FHAP certification or eligibility for FHAP funding.

Although the statute does not expressly limit eligibility to agencies that are already certified participants in the Fair Housing Assistance Program (FHAP), HUD is limiting this competition to existing FHAP agencies. The proposed project purpose requires grantees to have expertise in coordination with HUD on investigations with FHAP agencies. Agencies that are not participants in the program would not have the requisite expertise. In the future, HUD may permit agencies administering substantially equivalent laws that are not participants in the FHAP program to compete, if that is in keeping with the policy goals of that award; however, making an AEI award does not constitute initial nor ongoing FHAP certification.

FHAP agencies cannot be currently under suspension or a performance improvement plan under 24 CFR § 115.210(a) or (b).

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 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

Deadlines

VII. Post-Award Requirements and

Administration

VIII. Contact and

II. Eligibility OFH-2600-DC-021D Page 10 of 73

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.

You may consult the Office of Fair Housing and Equal Opportunity for guidance.

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 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. Separate Statement Of Work (SOW) and Budget for each performance and budget period. You must submit a separate SOW and a separate HUD-424-CBW Budget with your application for each separate 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.

5. An applicant cannot have received a "poor (unsatisfactory)" rating on a performance

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-021D Page 11 of 73 assessment on any prior FHIP grant within the past five (5) years. If your agency or entity received a "poor" rating on any prior FHIP grant within the past five (5) years, it is ineligible for funding for a period of five (5) years from the date of the performance assessment. However, if you provide 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 agency 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 agency will remain ineligible for funding for a period of five years, unless it provides evidence as stated above.

For FHAP agencies applying for an AEI grant, HUD may similarly consider the most recent Performance Assessment Report under your cooperative agreement, as well as any other relevant past performance (i.e., partnership grant performance).

6. Your application must meet the following requirements

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

7. 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.

8. 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.

9. Rating Factor Narratives. 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.

10. Project Manager. The Project Manager identified in your application must be an employee of your agency at the time the application is submitted.

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

If your application project and budget(s) include 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)

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-021D Page 12 of 73

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

Format

V. Application Review

Information

VI. Submission Requirements and

Deadlines

VII. Post-Award Requirements and

Administration

VIII. Contact and

III. Program Description OFH-2600-DC-021D Page 14 of 73

III. PROGRAM DESCRIPTION

A. Purpose Congress establish the Fair Housing Initiatives Program (FHIP) with a purpose of providing funding to entities to work alongside HUD to "prevent or eliminate discriminatory housing practices" 42 USC § 3616a(a). Congress determined in 1988, and affirmed each year since then through appropriates, 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 State or local governments or their agencies, public or private nonprofit organizations or institutions, or other public or private entities through competitive grants under four initiatives: the Administrative Enforcement Initiative (AEI), the Fair Housing Organizations Initiative (FHOI), the Private Enforcement Initiative (PEI), and the Education and Outreach Initiative (EOI).

The Administrative Enforcement Initiative is HUD's strategic investment program for strengthening the administrative capacity of governmental fair housing enforcement agencies and promoting effective implementation of substantially equivalent fair housing laws.

This NOFO funds the AEI to provide funding to State and local fair housing agencies administering substantially equivalent fair housing laws (24 CFR 125.201). AEI is one of several components under FHIP, which supports capacity enhancement, enforcement, education, and outreach activities to prevent or eliminate discriminatory housing practices and to inform individuals of their rights and responsibilities under fair housing laws.

The Administrative Enforcement Initiative (AEI) advances the purposes of the Fair Housing Act by strengthening the capacity of state and local agencies participating in the Fair Housing Assistance Program (FHAP) and related administrative enforcement systems. The initiative supports projects that improve investigative quality, case processing, legal analysis, program management, intergovernmental coordination, and long-term administrative enforcement capability.

B. Goals and Objectives HUD's Office of Fair Housing and Equal Opportunity (FHEO), and by extension, the Fair Housing Initiatives Program (FHIP) 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 engage in or promote illegal forms of discrimination. By restoring the FHIP program to its original goals, HUD will focus enforcement resources on cases of intentional discrimination that are causing

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

III. Program Description OFH-2600-DC-021D Page 15 of 73 real harm to real people and ensure that all American's rights to fair housing access are protected.

Implementation of activities unsupported 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 agencies 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 EOI deliverables will also be consistent with each other and administration priorities. In addition, FHEO is including a targeted focus on religious discrimination.

The AEI goal is to prevent or eliminate discriminatory housing practices, obtain enforcement of the rights granted by the Fair Housing Act, and/or inform the public concerning rights and obligations under the Fair Housing Act (42 USC 3616a(a)), in addition to the rights and remedies of equivalent state and local laws.

The Administrative Enforcement Initiative provides funding to State and local fair housing agencies administering fair housing laws recognized by the Assistant Secretary under Section 115.6 of this subchapter as providing rights and remedies which are substantially equivalent to those provided in title VIII (24 CFR 125.201) AEI complements the Fair Housing Assistance Program by providing targeted assistance that enables agencies administering the Fair Housing Act or substantially equivalent laws as determined by HUD, to develop new administrative capabilities, respond to emerging forms of housing discrimination, and improve the quality and efficiency of fair housing enforcement.

While FHAP supports ongoing case processing and administration, FHIP AEI supports the development of new administrative capability. The two programs are complementary.

As provided in 24 CFR 125.104, "Program administration," Notices of Funding Availability under this program will ... announce amounts available for award, eligible applicants, and eligible activities, and may limit funding to one or more of the Initiatives. Notices of Funding Availability will include the specific selection criteria for awards, and will indicate the relative weight of each criterion. The selection criteria announced in Notices of Funding Availability will be designed to permit the Department to target and respond to areas of concern, and to promote the purposes of the FHIP in an equitable and cost-efficient manner."

Overall Program Objectives. By making funding available under the FHIP AEI, FHEO seeks 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

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

III. Program Description OFH-2600-DC-021D Page 16 of 73 to enhance our partnership with state and local partners in fair housing enforcement. In the future, FHEO may elect to make AEI funding available to support the expansion of the program by providing support to agencies that have substantially equivalent laws and are not yet eligible to participate in FHAP.

As indicated earlier, agencies that do not currently participate in the Fair Housing Assistance Program (FHAP) but would like to partner with FHEO on fair housing enforcement, may be eligible to apply for future AEI funding under a future NOFO with different objectives.

For this FY2025 FHIP AEI NOFO, the targeted focus areas are technology and process improvements, and religious discrimination enforcement.

This funding will enable grantees to enhance the effectiveness of investigations and enforcement activities, and provide technical assistance to local fair housing organizations. In addition, AEI funding will be provided to carry out special projects, including the development of prototypes to respond to new or sophisticated forms of discrimination, including newly emerging forms of religious discrimination including, but not limited to anti-Christian and anti- Semitic bias.

Expanding Competition.

In order to ensure the competitive nature of the FHIP AEI award, with this NOFO we have included preference points to be awarded to new applicants under the FHIP program. This is consistent with the direction provided in the recent Executive Order (EO)14332: Improving Oversight of Federal Grantmaking to broaden participation in federally funded programs.

The order states, with respect to "Considerations for Discretionary Awards", that: "In reviewing and approving funding opportunity announcements and discretionary awards, as well as in designing the review process...[ the Agency] shall, as relevant and to the extent consistent with applicable law, apply the following principles, including in any scoring rubrics used to assess grant proposals... Discretionary grants should be given to a broad range of recipients rather than to a select group of repeat players..."

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. Outreach to a broader pool of eligible applicants opens the possibility of benefiting from those with additional experience outside of the FHIP that may have helpful insights. FHEO is offering training opportunities to support new entrants to the program.

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). (EO 14395: Establishing the Task Force to Eliminate Fraud – The White House)

Executive Order 14332: Improving Oversight of Federal Grant Making 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."

https://www.whitehouse.gov/presidential-actions/2026/03/establishing-the-task-force-to-eliminate-fraud/

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

III. Program Description OFH-2600-DC-021D Page 17 of 73

"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 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 Administration's 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 Administrative Enforcement Initiative is authorized under 42 U.S.C. 3616a(a). The FHIP implementing regulations are found at 24 CFR part 125 and AEI is outlined at Section 125.201. Criteria for the adequacy of a State or local law to be substantially equivalent to the Act are found at 24 CFR § 115.204, with substantial equivalency determined by the Assistant Secretary per 24 CFR § 115.205.

Funding for this program is provided by the Full-Year Continuing Appropriations and Extensions Act, 2025 (Public Law 119-4, approved March 15, 2025).

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 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

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

III. Program Description OFH-2600-DC-021D Page 18 of 73 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 agency or entity 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 AEI NOFO and approved through negotiations. Funded applicants may not co-mingle funds to support other FHIP grant activities.

5. 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 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, 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 have used HUD funds to pay expenses related to litigation against the United States. If your agency 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 3 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 https://www.ecfr.gov/current/title-2/part-200/section-200.1#p-200.1(Indirect%20cost)

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

III. Program Description OFH-2600-DC-021D Page 19 of 73 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 grant 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.

Federally Negotiated Rates: If your organization has a Federally negotiated indirect cost rate, your application must include that rate, the applicable distribution base, and a letter or other documentation from the cognizant agency showing the negotiated rate.

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, Rating Factor 3.

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 include:

• Compensation of employees for the time devoted specifically to award performance and associated fringe benefits.

• Materials bought, consumed, or spent specifically for the award.

• Equipment necessary to carry out the award.

• Reasonable travel expenses necessary to carry out the award.

• Approved/reasonable translation and interpretation necessary to carry out the award.

• Reasonable information technology systems and services necessary to carry out the award.

• Litigation costs, such as costs of gathering evidence, necessary to carry out the award.

• Reasonable transportation costs, such as public transportation passes, to support a client's ability to take part in eligible services.

• Proportional professional licensing fees, professional liability insurance, 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

III. Program Description OFH-2600-DC-021D Page 20 of 73 professional development costs, such as conference and travel costs or training in eligible services or skills, necessary to carry out the award.

• Outreach, educational, and marketing costs/materials to carry out the award.

a. You may use FHIP funds for the lease or rental of space for eligible activities if each of the following conditions is met:

i. The lease must be for existing facilities not requiring rehabilitation or construction except for minimal alterations to make the facilities accessible to and usable by individuals with disabilities;

ii. no repairs or renovations of the property may be undertaken with grant funds; and

iii. properties in the Coastal Barrier Resources System designated under the Coastal Barrier Resources Act (16 U.S.C. 3501) cannot be leased or rented with federal funds.

b. Administrative and clerical staff salaries may be treated as direct costs if each of the following conditions are met:

i. Individuals involved can be specifically identified with the activity;

ii. Such costs are explicitly included in the budget or have the prior written approval of HUD; and

iii. The costs are not also charged as indirect costs.

F. Program History AEI was included in the legislation that made FHIP a permanent program. Grantees have used AEI funds to (1) provide technical assistance to State and local agencies administering housing and community development programs concerning applicable fair housing laws and regulations; (2) implement fair housing testing programs; and (3) conduct special enforcement projects not tied to regular complaint processing.

G. Other Information

1. Eligible Activities

a. All AEI awards:

Recipients must use AEI funds for formulating or carrying out programs to prevent or eliminate discriminatory housing practices, to develop, implement, carry out, or coordinate programs or activities designed to obtain enforcement of the rights granted by the Fair Housing Act and/or education and outreach programs designed to inform the public concerning rights and obligations under the Fair Housing Act (42 USC § 3616a(a)).

Eligible fair housing activities for proposed projects as outlined in the Fair Housing Act include: capacity building for increased effectiveness, enforcement activity, and education and outreach. Component specific eligible activities are listed under each component below.

All work and costs within the SOW and budget must involve conduct prohibited by, or rights protected under the Fair Housing Act or those State and local fair housing laws that HUD determines are substantially equivalent to those under the Fair Housing Act. Your application must demonstrate an explicit connection to these Fair Housing laws.

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

III. Program Description OFH-2600-DC-021D Page 21 of 73

Coordination with FHIPs: Grantees must coordinate activities funded under FHIP with non-governmental recipients of regional, local, or community-based FHIP funding for activities that are located within the jurisdiction of your agency.

Agencies may develop proposals that involve: regional partnerships; specialized investigative units; data analytics; and/ or organizational modernization.

b. Component Specific Eligible Activities

i. AEI – Technology and Efficiency (AEI-TE) AEI-TE provides funding for grantees to enhance the effectiveness of investigations and enforcement activities, and provide technical assistance to local fair housing organizations.

Eligible activities:

• Develop prototypes to respond to new or sophisticated forms of discrimination against persons protected under the Fair Housing Act;

• Provide technical assistance to local fair housing organizations, which could include automation in testing and intake processes;

• Technological enhancements that assist FHAPs in coordinating with HUD and FHIP organizations; and/or

• Process improvements for FHAP interactions with HUD FHEO and/or FHAP interaction with FHIPs within FHAP jurisdictions.

These activities should result in the development of durable administrative infrastructure.

Examples may include: case management modernization; digital evidence systems;

integrated electronic filing; AI-assisted administrative screening; data integration; other investigative technology.

The expectation is that HUD funding is not to sustain general maintenance in the long-run and this is intended to be upfront capital tech improvements (i.e., these are DME and not O&M).

ii. AEI – Religious Discrimination (AEI-RD) AEI-RD provides funding to carry out special projects, including the development of prototypes to respond to new or sophisticated forms of discrimination.

Eligible activities:

• Conduct enforcement activities to identify potential violations of the Fair Housing Act by targeted enforcement efforts focused on religious discrimination; including but not limited to newly emerging forms of discrimination based on anti-Christian and anti- Semitic bias; and/or

• Education and outreach related activities that support fair housing enforcement and the goals of the program that are focused on religious discrimination. Up to a maximum of 15% of grant funds may be used under the AEI-RD component only, for education and outreach activities necessary for the implementation of and in support of the project.

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

III. Program Description OFH-2600-DC-021D Page 22 of 73

This component awards funds for developing institutional expertise addressing underreported or emerging forms of housing discrimination, including religious discrimination.

3. Other Requirements

a. Retainer Fees. To be eligible for reimbursement under this grant program, FHIP recipients must comply with all requirements of the grant agreement with respect to retention of counsel and reporting of information along with retainer and legal fee restrictions provided above.

b. Criminal background and integrity. The following requirements apply to all activities funded under this FHIP NOFO:

i. HUD will enforce all provisions of this NOFO that relate to the proper conduct of activities and protections regarding fraud, waste and abuse. Principals and employees of applicants, especially those who manage the funds awarded hereunder, must not have prior felony convictions or convictions of crimes involving fraud or perjury.

ii. Organizations conducting investigations and/or enforcement activities, and the employees and agents of these organizations may not:

(1) Have an economic interest in the outcome of an investigation, without prejudice to the right of any person or entity to recover damages for any cognizable injury;

(2) Be a relative of any party in a case;

(3) Have had any employment or other affiliation, within one year, with the person or organization being investigated; or

(4) Be a licensed competitor of a respondent organization being investigated for the listing, rental, sale, or financing of real estate.

c. Code of Conduct.

Both you as the award recipient, and all subrecipients, must have a code of conduct (or written standards of conduct). The code of conduct must comply with the requirements included in the "Conducting Business in Accordance with Ethical Standards," as well as any program-specific requirements. These requirements include ethical standards related to conflicts of interest for procurements in 2 CFR 200.318(c) and 2 CFR 200.317, as well as HUD-specific conflict of interest standards. HUD maintains a list of organizations that have previously submitted written standards of conduct on its Code of Conduct for HUD Grant Programs webpage. It is your responsibility to ensure that the standards are compliant with the noted requirements and that HUD has the latest version of your written standards.

Updated written standards, after the application period, should be submitted as directed by the HUD program contact for this NOFO.

IV. APPLICATION CONTENTS AND

FORMAT

IV. Application Contents and Forms

A.