FR-6700-N-07_Section_4_NOFO.pdf

U.S. Department of Housing and Urban Development

Community Planning and Development

Section 4 Capacity Building for Community Development and Affordable Housing

FR-6700-N-07

11/13/2023

Table of Contents

OVERVIEW

I. FUNDING OPPORTUNITY DESCRIPTION

A. Program Description

B. Authority

II. AWARD INFORMATION

A. Available Funds

B. Number of Awards

C. Minimum/Maximum Award Information

D. Period of Performance

E. Type of Funding Instrument

III. ELIGIBILITY INFORMATION

A. Eligible Applicants

B. Ineligible Applicants

C. Cost Sharing or Matching

D. Threshold Eligibility Requirements

E. Statutory and Regulatory Requirements Affecting Eligibility

F. Program-Specific Requirements

G. Criteria for Beneficiaries

IV. APPLICATION AND SUBMISSION INFORMATION

A. Obtain an Application Package

B. Content and Form of Application Submission

C. System for Award Management (SAM) and Unique Entity Identifier (UEI)

D. Application Submission Dates and Times

E. Intergovernmental Review

F. Funding Restrictions

G. Other Submission Requirements

V. APPLICATION REVIEW INFORMATION

A. Review Criteria

B. Review and Selection Process

VI. AWARD ADMINISTRATION INFORMATION

A. Award Notices

B. Administrative, National and Departmental Policy Requirements and Terms for HUD Applicants and Recipients of Financial Assistance Awards

C. Reporting

D. Debriefing

VII. AGENCY CONTACT(S)

VIII. OTHER INFORMATION

APPENDIX

Program Office:

Community Planning and Development Funding Opportunity Title:

Section 4 Capacity Building for Community Development and Affordable Housing Funding Opportunity Number:

FR-6700-N-07

Assistance Listing Number (formerly CFDA Number):

14.252 Due Date for Applications:

11/13/2023

OVERVIEW

The U.S. Department of Housing and Urban Development (HUD) issues this Notice of Funding Opportunity (NOFO) to invite applications from eligible applicants for the program and purpose described within this NOFO. You, as a prospective applicant, should carefully read all instructions in all sections to avoid sending an incomplete or ineligible application. HUD funding is highly competitive. Failure to respond accurately to any submission requirement could result in an incomplete or noncompetitive proposal.

In accordance with Title 24 part 4, subpart B of the Code of Federal Regulations (CFR), during the selection process (which includes HUD’s NOFO development and publication and concludes with the award of assistance), HUD is prohibited from disclosing covered selection information.

Examples of impermissible disclosures include: 1) information regarding any applicant’s relative standing; 2) the amount of assistance requested by any applicant; and 3) any information contained in the application. Prior to the application deadline, HUD may not disclose the identity of any applicant or the number of applicants that have applied for assistance.

For further information regarding this NOFO, direct questions regarding the specific requirements of this NOFO to the agency contact identified in section VII.

Paperwork Reduction Act Statement. In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C. 3501- 3520) (PRA), the Office of Management and Budget (OMB) approved the information collection requirements in this NOFO. HUD may not conduct or sponsor, and a person is not required to respond to a collection of information unless the collection displays a valid OMB control number. This NOFO identifies its applicable OMB control number, unless its collection of information is excluded from these requirements under 5 CFR part 1320.

OMB Approval Number(s):

Not applicable

I. FUNDING OPPORTUNITY DESCRIPTION

A. Program Description

1. Purpose

Through funding of national intermediaries, the Section 4 Capacity Building for Community Development and Affordable Housing program (Section 4) enhances the capacity and ability of Community Development Corporations (CDCs) and Community Housing Development Organizations (CHDOs) to carry out affordable housing and community development activities that benefit low- and moderate-income families and persons.

https://www.ecfr.gov/current/title-24/subtitle-A/part-4/subpart-B https://www.ecfr.gov/current/title-5/chapter-III/subchapter-B/part-1320?toc=1 https://www.ecfr.gov/current/title-5/chapter-III/subchapter-B/part-1320?toc=1

This NOFO makes available $83,000,000 ($41,000,000 in FY 2022 funds and $42,000,000 in FY 2023 funds) to carry out eligible activities related to community development and affordable housing projects and programs for the Section 4, of which at least $10,000,000 ($5,000,000 for each FY) shall be made available for rural capacity building activities. Additionally, Section 4 program grantees shall collectively invest not less than $1,000,000 of FY 2023 funds in targeted capacity building activities to benefit Native Hawaiian, American Indian, and Alaska Native communities and populations in areas including, but not limited to, rural areas. This minimum investment is separate from the required investment for rural capacity building activities described above.

2. HUD and Program-Specific Goals and Objectives

This NOFO supports HUD’s Strategic Plan for Fiscal Years (FY) 2022-2026 to accomplish HUD’s mission and vision. Each of the five goals in the Strategic Plan include what HUD hopes to accomplish, the strategies to accomplish those objectives, and the indicators of success.

However, of the five goals only those applicable to this NOFO are identified below.

You are expected to align your application to the applicable strategic goals and objectives below.

Use the information in this section to describe in your application the specific goals, objectives, and measures that your project is expected to help accomplish. If your project is selected for funding, you are also expected to establish a plan to track progress related to those goals, objectives, and measures. HUD will monitor compliance with the goals, objectives, and measures in your project.

Applicable Goals and Objectives from HUD’s Strategic Plan

1. Strategic Goal 1: Support Underserved Communities Fortify support for underserved communities and support equitable community development for all people.

2. 1A: Advance Housing Justice Fortify support for vulnerable populations, underserved communities, and Fair Housing enforcement.

3. 1C: Invest in the Success of Communities Promote equitable community development that generates wealth-building for underserved communities, particularly for communities of color.

4. Strategic Goal 2: Ensure Access to and Increase the Production of Affordable Housing Ensure housing demand is matched by adequate production of new homes and equitable access to housing opportunities for all people.

5. Strategic Goal 3: Promote Homeownership Promote homeownership opportunities, equitable access to credit for purchase and improvements, and wealth-building in underserved communities.

6. 3A: Advance Sustainable Homeownership Advance the deployment of tools and capital that put sustainable homeownership within reach.

7. Strategic Goal 4: Advance Sustainable Communities Advance sustainable communities by strengthening climate resilience and energy efficiency, promoting environmental justice, and recognizing housing's role as essential to health.

8. 4B: Strengthen Environmental Justice https://www.hud.gov/HUD-FY22-26-Strategic-Plan-Focus-Areas https://www.hud.gov/HUD-FY22-26-Strategic-Plan-Focus-Areas

Reduce exposure to health risks, environmental hazards, and substandard housing, especially for low-income households and communities of color.

3. Changes from Previous NOFO

The following changes are included in this FY 2022-2023 Section 4 program NOFO since publication of the previous, FY 2021 NOFO:

1. Section I.A. Program Description – This section is updated to include HUD Strategic Plan goals and objectives, to ensure NOFOs are explicitly aligned. Programs may also include objectives, strategies and measures related to program-specific goals and expectations for applicants. Furthermore, this section includes new definitions:

Cooperative Agreement, Environmental Justice, Equity, Minority-Serving Institutions, Racial Equity, Resilience, and Underserved Communities. The following definition have been are removed: DUNS, Opportunity Zone.

2. Section III.D. Threshold Eligibility Requirements – Affirmatively Furthering Fair Housing (AFFH) is removed. However, AFFH remains an application requirement under section IV.G. of the NOFO.

3. Section III.E. Statutory and Regulatory Requirements Affecting Eligibility – This section is updated to include applicable eligibility requirements. The NOFO supplemental document is also updated and posted on HUD’s Funding Opportunity webpage.

4. Section III.F. Program-Specific Requirements – This section is updated to emphasize two requirements, to support the priorities in HUD’s FY2022-FY2026 Strategic Plan: (1) Applicants are required to submit with their applications narrative response to requirements for Advancing Racial Equity and Affirmative Marketing: (2) Program Priorities: A Tribal set aside award shall collectively invest not less than $1,000,000 in targeted capacity building activities to benefit Native Hawaiian, American Indian, and Alaska Native communities and populations in areas including, but not limited to, rural areas. This minimum investment is separate from the required investment for rural capacity building activities of not less than $10,000,000.

5. Section IV.G. Other Submission Requirements – This section is updated to include additional submission requirements, AFFH.

6. Section V.A. Review Criteria – This section is updated to include preference points for Minority-Serving Institutions. Also updated to expand the review criteria for Environmental Justice. Rating Factor 3: Soundness of Approach subsection Plan to Conduct Activities now has a 5-point reduction; while subsection Underserved Communities and Fair Housing has been added with a 5 point allocation.

7. Section V.B. Review and Selection Process – This section is updated to include a new requirement to ensure applicants have Experience Promoting Racial Equity.

Other changes: Federal Relay Service – The Federal Relay Service contract expired in February 2022. HUD no longer uses the service. The NOFO is updated to include the use of Federal Communications Commission (FCC) relay services for individuals who are deaf or hard of hearing as well as individuals with speech or communication disabilities. HUD welcomes and is prepared to receive calls from individuals who are deaf or hard of hearing, as well as individuals with speech or communication disabilities. To learn more about how to make an https://www.hud.gov/grants accessible telephone call, please visit https://www.fcc.gov/consumers/guides/telecommunications-relay-service-trs.

To improve your chance of success, please be sure to read this announcement fully and carefully and respond to all the elements in each factor.

4. Definitions

a. Standard Definitions

Affirmatively Furthering Fair Housing (AFFH) means taking meaningful actions, in addition to combating discrimination to overcome patterns of segregation and foster inclusive communities free from barriers that restrict access to opportunity based on protected characteristics. Specifically, affirmatively furthering fair housing means taking meaningful actions that, taken together, address significant disparities in housing needs and in access to opportunities, replacing segregated living patterns with truly integrated and balanced living patterns, transforming racially and ethnically concentrated areas of poverty into areas of opportunity, and fostering and maintaining compliance with civil rights and fair housing laws.

The duty to affirmatively further fair housing extends to all program participant’s activities and programs relating to housing and urban development.

Assistance Listing number refers to the unique number assigned to each Federal assistance program publicly available in the Assistance Listing, which is managed and administered by the General Services Administration. The Assistance Listing number was formerly known as the Catalog of Federal Domestic Assistance (CFDA) number.

Authorized Organization Representative (AOR) is a person authorized to legally bind your organization and submit applications via Grants.gov. The AOR is authorized by the E-Business Point of Contact (E-Biz POC) in the System for Award Management (see E-Biz POC definition).

An AOR may include an Expanded AOR and/or a Standard AOR.

Expanded Authorized Organization Representative is a user in Grants.gov who is authorized by the E-Biz POC to perform the functions of a Standard AOR, initiate and submit applications on behalf of your organization, and is allowed to modify organization-level settings and certifications in Grants.gov.

Standard Authorized Organization Representative is a user in Grants.gov who is authorized by the E-Biz POC to initiate and submit applications in Grants.gov. A Grants.gov user with the Standard AOR role can only submit applications when they are a Participant for that workspace.

Consolidated Plan is the document submitted to HUD that serves as the comprehensive housing affordability strategy, community development plan, and submission for funding under any of the Community Planning and Development formula grant programs (e.g., CDBG, ESG, HOME, and HOPWA). This Plan is prepared in accordance with the process described in 24 CFR part 91.

This plan is completed by engaging in a participatory process to assess their affordable housing and community development needs and market conditions, and to make data-driven, place-based investment decisions with funding from formula grant programs. (See 24 CFR part 91 for HUD’s requirements regarding the Consolidated Plan and related Action Plan).

https://www.fcc.gov/consumers/guides/telecommunications-relay-service-trs https://www.ecfr.gov/current/title-24/subtitle-A/part-91 https://www.ecfr.gov/current/title-24/subtitle-A/part-91

Contract means, for the purpose of Federal financial assistance, a legal instrument by which a recipient or subrecipient purchases property or services needed to carry out the project or program under a federal award. For additional information on contractor and subrecipient determinations, see 2 CFR 200.331.

Contractor means an entity that receives a contract as defined above and in 2 CFR 200.1.

Cooperative agreement has the same meaning defined at 2 CFR 200.1.

Deficiency, with respect to the making of an application for funding, is information missing or omitted within a submitted application. Examples of deficiencies include missing documents, missing or incomplete information on a form, or some other type of unsatisfied information requirement. Depending on specific criteria, a deficiency may be either Curable or Non-Curable.

A Curable Deficiency is missing or incomplete application information that may be corrected by the applicant with timely action. To be curable, the deficiency must:

• Not be a threshold requirement, except for documentation of applicant eligibility;

• Not influence how an applicant is ranked or scored versus other applicants; and

• Be remedied within the time frame specified in the notice of deficiency.

A Non-Curable Deficiency is missing or incomplete application information that cannot be corrected by an applicant after the submission deadline. A non-curable deficiency is a deficiency that is a threshold requirement, or a deficiency that, if corrected, would change an applicant’s score or rank versus other applicants. If an application includes a non-curable deficiency, the application may receive an ineligible determination, or the non-curable deficiency may otherwise adversely affect the application’s score and final funding determination.

E-Business Point of Contact (E-Biz POC) is an organization applicant who is responsible for the administration and management of grant activities for his or her organization. The E-Biz POC is likely to be an organization's chief financial officer or authorizing official. The E-Biz POC authorizes representatives of their organization to apply on behalf of the organization (see Authorized Organization Representative definition). There can only be one E-Biz POC per unique entity identifier (see definition of Unique Entity Identifier below).

Eligibility requirements are mandatory requirements for an application to be eligible for funding.

Environmental Justice means investing in environmental improvements, remedying past environmental inequities, and otherwise developing, implementing, and enforcing laws and policies in a manner that advances environmental equity and provides meaningful involvement for people and communities that have been environmentally underserved or overburdened, such as Black and Brown communities, indigenous groups, and individuals with disabilities. This definition does not alter the requirements under HUD’s regulations at 24 CFR 58.5(j) and 24 CFR 50.4(l) implementing Executive Order 12898. E.O. 12898 requires a consideration of how federally assisted projects may have disproportionately high and adverse human health or environmental effects on minority and/or low-income populations. For additional information on environmental review compliance, refer to:

https://www.hud.gov/program_offices/comm_planning/environment_energy/regulations.

https://www.ecfr.gov/current/title-2/subtitle-A/chapter-II/part-200/subpart-D/subject-group-ECFR031321e29ac5bbd/section-200.331 https://www.ecfr.gov/current/title-2/subtitle-A/chapter-II/part-200 https://www.ecfr.gov/current/title-2/subtitle-A/chapter-II/part-200 https://www.ecfr.gov/current/title-24/subtitle-A/part-58/subpart-A/section-58.5 https://www.ecfr.gov/current/title-24/subtitle-A/part-50/subpart-A/section-50.4 https://www.ecfr.gov/current/title-24/subtitle-A/part-50/subpart-A/section-50.4 https://www.archives.gov/files/federal-register/executive-orders/pdf/12898.pdf https://www.hud.gov/program_offices/comm_planning/environment_energy/regulations

Equity has the meaning given to that term in Section 2(a) of Executive Order 13985 and means the consistent and systematic fair, just, and impartial treatment of all individuals, including individuals who belong to underserved communities that have been denied such treatment, such as Black, Latino, and Indigenous and Native American persons, Asian Americans and Pacific Islanders and other persons of color; members of religious minorities; lesbian, gay, bisexual, transgender, and queer (LGBTQ+) persons; persons with disabilities; persons who live in rural areas; and persons otherwise adversely affected by persistent poverty or inequality.

Federal Award, has the meaning, depending on the context, in either paragraphs (1) or (2) of this definition:

(1)

(a) The Federal financial assistance that a recipient receives directly from a Federal awarding agency or a subrecipient receives indirectly from a pass-through entity, as described in 2 CFR 200.101; or

(b) The cost-reimbursement contract under the Federal Acquisition Regulations that a non- Federal entity receives directly from a federal awarding agency or indirectly from a pass- through entity, as described in 2 CFR 200.101.

(2) The instrument setting forth the terms and conditions. The instrument is the grant agreement, cooperative agreement, other agreement for assistance covered in paragraph (2) of the definitions of Federal financial assistance in 2 CFR 200.1, and this NOFO, or the cost-reimbursement contract awarded under the Federal Acquisition Regulations.

(3) Federal award does not include other contracts that a Federal agency uses to buy goods or services from a contractor or a contract to operate Federal Government owned, contractor operated facilities (GOCOs).

(4) See also definitions of Federal financial assistance, grant agreement, and cooperative agreement in 2 CFR 200.1.

Federal Financial Assistance has the same meaning defined at 2 CFR 200.1.

Grants.gov is the website serving as the Federal government’s central portal for searching and applying for Federal financial assistance throughout the Federal government. Registration on Grants.gov is required for submission of applications to prospective agencies unless otherwise specified in this NOFO.

Historically Black Colleges and Universities (HBCUs) are any historically Black college or university that was established prior to 1964, whose principal mission was, and is, the education of Black Americans, and that is accredited by a nationally recognized accrediting agency or association determined by the Secretary of Education to be a reliable authority as to the quality of training offered or is, according to such an agency or association, making reasonable progress toward accreditation. A list of accredited HBCUs can be found at the U.S. Department of Education’s website.

Minority-Serving Institutions (MSIs) are

(1) a part B institution (as defined in 20 U.S.C. 1061);

(2) a Hispanic-serving institution (as defined in 20 U.S.C. 1101(a)(5));

https://www.federalregister.gov/documents/2021/01/25/2021-01753/advancing-racial-equity-and-support-for-underserved-communities-through-the-federal-government https://www.ecfr.gov/current/title-2/subtitle-A/chapter-II/part-200 https://www.ecfr.gov/current/title-2/subtitle-A/chapter-II/part-200 https://www.ecfr.gov/current/title-2/subtitle-A/chapter-II/part-200 https://www.ecfr.gov/current/title-2/subtitle-A/chapter-II/part-200 https://www.ecfr.gov/current/title-2/subtitle-A/chapter-II/part-200 https://sites.ed.gov/whhbcu/one-hundred-and-five-historically-black-colleges-and-universities/ https://sites.ed.gov/whhbcu/one-hundred-and-five-historically-black-colleges-and-universities/ https://www.govinfo.gov/content/pkg/USCODE-2020-title20/pdf/USCODE-2020-title20-chap28-subchapIII-partB-sec1061.pdf https://www.govinfo.gov/content/pkg/USCODE-2020-title20/pdf/USCODE-2020-title20-chap28-subchapV-partA-sec1101a.pdf

(3) a Tribal College or University (as defined in 20 U.S.C. 1059c);

(4) an Alaska Native-serving institution or a Native Hawaiian-serving institution (as defined in 20 U.S.C. 1059d(b));

(5) a Predominantly Black Institution (as defined in 20 U.S.C. 1059e);

(6) an Asian American and Native American Pacific Islander-serving institution (as defined in 20 U.S.C. 1059g); or

(7) a Native American-serving nontribal institution (as defined in 20 U.S.C. 1059f).

Non-Federal Entity (NFE) means a state, local government, Indian tribe, Institution of Higher Education (IHE), or non-profit organization that carries out a federal award as a recipient or subrecipient.

Primary Point of Contact (PPOC) is the person who may be contacted with questions about the application submitted by the AOR. The PPOC is listed in item 8F on the SF-424.

Racial Equity is the elimination of racial disparities, and is achieved when race can no longer predict opportunities, distribution of resources, or outcomes – particularly for Black and Brown persons, which includes Black, Latino, indigenous, Native American, Asian, Pacific Islander, and other persons of color.

Promise Zones (PZs) are high poverty areas in select urban, rural and tribal communities designated from 2014-2016 where the federal government partners with local leaders to increase economic activity, improve educational opportunities, leverage private investment, reduce violent crime, enhance public health and address other priorities identified by the community.

See Promise Zones.

Recipient means an entity, usually but not limited to non-Federal entities, that receives a federal award directly from HUD. The term recipient does not include subrecipients or individuals that are beneficiaries of the award.

Resilience is a community’s ability to minimize damage and recover quickly from extreme events and changing conditions.

Small business is defined as a privately-owned corporation, partnership, or sole proprietorship that has fewer employees and less annual revenue than regular-sized business. The definition of “small”—in terms of being able to apply for government support and qualify for preferential tax policy—varies by country and industry. The U.S. Small Business Administration defines a small business according to a set of standards based on specific industries. See 13 CFR Part 121.

Subaward means an award provided by a pass-through entity to a subrecipient for the subrecipient to carry out part of a federal award received by the pass-through entity. It does not include payments to a contractor or payments to an individual that is a beneficiary of a Federal program. A subaward may be provided through any form of legal agreement, including an agreement that the pass-through entity considers a contract.

Subrecipient means an entity, usually but not limited to non-Federal entities, that receives a subaward from a pass-through entity to carry out part of a federal award but does not include an individual that is a beneficiary of such award. A subrecipient may also be a recipient of other federal awards directly from a federal awarding agency.

https://www.govinfo.gov/content/pkg/USCODE-2015-title20/pdf/USCODE-2015-title20-chap28-subchapIII-partA-sec1059c.pdf https://www.govinfo.gov/content/pkg/USCODE-2015-title20/pdf/USCODE-2015-title20-chap28-subchapIII-partA-sec1059d.pdf https://www.govinfo.gov/content/pkg/USCODE-2020-title20/pdf/USCODE-2020-title20-chap28-subchapIII-partA-sec1059e.pdf https://www.govinfo.gov/content/pkg/USCODE-2020-title20/pdf/USCODE-2020-title20-chap28-subchapIII-partA-sec1059g.pdf https://www.govinfo.gov/content/pkg/USCODE-2020-title20/pdf/USCODE-2020-title20-chap28-subchapIII-partA-sec1059g.pdf https://www.govinfo.gov/content/pkg/USCODE-2020-title20/pdf/USCODE-2020-title20-chap28-subchapIII-partA-sec1059f.pdf https://www.hud.gov/program_offices/field_policy_mgt/fieldpolicymgtpz https://www.ecfr.gov/current/title-13/chapter-I/part-121?toc=1

System for Award Management (SAM) is the Federal Repository into which an entity must provide information required for the conduct of business as a recipient. Registration with SAM is required for submission of applications via Grants.gov. You can access the website at https://www.sam.gov/SAM/. There is no cost to use SAM.

Threshold Requirements are eligibility requirements that must be met for an application to be reviewed, rated, and ranked. Threshold requirements are not curable, except for documentation of applicant eligibility, which are listed in Section III.D., Threshold Eligibility Requirements.

Similarly, there are eligibility requirements under Section III.E., Statutory and Regulatory Requirements Affecting Eligibility.

Underserved Communities has the meaning given to that term in Section 2(b) of Executive Order 13985 and refers to populations sharing a particular characteristic, as well as geographic communities, that have been systematically denied a full opportunity to participate in aspects of economic, social, and civic life, as exemplified by the list in the definition of “equity” above.

Unique Entity Identifier (UEI) means the identifier assigned by SAM to uniquely identify business entities. As of April 4, 2022, the Federal government has transitioned from the use of the DUNS Number to the use of UEI, as the primary means of entity identification for Federal awards government-wide.

b. Program Definitions.

Capacity Building:

Capacity building is support, investment, or training used to bring an eligible beneficiary to the next level of operational, programmatic, financial, or organizational maturity, so it may more effectively and efficiently implement its mission. It is a process in which eligible beneficiaries improve and retain skills, knowledge, tools, and other resources needed to serve low- and moderate- income households in local communities with increased or improved affordable housing and community development. It is not a one-time effort to improve short-term effectiveness, but a continuous improvement strategy with the eligible beneficiary toward the creation of a sustainable and effective organization that serves its community.

Community Development Corporation (CDC):

1. A CDC is a nonprofit organization that undertakes eligible Section program activities, as defined in this NOFO and that meets these qualifications:

a. Is organized under Federal, State or local law to engage in community development activities (which may include housing and economic development activities) primarily within an identified geographic area of operation;

b. Is governed by a board of directors composed of community residents, business and civic leaders;

c. Has as its primary purpose the improvement of the physical, economic or social environment of its geographic area of operation by addressing one or more critical problems of the area, with particular attention to the needs of persons of low income;

d. Is neither controlled by, nor under the direction of, individuals or entities seeking to derive profit or gain from the organization;

e. Has a tax exemption ruling from the Internal Revenue Service under section 501(c)(3) or (4) of the Internal Revenue Code of 1986 (26 CFR 1.501(c)(3)-1);

https://www.sam.gov/SAM/ https://www.federalregister.gov/documents/2021/01/25/2021-01753/advancing-racial-equity-and-support-for-underserved-communities-through-the-federal-government

f. Has standards of financial accountability that conform to 2 CFR Part 200.302, “Financial Management” and 2 CFR Part 200.303, “Internal Controls”;

g. Is not an agency or instrumentality of a State or local government; and

h. “Community” may be a neighborhood or neighborhoods, town, village, county or multi-county area (but not the entire State or territory).

2. An organization that does not qualify under paragraphs (a) through (h) may also be determined to qualify as an eligible entity if:

a. It is a Small Business Administration (SBA) approved Section 501 State Development Company- or an SBA Certified Section 503 Company- under the Small Business Investment Act of 1958, as amended (P.L. 85-699); or

b. The recipient demonstrates to the satisfaction of HUD, through the provision of information regarding the organization’s charter and by-laws, that the organization is sufficiently similar in purpose, function, and scope to those entities qualifying under paragraphs (a) through (h) of this definition; or

c. It is a State or locally chartered organization; however, the State or local government may not have the right to appoint more than one-third of the membership of the organization’s governing body and no more than one-third of the board members may be public officials or employees of the State or local government entity chartering the organization. Board members appointed by the State or local government may not appoint the remaining two-thirds of the board members.

Community Housing Development Organization (CHDO):

A CHDO is defined in the HOME Investment Partnerships Program (HOME Program) regulation at 24 CFR 92.2. The HOME Program is authorized by the HOME Investment Partnerships Act at title II of the Cranston-Gonzalez National Affordable Housing Act, as amended, 42 U.S.C. 12701 et seq.

Consultant: An individual who is tasked with providing valuable and pertinent advice generally drawn from a high degree of broad administrative, professional, or technical knowledge or experience. The grantee must determine whether a consultant is a subrecipient or a contractor in accordance with 2 CFR 200.331.

Family: Family refers to the definition of “family” in 24 CFR 5.403. Family includes, but is not limited to, the following, regardless of actual or perceived sexual orientation, gender identity, or marital status:

1. A single person, who may be an elderly person, displaced person, person with a disability, near-elderly person, or any other single person; or

2. A group of persons residing together, and such group includes, but is not limited to:

a. A family with or without children (a child who is temporarily away from the home because of placement in foster care is considered a member of the family);

b. An elderly family;

c. A near-elderly family;

d. A family with one or more members who is a person with a disability;

e. A displaced family; and

f. The remaining member of a tenant family.

Household: Household means all the persons occupying a housing unit. The occupants may be a family as defined in 24 CFR 5.403; two or more families living together, or any other group of related or unrelated persons who share living arrangements, regardless of actual or perceived sexual orientation, gender identity, or marital status.

Key individual: Key individual means the principal officer of the organization's governing body (for example, chairman, vice chairman, treasurer and secretary of the board of directors or board of trustees); the principal officer and deputy principal officer of the organization (for example, executive director, deputy director, president, vice president); the program manager; and any other person with significant responsibilities for administration of the activities or resources, such as key personnel.

Key personnel: Key personnel means individuals who identified for approval as part of their substantial involvement, contribution to the development and/ or execution of a project in a substantive, measurable way, whether or not they receive salaries or compensation under the grant. Consultants may be considered senior/key personnel if they meet this definition.

Low- and moderate-income household: Low- and moderate-income household means a household having an income equal to or less than the Section 8 low-income limit established by HUD, which means a household whose income does not exceed 80 percent of the AMI.

Low- and moderate-income person: Low- and moderate-income person means a member of a family having an income equal to or less than the Section 8 low-income limit established by HUD, which means an individual whose income does not exceed 80 percent of the AMI.

Unrelated individuals will be considered as one-person families for this purpose.

Low-income household: Low-income household means a household having an income equal to or less than the Section 8 very low-income limit established by HUD, which means a household whose income does not exceed 50 percent of the Area Median Income (AMI).

Low-income person: Low-income person means a member of a family that has an income equal to or less than the Section 8 very low-income limit established by HUD, which means an individual whose income does not exceed 50 percent of the AMI. Unrelated individuals shall be considered as one-person families for this purpose.

Outcomes: Results achieved, or benefits derived from the capacity building activity conducted, typically demonstrated by the eligible beneficiary. Some examples include, but are not limited to, an ability to maintain a full-time paid staff person, increased amount of affordable homes in a beneficiary's portfolio, or success in building the beneficiary's loan portfolio to conduct community development.

Outputs: Deliverables such as products, grants made, individuals served, or trainings delivered that are usually quantified by number produced, number delivered, number of attendees, etc.

Outputs do not measure a change in a beneficiary's capacity or capabilities.

Revolving Loan Fund means a separate fund (with a set of accounts that are independent of other program accounts) established for the purpose of carrying out specific activities which, in turn, generate payments to the fund for use in carrying out the same activities.

Rural area: A rural area is a statistical geographic entity delineated by the Census Bureau that does not meet the definition of an urbanized area. An urbanized area is a statistical geographic entity delineated by the US Census Bureau, consisting of densely settled census tracts and blocks and adjacent densely settled territory that together contain at least 50,000 people. As of the 2010 decennial census, the United States contained 486 urbanized areas with an additional 11 in Puerto Rico. For more information about urbanized areas, including maps, FAQs, and reference manuals, please refer to this Census Bureau website - https://www.census.gov/geo /reference/webatlas/uas.html.

To demonstrate that a beneficiary complies with the rural area requirement, grantees will be expected to implement a review process to confirm that the proposed rural beneficiary is physically located within an eligible rural area or, as a result of Section 4 assistance, will be commencing or expanding service in an eligible rural area. HUD has created a mapping tool for grantees to utilize in assessing a beneficiary’s compliance with the rural area definition. The mapping tool is posted on HUD’s Section 4 grant program webpage -https://www.hud.gov/program_offices/comm_planning/section-4

B. Authority The Section 4 program is authorized by Section 4 of the HUD Demonstration Act of 1993 (Public Law 103-120, 107 Stat. 1148, 42 U.S.C. 9816 note), as amended. Funding for this program is provided by the Consolidated Appropriations Act, 2022 (Public Law 117-103, approved on March 15, 2022), and the Consolidated Appropriations Act, 2023 (Public Law 117- 328, approved on December 29, 2022).

II. AWARD INFORMATION

A. Available Funds Funding of approximately $83,000,000 is available through this NOFO.

Additional funds may become available for award under this NOFO consistent with Section VI.A.2.e., Adjustments to Funding. Use of these funds is subject to statutory constraints. All awards are subject to the funding restrictions contained in this NOFO.

B. Number of Awards HUD expects to make approximately 3 awards from the funds available under this NOFO.

C. Minimum/Maximum Award Information Estimated Total Funding:

$83,000,000 Minimum Award Amount:

$1,000,000 Per Project Period https://www.census.gov/geo/reference/webatlas/uas.html https://www.census.gov/geo/reference/webatlas/uas.html https://www.hud.gov/program_offices/comm_planning/section-4

Maximum Award Amount:

$41,000,000 Per Project Period

D. Period of Performance Estimated Project Start Date:

04/22/2024 Estimated Project End Date:

04/22/2028 Length of Project Periods:

Other

Length of Periods Explanation of Other:

48-month period of performance for project and budget periods.

E. Type of Funding Instrument Funding Instrument Type:

G (Grant)

III. ELIGIBILITY INFORMATION

A. Eligible Applicants 12 (Nonprofits having a 501(c)(3) status with the IRS, other than institutions of higher education)

25 (Others (see text field entitled "Additional Information on Eligibility" for clarification))

Additional Information on Eligibility Eligible applicants must be nonprofit organizations having 501 (c) (3) status with the IRS identified in Section 4 of the HUD Demonstration Act of 1993 (Public Law 103-120, 107 Stat.

1148, 42 U.S.C. 9816 note), as amended, and the FY 2022 and FY2023 Appropriations.

Specifically, these three organizations are: Enterprise Community Partners, Inc. (formerly The Enterprise Foundation), the Local Initiatives Support Corporation (LISC), and Habitat for Humanity International. Specifically, the only applicants eligible for this competition are the three organizations located at the following addresses:

• Enterprise Community Partners, Inc. 70 Corporate Center 11000 Broken Land Parkway, Suite 700 Columbia, MD 21044

• Local Initiatives Support Corporation (LISC) 501 Seventh Avenue, 7th Floor New York, NY 10018

• Habitat for Humanity International 121 Habitat Street Americus, GA 31709

Affiliates and local offices of these organizations and their community partners are not eligible to compete either directly or independently for Section 4 funds under this notice but may seek funding from the above organizations.

Faith-based organizations

(1) Faith-based organizations may apply for this award on the same basis as any other organization, as set forth at 24 CFR 5.109, and subject to the protections and requirements of 42 https://www.ecfr.gov/current/title-24/subtitle-A/part-5#p-5.109

U.S.C. 2000bb et seq., HUD will not, in the selection of recipients, discriminate against an organization based on the organization's religious character, affiliation, or exercise.

(2) A faith-based organization that participates in this program will retain its independence and may continue to carry out its mission consistent with religious freedom and conscience protections in Federal law, including the Free Speech and Free Exercise Clauses of the Constitution, 42 U.S.C. 2000bb et seq., 42 U.S.C. 238n, 42 U.S.C. 18113, 42 U.S.C. 2000e-1(a) and 2000e-2(e), 42 U.S.C. 12113(d), and the Weldon Amendment, among others. Religious accommodations may also be sought under many of these religious freedom and conscience protection laws, particularly under the Religious Freedom Restoration Act.

(3) A faith-based organization may not use direct financial assistance from HUD to support or engage in any explicitly religious activities except where consistent with the Establishment Clause and any other applicable requirements. Such an organization also may not, in providing services funded by HUD, discriminate against a beneficiary or prospective program beneficiary on the basis of religion, religious belief, a refusal to hold a religious belief, or a refusal to attend or participate in a religious practice.

B. Ineligible Applicants By law, there are only three eligible applicants for the Section 4 program. The competition is limited to the organizations identified in Section 4 of the HUD Demonstration Act of 1993 (Public Law 103-120, 107 Stat. 1148, 42 U.S.C. 9816 note), as amended.

C. Cost Sharing or Matching This Program requires cost sharing or matching as described below.

In accordance with Section 4(c) of the HUD Demonstration Act of 1993, each dollar awarded must be matched by three dollars in cash or in-kind contribution obtained from private sources.

The types of documentation accepted by HUD will be determined at the time the organization enters into a grant agreement. All match funds, including in-kind contributions, shall conform to the requirements of 2 CFR 200.29, 2 CFR 200.306 and 2 CFR 200.96. Match funds must clearly be connected to the delivery of the proposed Section 4 program eligible activities or the resulting outputs of those activities.

In addition to the required matching funds, applicants are encouraged to secure leverage from private sector and/or public resources. Leverage funds are calculated over and above any match contributions.

D. Threshold Eligibility Requirements Applicants who fail to meet any of the following threshold eligibility requirements are deemed ineligible. Applications from ineligible applicants are not rated or ranked and will not receive HUD funding.

1. Resolution of Civil Rights Matters

Outstanding civil rights matters must be resolved before the application submission deadline.

Applicants with unresolved civil rights matters at the application deadline are deemed ineligible.

Applications from ineligible applicants are not rated or ranked and will not receive HUD funding.

a. An applicant is ineligible for funding if the applicant has any of the charges, cause determinations, lawsuits, or letters of findings referenced in subparagraphs (1) – (5) that are not resolved to HUD’s satisfaction before or on the application deadline date for this NOFO.

(1) Charges from HUD concerning a systemic violation of the Fair Housing Act or receipt of a cause determination from a substantially equivalent state or local fair housing agency concerning a systemic violation of a substantially equivalent state or local fair housing law proscribing discrimination because of race, color, religion, sex (including sexual orientation and gender identity), national origin, disability or familial status;

(2) Status as a defendant in a Fair Housing Act lawsuit filed by the United States alleging a pattern or practice of discrimination or denial of rights to a group of persons raising an issue of general public importance under 42 U.S.C. 3614(a);

(3) Status as a defendant in any other lawsuit filed or joined by the Department of Justice, or in which the Department of Justice has intervened, or filed an amicus brief or statement of interest, alleging a pattern or practice or systemic violation of 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, Violence Against Women Act, or a claim under the False Claims Act related to fair housing, non-discrimination, or civil rights generally including an alleged failure to affirmatively further fair housing;

(4) Receipt of a letter of findings identifying systemic non-compliance with 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; Violence Against Women Act; or the Americans with Disabilities Act; or

(5) Receipt of a cause determination from a substantially equivalent state or local fair housing agency concerning a systemic violation of provisions of a state or local law prohibiting discrimination in housing based on sexual orientation, gender identity, or lawful source of income.

b. HUD will determine if actions to resolve the charge, cause determination, lawsuit, or letter of findings taken before the application deadline date will resolve the matter. Examples of actions that may be sufficient to resolve the matter include, but are not limited to:

(1) Current compliance with a voluntary compliance agreement signed by all the parties;

(2) Current compliance with a HUD-approved conciliation agreement signed by all the parties;

(3) 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;

(4) Current compliance with a consent order or consent decree;

(5) Current compliance with a final judicial ruling or administrative ruling or decision; or

(6) Dismissal of charges.

3. Eligible Organizations - Only the three organizations listed in Section III. A of this NOFO are eligible for the Section 4 program. Any other applicants will be identified as ineligible.

2. Timely Submission of Applications

Applications submitted after the deadline stated within this NOFO that do not meet the requirements of the grace period policy are marked late. Late applications are ineligible and are not considered for funding. See Section IV. D. Application Submission Dates and Times.

E. Statutory and Regulatory Requirements Affecting Eligibility Eligibility Requirements for Applicants of HUD’s Financial Assistance Programs The following requirements affect applicant eligibility. Detailed information on each requirement is found in the “Eligibility Requirements for Applicants of HUD’s Financial Assistance Programs” document on HUD’s Funding Opportunities page.

• Universal Identifier and System for Award Management (SAM.gov) Requirements

• Outstanding Delinquent Federal Debts

• Debarments or Suspensions, or both

• Mandatory Disclosure Requirement

• Pre-selection Review of Performance

• Sufficiency of Financial Management System

• False Statements

• Prohibition Against Lobbying Activities

In addition, each applicant under this NOFO must have the necessary processes and systems in place to comply with the Award Term in Appendix A of 24 CFR part 170 if the applicant receives an award, unless an exception applies as provided in 2 CFR170.110.

F. Program-Specific Requirements Purpose. Through funding of national intermediaries, the Section 4 program enhances the capacity and ability of community development corporations (CDCs) and community housing development organizations (CHDOs) to carry out affordable housing and community development activities that benefit low- and moderate-income families and persons.

Eligible Activities and Priorities. Funds may only be used to conduct the following activities:

1. Training, education, support, and advice to enhance the technical and administrative capabilities of CDCs and CHDOs. This may include building the capacity of CDCs and CHDOs to:

o Participate in consolidated planning, fair housing planning and Continuum of Care homeless assistance efforts that help ensure community-wide participation in assessing area needs;

o Navigate the increased housing and community development resources provided by the Federal Government and assist in directing Federal investments to underserved communities;

o Consult broadly within the community;

o Cooperatively plan for the use of available resources in a comprehensive and holistic manner; and o Assist in evaluating performance under these community planning and coordination efforts and in linking plans with neighboring communities to foster regional planning.

https://www.hud.gov/grants https://www.hud.gov/grants https://www.ecfr.gov/current/title-25/chapter-I/subchapter-H/part-170 https://www.ecfr.gov/current/title-2/subtitle-A/chapter-I/part-170/subpart-A/section-170.110

2. Pass-through grants, loans, predevelopment assistance, or other financial assistance to CDCs and CHDOs to increase their capacity to carry out community development and affordable housing activities that benefit low-income or low- and moderate-income families and persons.

3. Such other activities as may be determined by the grantees in consultation with the Secretary or his or her designee.

At this time, eligible program activities allowed under the third listed eligible activity only include HUD reviewed and approved reasonable administrative tasks directly related to the grantee's management of its Section 4 program. Some examples of reasonable administrative activities specific to the management of the Section 4 program include the preparation of Section 4 action plans and activities, preparation of Section 4 program reports, and management of the implementation of the first and second eligible activities.