FY26 Pathways to Removing Obstacles to Housing (PRO Housing)

Closed Posted

Opportunity number
CPD-2600-DC-0098
Agency
Applications due
Award size
$5,000,000 to $10,000,000

Opportunity facts

Funding instrument
Grant
Categories
  • Community Development
  • Housing
  • Opportunity Zone Benefits
Eligible applicants
  • City/Township Governments
  • County Governments
  • Other
  • State Governments
Points of contact

Opportunity details come from Grants.gov. Updated .

About this opportunity

The Department of Housing and Urban Development is soliciting applications for the Pathways to Removing Obstacles to Housing (PRO Housing) program, a $50 million competitive grant opportunity, with applications due August 3, 2026.

Eligible applicants are State governments, County governments, City or Township governments, Metropolitan Planning Organizations (MPOs), and Multi-jurisdictional Entities. The program requires applicants to demonstrate progress and commitment to eliminating local barriers to affordable housing production and preservation through enactment or implementation of less restrictive zoning, land use, or permitting laws and regulations, an acute need for housing affordable to households with incomes below 100 percent of area median income, and commitment to create new homeownership units. Priority is given to projects targeting Opportunity Zones and rural communities.

Individual awards in the 2024 competition ranged from $1 million to $7 million, with approximately 30 expected awards anticipated under the prior cycle; no specific award ceiling or floor is stated in this FY26 NOFO. Period of performance extends through September 30, 2030 or 2031, depending on appropriations cycle. Place of performance is nationwide.

Eligible activities encompass developing or updating housing and community plans, creating transit-oriented development zones, incentivizing vacant lot development or commercial property conversion, streamlining permitting processes, and implementing infrastructure upgrades. All activities must align with HUD Community Planning and Development Consolidated Plan requirements and comply with applicable environmental requirements. Benefits must primarily accrue to low- and moderate-income populations. Recipients must maintain records for four years after activity completion.

The program operates under CFDA 14.023 and the Community Development Block Grant framework.

Synopsis

As President Trump said in his Executive Order on Removing Regulatory Barriers to Affordable Home Construction (March 13, 2026), The American dream of homeownership depends on a dynamic housing market in which a varied inventory of new homes is built and renovated each year. Layers of unnecessary regulatory barriers, slow permitting processes, and onerous mandates at all levels of government have delayed construction, restricted development, and driven up the costs of new housing. These constraints have made housing less affordable for many Americans.It is the policy of my Administration to reduce regulatory barriers to building homes and to steward taxpayer dollars in a manner that promotes housing affordability.HUD's PRO Housing program rewards communities that have taken steps to remove regulatory barriers to building and preserving homes by providing funding to further expand affordable housing, particularly homeownership opportunities and housing located in Opportunity Zones and rural communities.HUD is issuing this Fiscal Year 2026 (FY26) PRO Housing NOFO under the authority of the Consolidated Appropriations Act, 2026, which provided $50 million for competitive grant funding for state and local governments, metropolitan planning organizations (MPOs), and multijurisdictional entities. The Appropriations Act requires HUD to award grants using the Community Development Block Grant (CDBG) framework. As with all CDBG assistance, the priority is to serve low- and moderate-income people and households. HUD shall select applicants that demonstrate: (1) progress and a commitment to eliminating local barriers to facilitate the increase in affordable housing production and preservation, through enactment or implementation of less restrictive zoning, land use, or permitting laws and regulations; (2) an acute need for housing affordable to households with incomes below 100 percent of the area median income; and (3) a commitment to create new homeownership units before the expiration of the funding performance period.Applicants and grantees are reminded of the President's Executive Orders on Ending Illegal Discrimination and Restoring Merit-Based Opportunity (January 221, 2025) and Ending Radical and Wasteful Government DEI Programs and Preferences (January 20, 2025) and their applicability to PRO Housing funding. PRO Housing funding may not be used to fund "illegal and immoral discrimination programs, going by the name 'diversity, equity, and inclusion.'"In addition to thoroughly reviewing this NOFO, applicants are strongly encouraged to monitor HUD's PRO Housing website for information about general updates, Frequently Asked Questions, and PRO Housing webinars.HUD has four goals for this competition:Decrease the cost and increase the supply of affordable housing, especially in Opportunity Zones and rural communities.Remove barriers to affordable housing, removal of which will lead to constructing or rehabilitating more units, reducing time to produce units, and unlocking land that can be used for affordable housing units.Reward jurisdictions that have enacted laws and regulations that will lead to more affordable housing production and preservation.Increase opportunities for affordable homeownership by reducing administrative and structural barriers.

Files

File Type Posted
Foa_Content_of_CPD-2600-DC-0098.pdf PDF

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