provides approximately $10 billion in funds annually to state and
local governments and public housing authorities. Approximately
one-half of the funds is subsequently used for contracted products
and services. Review the following funding program descriptions,
lists of eligible activities and contracting opportunities generated
by these funds to determine how you can identify contracting opportunities
for your business.
addition to direct contracting opportunities with HUD, substantial
contracting opportunities exist with HUD grantees and funding recipients.
These contracting opportunities are not advertised by HUD. You must
contact either the grantees or funding recipients directly. Keep
in mind that Federal requirements and programs associated with the
Section 8(a) program, SDB certification, etc., do not apply to these
contracts. The Federal requirements and programs are only applicable
at the Federal level. State, local and private sector procurements
are regulated by and must conform to their own state and local procurement
rules. However, Part 85 of HUD's Code of Federal Regulations which
promotes contracting with small businesses is included in each of
HUD's grant and funding documents. Part 85 encourages HUD grantees
and funding recipients to take necessary affirmative steps to ensure
that small, minority-owned and women-owned businesses are solicited
and used when ever possible when contracting opportunities arise.
To assist you in identifying potential contracting opportunities
generated by HUD's grant and funding recipients, please review the
following web page:
of HUD's major grant programs including the Offices of Community
Planning and Development, Public and Indian Housing, Housing and
Lead Hazard Control are provided in the following pages. Each funding
program, its purpose, eligible activities and examples of contracting
opportunities are discussed in detail.
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of Community Planning and Development
following paragraphs provide a summary of HUD's Office of Community
Planning and Development's (CPD) major grant programs including
Community Development Block Grant programs, Empowerment Zone/Enterprise
Communities programs and Brownfields redevelopment. For more information
on these programs, please visit CPD's web page at http://www.hud.gov/offices/cpd/index.cfm.
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Development Block Grant (CDBG) Program
is one of HUD's most important programs. This program has had a
tremendous impact on Urban America since its inception. Cities and
counties have used CDBG funds to rebuild and revitalize their communities
for the past 25 years. Countless projects have been financed with
these funds including acquisition of land for housing construction
and neighborhood parks. CDBG provides states, eligible metropolitan
cities and urban counties with annual direct grants that they can
use to revitalize neighborhoods, expand affordable housing and economic
opportunities, and/or improve community facilities and services,
principally to benefit low- and moderate-income persons.
1974, CDBG has been the backbone of improvement efforts in many
communities, providing a flexible source of annual grant funds for
local governments nationwide-funds that they, with the participation
of local citizens, can devote to the activities that best serve
their own particular development priorities, provided that these
projects either (1) benefit low- and moderate-income persons; (2)
prevent or eliminate slums or blight; or (3) meet other urgent community
one of the Nation's largest Federal grant programs, the impact of
CDBG-funded projects can be seen in the housing stock, the business
environment, the streets and the public facilities of these entitlement
communities. Although the rehabilitation of affordable housing has
traditionally been the largest single use of CDBG funds, the program
is also an increasingly important catalyst for economic development
activities that expand job and business opportunities for lower
income persons and neighborhoods.
may use CDBG funds for activities that include (but are not limited
real property (primarily land, buildings, and other permanent
improvements to the property) for public purposes. This type of
activity might include, for example, buying abandoned houses for
rehabilitation or an old industrial site in a distressed neighborhood
for redevelopment. CDBG also helps communities demolish property
and clear sites to prepare the land for other uses.
Reconstructing or rehabilitating housing and other property. From
homeless shelters to single-family homes and from playgrounds
to shopping centers, CDBG enables communities to improve properties
that have become less usable, whether due to age, neglect, natural
disaster, or changing needs. New construction of housing is allowed
only in certain circumstances.
public facilities and improvements, such as streets, sidewalks,
sewers, water systems, community and senior citizen centers and
Helping people prepare for and obtain employment through education
and job training, welfare-to-work activities, and other services.
Providing public services for youths, seniors or the disabled.
These might include day care centers, youth services and meals
on wheels for the elderly, health care facilities, transportation,
out crime reduction initiatives such as establishing neighborhood
watch programs, providing extra police patrols, rehabilitating
or constructing police substations, and clearing abandoned buildings
used for illegal activities.
low-income homebuyers directly through, for example, downpayment
assistance, subsidizing interest rates or helping with closing
costs for first-time buyers.
local building codes to reverse housing deterioration and other
signs of blight.
for planning and administrative expenses.
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108 Loan Guarantees
Of particular interest to small businesses is the fact that the
Section 108 Loan Program may be used for assisting for-profit businesses
for special economic development activities. Such projects might
include micro-enterprise loans to low-income entrepreneurs, assembling
land to attract new industry, or business expansion loans to help
retain existing businesses that employ low-income workers.
support economic development projects, local governments can use
HUD's Section Loan Guarantee Program. Section 108 is the loan guarantee
provision of the CDBG program. It provides communities with a source
of financing for economic development, housing rehabilitation, public
facilities and large scale development projects. Guaranteed loans
can be made to local businesses who repay the loans from the cash
flow generated by their enterprises. The loans have terms of up
to 20 years and have fixed interest rates competitive in today's
financial markets. The business opportunities under this program
most often are direct assistance to small businesses under revolving
loan programs as well as assistance to large businesses through
the provisions of gap financing.
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Renewal Initiative for Renewal Communities, Urban Empowerment Zones
and Enterprise Communities (RC/EZ/EC)
HUD Inititative for RC/EZ/EC is important to development within
distressed urban and rural areas nationwide. The RC/EZEC through
federal grants, tax incentives, and partnerships with government,
for-profit and non-profit entities, has opened businesses and created
jobs, housing, and educational and healthcare opportunities afording
thousands of Americans economic opportuinties.
Opportunity is a key principal of the RC/EZ/EC and includes creating
jobs in communities; providing entrepreneurs with technical assistance;
providing greater access to capital and credit for businesses to
expand and create job opportunities for residents; and providing
residents with access to job training and job placement services.
Adding the principles – Strategic Vision for Change, Communitiy-Based
Partnerships, and, Sustainable Community Development – the RC/EZ/EC
Initiative affords communities real opportunities for growth and
revitalization. The Initiative offers residents and businesses opportunites
and resources through business and employment opportunities, as
well as expanded support services including childcare, education
and healthcare. This ten-year effort has resulted in visible change
in neighborhoods in the form of business start-up and expansions,
new jobs, commercial and housing development, improved services
for community residents.
and assisting business development is a driving force of the RC/EZ/EC
Initiative. For more information about the Initiative vist the website
available at http://www.hud.gov/offices/cpd/economicdevelopment/programs/rc/index.cfm.
The resources provided are part of the effort to spur bisiness development
in the Rc/EZ/Ecs. Links at the web site describe sources of capital
for RC/EZ/EC businesses, contains informative publications on tax
incentives, and describes programs that pair small and large businesses
in mentoring relationships. The resources provide communities and
individual businesses with ideas to help you develop to your full
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Redevelopment Initiative (BRI)
Brownfields Economic Development Initiative (BEDI) is one of the
key competitive grant programs that HUD administers to stimulate
and promote economic and community development activities under
Section 108(q) of the Housing and Community Development Act of 1974,
as amended. A brownfield is an abandoned, idled, or underused property
where expansion or redevelopment is complicated by real or perceived
contaminations. Brownfields sites include abandoned factories and
other industrial facilities, gasoline stations, oil storage facilities,
dry cleaning stores and other businesses that dealt with polluting
substances. BEDI funds are primarily targeted and used for economic
redevelopment of brownfield sites to increase economic opportunities
for low-and moderate-income persons to stimulate or retain businesses
or jobs or that would otherwise lead to economic revitalizations.
redevelopment can benefit both private investors and the communities
in which they are located. For the private sector, brownfields redevelopment
can mean new business opportunities, the potential for profit on
unused or under-utilized properties, improved community and environmental
stewardship, and access to untapped urban markets. The public sector
can benefit from an increased number of employment opportunities;
increased local and state tax revenues, improvements in the community’s
quality of life, and a reduction in urban sprawl.
addition to the BEDI brownfields redevelopment can be financed by:
Community Development Block Grants (CDBG); Section 108 Loan Guarantees;
Economic Development Initiative (EDI) grants; and, Empowerment Zone/
Enterprise Communities. More information about how HUD invests in
communities by restoring brownfields is available at web site address:
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Office of Public and Indian Housing
following paragraphs provide a summary of the Office of Public and
Indian Housing (PIH) major grant programs. For a listing of Public
Housing Authorities and additional information on the Public Housing
Capital Funds program, visit PIH's web site at http://www.hud.gov/offices/pih/index.cfm.
Capital Fund Program provides funds to Public Housing Agencies
(PHA) to improve the physical condition, upgrade the management
and operation, and carry out other activities for Public Housing
developments. The Capital Funds provided to the PHAs are calculated
by an established Capital Fund formula.
PIH Headquarters designates a percentage of Capital Funds
to be provided to each Office of Native American Programs,
funding Indian Housing and any Public Housing owned and operated
by Indian Housing Authorities.
Examples of eligible Capital Fund activities include but are
not limited to: the redesign, reconstruction, and reconfiguration
of public housing sites and buildings; management improvements
which upgrade the operation of the PHAs developments,
sustain physical improvements and correct management deficiencies;
management costs such as financial and accounting control
systems; economic development costs such as job training for
residents; resident management costs such as technical assistance;
preventive maintenance for regular building structures, systems
and units; physical improvements to enhance security, etc.
To review a housing authoritys comprehensive plan, visit
PIHs web site at: http://www.hud.gov/offices/pih/pha/
HOPE VI program was designed to eradicate severely distressed
public housing with a focus on three general areas: physical
improvements, management improvements, and social and community
services to address resident needs.
HOPE IV permits expenditures for the capital costs of demolition,
construction, rehabilitation and other physical improvements,
development of replacement housing, and community and supportive
services. It encourages PHAs to seek new partnerships with
private entities to create mixed-finance and mixed-income
affordable housing that is radically different from traditional
public housing projects. PHAs administer the program,
and can use the grants in conjunction with modernization funds
or other HUD funds, as well as municipal and state contributions,
public and private loans, and low-income tax credit equity.
While most of the funds are to be used for capital costs,
a limited amount may be used for community and supportive
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Office of Housing
following paragraphs provide a summary of the Office of Housings
Supportive Housing for the elderly and persons with disabilities.
202 Supportive Housing For The Elderly Program
202 provides capital advances to non-profit organizations
to finance the construction and rehabilitation of structures
that will serve as supportive housing for very low-income
elderly persons and provides rent subsidies for the projects
to help make them affordable.
This program helps expand the supply of affordable housing
with supportive services for the elderly. It provides low-income
elderly with options that allow them to live independently
but in an environment that provides support activities such
as cleaning, cooking, transportation, etc.
This program provides capital advances to finance property
acquisition, site improvements, conversion, demolition, relocation,
and other expenses associated with supportive housing for
811 Supportive Housing For Persons With Disabilities
Section 811 program provides grants to nonprofit organizations
to develop, construct or rehabilitate rental housing with
supportive services for very low-income persons with disabilities.
The companion Mainstream Program awards funding for Section
8 rental vouchers and certificates to very low-income families
whose head, spouse, or sole member is a person with a disability.
The Section 811 program allows persons with disabilities to
live independently by increasing the supply of rental housing
with supportive services and related facilities. The program
also allows the sponsor to get project rental assistance,
which can cover any part of the HUD-approved operating costs
of the facility that is not met from project income.
The Section 811 program grants interest-free capital advances
for nonprofit sponsors to help them finance the development
of rental housing with supportive services for persons with
disabilities. The capital advance can finance the construction
or rehabilitation of supportive housing.
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Office of Healthy Homes and Lead Hazard Control
following paragraphs provide a summary of the Office of Healthy
Homes and Lead Hazard Control programs.
Hazard Control Grant Program
Lead Hazard Control Program funds a broad range of activities
to reduce dangers from lead-contaminated dust, soil, and paint
in private homes and apartments built before 1978 that are
owned or rented by low-income families. The primary source
of such poisoning is the dust that comes from peeling or chipping
lead-based paint or dust that is created during repainting
or remodeling projects.
HUD's Lead Hazard Control Program provides competitive grants
to states and local governments. It provides two kinds of
grants: funds for privately owned housing and funds for housing
units on Superfund/Brownfield sites.
Eligible activities include inspection and testing of homes
for lead-based paint and lead-contaminated dust and soil;
removal, enclosure, encapsulation, or replacement of lead
hazards; engineering and architectural costs that support
lead hazard reduction; liability insurance; blood testing
of young children; temporary relocation of families during
hazard control; community education and outreach; data collection,
analysis, and evaluation of hazards; and pre- and post-hazard
reduction testing. The program also funds up to 10 percent
of the administrative costs incurred by the grantee and program
planning and management costs for subgrantees.
For additional information on these programs and listing of
state and local government grantees, visit the office's web
site at http://www.hud.gov/offices/lead/index.cfm.
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