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FY 2023 Section 4 Capacity Building for Community Development and Affordable Housing


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.

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.

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

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

Funding of approximately $83,000,000 is available through this NOFO. HUD expects to make approximately 3 awards from the funds available under this NOFO.

Program Office: Office of 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: 14.252

OMB Approval Number: N/A

Opening Date: September 12, 2023

Deadline Date: November 13, 2023

Program NOFO