Programs of HUD: Major Mortgage, Grant, Assistance, and Regulatory Programs 2018
Community Planning and Development
Capacity Building for Community Development and Affordable Housing
Grants to national intermediaries to develop the capacity and ability of community development
corporations (CDCs) and community housing development organizations (CHDOs) to carry out
community development and affordable housing activities that benefit low-income families.
Nature of Program: Section 4 of the HUD Demonstration Act of 1993 authorizes HUD to
provide assistance through competitive grants to five national nonprofit intermediary groups.
These groups provide direct operational support, loans, grants, and predevelopment assistance to
subgrantee CDCs and CHDOs or provide training and education to develop the capacity and
ability of CDCs or CHDOs to undertake community development and affordable housing
projects and programs. The grantees concentrate on neighborhood based nonprofit CDCs and
CHDOs that have as part of their mission the holistic improvement of the neighborhood for the
benefit of low income families. Private sources must provide a match three times the amount of
any assistance provided under this section.
Applicant Eligibility: Although the HUD Demonstration Act of 1993 lists five eligible grantees,
recent appropriations acts have limited eligible grantees to the following: Local Initiatives
Support Corporation (LISC), Enterprise Community Partners, Inc., and Habitat for Humanity
International.
Legal Authority: Section 4 of the HUD Demonstration Act of 1993 (Public Law 103-120,
approved October 27, 1993 (42 U.S.C. 9816 note).
Information Sources: Assistant Secretary for Community Planning and Development.
On the Web:
https://www.hudexchange.info/section-4-capacity-building/
Current Status: Active.