◆ Key Takeaways
- HUD distributes $60B+ annually — primarily through state and local governments and nonprofits, not directly to individuals.
- CDBG is $3.3B and highly flexible — nonprofits access it through subgrants from their city/county, not direct HUD applications.
- HOME CHDOs must receive 15% of allocations — nonprofits developing affordable housing should register as a CHDO with their local Participating Jurisdiction.
- CoC funds $3B+ for homeless services — access runs through local CoC coalitions, not directly from HUD; find yours at hudexchange.info.
- FHIP grants ($30M+) are competitive and open to nonprofits — fair housing organizations apply directly through Grants.gov when NOFOs are posted.
Summary
The Department of Housing and Urban Development distributes over $60 billion annually — making it one of the largest federal grant-making agencies. HUD funds flow primarily to state and local governments and nonprofits for affordable housing development, community development, homelessness services, and fair housing enforcement.
CDBG: Community Development Block Grants
The Community Development Block Grant program distributes approximately $3.3 billion annually by formula to over 1,200 cities and counties. CDBG is one of the most flexible federal grants — local governments can use it for affordable housing, economic development, public facilities, infrastructure, and public services, provided at least 70% benefits low- and moderate-income residents.
Nonprofits cannot apply directly for CDBG — they partner with their city or county government, which administers CDBG locally. Contact your city or county's Community Development or Housing Department to learn about local CDBG funding cycles and how nonprofits can apply for subgrants.
HOME Investment Partnerships Program
HOME provides $1.25 billion+ annually to states and localities specifically for affordable housing — construction, rehabilitation, homebuyer assistance, and tenant-based rental assistance. HOME funds are often combined with Low-Income Housing Tax Credits (LIHTC) for affordable housing development. Community Housing Development Organizations (CHDOs) — qualifying nonprofits — must receive at least 15% of a jurisdiction's HOME allocation. If your nonprofit develops affordable housing, register as a CHDO with your local HOME-participating jurisdiction.
CoC: Continuum of Care Homeless Grants
The Continuum of Care (CoC) program funds over $3 billion annually for homelessness services — permanent supportive housing, rapid rehousing, transitional housing, street outreach, and homeless management information systems. CoC funding flows through local CoC coalitions, not directly from HUD to individual nonprofits. To access CoC funding, nonprofits must participate in their local CoC and submit applications through the annual CoC competition. Find your local CoC at hudexchange.info/programs/coc/coc-contact-information.
Section 8 Housing Choice Vouchers
Section 8 is the nation's largest rental assistance program — subsidizing rent for approximately 5 million low-income households. Vouchers are administered by over 2,200 Public Housing Authorities (PHAs). PHAs occasionally receive new voucher allocations through HUD competitions. The Emergency Housing Voucher (EHV) program created additional vouchers for people experiencing homelessness, domestic violence, or exiting justice or foster care systems.
Fair Housing Grants
HUD's Fair Housing Initiatives Program (FHIP) and Fair Housing Assistance Program (FHAP) fund nonprofits and state/local agencies to combat housing discrimination. FHIP grants ($30M+ annually) fund fair housing organizations to educate the public, investigate complaints, and conduct testing. These are competitive grants open to nonprofits — posted on Grants.gov when open. HUD also funds housing counseling agencies through the Housing Counseling Program grant.
How to Access HUD Funding as a Nonprofit
Most HUD funding flows through local intermediaries — cities, counties, and CoC coalitions — meaning nonprofits almost never apply directly to HUD for their core formula programs. The most important first step is identifying your local CDBG entitlement community (the city or county that receives a direct CDBG allocation) and your HOME Participating Jurisdiction. Both the city's Community Development department and the PJ maintain annual application cycles for subawardees. Timing is critical: most local CDBG and HOME funding rounds open in late fall or early spring for activities beginning in the next federal fiscal year, and organizations that miss the cycle typically wait 12 months for the next opportunity.
For homeless service providers, the path runs through the local CoC. Attending CoC planning meetings — which are open — is the only way to understand the local application ranking criteria, build the relationships that influence project scoring, and position a new project for inclusion in the annual competition application. HUD field offices are an underutilized resource: they are aware of upcoming NOFOs, can clarify regulatory questions, and sometimes know about upcoming policy changes before they are publicly announced. Nonprofits seeking competitive HUD grants (FHIP, Choice Neighborhoods, Housing Counseling) should monitor Grants.gov with HUD as the agency filter, as these NOFOs are often open for only 60–90 days and require substantial application preparation time.
◆ Action Checklist
- Identify your local CDBG entitlement community — contact the city/county Community Development department about nonprofit subgrant opportunities and their annual funding cycle timing.
- If developing affordable housing: apply to your local PJ for CHDO certification — this gives your nonprofit access to the mandatory 15% HOME set-aside before the general applicant pool.
- For homeless services: find your local CoC at hudexchange.info/programs/coc/coc-contact-information — attend planning meetings to understand project ranking criteria and build relationships.
- Monitor Grants.gov filtered by HUD for FHIP, Choice Neighborhoods, and Housing Counseling NOFOs — they open for only 60–90 days with minimal advance notice.
- Register at SAM.gov and obtain a UEI — required for all federal HUD awards and sub-awards.
- Connect with your local HUD field office — they are aware of upcoming funding before official announcements and can advise on program alignment before you invest in an application.
Frequently Asked Questions
What are HUD's major grant programs?
Formula programs include CDBG, HOME, Emergency Solutions Grants, and Housing Trust Fund. Competitive programs include Continuum of Care homeless assistance, Choice Neighborhoods, Section 202/811 supportive housing, Healthy Homes, and Community Compass technical assistance. Most flow through governments and established nonprofits.
Can individuals apply to HUD for help?
No — HUD funds organizations, not individuals. People seeking housing help should contact their local public housing authority for vouchers, their city housing department for rehab and down payment programs, or a HUD-approved housing counseling agency (free) to navigate options.
What is Choice Neighborhoods funding?
Choice Neighborhoods awards implementation grants up to $50 million to transform distressed public housing and surrounding neighborhoods through mixed-income redevelopment, plus smaller planning grants. Applicants are housing authorities, cities, and nonprofits working with a public housing site.
What reporting does HUD require from grantees?
Expect IDIS (Integrated Disbursement and Information System) reporting for formula funds, annual CAPERs documenting accomplishments, Davis-Bacon wage compliance on construction, environmental reviews under 24 CFR Part 58, and Section 3 hiring requirements. Build administrative capacity into your budget.