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. The path for nonprofits: 1) Identify your local CDBG entitlement community and HOME jurisdiction, 2) Attend local CoC meetings if working on homelessness, 3) Monitor Grants.gov for direct HUD competitions (FHIP, choice neighborhoods, etc.), 4) Build relationships with your local HUD field office. HUD field offices often know about upcoming funding before it's formally announced.