More than 250 communities across the country will be able to increase the economic impact of their local community development and affordable housing programs for low- and moderate-income persons through $36 million in “capacity-building” grants awarded by the U.S. Department of Housing and Urban Development (HUD). The funds awarded will support three national organizations and are ultimately expected to produce approximately 8,000 units of affordable housing nationwide and stimulate nearly $150 million in total investment.
Three national groups were selected to distribute the funds to local initiatives that support affordable housing and community development – Local Initiatives Support Corporation (LISC); Enterprise Community Partners, Inc.; and Habitat for Humanity International.
“I am pleased to announce these funds to build affordable housing and make communities stronger,” said HUD Deputy Secretary Adrianne Todman during a virtual press call announcing the awards. “With this innovative pot of funds, we are building the capacity of local organizations to really solve the problems their communities are facing in the affordable housing and community development space. President Biden’s Build Back Better framework, which makes the single largest and most comprehensive investment in affordable housing in U.S. history, will enhance our ability to benefit even more communities.”
“HUD’s Section 4 Capacity Building Program plays a vital role in the work we do at Enterprise to make homes and communities places of pride, power, and belonging,” said Enterprise Community Partners President and CEO Priscilla Almodovar. “Section 4 grants enable nonprofits to better serve the unique needs of communities by providing them with flexible resources and training to develop affordable housing, support small businesses, and revitalize commercial corridors. This support for organizations to expand their services and help our nation rebuild from the pandemic is critical, particularly as the Administration and Congress work to provide historic levels of investment in housing and community development programs through the Build Back Better Act.”
“Section 4 is a direct investment in a more broadly shared prosperity,” said Lisa Glover, interim LISC president and CEO. “It builds the resiliency of our communities by strengthening local organizations that fuel affordable housing, strong businesses, health, education and jobs. It underpins more vibrant, more inclusive local economies, especially as we emerge from the pandemic, and it creates pathways to opportunity that would not otherwise exist. We’re honored to receive this award and to work with HUD and our local partners to deploy this vital resource across the country.”
“With the supply of affordable housing at a historic low, these funds will help increase the supply of affordable housing where Habitat builds and ultimately benefit more families as they work to build and improve the places they call home,” said Habitat for Humanity International Senior Vice President of U.S. & Canada Adrienne Goolsby. “We are delighted to be selected to distribute this vital funding to local communities. The HUD grants are aimed at adding affordable housing units and support community development. With these funds, Habitat for Humanity will be able to do exactly that.”
These awards go to increasing technical and administrative support of projects that provide adequate housing, education, employment and shopping, safe streets, and transportation. Because HUD’s capacity building grant program requires a minimum three-to-one private/public match, these grants will stimulate nearly $150 million in total investment.
The national groups awarded funding will work with community development corporations (CDCs) and community housing development organizations (CHDOS) to carry out community development and affordable housing activities. This partnership will help to rebuild and revitalize neighborhoods and improve the lives of residents by creating affordable housing opportunities and jobs through community and economic development activities that would not otherwise have occurred.
The following organizations will receive Section 4 funds (see individual descriptions below):
| Applicant | Amount |
| Enterprise Community Partners | $14,253,912 |
| Local Initiatives Support Corporation (LISC) | $13,647.363 |
| Habitat for Humanity International | $8,098,725 |
| Total | $36,000,000 |
Additional Information on HUD’s Fiscal Year 2020 Section 4 Grantees
Enterprise Community Partners will receive a Section 4 grant award in the amount of $14,253,912 with a 3 to 1 match commitment of $42,761,736. Enterprise’s organizational structure is specifically designed to provide comprehensive support to CDCs and CHDOs with a full platform of capital investment products, including debt and equity, program development and technical assistance services, and research and advocacy.
Local Initiatives Support Corporation (LISC) will receive a Section 4 grant award in the amount of $13,647,363 with a 3 to 1 match commitment of $40,942,089. LISC focuses on effectively increasing CDC and CHDO capacity with Section4-funded resources ensuring that they will address needs at both the organizational level and the community level; as these organizations are strengthened internally, they are able to grow programs and investments externally to have broader and deeper community impact.
Habitat for Humanity International will receive a Section 4 grant award in the amount of $8,098,725 with a 3 to 1 match of $24,296,175. Habitat uses Section 4 funds to award their affiliates to build their capacity to effectively develop affordable housing in partnership with low-income families and individuals in their defined geographic service areas. Habitat CDCs’ services include home construction, homeowner counseling, budget training, and, in many instances, housing renovation, housing rehabilitation, and general support of neighborhood revitalization efforts.