HUD Grants: How to Apply for Housing and Urban Development Funding

Overview of HUD Grant Programs

The U.S. Department of Housing and Urban Development (HUD) administers a wide range of grant programs that collectively invest billions of dollars in affordable housing, community development, fair housing enforcement, and homelessness prevention and response. For local governments, public housing authorities, nonprofit housing developers, and community-based organizations, HUD grants represent some of the most impactful federal funding available for addressing the housing crisis and strengthening vulnerable communities.

HUD's major grant programs fall into several categories that serve distinct purposes and populations:

• Community Development Block Grants (CDBG): Formula-based grants to states, cities, and counties for a wide range of community development activities that benefit low- and moderate-income persons. While CDBG funds flow primarily through entitlement communities, smaller communities can access funding through their state's CDBG program.
• HOME Investment Partnerships Program: Provides formula grants to states and localities for building, buying, and rehabilitating affordable housing for rent or homeownership, as well as providing direct rental assistance.
• Continuum of Care (CoC) Program: Competitively funds coordinated community-based systems for addressing homelessness, including permanent supportive housing, rapid re-housing, transitional housing, and supportive services.
• Housing Opportunities for Persons With AIDS (HOPWA): Funds housing assistance and supportive services for low-income persons living with HIV/AIDS and their families.
• Fair Housing Initiatives Program (FHIP): Supports organizations that combat housing discrimination through enforcement, education, and outreach activities.

Understanding HUD's NOFA Process

HUD publishes Notices of Funding Availability (NOFAs) through Grants.gov for its competitive grant programs. Each NOFA specifies eligibility requirements, application components, scoring criteria, and submission deadlines. HUD NOFAs tend to be lengthy and highly detailed, often exceeding 50 pages. Reading the entire NOFA carefully before beginning your application is not optional; it is the foundation of a successful submission.

Key elements to identify in each NOFA include:

• Threshold requirements: These are pass-fail criteria that must be met for your application to be reviewed. Failing a single threshold requirement results in automatic rejection regardless of how strong the rest of your application is.
• Rating factors and point values: HUD assigns specific point values to each rating factor. Your narrative should be organized to address each factor systematically and in the order presented.
• Bonus points and preference categories: Many HUD NOFAs offer bonus points for specific characteristics such as location in qualified opportunity zones, use of evidence-based practices, or commitment to affirmatively furthering fair housing.

A strong needs statement is the foundation of any HUD application. For detailed guidance on constructing data-driven needs analyses, consult our article on defining the problem and need statement.

Writing Competitive HUD Applications

HUD applications are scored by panels of reviewers who evaluate proposals against the published rating factors. Several strategies consistently distinguish funded applications from those that fall short:

Demonstrate Community Need with HUD-Specific Data

HUD values applicants who use HUD data sources to substantiate their needs analysis. Reference Comprehensive Housing Affordability Strategy (CHAS) data, Point-in-Time Count results for homelessness applications, Housing Inventory Counts, and American Community Survey data on housing cost burden, overcrowding, and substandard housing conditions. Quantify the gap between need and available resources in your service area.

Show Organizational and Partnership Capacity

HUD programs frequently require collaboration among multiple organizations, particularly the CoC program, which is built on a coordinated community response model. Your application should demonstrate both your organization's internal capacity and the strength of your partnerships. Describe your track record of administering federal funds, your financial management systems, your staff expertise, and your history of successful collaboration with community partners. Our guide on organizational capacity and partnerships in grant proposals provides frameworks for presenting these strengths effectively.

Address Equity and Fair Housing

HUD has made equity a central priority across its programs. Applications should address how the proposed project advances fair housing goals, serves underserved populations, and reduces disparities in housing access and quality. Reference your community's Assessment of Fair Housing or Analysis of Impediments to Fair Housing Choice, and explain how your project responds to identified barriers.

Post-Award Compliance and Reporting

HUD grants carry significant compliance obligations that successful applicants must be prepared to manage. These include environmental review requirements under the National Environmental Policy Act, Davis-Bacon prevailing wage requirements for construction projects, lead-based paint regulations, fair housing and nondiscrimination requirements, and detailed financial and performance reporting through HUD systems such as IDIS for CDBG and HOME, or HMIS for CoC programs. Planning for compliance from the outset strengthens both your application and your ability to administer the grant successfully. Our article on post-award grant management and compliance covers the fundamentals of managing federal awards.

Learn more about grant writing strategies at Subthesis.

Want comprehensive training in federal grant writing across agencies including HUD? Enroll in The Complete Grant Architect course to develop the skills needed to write competitive housing and community development proposals.