More than 250 communities will be able to increase the economic impact of their local community development and affordable housing programs with the help of $36 million in “capacity-building” grants awarded by the Department of Housing and Urban Development (HUD).

Adrianne Todman
Sammy Mayo jr Adrianne Todman

The funds 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, said the federal agency.

Three national groups were selected to distribute the funds to local initiatives that support affordable housing and community development—Local Initiatives Support Corp. (LISC), Enterprise Community Partners, and Habitat for Humanity International.

“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,” said HUD deputy secretary Adrianne Todman. “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.”

These awards go to increasing technical and administrative support of projects that provide adequate housing, education, employment and shopping, safe streets, and transportation. Because the grant program requires a minimum three-to-one private/public match, these grants will stimulate nearly $150 million in total investment.

Enterprise Community Partners will receive a Section 4 grant award in the amount of $14,253,912 with a three-to-one match commitment of $42,761,736. Enterprise’s organizational structure is specifically designed to provide comprehensive support to community development corporations (CDCs) and community housing development organizations (CHDOs) with a full platform of capital investment products, including debt and equity, program development and technical assistance services, and research and advocacy.

“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.”

LISC will receive a Section 4 grant award in the amount of $13,647,363 with a three-to-one match commitment of $40,942,089. LISC focuses on effectively increasing CDC and CHDO capacity with Section 4-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 three-to-one 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.