Multi-Family Construction and Repair Program: Non-LIHTC

• Total Funding: Approximately $70 million in CDBG-DR funding is allocated for the MCR Program.  
• Award Size: Grants generally range from $500,000 up to $15 million per project, depending on scope and need.  
• Competitive Process: Awards will be made through a competitive application process administered by the Division of Community Revitalization. 

There are 28 counties and one zip code that are eligible for this program. Projects located within HUD- and State-identified Most Impacted and Distressed (MID) areas are eligible for the program. Priority is initially given to projects located within HUD-identified MID areas. 

HUD-Identified MID Counties

• Ashe, Avery, Buncombe, Burke, Caldwell, Cleveland, Haywood, Henderson, Madison, McDowell, Mecklenburg (ZIP code 28214), Mitchell, Polk, Rutherford, Transylvania, Watauga, and Yancey

State-Identified MID Counties

• Alexander, Alleghany, Catawba, Clay, Gaston, Jackson, Lincoln, Macon, Surry, Swain, Wilkes, and Yadkin

Eligible applicants include:

• For-profit developers;
• Non-profit developers;
• Public housing authorities;
• Local governments; 
• Joint ventures between these entities.

Eligible uses of funds for the MCR Program include, but are not limited to:

• New construction of multi-family rental units;
• Substantial rehabilitation of existing rental units;
• Related site preparation and infrastructure improvements;
• Soft costs such as architectural and engineering fees;
• Compliance with HUD environmental, construction, and accessibility requirements.

Projects must:

• Include five (5) or more rental units under common ownership and management; 
• Be located in an eligible area;
• Must be constructed to mitigate the impact of likely future disasters in accordance with State and local codes, ordinances, and requirements;
• Must meet the accessibility requirements of 24 CFR Part 8, which implements section 504 of the Rehabilitation Act of 1973 (29 U.S.C. § 794), and Titles II and III of the Americans with Disabilities Act (42 U.S.C. 12131-12189) implemented at 28 CFR parts 35 and 36, as applicable. Covered multi-family dwellings, as defined at 24 CFR 100.201, must also meet the design and construction requirements at 24 CFR 100.205, which implements the Fair Housing Act (42 U.S.C. § 3601-3619);
• Newly constructed housing shall qualify as affordable housing under this part only if it meets the energy efficiency standards promulgated by the Secretary in accordance with section 109 of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. § 12709); 
• Construction must include installation of broadband infrastructure, as applicable and as this term is defined in 24 CFR 5.100, unless a waiver is granted by DCR. A waiver may be considered if the cost of installing broadband would result in a fundamental alteration in the nature of the project or activity, create an undue financial burden, or if the structure or location makes installation infeasible;  
• Address an unmet need related to Hurricane Helene (e.g., replacement of units damaged or destroyed by the storm; expansion of affordable rental housing supply to accommodate displaced households; or redevelopment in neighborhoods experiencing post-disaster affordable housing shortage); 
• Demonstrate a clear relationship (“tie-back”) to the impacts of Hurricane Helene. This can be demonstrated directly or indirectly through documented storm damage, increased housing demand from storm-related displacement, vulnerabilities revealed or worsened by the disaster, or a resilience or mitigation activity that reduces risk in future events. Tie-back must be supported by reliable sources such as damage assessments, FEMA information, insurance records, or other official data;
• Be covered by a minimum 20-year affordability and restrictive use period consistent with requirements established by the Action Plan. 

1. Prescreening: DCR offers an optional but highly recommended project prescreening. 
2. Notice of Funding Opportunity (NOFO): DCR will issue NOFOs with application materials and deadlines.
3. Application Submission: Applicants complete and submit required documentation demonstrating eligibility, need, and project feasibility.  
4. Evaluation and Award: DCR evaluates applications against criteria.
5. Post-Award Requirements: Selected applicants must comply with federal environmental review processes, reporting, construction standards, and grant compliance procedures.