Notice of Funding Opportunity: Renew NC Commercial District Revitalization Program

April 6, 2026

1. Purpose

This Notice of Funding Opportunity (NOFO) announces the availability of funding under the Community Development Block Grant Disaster Recovery (CDBG-DR) Commercial District Revitalization Program (CDR) administered by the North Carolina Department of Commerce’s Division of Community Revitalization (DCR). 

The funds are provided by the U.S. Department of Housing and Urban Development (HUD) to assist in the revitalization of impacted commercial areas located within State- and HUD- Identified Most Impacted and Distressed (MID) counties, referred together as Combined MID. 

The NOFO is issued in alignment with HUD's 2025 Revised Universal Notice and aims to facilitate the return of commercial districts and businesses in the most impacted and distressed (MID) areas to profitability, restore and create jobs within the community, and ensure that residents will continue to have access to the products and services they need within their local community.

It is the intent of DCR that the submission of the application will federalize the project for which an applicant is applying, after which it will be subject to all applicable federal cross-cutting requirements. Once a project is federalized, the applicant may not undertake any choice-limiting actions, including acquisition, demolition, construction, or rehabilitation, until the required environmental review has been completed. The applicant must also comply with all applicable federal procurement requirements, labor standards, and nondiscrimination, relocation, and accessibility requirements.

CDR activities must demonstrate a tie-back to the impacts of Hurricane Helene. A tie-back refers to a clear and documented connection between the proposed activity and the impacts of the disaster, such as physical damage, economic damage, or vulnerability revealed or exacerbated by Hurricane Helene, however preference will be given to projects that are a response to physical damage. Tie-back must be established through a detailed description of damage caused by Hurricane Helene and by methods such as damage assessments, insurance claims, Federal Emergency Management Agency (FEMA) data, or other verifiable evidence.

2. Renew NC Commercial District Revitalization Policies and Procedures Manual

The Renew NC Commercial District Revitalization Policies and Procedures Manual is available online. This manual serves as the authoritative guide to the implementation of the CDR Program. It is intended for use by subrecipients, contractors, and other program stakeholders. 

3. Funding Round Allocation and Fund Limits

• Total Funding Allocation: $111,140,000
• Round 1 Total Funding Available: $40,000,000 
• Minimum Grant Amount: $500,000 
• Maximum Grant Amount: $10,000,000 

4. Program Objectives

• Address unmet disaster recovery needs to commercial districts in the following counties identified in the State’s Action Plan as the most impacted and distressed (MID) areas: Alexander, Alleghany, Ashe, Avery, Buncombe (see note), Burke, Caldwell, Catawba, Clay, Cleveland, Gaston, Haywood, Henderson, Jackson, Lincoln, Macon, Madison, McDowell, Mecklenburg (zip code 28214), Mitchell, Polk, Rutherford, Surry, Swain, Transylvania, Watauga, Wilkes, Yadkin, and Yancey. 
  • Note: projects located within Buncombe County that are also located within the City of Asheville are not eligible for funding in this Round 1 NOFO due to the availability of the City’s own CDBG-DR funding allocation.
• Create and/or retain jobs for Low- and Moderate-Income (LMI) individuals in most impacted and distressed (MID) areas.
• Restore local access to products and services for impacted communities in most impacted and distressed (MID) areas.

5. Eligible Applicants

• Units of local government; 
• Nonprofit organization primarily engaged in community revitalization activities that applies in partnership with a unit of local government. 

6. Project Eligibility Criteria

• Projects must meet all of the following conditions to be eligible for assistance under the CDR Program (refer to Policies and Procedures Manual for more detailed information): 
• Be located in a Combined MID Area as defined in the HUD-approved State Action Plan. However, projects located within the City of Asheville are not eligible for funding in this round;
• Meet one of four National Objectives:
  1. Low- and Moderate-Income Job Creation or Retention (LMJ) (priority) 
  2. Low- and Moderate-Income Area Benefit (LMA) (priority)
  3. Urgent Need
  4. Slum/Blight
• Demonstrate tie-back to Hurricane Helene by addressing an unmet need tied to damage caused by Hurricane Helene;  
• Must be constructed to mitigate the impact of likely future disasters (e.g., earthquakes, hurricanes, flooding, wildfires, etc.) in accordance with State and local codes, ordinances, and requirements; and 
• Be located in a commercial district (see Policies & Procedures Manual for full definition). 

7. Eligible Activities

Eligible activities include, but are not limited to: 

• Acquisition, demolition, site preparation, or rehabilitation of commercial structures carried out by a subrecipient; 
• Assistance for small businesses for rehabilitation and physical improvements to their places of business;  
• Mixed-use projects involving commercial revitalization and housing components (only the commercial revitalization portion being covered by these funds);  
• Facade improvements to private or public structures in commercial areas; and 
• Non-federal (local) match: Funds may be used to meet a matching, share, or contribution requirement for another federal program when used to carry out an eligible CDBG-DR activity. 

8. Ineligible Uses of Funds

• Duplication of benefits from other sources 
• Activities without a direct tie to disaster recovery 
• Direct loans to businesses for general operating costs
• Workforce readiness or job training programs
• Marketing and/or events
• Projects that primarily benefit large and/or non-local businesses

This funding round will not fund local government-designed and implemented grant programs. 

9. Application Submission Requirements

Each application must include the following documentation:  

• Completed Application Form – All required fields and attachments must be completed and uploaded.  

To meet the minimum requirements for citizen participation, local government applicants must hold two public hearings to obtain citizens’ comments, at least one of which must be held prior to submitting an application. The notice of such public hearing must be published at least 10 days but no more than 25 days before the date of the hearing. Notice must be published on the local government's website as well as at least one additional method to ensure wide participation. Examples include posting in the non-legal section of the newspaper with general circulation in the area, social media accounts, radio ads, and distribution lists. The notice must state the types of projects to be undertaken, the source and amount of funding available for the activities, the date by which comments must be made, and a contact person for a copy of the proposed application. The application will require documented evidence of properly noticed meetings; an affidavit may be submitted but is not required. Applicants must also provide for a 10-day comment period, which must close prior to the submission of the application. Refer to the Renew NC Commercial District Revitalization Policies and Procedures Manual for more information on Citizen Participation requirements. 

10. Threshold Criteria

Applications must meet all threshold criteria below to advance to scoring: 

1. Eligible Applicant 
2. Eligible Project Location 
3. Disaster Tie-Back and Unmet Need 
4. Project must include mitigation measures 
5. Project must meet a National Objective, as outlined above. Please refer to the Renew NC Commercial District Revitalization Policies and Procedures Manual for more information.
6. Project must be financially feasible and include a preliminary budget and financing plan that demonstrates feasibility and that the project is consistent with cost reasonableness standards; 
7. Project must be an eligible activity; and 
8. Complete and Timely Submission: application and all required documentation must be submitted in full by the NOFO deadline.

Applications that fail to meet the threshold criteria shall be disqualified and shall receive a disqualification letter/email sent to the point of contact listed in the application. 

11. Scoring and Evaluation Criteria

Applications will be competitively scored based on the weighted criteria provided below. Reviewers should use this framework to assess project feasibility, alignment with the Action Plan, and anticipated community impact. 

11.1 Capacity of the Applicant (10 percent/10 points) 

This criterion evaluates the qualifications, experience, and organizational infrastructure of the applicant. Applicants must demonstrate the skill and experience necessary for implementing the proposed services and performing all grant functions, including financial management and compliance. This includes, but is not limited to: 

• Experience managing federal or state grant programs; 
• Financial and staff capacity to oversee the project, compliance, and reporting; 
• Demonstrated ability to deliver similar projects on time and within budget.

Strong capacity ensures that the project can be executed efficiently, within budget, and in compliance with all applicable regulations. The augmented capacity third-party partners bring to a project to support the applicant will be considered so long as a plan for support is included in the application. 

11.2 Community Need for Commercial Area Investment (20 percent/20 points) 

This factor measures the degree to which the proposed project responds to a critical unmet need in the area affected by Hurricane Helene.  This includes, but is not limited to: 

• Extent to which the commercial area sustained direct physical damage or functional damage due to Hurricane Helene; 
• Degree to which the commercial area was economically distressed pre-disaster and is at risk of further decline without investment; 
• The project’s alignment with recovery priorities outlined in the NC Action Plan; 
• Evidence of the impacted district’s role as an area economic driver
• Feedback from community engagement and publicly noticed meetings.

Where applicable, applicants should include clear, evidence-backed links to damage, such as photos, FEMA, SBA, and/or other data.

11.3 Soundness of Approach (40 percent/40 points) 

This is the highest-weighted scoring category and assesses the overall viability and completeness of the proposed project. It includes, but is not limited to: 

• A clear, feasible project timeline with key milestones, indicating project preparedness; 
• Site readiness, including zoning, infrastructure access, and site control; 
• Project design that meets applicable building and resilience standards and incorporates hazard mitigation or resilient design; 
• Realistic cost estimates supported by professional sources; and 
• A strong plan for construction management and oversight.

This criterion also considers the degree to which the project can be executed without major delays or funding gaps. 

11.4 Leverage of Other Resources (20 percent/20 points) 

This criterion evaluates the extent to which the applicant brings non-CDBG-DR funds to the project. Leverage demonstrates financial commitment and enhances the efficiency of public investment. Leveraged sources may include, but are not limited to: 

• Philanthropic or local government contributions; 
• In-kind contributions; and 
• Other public funds.

Projects that minimize reliance on CDBG-DR funds will be prioritized. Documentation of other funding commitments will be reviewed.

11.5 Achieving Results (10 percent/10 points)

This category assesses the anticipated outcomes and long-term benefits of the project, including, but not limited to: 

• The number of jobs created or retained; 
• Impact of the project in expanding permanent employment opportunities for LMI persons; 
• Restoration or retention of key commercial services and resources for impacted communities.
• The project’s ability to promote commercial district revitalization and stability; and 
• Number of businesses helped.

11.6 Bonus or Priority Considerations

• LMA or LMJ National Objectives (10 points)
• Project location in HUD-identified MID Area (10 points)
• Geographical Distribution (in the case of a scoring tie)

11.7 Scoring Matrix

12. Federal Compliance Requirements

All awarded projects must comply with federal cross-cutting requirements, including but not limited to: 

• Davis-Bacon and Related Acts (DBRA) 
• Section 3 Economic Opportunities 
• Section 504 Accessibility and Compliance
• Uniform Relocation Act (URA) and Residential Anti-Displacement
• National Environmental Policy Act (NEPA) 
• 2 CFR Part 200 Financial Management 
• Duplication of Benefits (DOB) and cost reasonableness standards 
• Force Account Labor
• Civil Rights compliance, including the Fair Housing Act and Title VI of the Civil Rights Act
• Americans with Disabilities Act
• Minority and/or Women Owned Business
• Protecting Sensitive and Personal Identifiable Information 
• Conflict of Interest  

13. Application Deadline, Technical Assistance, and Prescreening

The application will be open for 120 days. Applications must be submitted online by August 4, 2026, at 5:00 PM. Late submissions will not be considered. 

Applications submitted prior to June 5, 2026 will be reviewed in a first batch mid-way through the funding round, and applications submitted after June 5, 2026 but before the application deadline of August 4, 2026 will be reviewed in a second batch at the conclusion of the funding round.  

Applications are to be submitted through the Renew NC Grant Portal and will not be accepted via hard copy or email.

DCR will provide a pre-recorded Application Guidance video to support potential applicants. The recording will be made publicly available by April 15, 2026, and applicants are strongly encouraged to review the video in full. Questions regarding the NOFO and the Application Guidance video can be submitted to dcr.grants@commerce.nc.gov and DCR will produce and post and FAQ to the website.  

Applicants may also request one-on-one technical assistance by contacting program staff at the email address below or directly.  

Local governments and nonprofit organizations are strongly encouraged to complete on online prescreening prior to submitting an application. While not required, prescreening helps assess project and organizational readiness before entering the competitive application process.  

The online prescreening is provided at the Renew NC Grant Portal. After receiving a submission, DCR staff will follow up to discuss next steps. A step-by-step overview of the prescreening process is available to view online. 

14. Contact Information

North Carolina Department of Commerce Division of Community Revitalization (DCR) 

Mailing address: 4301 Mail Service Center, Raleigh NC, 27699

Physical address: 430 N. Salisbury St, Raleigh NC, 27603

Email: dcr.grants@commerce.nc.gov   

Phone: 919-814-4600 

Website: commercerecovery.nc.gov