Notice of Funding Opportunity: Renew NC Community Infrastructure Program

July 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) Community Infrastructure (CI) Program, administered by the North Carolina Department of Commerce, 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 submitting the application will federalize the project for which the 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.  

CI Program activities and projects must demonstrate either a direct or indirect 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 or vulnerability revealed or exacerbated by Hurricane Helene. The 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 Community Infrastructure Policies and Procedures Manual

The Renew NC Community Infrastructure Policies and Procedures Manual is available online. This manual serves as the authoritative guide to implementing the ​​Community Infrastructure (CI)​​ Program. It is intended for use by subrecipients, contractors, and other program stakeholders. 

3. Funding Round Allocation and Fund Limits

Applicants may submit more than one application; DCR may limit the total number of awards to ensure equitable distribution. 

• Total Funding Allocation: ​$55,000,000​  
• Minimum Grant Amount: ​$500,000​
• Maximum Grant Amount: ​$15,000,000​   

4. Program Objectives

The CI Program aims to:

• Address unmet disaster recovery needs in the following counties identified in the State’s Action Plan as the most impacted and distressed (MID) areas: Alexander, Alleghany, Ashe, Avery, Buncombe, 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 due to the availability of the City’s own CDBG-DR funding allocation.
• Restoring access to essential services,  
• Repair critical infrastructure; and  
• Strengthening community resilience.  

5. Eligible Applicants

Eligible applicants include units of local government located in eligible areas. Examples of units of local government include:

• Counties (e.g., Rutherford County)
• Municipalities such as cities, towns, or villages (e.g., City of Rutherfordton)
• Water and Sewer Authorities
• Transit Agencies
• Park or Recreation Districts 

6. Project Eligibility Criteria

Projects must meet all the following conditions to be eligible for assistance under the ​Community Infrastructure (CI)​ Program. Refer to the CI Program Policies and Procedures​ for more detailed information. This includes, at a minimum, not undertaking any choice-limiting activity prior to successful completion of the HUD-required environmental clearance review A choice limiting action violation is an activity, as defined in 24 CFR 58.22, undertaken after the federal nexus but prior to obtaining environmental clearance, that reduces or eliminates a grantee’s opportunity to choose project alternatives that would avoid or minimize environmental impacts or enhance the quality of the human environment. Choice-limiting actions include, but are not limited to, real property acquisition, demolition, construction, rehabilitation, site preparation or clearance, ground disturbance, and leasing. The applicant must also comply with all applicable federal procurement requirements, labor standards, and nondiscrimination, relocation, and accessibility requirements, as well as comply with all compliance and reporting requirements.  

Projects must also:

• Be 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;  
• Meet one of four National Objectives;
  1. Low- and Moderate-Income Area Benefit (LMA) (Priority); or
  2. Low- and Moderate-Income Clientele (LMC) (Priority)
  3. Urgent Need (Prior Approval Required)
  4. Slum/Blight (Prior Approval Required)
• 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. The 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;  
• 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. 

7. Eligible Activities

Eligible Activities, as defined in section 1.4 of the CI Program Policies and Procedures, include: 

• Restoration of critical services and infrastructure (such as water and sewer facilities, streets, provision of permanent generators, bridges, etc.);  
• Demolition, rehabilitation, or construction of programmatically eligible public or semi-public facilities (such as fire stations, shelters, food banks);  
• Flood control and drainage repair and improvements, including the construction or rehabilitation of storm water management systems;
• Acquisition (e.g., easement, right-of-way [ROW], etc.); as part of a project;
• Rehabilitation of schools, health care centers, water or wastewater facilities, drainage improvements, etc.;  
• Related site preparation and infrastructure improvements;  
• Reasonable and customary non-construction (soft cost such as architectural and engineering fees), and,
• Compliance with HUD environmental, construction, and accessibility requirements. 

8. Ineligible Uses of Funds

Vehicles, non-permanently installed equipment, and routine maintenance are ineligible unless allowable under 24 CFR 570.201.

Unless clearly related to eligible activities and costs described above, all other activities and associated costs are deemed ineligible for CI Program funding. Ineligible activities are defined in 24 CFR 570.207.  

These include, but are not limited to: 

• Duplication of benefits from other sources
• Activities without a direct tie to disaster recovery
• Costs incurred prior to environmental clearance, unless approved by DCR as outlined in the program’s policies and procedures,
• Buildings or portions thereof used for the conduct of government;  
• General government expenses;  
• Political activities;  
• Purchase of equipment (except as provided for in 24 CFR 570.201(c));  
• Operating and maintenance expenses, and income payments. 

DCR reserves the right to make the final determination on cost eligibility based on federal regulations and state program policy.

9. Application Submission Requirements

Complete Application

A complete application is required. To be considered complete, the application must include all required fields, and all attachments must be uploaded by the indicated deadline of September 8th, 2026, at 5:00 pm.  

Required Public Hearing Documentation

To meet the minimum application requirements for citizen participation, local government applicants must hold at least one public hearing before applying and a second at a designated time after the full award. The notice for this hearing must be published at least 10 days but no more than 25 calendar days prior to the event. It should be posted on the local government's website and at least one other widely accessible platform. Examples include the non-legal section of the local newspaper, social media, radio ads, or distribution lists. The notice must specify the types of projects, the funding source and amount, the comment deadline, and a contact for a copy of the application. Applicants need to provide evidence of proper notification, such as an affidavit, though it is not mandatory. Additionally, a 10-day comment period must be established and concluded before the application is submitted.  

Refer to the CI Program Policies and Procedures for more information on Citizen Participation requirements. 

10. Threshold Criteria

Applications must meet all threshold criteria below to be scored:

1. Eligible Applicant  
2. Eligible Project Location  
3. Disaster Tie-Back and Unmet Need  
4. The project must include mitigation measures  
5. Project must meet a National Objective, as outlined above. Please refer to the CI Program Policies and Procedures for more information.
6. Project must be financially feasible and include a preliminary budget and financing plan that demonstrates readiness 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 following weighted criteria. 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 points) 

This criterion assesses the applicant's qualifications, experience, and organizational infrastructure. Applicants must demonstrate the ability to manage all aspects of funding and pre- and post-construction operations. Strong capacity ensures efficient, budget-friendly, and compliant project execution, including, but not limited to:

• Prior successful completion of similar CI projects;
• Experience with CDBG-DR, CDBG, or other HUD-funded infrastructure programs;
• Financial and staff capacity to oversee construction, compliance, and reporting;
• Appropriate administrative systems
• A proven track record in ongoing compliance monitoring;
• Demonstrated ability to deliver projects on time and within budget. 

11.2 Community Need (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:

• Facilities that provide services to presumed LMI persons or families (e.g., homeless shelters, elderly persons, disabled adults);
• Alignment with local recovery plans;  
• The project’s alignment with recovery priorities outlined in the NOFO;
• Location in a HUD-identified MID area;
• LMI demographic need;
• Feedback from community engagement. 

11.3 Soundness of Approach (40 points) 

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

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

Cost estimate source examples may include:

1. Professional engineer-stamped PER (preliminary engineering report) or cost estimate. (Considered industry gold standard)
2. Cost estimates by an architect or professional estimator.
3. Cost estimates by a general contractor or local staff.

For source 1, DCR presumes reasonableness; for 2 and 3, a construction management expert will assess the estimates’ reasonableness, ensuring proper controls. 

11.4 Leverage of Funding (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. Leverage sources may include, but are not limited to:

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

11.5 Achieving Results (10 points)

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

• Improved Access: Enhancing transportation and communication networks can lead to better access to services and opportunities for residents.
• Economic Growth: Infrastructure investments can stimulate economic activity, create jobs, and support local economies by improving infrastructure that supports industries and services.
• Community Development: Projects can foster community engagement and development, leading to better living conditions and social cohesion.
• Environmental Benefits: Infrastructure improvements can enhance sustainability, reduce carbon emissions,  
• Improve resilience to natural disasters.
• Long-term Value: Infrastructure investments are expected to yield improved long-term community improvements, increased quality of life, and access to critical services. 

11.6 Bonus or Priority Considerations

Funding round one will give priority consideration to projects that fall into one of the following FEMA Public Assistance (PA) permanent work categories: C, D, F, and G.  

• Priority points to Water and Sewer (Categories D and F): 10 points
  • Category D – Water Control Facilities: Includes levees, dams, canals, and other flood control structures.
  • Category F – Utilities: Restoration of public utility systems, including electrical, water, and wastewater systems.  
• Priority points for Parks and Recreation Facilities (Category G): 7 points
  • Category G – Parks, Recreational, and Other Facilities: Repair or replacement of public parks, recreational facilities, and other community infrastructure.
• Priority points to Roads and Bridges (Category C): 4 points
  • Category C – Roads and Bridges: Repair or replacement of damaged roads, bridges, and related infrastructure. 

11.7 Scoring Matrix

Additional Evaluation Components

• Duplication of Benefits Review: All projects will undergo an initial DOB analysis consistent with HUD requirements to ensure that CDBG-DR funds do not duplicate assistance from FEMA, SBA, private insurance, or other sources. Applicants must disclose all prior disaster recovery funding received. DCR will apply its DOB guidance to adjust awards as needed.  
• Risk Assessment: DCR will conduct a risk assessment per 2 CFR 200.206, evaluating financial stability, past performance, audit findings, management capacity, and staffing qualifications.
• Cost Reasonableness Determination: DCR will determine cost reasonableness per 2 CFR 200.403‑404 using professional estimates, industry databases, and internal review. 

12. Federal Compliance Requirements

All projects selected for award and committed to the preliminary award process must comply with federal cross-cutting requirements by the full award contract signing. Cross-cutting requirements include, but are 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
• Americans with Disabilities Act
• Limited English Proficiency Access
• Minority and/or Women Owned Business
• Protecting Sensitive and Personal Identifiable Information  
• Conflict of Interest   

13. Application Deadline, Technical Assistance, and Prescreening

Applications must be submitted online by ​September 8, 2026​ at ​5:00 pm​. The application will be open for 60 days. Late submissions will not be considered. Applications are to be submitted through the Renew NC Grant Portal and will not be accepted via hard copy or email. 

14. Technical Assistance

DCR will provide five kick-off meetings at scheduled times and locations. Each kickoff session will be available via Teams. Email Samantha Graham at samantha.graham@commerce.nc.gov to register. 

Questions regarding the NOFO can be submitted to dcr.grants@commerce.nc.gov, and DCR will produce and post an FAQ to the website. 

15. Prescreen

Interested applicants are strongly encouraged to complete online prescreening before submitting an application. While not required, prescreening helps assess project and organizational readiness before entering the competitive application process. Online prescreening is available through the Renew NC Grant Portal. After receiving a submission, DCR staff will follow up to discuss next steps and technical assistance. A prescreening guide is available online. 

16. Application Status Updates

Application status can be viewed in the grant portal. 

17. Preliminary Award

A Preliminary Award indicates conditional selection pending completion of environmental review, DOB analysis, financial verification, and other compliance requirements. Applicants will continue to work with DCR post-award and understand that no project or activity funds may be obligated or expended by the awardee until the environmental review procedures outlined in 24 CFR part 58 have been completed and a HUD Authorization to Use Grant Funds (AUGF) has been issued and received. The environmental review process may result in a decision to proceed with, modify, or cancel any individual project or activity.

18. Full Award

A Full Award is issued upon execution of the Grant Agreement, environmental clearance, final DOB determination, and confirmation of local approvals. DCR has adopted and will continue to adopt and revise standards, policies, procedures, and other requirements in administering the CI Program, including training, compliance, monitoring, and online reporting. Applicants and principals must comply with all such requirements regardless of whether or not they expressly appear in the NOFO. DCR will have reasonable access to any project information, including physical access to the property, all financial records, and tenant information, that it, in its sole discretion, deems necessary to obtain or access.

An owner’s or project’s failure to comply with all such conditions without written authorization from DCR will entitle DCR, in its discretion, to deem the project ineligible and any allocation to be canceled by mutual consent. DCR reserves the right, in its discretion, to modify or waive any such failed condition. 

19. 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