Multi-Family Construction and Repair Program: Non-LIHTC

What types of projects are eligible?

• Eligible projects include:
  • New construction of multi-family housing  
  • Reconstruction of damaged multi-family housing  
  • Rehabilitation and/or repair of existing multi-family housing  
• A list of eligible activities can be found in the MCR Policies and Procedures. 

Are projects eligible for the program that are leveraging 4%, historic credits, or mill credits?

• Projects receiving 2026 QAP LIHTC awards are ineligible for the program.  However, this does not preclude earlier 4% LIHTC awarded projects (e.g. from the 2025 QAP). Historic and mill rehabilitation tax credits are eligible leveraged funding sources.

The parcel we’d like to develop housing on is partially in the floodplain. What limitations exist?  

• Federal funding cannot be used to develop within the floodway or the non-encroachment area, if applicable. As such, construction activities in either of these areas will be ineligible for funding.  
• Construction within other areas of the floodplain (such as the Special Flood Hazard Area (SHFA), the 500-year floodplain, or the Federal Flood Risk Management Standard (FFRMS) floodplain) are permitted, so long as they meet federal, state, and local floodplain management standards and requirements. 

Will Section 8 be considered DOB? 

• No. Please review NCDOC’s Division of Community Revitalization’s Duplication of Benefits policy or the MCR Non-LIHTC’s program's policies and procedures for additional information related to duplication of benefits. 

Are ARPA funds considered DOB?

• DOB or duplication of benefits are not identified by funding type alone but must be calculated based on total need and total assistance received, purpose of funds and funding use. All assistance received is acknowledged and recorded along with its purpose and deducting it from total need. If the amount of assistance received exceeds the total need, there is a duplication of benefits.

Does zoning have to be fully approved? 

• Fully approved zoning is not required for this program. However, site readiness is a factor that is taken into consideration as part of the competitive scoring criteria for the Notice of Funding Opportunity (NOFO). Please review the NOFO and the program’s policies and procedures for additional information

What if there is an absence of zoning?  

• Projects have to abide by whatever local zoning is applicable and must comply with all relevant federal, state, and local requirements. If there is an absence of zoning, applicants should clearly demonstrate that in their application.  

Are we expected to drop rents to zero in the event a tenant loses income? 

• No. “Affordable rents” required for this program are income restricted not income based. DCR recommends reviewing how HUD determines its rent limits for the HOME Program. That said, an applicant’s specific proposed project/activities may choose to incorporate rental assistance or other type of program assistance that may be income based. 

For the capacity criteria, is it acceptable if newer nonprofits form partnerships with fiscal partners? 

• Yes, it is. We encourage partnerships and joint ventures to cover gaps in capacity.

Is infrastructure an allowable cost? 

• Allowable costs must support the implementation, construction, or rehabilitation of affordable multi-family rental housing projects in accordance with HUD Notice CPD-16-02 and 24 CFR § 570.201–204. 

If a road needed for an assisted project is already completed, would this be considered a Choice Limiting Action (CLA)? 

• No. What has been done prior choice-limiting submission should not be considered a choice-limiting action.

Will the number of units restricted to HOME rents be proportional to the amount of CDBG funding provided to a project?

• Priority will be given to projects that fund the greatest percentage of LMI units. The full breakdown of how priority will be assigned will be in the NOFO.  
• If less than 51 percent of funding goes to LMI, then the award must be proportional. 

Will the MCR Program be using the same contactors that are currently on the NC Renew Single Family Repair Program or will you be bringing in additional contractors to complete these jobs? 

• Applicants to the Renew NC Multi-Family Construction and Repair Program will be responsible for procuring and contractors needed to complete projects, as applicable.

Should units be proportional to funding? 

• Not necessarily. So long as at least 51 percent of the units in a structure are to be occupied by LMI households, there are no proportionality limitations for the funding of those activities – CDBG-DR funding may be used to pay for the whole project. When less than 51 percent of the units in a structure will be occupied by LMI households, CDBG-DR funding may be provided only if (1) at least 20 percent of the units will be occupied by LMI households and (2) the proportion of the total cost of the project to be borne by CDBG-DR funds is not greater than the proportion of units in the project that will be occupied by LMI households. In other words, for a project that reserves, e.g., 40 percent of its units for LMI households, CDBG-DR can fund only 40 percent of the total cost of the project. 

Is my project ready enough to apply? 

• Threshold criteria as well as what is needed for a competitive project can be found in the Notice of Funding Opportunity (NOFO), and the policy manual, Renew NC Multi-Family Construction and Repair Program Policies and Procedures. Potential applicants are encouraged to participate in the prescreening process for a technical assistance session. 

How are applications evaluated?

• Applications are reviewed based on predetermined scoring criteria. Please see the NOFO for the scoring matrix and additional details.

Will preference be given to projects done in partnership with housing authorities or local government?

• Priority considerations are outlined in the NOFO. 

Do you have to own the land at application? 

Applicants do not have to own the land at application however; site control must be demonstrated. Site control can be demonstrated in a few ways. Please see Section 4.6.2 in the WHFO Policy Manual and Section 3.4.3 Site Feasibility in the MCR Non-LIHTC Policy Manual. 

When can applicants expect feedback and award commitments? 

We hope to be able to make conditional awards towards the end of Q1 2027, with full awards to follow later that year following the federally required environmental review and HUD’s Authorization to Use Grant Funds (AUGF). The environmental review is likely to take between 3 and- 6 months (but may be shorter or longer, depending on a variety of factors, including the scale and complexity of the proposed project).

Is it possible to have rolling funding announcements allowing for commitments to applications prior to the application period closing in November?  

DCR does not anticipate reviewing any applications until after the application period closes. 

I opted out the prescreen. When can I start my application?  

• The prescreen is optional; choosing to opt out will allow prospective applicants to access the application. Once a prospective applicant has opted out of the prescreen, the MCR team will notify them via email when access to the application is granted, typically within one business day. If a prospective applicant has not received this email, they may follow up by emailing DCR.Housing@commerce.nc.gov.  
• For this reason, prospective applicants are strongly encouraged to begin their application well in advance of the November 2, 2026, deadline.  

Why am I unable to complete and continue to the next page? 

• If you are unable to click the “Complete & Continue” button or it does not display an error message, please check to make sure you have responded to all required fields in that page.

All of my responses from the prescreen did not populate in the application. What should I do?

• You will be able to access the prescreen as read-only when completing your application, and it can be referred to when answering questions in the application.

Can I save my application and continue later?

• Yes. You can save your progress at any time and return to complete the application before the submission deadline.

Can I edit my application after submission?

• Applications cannot be edited once submitted. If changes are needed, contact the grant administrator at DCR.Housing@commerce.nc.gov.

What should I do if I encounter technical issues?

• Use the “Technical Support” link in the system to submit a help request or contact the technical support team.

Is my data secure?

• Yes. The system uses encryption, role-based access, and compliance frameworks to ensure your information is protected. More information can be found in the Privacy and Data Use Notice.

How do I know if my application was submitted successfully?

• You will receive a confirmation email, and the system dashboard will show your application status as “Submitted.”

How will I be notified about the award decision?

• Award decisions are communicated through email and posted in your user dashboard.

How are funds disbursed?

• Funds may be disbursed in installments based on approved milestones or reporting requirements. Details are included in the award agreement. 

How much funding is available? 

• Approximately $70 million is available through this funding opportunity for the entire program. Each project may receive a minimum of $500,000 and a maximum of $15 million. 

Can I spend money now on this project? 

• Applicants may spend their own funds on planning activities at their own risk. However, federal environmental requirements may limit whether certain costs are eligible for reimbursement. In general, applicants should not begin:
  • Property acquisition
  • Demolition
  • Construction
  • Rehabilitation
• Other activities that could limit environmental review options before receiving required approvals from DCR.  
• Taking these actions before authorization may make a project ineligible for funding.
• Please see HUD resources on Choice Limiting Actions: HUD Choice Limiting Action (CLA) Violation Review Process Fact Sheet.
• If you are considering spending money on project activities, please contact DCR at DCR.Housing@commerce.nc.gov before proceeding. 

Can pre-award costs be reimbursed?  

Please see Section 9.1.1 of the MCR Non-LIHTC program’s policies and procedures for additional information related to pre-award costs.

Will there be an option to accept funding in the form of a grant?

• Grants may be considered at the sole discretion of DCR based upon a risk assessment of the project and all relevant information. The 21 projects with an open application have requested $165,628,483 in funding (but two project in this 21 have not filled in this information). The total project costs for these 21 projects are totaled at $283,548,807, with the gap indicating the applicant's other funding needs (this information is also incomplete for 1 of the 21). 
• Separately, when we take all prescreens in progress, plus those that have been submitted, plus those that have moved to application, those requests total $283,360,314 in CDBG-DR funding.

Will the CDBG loan be subordinate to senior debt? 

• Lien position will be determined by loan amount: the larger loan will have the higher lien position. For equal loan amounts, DCR will have the higher lien position. DCR will also have higher lien position over all local governments. Lien position may be further waived with the approval, and at the discretion, of DCR.

Do you expect the loan/grant limits to be similar to those for LIHTC?

• Specific terms will be outlined in the NOFO and are anticipated to be similar to LIHTC.

Does DCR have a monitoring schedule for awarded projects?   

See Section 10 of the program's policies and procedures for information on Compliance and Monitoring and Section 10.1.2 for more information on Monitoring Schedules.

Is a Phase I Environmental Site Assessment required as part of the environmental review process? 

• Whether a Phase I is required is dependent on the project type. DCR will manage the environmental review process, including any Phase Is that may be required. For more information about Phase I Environmental Site Assessments and their relation to HUD environmental reviews, please refer to these resources from HUD: HUD Guidance, HUD Training.   

How long does the environmental review take?

• Reviews are anticipated to take a minimum of 90 days.