Notice of Funding Opportunity: Renew NC Multi-Family Construction and Repair Program: Non-LIHTC

June 25, 2026

1. Purpose

This Notice of Funding Opportunity (NOFO) announces the availability of funding under the Community Development Block Grant Disaster Recovery (CDBG-DR) Multi-Family Construction and Repair Program (MCR) 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 support the development of new construction and the rehabilitation or reconstruction of existing multi-family housing in the most impacted and distressed (MID) areas and promote long-term sustainability and resilience against natural disasters.  

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, including acquisition, demolition, construction, or rehabilitation, until the Authorization to Use Grant Funds (AUGF) has been received and a Notice to Proceed (NTP) has been issued. The applicant must also comply with all applicable federal procurement requirements, labor standards, and nondiscrimination, relocation, and accessibility requirements.

MCR program activities must demonstrate a tie-back to the impact 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 Multi-Family Construction and Repair Program Policies and Procedures Manual 

The Renew NC Multi-Family Construction and Repair Program Policies and Procedures Manual is available online. This manual serves as the authoritative guide to the implementation of the MCR Program. It is intended for use by subrecipients, developers, and other program stakeholders. 

3. Funding Round Allocation and Fund Limits

• Total Funding Allocation: $70,591,500
• Minimum Grant Amount: $500,000
• Maximum Grant Amount: $15,000,000 

4. Program Objectives

• Address unmet rental housing 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 (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 due to the availability of the City’s own CDBG-DR funding allocation.
• Increase the availability of affordable rental units;
• Promote housing accessibility and sustainability;  
• Encourage the inclusion of special needs populations and supportive housing. 

5. Eligible Applicants

The MCR program welcomes a wide range of applicant types, provided they demonstrate the ability to successfully develop and maintain affordable housing.  

Eligible applicants include but are not limited to:  

• For-profit developers
• Non-profit housing developers, including Community Housing Development Organizations (CHDOs) and Community-Based Development Organizations (CBDOs)
• Public housing authorities  
• Units of local government
• Joint ventures between eligible entities above, provided they demonstrate adequate development capacity and financial management acumen  

Applicants must:  

• Be legally organized to develop and operate multi-family rental housing
• Have experience delivering publicly funded affordable housing  
• Be in good legal and financial standing with federal and state agencies
• Not be debarred or suspended   

6. Project Eligibility Criteria

• Projects must meet all of the following conditions to be eligible for assistance under the MCR Program (refer to Policies and Procedures Manual 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 as well as complying with all federal and state cross-cutting legal, compliance and reporting requirements, such as complying with the Uniform Relocation Act, Section 3, and Davis-Bacon prevailing wage provisions;  
• 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;
• Meet one of two National Objectives:
  • Low- and Moderate-Income Housing (LMH)  
  • Urgent Need
• 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;
• Preference will be given for sites with access to public water and sanitary sewer, broadband, public roadways or easements sufficient for site access, and other public utilities necessary to support residential occupancy. Projects seeking off-site improvements must identify funding for and responsible parties to achieve acceptable public utility extensions to a specified site;  
• Sites must be sized to accommodate the number and type of units proposed;  
• Required zoning must be in place by the application deadline, including special/conditional use permits, and any other discretionary land use approval required (including all legislative or quasi-judicial decisions);
• At a minimum, funding will be advanced as a zero percent (0%) interest, twenty-year forgivable loan with a balloon payment due on the maturity date. So long as the project is not in default under the loan documents, there will be no payments due during the loan term. Loans will be closed in accordance with applicable industry standards and relevant agency guidelines and procedures. Grants may be considered at the sole discretion of DCR based upon a risk assessment of the project and all relevant information;
• 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;
• Owners must record, prior to all liens against the property in the registry of deeds in the county in which the project is located, at a minimum a twenty (20) year Declaration of Land Use Restrictive Covenant, and aligning with any additional representations made in the approved application;  
• Projects receiving a low-income housing tax credit (LIHTC) award as part of the North Carolina Housing Finance Agency’s 2026 Qualified Allocation Plan (QAP) process are not eligible for funding in this NOFO; any projects subsequently awarded as part of the 2026 QAP process after the close of this NOFO/application process will subsequently be deemed ineligible even if eligible at the time of application;  
• No applicant, any principal on the project, or any affiliate, can receive more than two construction awards in this round of funding; for these purposes, DCR may (or may later) determine that a person or entity not included in an application is a principal for the project. Such determination would include consideration of relationships between the parties in awarded projects and other common interests. Following such determination, any projects previously awarded will subsequently be deemed ineligible; and
• DCR may further limit awards, in its sole discretion, based on unforeseen circumstances

Any award is dependent upon DCR receiving from HUD all funds necessary to reimburse the individual projects or activities and shall be dependent upon and subject to the availability of funds appropriated or allocated to DCR. 

7. Eligible Activities

Eligible activities include, but are not limited to: 

• New construction of multifamily housing
• Reconstruction or rehabilitation of existing multifamily housing 

8. Ineligible Uses of Funds

The following is a non-exhaustive list of examples of ineligible costs and activities:

• 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  
• Luxury improvements not essential to health and safety (e.g., swimming pools, high-end finishes, etc.)  
• Commercial components not allocated to a non-CDBG-DR source  
• Operating reserves or rental subsidies
• Political, lobbying, or legal fees unrelated to program delivery 

9. Application Submission Requirements

Each application must include the following documentation:

• Completed Application Form – All required fields and attachments must be completed and uploaded.
• Units of Local Government applicants are required to meet certain citizen participation requirements. See Section 3.3.1 of the program’s policies and procedures for additional guidance.  

10. Threshold Criteria

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

1. Eligible Applicant and Entity Type
2. Project must be located in a combined MID area
3. Disaster Tie-Back and Unmet Need
4. Project must meet a National Objective, as outlined above. Please refer to the Renew NC Multi-Family Construction and Repair Large Policies and Procedures Manual for more information.
5. 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
6. Project must be an eligible activity
7. Project must be 5 units or more under common ownership and management
8. Residential/structural portions of the project must not be located in a regulatory floodway, floodplain, or non-encroachment area
9. Applicants must have experience developing and/or managing publicly funded housing projects, and
10. 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 and its development team. Applicants must demonstrate the skills and experience necessary to implement the proposed services and to perform 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 and meet compliance and reporting requirements;
• 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, during construction and throughout the affordability period. 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 Multi-Family Housing (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 residential area sustained direct physical damage or functional damage due to Hurricane Helene;
• Degree to which the residential area was economically distressed pre-disaster and is at risk of further decline without investment;
• Community needs assessments or other indicators of affordable housing needs within the area;
• The project’s alignment with recovery priorities outlined in the NC Action Plan;
• 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 readiness;
• 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/or industry standards; 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.  

For all projects proposing private funding commitments, a letter of intent is required. This letter must be on lender’s letterhead, must clearly state the term of the permanent loan, how the interest rate will be indexed and the current rate at the time of the letter, the amortization period, any prepayment penalties, anticipated security interest in the property, and lien position. The interest rate must be fixed and no balloon payments may be due for fifteen years after project completion.  

For all projects proposing public permanent financing, binding commitments are required. Local governments also must identify the source of funding and all loans must have a fixed interest rate and no balloon payments for at least fifteen (15) years after project completion. A binding commitment is defined as a letter, resolution or binding contract from a unit of government. 

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 and type of affordable housing units created or preserved;
• Housing units dedicated to populations with access or functional needs;  
• Project location and site suitability;  
• Market demand and local housing needs;  
• Serving the lowest income tenants;  
• Serving qualified tenants for the longest periods;  
• Design and quality of construction;  
• Financial structure and long-term viability; and
• The integration of supportive services or partnerships that enhance housing outcomes, such as resident services, workforce development, or coordination with health and/or social services. 

11.6 Bonus or Priority Considerations

In addition to the points outlined above, DCR may allocate additional points to applications based on certain factors, such as:  

• Targeting affordability requirements below the program requirement of 80 percent AMI  (+10 points)
• Enhanced mitigation or resilience features, such as Green Building Standards or Energy STAR features (+5 points)  
• Length of affordability term beyond the program requirement of 20 years (+10 points)
• Are located in geographic areas that have historically been underrepresented in affordable multi-family investments or are underrepresented in funding investments for Hurricane Helene recovery (+20 points)
• Include enhanced accessibility features such as wider doorways, or supportive services for persons with disabilities or elderly residents beyond what is legally required (+10 points)
• Leveraging HUD’s Rapid Unsheltered Survivor Housing (RUSH) grants (+3 points) 

11.7 Scoring Matrix

Note: To view the last column titled "Low Score" please click the arrow beside each row's category name to expand the table.

12. Federal Compliance Requirements

All awarded projects must comply with all applicable local, state, and federal cross-cutting requirements. Federal 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, 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

Applications must be submitted online by November 2, 2026, at 5:00 P.M. Eastern Daylight/Standard Time. 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.

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

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

Interested potential applicants are strongly encouraged to complete 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 prescreening guide is available online. 

14. Post Award Processes and 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.

DCR has adopted and will continue to adopt and revise standards, policies, procedures, and other requirements in administering the MCR 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 cancelled by mutual consent. DCR reserves the right, in its discretion, to modify or waive any such failed condition. 

15. 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.housing@commerce.nc.gov   

Phone: 919-814-4600 

Website: commercerecovery.nc.gov