Notice of Funding Opportunity: Renew NC Workforce Housing for Ownership Program

1. Purpose

This Notice of Funding Opportunity (NOFO) announces the availability of funding under the Community Development Block Grant Disaster Recovery (CDBG-DR) Workforce Housing for Ownership Program (WHFO) (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 promote affordable housing solutions located within HUD-identified Most Impacted and Distressed (MID) counties. 

The NOFO is issued in alignment with HUD's 2025 Revised Universal Notice and aims to expand affordable homeownership opportunities for households in the HUD-identified MID areas earning up to 80% of the Area Median Income 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 as defined in 24 CFR 58.22, 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.

WHFO 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 vulnerability revealed or exacerbated by Hurricane Helene, economic damage, or 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 Workforce Housing for Ownership Program Policies and Procedures Manual

The Renew NC Workforce Housing for Ownership Program Policies and Procedures Manual is available online. This manual serves as the authoritative guide for implementing the WHFO program. It is intended for use by subrecipients, developers, and other program stakeholders. Please review the program policies and procedures closely for programmatic requirements. 

3. Funding Allocation and Fund Limits

• Total Funding Allocation: $53,380,000
• Minimum Grant Amount: $2,000,000 
• Maximum Grant Amount: $5,000,000 

4. Program Objectives

• Address unmet workforce homeownership needs in the following counties identified in the State’s Action Plan as the HUD-identified most impacted and distressed (MID) areas: Ashe, Avery, Buncombe, Burke, Caldwell, Cleveland, Haywood, Henderson, Madison, McDowell, Mecklenburg (ZIP code 28214 only), Mitchell, Polk, Rutherford, Transylvania, Watauga, and Yancey. 
• Increase the availability of workforce homeownership opportunities 
• Promote housing accessibility and sustainability 

5. Eligible Applicants

The WHFO program welcomes a wide range of applicant types, provided they demonstrate the ability to successfully develop 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)
• Community Land Trusts
• 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 convey affordable housing; 
• Demonstrate experience in completing similar affordable housing projects incorporating public funding; and
• Not be debarred, suspended, or otherwise excluded from participation in federal or state programs. 

6. Project Eligibility Criteria and Other Funding Limits

Projects must meet all the following conditions to be eligible for assistance under the WHFO program (refer to the Policies and Procedures Manual). This includes, at a minimum: 

• The project must not undertake 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;
• The project must be located in a HUD-identified MID Area as defined in the HUD-approved State Action Plan;
• The project must meet the Low- and Moderate-Income Housing (LMH) National Objective;
• The project must demonstrate tie-back to Hurricane Helene by addressing an unmet need tied to damage caused by Hurricane Helene; 
• The project 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;
• Sites must be designed for for-sale residential use (which design may include, for example, the comparable mechanism used for community land trusts);[MD1.1][MD1.2]
• Sites must qualify as real property under North Carolina law, including being permanently affixed to land and transferrable by deed;
• Sites must be sized to accommodate the number and type of units proposed; 
• Sites must be zoned for residential use or demonstrate a clear path to rezoning approval within 90 days of conditional award. Applicants are encouraged to provide documentation demonstrating zoning status, including special/conditional use permits, and any other discretionary land use approvals (including all legislative or quasi-judicial decisions) as part of their application;
• Preference will be given for sites with access to public water and sanitary sewer, 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;
• Funding is expected to be advanced as a zero percent (0%) interest 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 and full forgiveness may be requested at the maturity date. Loans will be closed in accordance with applicable industry standards and relevant agency guidelines and procedures. A different forgiveness schedule or grants may also be considered at the sole discretion of DCR based upon a risk assessment of the project and all relevant information;
• For projects that are funded as a loan, 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;
• For those proposed projects who intend for affordability requirements to run with the property, 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 fifteen (15) year Declaration of Land Use Restrictive Covenant, and aligning with any additional representations made in the approved application; 
• It should be presumed that no applicant, principal on the project, or affiliate, will 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; however, DCR may, in its sole discretion, waive this limitation on the basis of good cause, to include the lack of similarly comparable scored projects or project-led expertise, or to favor geographic diversity of funding; 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 workforce housing
• Rehabilitation of workforce housing 

8. Ineligible Uses of Funds

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

• Construction of manufactured homes or mobile homes located within any flood zone.
• Costs more than the allowable per-unit subsidy limits (see section 2.3 in the policy manual for per-unit maximum subsidies), as established by DCR.
• Duplication of benefits from other sources.
• Activities without a direct tie to Hurricane Helene.
• 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.
• 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 4.4.1 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 HUD-identified MID area;
3. Disaster Tie-Back and Unmet Need;
4. Project must meet the LMH National Objective, as outlined above. Please refer to the Renew NC Workforce Housing for Ownership Program 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 include at least 5 housing units under common ownership and management at the time of construction;
8. Residential/structural portions of the project must not be located in a regulatory floodway, or non-encroachment area;
9. Applicants must have experience developing 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 ability to manage all aspects of affordable housing construction or rehabilitation using public funds and post-construction operations. This includes, but is not limited to:

• Prior successful completion of similar housing projects.
• Experience with CDBG-DR or other HUD-funded programs.
• Financial and staff capacity to oversee construction, compliance, and reporting.
• A proven track record in property management and ongoing compliance monitoring.
• Demonstrated ability to deliver 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.

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 Workforce 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:

• Documented shortages of affordable housing.
• The project’s alignment with recovery priorities outlined in the NOFO.
• Alignment with local recovery or housing plans.
• Addressing disinvestment or market gaps.

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.
• Site readiness, including zoning, infrastructure access, and environmental clearance.
• Project design that meets applicable building and resilience standards.
• Realistic cost estimates supported by industry-standard tools or contractor estimates.
• 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:

• Private financing
• Philanthropic or local government contributions
• In-kind contributions
• 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 any 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 any 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 or assistance opportunities created.
• Units dedicated to special needs populations.
• The project’s ability to promote neighborhood revitalization and stability.

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 15 years (+10 points).
• Are located in geographic areas that have historically been underrepresented in affordable housing investments or are underrepresented in funding investments for Hurricane Helene recovery (+20 points).
• Leveraging HUD’s Rapid Unsheltered Survivor Housing (RUSH) grants (+3 points).

11.7 Scoring Matrix

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 December 13, 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 free one-on-one technical assistance by contacting program staff at the email address above or directly.

Interested potential applicants are strongly encouraged to complete the 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 WHFO 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