The fiscal 2011 Budget provides $60 million for a revamped Capacity Building program. HUD must embrace a 21st century vision for supporting the affordable housing and community development sector and will reframe the Section 4 program, including renaming the program to "Capacity Building", in order to reflect that vision. The objective is to expand HUD?s funding capabilities, and encourage open competition through mainstream and consistent program funding for these activities.
HUD is requesting an increase in funding in order to pursue the following policy changes:
- Competition: Grants would be competitive and open to regional and national intermediaries exhibiting expertise, experience, high past performance, and other criteria for providing capacity building and technical assistance in the affordable housing and community development field.
- Eligible service recipients: The budget proposes to expand eligible service recipients of technical assistance and capacity building to include local governments in addition to Community Development Corporations (CDCs) and Community Housing Development Organizations (CHDOs).
- Eligible activities: The budget also seeks to ensure that the eligible activities that allow market analysis and assistance for merger activities when it is determined that such an activity may better serve the community.
