Opportunity Information: Apply for LHC 2600 DC 0032
The Lead-Safe and Healthy Homes Financing Demonstration is a U.S. Department of Housing and Urban Development (HUD) funding opportunity designed to speed up lead hazard reduction and other health-related home repairs in low-income communities by creating a national financing platform that blends public dollars with private investment. HUD is offering up to $10 million through a cooperative agreement to select a single National Fund Manager (NFM) that will design, launch, and operate the demonstration fund. The core idea is to move beyond the limits of traditional grant-only approaches by building a scalable pool of capital that can reach far more homes, especially older housing where lead-based paint and other environmental hazards remain common and where families face the greatest barriers to getting repairs done.
HUD is framing this effort around the gap between the scale of the problem and the pace of current remediation. While HUD and EPA programs have made meaningful progress over decades, the need is still massive: HUD notes that since 1993 it has addressed lead hazards in more than 230,000 low-income housing units, yet tens of millions of households still face lead risk along with other housing-related environmental stressors. A major reason progress remains slow is that standard home repair financing is often out of reach for the households and properties most affected. Strict underwriting, frequent denials, and lender concerns about risk leave many low-income homeowners and small landlords unable to finance repairs, which in turn keeps aging housing stock in poor condition and prolongs exposure risks for children and other residents.
Under this NOFO, the selected NFM will function as the central organizer and financial architect for a national fund that supports "lead-safe and healthy homes activities" through a mix of financial products. The NFM is expected to use the initial federal award as a catalyst to raise additional private capital, then structure financing mechanisms that can be deployed through local or regional partners. Rather than HUD choosing individual local investments, HUD will oversee the fund at a higher level by reviewing the proposed structure and monitoring performance, compliance, and reporting. This model is intended to encourage flexible, market-aware financing designs while still maintaining federal accountability for how funds are managed and how results are achieved.
A key operational requirement is that the NFM must keep administrative spending to no more than $1 million of the federal award, with the remainder of the capital expected to flow outward into communities through loans, grants, and other financing tools. The NFM will select and contract with state, regional, and local governments and nonprofit organizations, which will then provide financing to support remediation work in two main target categories: homes owned by low-income homeowners and homes owned by small landlords located in low-income communities. In practical terms, the NFM acts as the national hub, and the selected organizations act as the on-the-ground financing operators that connect capital to specific projects and properties.
The NOFO also emphasizes safeguards to ensure the work is completed safely and in compliance with applicable rules. Organizations funded through the NFM must structure financing so that projects use appropriately qualified contractors, laboratories, and financial entities consistent with federal, state, and local requirements and the NOFO terms. The NFM must build and oversee compliance systems, reporting routines, and quality assurance processes that verify both the financing and the physical work meet program standards. This includes making sure lead-related work follows proper protocols, since poor-quality remediation can increase exposure risk rather than reduce it.
Eligibility is limited to nonprofit entities, including nonprofits with 501(c)(3) status and nonprofits without 501(c)(3) status (in both cases excluding institutions of higher education). The opportunity allows either a single eligible applicant or a consortium of multiple organizations applying together. If applying as a consortium, the group must name a lead applicant that becomes the primary recipient and holds full responsibility for grant administration, compliance, reporting, and performance, while each consortium member must meet the civil rights-related threshold requirement referenced in the NOFO. Individuals, foreign entities, and sole proprietorships are explicitly ineligible.
From an administrative standpoint, this is a discretionary HUD opportunity using a cooperative agreement, with an expected single award and a maximum award amount (ceiling) of $10,000,000. The funding opportunity number is LHC 2600 DC 0032 and the CFDA number listed is 14.922. The application deadline is August 3, 2026. Overall, HUD is using this demonstration to test and scale a national approach that treats lead hazard control and related healthy-homes interventions not only as a public health and housing quality issue, but also as a financing and capital-access problem that can be addressed by building a stronger pipeline between public priorities and private investment.Apply for LHC 2600 DC 0032
- The Department of Housing and Urban Development in the housing sector is offering a public funding opportunity titled "Lead-Safe and Healthy Homes Financing Demonstration" and is now available to receive applicants.
- Interested and eligible applicants and submit their applications by referencing the CFDA number(s): 14.922.
- This funding opportunity was created on 2026-06-03.
- Applicants must submit their applications by 2026-08-03. (Agency may still review applications by suitable applicants for the remaining/unused allocated funding in 2026.)
- Each selected applicant is eligible to receive up to $10,000,000.00 in funding.
- The number of recipients for this funding is limited to 1 candidate(s).
- Eligible applicants include: Nonprofits having a 501 (c) (3) status with the IRS, other than institutions of higher education, Nonprofits that do not have a 501 (c) (3) status with the IRS, other than institutions of higher education.
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Lead-Safe and Healthy Homes Financing Demonstration (HUD) - FAQs
What is the Lead-Safe and Healthy Homes Financing Demonstration?
It is a U.S. Department of Housing and Urban Development (HUD) funding opportunity to speed up lead hazard reduction and other health-related home repairs in low-income communities by creating a national financing platform that blends public dollars with private investment.
What problem is HUD trying to solve through this demonstration?
HUD is addressing the gap between the scale of lead and other housing-related environmental hazards and the pace of remediation. While HUD and EPA programs have improved conditions over decades, HUD notes that it has addressed lead hazards in more than 230,000 low-income housing units since 1993, yet tens of millions of households still face lead risk along with other environmental stressors.
Why does HUD want a financing platform instead of a traditional grant-only approach?
Traditional grant-only approaches can be limited in scale. HUD is testing a model designed to be scalable by building a pool of capital that uses federal funding as a catalyst to attract additional private investment and reach more homes, especially older housing in low-income communities where hazards remain common.
What is HUD offering under this NOFO?
HUD is offering up to $10 million through a cooperative agreement to select a single National Fund Manager (NFM) that will design, launch, and operate the demonstration fund.
How many awards does HUD expect to make?
HUD expects a single award, selecting one National Fund Manager.
What is a National Fund Manager (NFM) in this program?
The NFM is the central organizer and financial architect for a national fund that supports lead-safe and healthy homes activities through a mix of financial products. The NFM is expected to use the initial federal award to help raise additional private capital and deploy financing through local or regional partners.
What types of activities will the fund support?
The fund will support "lead-safe and healthy homes activities," including lead hazard reduction and other health-related home repairs, delivered through financing mechanisms such as loans, grants, and other financing tools.
Which properties and households are targeted by the financing?
The NOFO describes two main target categories for remediation financing: (1) homes owned by low-income homeowners, and (2) homes owned by small landlords located in low-income communities.
Why is home repair financing a barrier in the communities HUD is focused on?
HUD points to strict underwriting, frequent denials, and lender concerns about risk. These factors can prevent low-income homeowners and small landlords from financing needed repairs, leaving aging housing stock in poor condition and prolonging exposure risks, particularly for children and other residents.
Will HUD select the individual local projects or properties to be financed?
No. HUD will oversee the fund at a higher level by reviewing the proposed fund structure and monitoring performance, compliance, and reporting. The NFM will select and contract with state, regional, and local governments and nonprofit organizations that will provide financing to support remediation work.
Who will provide the on-the-ground financing to homeowners and landlords?
The NFM will select and contract with state, regional, and local governments and nonprofit organizations. These organizations will act as the on-the-ground financing operators that connect capital to specific projects and properties.
Is there a cap on how much of the federal award can be used for administration?
Yes. The NFM must keep administrative spending to no more than $1 million of the federal award. The remaining funds are expected to flow outward into communities through financing tools.
What safeguards are included to ensure repairs and remediation are done safely?
The NOFO emphasizes compliance and quality assurance. Organizations funded through the NFM must structure financing so that projects use appropriately qualified contractors, laboratories, and financial entities consistent with federal, state, and local requirements and the NOFO terms. The NFM must build and oversee compliance systems, reporting routines, and quality assurance processes to verify that both financing and physical work meet program standards, including proper lead-related protocols.
Why is compliance and quality assurance especially important for lead-related work?
The NOFO notes that poor-quality lead remediation can increase exposure risk rather than reduce it, so the program stresses proper protocols and oversight.
What type of funding mechanism is this (grant, contract, etc.)?
This is a discretionary HUD funding opportunity using a cooperative agreement.
Who is eligible to apply for the National Fund Manager award?
Eligibility is limited to nonprofit entities, including nonprofits with 501(c)(3) status and nonprofits without 501(c)(3) status. Institutions of higher education are excluded.
Can multiple organizations apply together?
Yes. The opportunity allows either a single eligible applicant or a consortium of multiple organizations applying together.
If applying as a consortium, what are the responsibilities of the lead applicant?
If a consortium applies, it must name a lead applicant that becomes the primary recipient and holds full responsibility for grant administration, compliance, reporting, and performance.
Are there any special requirements for consortium members?
Yes. Each consortium member must meet the civil rights-related threshold requirement referenced in the NOFO.
Who is not eligible to apply?
Individuals, foreign entities, and sole proprietorships are explicitly ineligible. Institutions of higher education are also excluded from eligibility.
What is the maximum award amount?
The maximum award amount (ceiling) is $10,000,000.
What is the application deadline?
The application deadline is August 3, 2026.
What is the funding opportunity number?
The funding opportunity number is LHC 2600 DC 0032.
What is the CFDA number listed for this opportunity?
The CFDA number listed is 14.922.
What is HUD expecting the NFM to do with private capital?
The NFM is expected to use the initial federal award as a catalyst to raise additional private capital and then structure financing mechanisms that can be deployed through local or regional partners.
How will HUD maintain accountability if the fund design is meant to be flexible?
HUD will review the proposed fund structure and monitor performance, compliance, and reporting. The model is described as encouraging flexible, market-aware financing designs while maintaining federal accountability for fund management and results.
What is the overall goal of the demonstration?
HUD is testing and scaling a national approach that treats lead hazard control and related healthy-homes interventions not only as a public health and housing quality issue, but also as a financing and capital-access problem that can be addressed by building a stronger pipeline between public priorities and private investment.
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