A Look at the Sustainable Communities Grant Program

In the FY2010 budget, Congress appropriated $150 million to HUD a new Sustainable Communities Initiative. This initiative is one component of a larger federal strategy to support multi-jurisdictional regional planning efforts that integrate housing, economic development, and transportation decision-making. The Sustainable Communities Planning Grant Program will make $100 million available to regions across the country.

Currently, the following areas are being considered.

1. Funding to support the preparation of Regional Plans for Sustainable Development that address housing, economic development, transportation, and environmental quality in an integrated fashion where such plans do not currently exist;
2. Funding to support the preparation of more detailed execution plans and programs to implement existing regional sustainable development plans (that address housing, economic development, transportation, and environmental quality in an integrated fashion); and
3. Implementation funding to support regions that have regional sustainable development plans and implementation strategies in place and need support for a catalytic project or program that demonstrates commitment to and implementation of the broader plan.

This grant program is being initiated through HUD in close coordination with the U.S. Department of Transportation (DOT) and the U.S. Environmental Protection Agency (EPA).
In its advanced notice and request for comments, HUD proposed the following maximum funding levels.

• Small metropolitan or rural areas. The grant amount awarded under the Program to an eligible entity that represents a small metropolitan or rural area with a population of not more than 499,999 may not exceed $2,000,000.
• Large metropolitan areas. The grant amount awarded under the Program to an eligible entity that represents a large metropolitan area with a population of 500,000 or more may not exceed $5,000,000.

HUD will most likely require that at least 20 % of the overall costs of the projects awarded under this grant will include leveraged funding from other public, philanthropic and private sources including in-kind contributions.
The Sustainable Community Grant NOFA will be published the week of April 12th with applications due to HUD approximately the week of June 5th and award announcements expected around August 2.