HUD Rural Capacity Building for Community Development and Affordable Housing (RCB) Program

HUD Rural Capacity Building for Community Development and Affordable Housing (RCB) Program

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Updated January 5, 2023
HUD Rural Capacity Building for Community Development and
Affordable Housing (RCB) Program
The Rural Capacity Building for Community Development
procedures, and deadlines. HUD generally releases RCB
and Affordable Housing program (Rural Capacity Building
NOFAs on an annual or bi-annual basis.
or RCB), administered by the U.S. Department of Housing
and Urban Development (HUD) is one of several federal
HUD rates applications that meet the threshold
programs that supports local housing and community
requirements on a 100-point scale. HUD assesses eligible
development in rural areas. This In Focus describes the
applications based on five core factors. As an example,
RCB program’s structure and provides an overview of
Table 1 provides an overview of the core rating factors and
program funding.
maximum point values outlined in the FY2021/FY2022
RCB NOFA. HUD will only consider applications from
Program Structure and Administration
entities that meet the following requirements:
HUD awards RCB grants on a competitive basis to rural
community development intermediary organizations
1. have no outstanding or insufficiently
(primary grantees). The primary grantees then use the RCB
resolved civil rights issues;
funding over a four-year period to provide technical support
2. planned activities comply with the Fair
and financial assistance to rural community development
Housing Act (with certain exceptions for
organizations, local governments, and tribal entities for
Indian tribes);
capacity-building activities.
3. submit RCB applications in a timely
Eligible Primary Grantees
manner, in accordance with the stated
deadline; and
HUD restricts primary grantee eligibility to certain
nonprofit intermediary organizations with 501(c)(3) tax-
4. qualify as an eligible national nonprofit
exempt status. Eligible organizations must apply
organization.
independently, rather than as a consortium. HUD requires
Table 1. RCB Application Core Rating Factors
that organizations have a demonstrated record of
FY2021/FY2022
accomplishment in relevant activities, within the previous
decade. Additionally, these organizations must serve in at
Core Rating Factor
Maximum Points
least seven of HUD’s ten regions, illustrated in Figure 1.
Capacity of Applicant and
28
Figure 1. HUD’s Regions
Relevant Organizational
Experience
Need/Extent of the Problem
10
Fair Housing and
5
Underserved Communities
Soundness of Approach
36
Leveraging Resources
6
Achieving Results and
15
Program Evaluation
Total Points
100
Source: U.S. Department of Housing and Urban Development,
FY2021-FY2022 Rural Capacity Building for Community Development and
Affordable Housing Grants (RCB), p. 33, https://www.hud.gov/sites/
dfiles/SPM/documents/
Source: U.S. Department of Housing and Urban Development,
FY2021_and_FY2022_RuralCapacityBuildingforCommunityDevelopm
HUD’s Regions, https://www.hud.gov/localoffices/regions.
entandAffordableHousingGrants.pdf.
Grant Application Process
Notes: Core rating factors and maximum point amounts may vary
Application guidance for HUD’s RCB program is outlined
across RCB NOFAs. This table provides an example of guidance from
in the agency’s Notices of Funding Availability (NOFAs),
the FY2021/FY2022 NOFA.
which provide explanations of available grant funding,
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link to page 2 HUD Rural Capacity Building for Community Development and Affordable Housing (RCB) Program
HUD may award preference points for applications that
RCB Appropriations
propose activities aligned with certain priorities of an
Congress provided $6 million in RCB funds for FY2023
administration. For instance, the FY2021/FY2022 RCB
(P.L. 117-328, Division L, Title II) under the Self-Help
program NOFA announced that applicants could receive up
Homeownership Opportunity program account in the
to four preference points for applications including
annual Transportation, Housing and Urban Development,
activities located in Promise Zones, projects carried out in
and Related Agencies appropriations bills. The FY2023
partnership with Historically Black Colleges and
amount is an increase of $1 million over annual amounts
Universities, or projects that support environment justice in
appropriated in FY2018 through FY2022. This account also
historically underserved communities. Each preference
funds the Section 4 Capacity Building for Community
category is worth up to two points. Typically, preference
Development and Affordable Housing program and the
points are awarded exclusively to eligible applicants with
Self-Help and Assisted Homeownership Opportunity
core scores of 75 points or greater.
Program.
Eligible Beneficiaries
RCB Grant Awards
As mentioned above, the intermediaries (primary RCB
On January 5, 2021, HUD announced a total of $10 million
grantees) use RCB funds to provide financial and technical
in RCB awards for five national nonprofit organizations to
assistance for eligible beneficiaries. Potential grantees are
carry out program activities. These awards represented two
required to share the plans for their beneficiary selection
years of appropriated funds (FY2019 and FY2020). Under
process in their application proposal. HUD rates the
the combined FY2019/FY2020 grant awards, HUD set the
beneficiary selection process plans as a component of the
minimum grant amount at $1.25 million and the maximum
“Soundness of Approach” factor. Generally, RCB primary
at $3.25 million. When awarded on an annual basis, HUD
grantees can provide capacity-building support in the form
typically sets the minimum and maximum awards at $1
of financial and technical assistance to five types of eligible
million and $2.5 million, respectively.
beneficiaries:
Table 2 provides a breakdown of RCB grant awards of
1. rural housing development organizations;
FY2019 and FY2020 funds.
2. community development corporations;
Table 2. FY2019/FY2020 RCB Program Awards
3. community housing development
organizations;
Primary Grantee
Award Amount
4. local governments; and
Housing Assistance Council
$2.70 mil ion
5. Indian tribes.
Rebuilding Together
$2.40 mil ion
In order to receive RCB support, beneficiaries must operate
in an eligible rural area and serve rural constituencies.
Minnesota Housing
$2.40 mil ion
Under the RCB program, rural areas are defined as Census
Partnership
Bureau-recognized statistical geographic areas with fewer
than 50,000 people. HUD has developed a web-based
Rural Community Assistance
$1.25 mil ion
“Rural Beneficiary Mapping Tool” to aid primary grantees
Corporation
in confirming beneficiary eligibility.
Technical Assistance
$1.25 mil ion
Col aborative
Eligible Activities
The RCB program supports the following activities for rural
Source: U.S. Department of Housing and Urban Development, HUD
community development organizations, local governments,
Announces $10 Mil ion in Capacity Building Grants for Rural America,
and tribes:
https://www.hud.gov/press/press_releases_media_advisories/
HUD_No_21_001.
 technical assistance including training and advice;
Notes: The list and number of grantees receiving RCB awards may
 financial assistance such as loans and grants; and
vary from year to year. For a breakdown of RCB awards since

FY2012, see U.S. Department of Housing and Urban Development,
other activities approved by HUD.
Capacity Building Programs, https://www.hud.gov/program_offices/
These activities—as carried out by primary grantees—
comm_planning/capacitybuilding/#rcb.
typically support operational and administrative capacity
needs of beneficiaries, related to organizational efforts such
Related CRS Products
as affordable housing development and job creation.
CRS Report R47045, Section 4 Capacity Building for
Community Development and Affordable Housing
Program Monitoring
Program, by Joseph V. Jaroscak
HUD requires that primary RCB grantees submit semi-
annual reports on project finances, implementation status,
CRS In Focus IF12038, Farm Bill Primer: Rural
and outcomes. Grantees submit these reports through the
Development Title, by Lisa S. Benson
Disaster Recovery Grant Reporting System, which tracks a
range of appropriated funds administered by HUD.
Joseph V. Jaroscak, Analyst in Economic Development
Policy
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HUD Rural Capacity Building for Community Development and Affordable Housing (RCB) Program

IF12060

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https://crsreports.congress.gov | IF12060 · VERSION 4 · UPDATED