HUD Takes a New Direction
By Brendan L. Smith   

With $100 million in funding, the Department of Housing and Urban Development (HUD) could transform regional planning across the country with a new focus on sustainable development, but the devil is in the details.  

HUD is developing a Notice of Funding Availability (NOFA) after seeking comments on an advance notice for the Sustainable Communities Planning Grant Program. The newly established Office of Sustainable Housing and Communities at HUD will oversee the program in partnership with the Department of Transportation (DOT) and the Environmental Protection Agency (EPA). 

“We’re encouraging folks to think visionary and at the same time we’re trying to tear down some of the barriers,” says Dwayne S. Marsh, senior adviser for the Office of Sustainable Housing and Communities. “The truth is, when you’re doing regional planning it always gets unwieldy. It’s going to be on us to be very clear of what the fundamental outcomes are.”  

HUD expects to publish the NOFA in mid-April with grant applications due in early June and awardees announced in August. The goal of the program is to support “multi-jurisdictional regional planning efforts that integrate housing, economic development, and transportation decision-making in a manner that empowers jurisdictions to consider the interdependent challenges of economic growth, social equity, and environmental impact simultaneously,” the advance notice states.  

Common Concerns
HUD has held listening sessions in several cities and hosted web conferences to seek comments on the program. “We’ve heard the whole landscape of interests and issues, but we have heard some consistent concerns,” Marsh says.   Potential applicants have said they want grants awarded to regional coalitions that:
  • Mandate resident engagement, including participation by low-income communities that may be impacted by new development and gentrification.
  • Strengthen rather than scrap existing regional plans.
  • Include workforce development strategies to help improve the local economy.
  • Emphasize fair and affordable housing, including housing plans located near public transit with mixed-use zoning.
  • Include a broad range of stakeholders such as metropolitan planning organizations (MPO), councils of governments (COG), nonprofits, universities, and neighborhood groups.
  • Honor distinctive characteristics of small metropolitan areas and provide capacity building for areas with little regional planning experience.  

Grants are limited to $5 million for metropolitan areas with a population of 500,000 or more and $2 million for smaller metropolitan or rural areas. At least 25% of the funding is reserved for small metropolitan areas. HUD expects to award about 30 grants based on the available funds.  

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Funding Levels
Three levels of funding are being considered with the first level focused on the preparation of integrated regional plans in areas that don’t have adequate plans. Funding could be used for visioning and scenario planning exercises along with data analysis, urban design, and public outreach efforts. 

“If you’re in the first category, we expect things to get a little messy,” Marsh says about the lack of regional planning experience in some communities.  
Applicants also would need to identify locally appropriate performance metrics that are consistent with six livability principles adopted last year by HUD, DOT, and EPA.      

The second level of funding would cover a broader range of activities for executing an adopted regional plan that already meets the grant program’s criteria. Funds could support inter-jurisdictional affordable housing strategies, regional transportation investment programs, land banking and acquisition strategies, revenue sharing strategies, and economic development strategies.  

The third level of funding would support communities with the most advanced regional planning by providing pre-development or capital funds for regionally significant developments, land acquisition, or infrastructure investment that advance the sustainable vision. Grantees in this category also may be able to be precertified for other federal grant programs which could streamline paperwork and avoid bureaucratic entanglements.  

Some organizations, including the American Planning Association (APA), oppose using the grant funds for capital projects rather than the development and execution of regional plans. “We simply don’t think that is a wise use of limited resources here,” says APA policy director Jason Jordan. “We’ve asked them to take a hard look at that.”

APA recommends that grants support high-quality replicable models of innovative regional planning which include broad coalitions of local players and linkage to existing comprehensive plans.