Housing, construction & community development grants in Arkansas
HUD block grants and state housing agencies fund affordable housing, repairs and neighborhood revitalization contractors. In Arkansas, these funds reach housing, construction & community development businesses and nonprofits through Arkansas state agencies, county programs and city economic development offices, alongside direct federal awards.
Example programs available to Arkansas applicants
- Community Development Block Grants (CDBG)
- HOME Investment Partnerships
- State housing trust funds
Getting started in Arkansas
- 01Register your business with Arkansas (usually the Secretary of State) and get an IRS EIN.
- 02Check Arkansas licensing, permits and tax registration rules for housing, construction & community development.
- 03Register on SAM.gov for a free UEI so you can receive federal funds passed through Arkansas agencies.
- 04Contact your local Arkansas Small Business Development Center (SBDC) for free help with plans and applications.
- 05Ask your Arkansas city and county economic development office about local housing, construction & community development grants and incentives.
Who qualifies
- Nonprofit housing developers, including organizations certified by a local participating jurisdiction as a Community Housing Development Organization (CHDO), which can access the HOME program's 15% CHDO set-aside
- Licensed general contractors, remodelers, and trade businesses that bid on government-funded rehabilitation, repair, weatherization, or accessibility projects
- For-profit and nonprofit developers building or preserving rental or for-sale housing for low- and moderate-income households
- Community-based organizations, community development corporations (CDCs), and public agencies running neighborhood revitalization, public facility, or homeowner repair programs
- Small businesses in eligible low- and moderate-income areas that may receive CDBG-funded economic development assistance through a local government, where the community offers it
- Section 3 business concerns (businesses owned by or employing low- and very low-income residents) that may receive contracting preference on certain HUD-funded projects
Where the funding comes from
HUD Community Development Block Grant (CDBG): HUD sends annual formula funds to entitlement cities and counties and to states, which serve smaller communities. Local governments then award subgrants and contracts for housing rehab, public facilities, and economic development that mainly benefit low- and moderate-income people.
HUD HOME Investment Partnerships Program: Formula funds go to states and local participating jurisdictions for affordable rental housing, homebuyer assistance, owner-occupied rehab, and tenant-based rental assistance. At least 15% is reserved for CHDOs.
USDA Rural Development housing programs: These include Housing Preservation Grants (Section 533) for nonprofits and public bodies that repair homes of low-income rural residents, and Section 504 home repair loans and grants for eligible very-low-income rural homeowners.
State Housing Finance Agencies (HFAs): HFAs administer the National Housing Trust Fund (HUD formula money for extremely low-income rental housing) and the Low-Income Housing Tax Credit (LIHTC) program. Both usually award funds through competitive application rounds.
State housing trust funds and state community development or commerce departments: Many states fund affordable housing, repairs, and the State CDBG program for non-entitlement areas through annual Notices of Funding Availability (NOFAs).
City and county housing or community development departments: These offices run local CDBG, HOME, and local housing trust fund programs. They publish annual action plans and requests for proposals (RFPs), and they keep approved contractor lists for home repair programs.
Federal Home Loan Bank Affordable Housing Program (AHP): Regional FHLBanks award competitive grants for affordable housing. Applications are submitted through a member financial institution, such as a local bank or credit union.
Common requirements
- An active SAM.gov registration with a Unique Entity ID (UEI). This is required to apply directly for federal awards, and pass-through agencies commonly require it of subrecipients.
- Proof of legal entity status: articles of incorporation, an EIN, good standing with your Secretary of State, and IRS 501(c)(3) determination letter for nonprofits.
- State and local contractor licenses, general liability and workers' compensation insurance, and bonding capacity (bid, performance, and payment bonds) for construction work.
- EPA Lead Renovation, Repair and Painting (RRP) Certified Firm status and certified renovators for work on pre-1978 housing, plus compliance with HUD's Lead Safe Housing Rule.
- Compliance with federal labor and contracting rules where they apply: Davis-Bacon prevailing wages and certified payrolls, Section 3 hiring and reporting, and procurement and cost rules under 2 CFR 200.
- Financial documents such as audited financial statements or tax returns, an organizational budget, and a Single Audit if you spend $1,000,000 or more in federal awards in a fiscal year (threshold for fiscal years beginning on or after October 1, 2024).
- Project documents such as site control, a development budget and pro forma, environmental review clearance before committing funds, and income verification for beneficiaries.
How to apply
- 01Identify who controls the money in your area. Find your city's or county's CDBG and HOME Consolidated Plan and Annual Action Plan, your state housing finance agency, and your state community development office.
- 02Register your organization in SAM.gov to obtain a UEI. Gather your licenses, insurance, certifications (such as EPA RRP), and financial documents. Pursue CHDO or Section 3 status if applicable.
- 03Watch for funding announcements. Sign up for NOFA and RFP notices from local and state agencies, check Grants.gov and USDA Rural Development for direct federal opportunities, and ask to be added to contractor bid lists.
- 04Prepare a complete application or bid that meets the program's national objective and eligibility rules. Include a realistic budget, a timeline, the population served, and evidence that you can comply with federal requirements.
- 05Submit before the deadline and attend any pre-application or bidder conferences. If you are selected, be ready for environmental review, contract negotiation, and ongoing reporting and monitoring.
Frequently asked questions
Can my for-profit construction company apply directly to HUD for a CDBG grant?
Generally no. HUD awards CDBG to states and local governments, not to individual businesses. Contractors usually take part by winning competitively bid contracts or by joining approved contractor lists for local repair programs. Some communities also offer CDBG-funded economic development assistance to eligible businesses.
What is a CHDO and why does it matter?
A Community Housing Development Organization is a private nonprofit that a HOME participating jurisdiction certifies as meeting HUD requirements for its board, capacity, and community accountability. Each jurisdiction must reserve at least 15% of its HOME funds for CHDO housing projects, so certification can open access to dedicated funding.
Do I need a SAM.gov registration if I'm only receiving money through my city?
Often yes. Subrecipients of federal funds generally need a UEI, and many cities and states require an active SAM.gov registration before awarding federally funded subgrants or contracts. Registration is free, so beware of companies that charge for it.
Will I have to pay prevailing wages on these projects?
It depends on the program and project size. Davis-Bacon prevailing wages apply to most CDBG-funded construction contracts over $2,000, but residential projects with fewer than 8 units are exempt. Under HOME, the requirement applies when a project has 12 or more HOME-assisted units. Always confirm the rules with the funding agency.
How competitive are these grants, and how long does it take to get funded?
Many housing programs are highly competitive and limited by annual allocations. Timelines from application to contract can run several months or longer because of reviews, environmental clearance, and approvals. Funding is never guaranteed, so plan your cash flow and consider combining several sources, such as HOME, tax credits, and local trust funds.
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Researched from public sources. Program details change, so always confirm with the Arkansas funding agency. GrantVerify does not award grants or guarantee funding.