City of Tucson Housing and Community Development Grant

The City of Tucson Housing and Community Development Department (HCD), in partnership with the Tucson-Pima County HOME Program Consortium, is offering funding through the HOME Affordable Housing Development Program to support the creation or rehabilitation of affordable homeownership opportunities for low-income households. This initiative is aligned with the federal HOME Investment Partnerships Program, a key tool under the National Affordable Housing Act of 1990 designed to expand affordable housing supply, particularly through nonprofit-led developments. To further this mission, at least 15% of HOME funds are reserved for Community Housing Development Organizations (CHDOs), which are nonprofit entities meeting strict federal criteria related to structure, governance, community accountability, and capacity. Through this competitive Request for Proposals (RFP), the City anticipates awarding up to $1,045,667 for homeownership projects under the CHDO set-aside. Each applicant may request up to $500,000 for the acquisition, rehabilitation, or construction of affordable for-sale housing units. All developments must serve households earning at or below 80% of Area Median Income (AMI), and selected applicants must complete required certifications to operate as CHDOs. Projects must align with the City’s Housing Affordability Strategy for Tucson (HAST), the People, Communities, and Homes Investment Plan (P-CHIP), and other local policy frameworks that prioritize geographic equity, high opportunity areas, and cost-effective design. To qualify, applicants must submit complete project proposals electronically through the Neighborly Software portal by January 9, 2026. Pre-proposal activities include a virtual kickoff meeting scheduled for December 5, 2025. Following submission, applicants will undergo a threshold review and may be asked to cure deficiencies by January 21, 2026. Applicants will also be required to present their proposals at a public Commission on Equitable Housing and Development meeting in February 2026. These presentations will be scored as part of the 205-point evaluation rubric, which weighs project impact, design, financial readiness, and alignment with community goals. HOME funds under this solicitation may cover a wide range of eligible costs including acquisition, construction, and soft costs. Assisted units must comply with HUD’s affordability requirements for a minimum of 5 to 15 years based on the per-unit subsidy amount. The maximum allowable sale price for assisted homes is currently $385,225 for existing units and $369,550 for new construction. All buyers must undergo housing counseling, and income eligibility must be verified prior to the execution of a purchase agreement. Projects are also subject to resale or recapture provisions in compliance with federal guidelines. CHDO applicants must meet detailed criteria defined by HUD and 24 CFR Part 92, including nonprofit status, community representation on governing boards, and demonstrated development capacity. Proposals will be judged on their ability to deliver high-impact, affordable homeownership units efficiently, with emphasis on opportunity scores, project design, service proximity, and past performance. Funding decisions will be announced in February 2026, subject to approval by the Tucson Mayor and Council, with preliminary commitment letters issued shortly thereafter. For further details, applicants may consult the official program page or the City’s P-CHIP portal. Questions must be submitted in writing to [email protected] by December 26, 2025. Weekly updates and clarifications will be published online. This RFP represents a vital opportunity to contribute to Tucson’s affordable housing landscape through innovative, community-driven homeownership initiatives.

Emphasize Opportunity Score, project alignment with P-CHIP, readiness to proceed, and affordability compliance in the proposal narrative and CEHD presentation.