ACF opens 2025 Community Economic Development competition with $15.2 million for nonprofit CDCs

The Administration for Children and Families’ (ACF) Office of Community Services on Wednesday outlined the 2025 Community Economic Development (CED) Notice of Funding Opportunity, saying $15,200,000 is available to fund CED projects and that eligible applicants are private nonprofit community development corporations (CDCs) with 501(c)(3) status.

Presenter, representing ACF’s Office of Community Services, said the NOFO sets both the minimum and maximum award level at $800,000 for individual CED projects in FY2025 and that OCS anticipates funding about 15 projects. Projects that do not involve construction have a 36‑month project period; construction projects have a 48‑month period.

The NOFO ties minimum job‑creation expectations to award size. Staff member explained the formulas applicants must use: for non‑construction projects, total federal CED funds awarded divided by $27,000 equals the minimum number of jobs to be created; for construction projects, the divisor is $32,000. As an example provided in the presentation, an $800,000 non‑construction award requires about 29 jobs (800,000 ÷ 27,000 ≈ 29).

Eligibility and organizational requirements are explicit: applicants must be nonprofit CDCs with 501(c)(3) status, have articles of incorporation or bylaws demonstrating a principal purpose of planning, developing, or managing low‑income housing or community economic development, and maintain a board with representation from community residents, business leaders, and civic leaders. Individuals, sole proprietorships, and foreign entities are ineligible. The presentation said faith‑based organizations that meet these requirements are eligible to apply.

Permitted uses of CED funds include startup or expansion activities that create permanent full‑time jobs for individuals with low incomes, loans to participating businesses, equity investments in participating businesses, and support services for employees (either directly or through partners). The presentation stressed that short‑term construction jobs used to prepare participating businesses are not counted toward the program’s job‑creation requirement.

The NOFO also includes property rules: non‑construction projects are generally subject to intangible property rules and a 12‑year rule for federal interest in intangible property; construction projects that use federal funds or require renovation prior to job creation are subject to real property rules and must file a notice of federal interest (NFI) where applicable. Environmental and historic preservation requirements must be satisfied before an award or before drawdown of construction funds.

Applicants receive up to three opportunities for bonus points for (1) project supporting domestic energy resources, (2) coordinating with existing workforce development or job training programs, and (3) being located in a geographically underserved community. The presentation also directed applicants to the NOFO for full descriptions and required documentation for each bonus category.

Presenter closed by directing prospective applicants to the full NOFO and ACF’s online resources for complete guidance and the official funding announcement.