HUD Announces FY25 NOFO for Choice Neighborhoods Implementation Grants

By: Steven Molinari, Policy Analyst

December 17, 2025 — On December 9, HUD posted a Notice of Funding Opportunity (NOFO) for FY25 Choice Neighborhoods Implementation Grants. Applications are currently due by March 9, 2026.

The estimated total funding under this grant is $75 million with an award maximum of $26 million and award minimum of $1.

This year’s NOFO has significant changes compared to previous fiscal years. Some of these changes include:

• Target Neighborhoods must be the same neighborhood as funded by a FY 2023 or earlier Choice Neighborhoods Planning Grant;
• Public Housing Authorities or Indian Housing Authorities and local governments must apply jointly;
• Target Housing must be severely distressed public housing and the public housing project must have been the target housing project of an FY23 or earlier Choice Neighborhoods Planning Grant;
• Grantees may use up to 15% of their grant to pay the costs of Supportive Services activities; and
• Grantees may use up to 10% of their grant to pay the costs for Critical Community Improvements (CCIs).

According to HUD, funds may be used to redevelop only a portion of the target public housing site. Applications must clearly articulate the number of original public housing units to be redeveloped as part of the grant, the rationale for this selection, and propose a feasible plan for redevelopment.