FY26 Pathways to Removing Obstacles to Housing (PRO Housing)

As President Trump said in his Executive Order on Removing Regulatory Barriers to Affordable Home Construction (March 13, 2026), The American dream of homeownership depends on a dynamic housing market in which a varied inventory of new homes is built and renovated each year. Layers of unnecessary regulatory barriers, slow permitting processes, and onerous mandates at all levels of government have delayed construction, restricted development, and driven up the costs of new housing. These constraints have made housing less affordable for many Americans. It is the policy of my Administration to reduce regulatory barriers to building homes and to steward taxpayer dollars in a manner that promotes housing affordability.HUD's PRO Housing program rewards communities that have taken steps to remove regulatory barriers to building and preserving homes by providing funding to further expand affordable housing, particularly homeownership opportunities and housing located in Opportunity Zones and rural communities.HUD is issuing this Fiscal Year 2026 (FY26) PRO Housing NOFO under the authority of the Consolidated Appropriations Act, 2026, which provided $50 million for competitive grant funding for state and local governments, metropolitan planning organizations (MPOs), and multijurisdictional entities. The Appropriations Act requires HUD to award grants using the Community Development Block Grant (CDBG) framework. As with all CDBG assistance, the priority is to serve low- and moderate-income people and households. HUD shall select applicants that demonstrate: (1) progress and a commitment to eliminating local barriers to facilitate the increase in affordable housing production and preservation, through enactment or implementation of less restrictive zoning, land use, or permitting laws and regulations; (2) an acute need for housing affordable to households with incomes below 100 percent of the area median income; and (3) a commitment to create new homeownership units before the expiration of the funding performance period. Applicants and grantees are reminded of the President's Executive Orders on Ending Illegal Discrimination and Restoring Merit-Based Opportunity (January 221, 2025) and Ending Radical and Wasteful Government DEI Programs and Preferences (January 20, 2025) and their applicability to PRO Housing funding. PRO Housing funding may not be used to fund "illegal and immoral discrimination programs, going by the name 'diversity, equity, and inclusion.'"In addition to thoroughly reviewing this NOFO, applicants are strongly encouraged to monitor HUD's PRO Housing website for information about general updates, Frequently Asked Questions, and PRO Housing webinars.HUD has four goals for this competition: Decrease the cost and increase the supply of affordable housing, especially in Opportunity Zones and rural communities. Remove barriers to affordable housing, removal of which will lead to constructing or rehabilitating more units, reducing time to produce units, and unlocking land that can be used for affordable housing units. Reward jurisdictions that have enacted laws and regulations that will lead to more affordable housing production and preservation. Increase opportunities for affordable homeownership by reducing administrative and structural barriers.