Important Changes to NOFO You Need to Know

The U.S. Department of Housing and Urban Development (HUD) has released the FY2025 Indian Community Development Block Grant (ICDBG) Notice of Funding Opportunity (NOFO) and this year’s version delivers meaningful modernization.

Much like the Indian Housing Block Grant (IHBG) Competitive program, ICDBG continues to strengthen Tribal communities through housing, infrastructure, and economic development. But HUD’s new updates show a sharper focus on capacity, accountability, and clarity, making the process more efficient while ensuring projects are feasible and sustainable.

Program Overview

• Consistent Funding Levels
  ICDBG remains one of HUD’s cornerstone programs, offering $75–$80 million for Single-Purpose grants and an additional $5 million for Imminent Threat projects that address urgent health or safety concerns.

Projects must primarily benefit low and moderate income Tribal members (24 CFR Part 1003). Typical awards range from $1–$2 million, with a five-year performance period.

Key Updates for FY2025

• Streamlined Narrative Requirements
  The workplan narrative no longer has page or format limits, giving applicants flexibility to focus on clarity and content.

• Simplified Forms
  Updated HUD-4123 (Cost Summary) and HUD-4125 (Implementation Schedule) replace prior versions, aligning with new HUD-wide templates.

• Extended Timelines
  Infrastructure projects can now use the full five-year period to complete housing or community development components, easing pressure on larger, multi-phase efforts.

• Enhanced Equity Focus
  HUD refined its Advancing Racial Equity and Experience Promoting Racial Equity (EPRE) sections, highlighting inclusive outcomes and community benefit.

Revised Rating Factors

HUD adjusted scoring to reward readiness, sustainability, and measurable impact:

• Capacity (32 points)
  Increased weight for timely reporting, past project closeouts, and management of pandemic or Imminent Threat grants.

• Need (23 points)
  Refocused on quantifiable housing and infrastructure gaps, removing the prior “Tribal Youth Connection” subfactor.

• Soundness of Approach (38 points)
  Stronger emphasis on feasibility, realistic timelines, and sustainability beyond project completion.

• Leveraging (3 points)
  Simplified expectations for match and partner contributions.

• Comprehensiveness & Coordination (4 points)
  Clearer guidance on defining outputs and outcomes.

Applicants must earn at least 15 points in Capacity and 70 points overall (excluding preference points) to be considered for funding.

Preference Points

Up to 4 bonus points remain available:

• 2 points for Opportunity Zones Initiatives.

• 2 points for Promise Zone participation, reinforcing alignment with federal equity and sustainability goals.

The Bottom Line

HUD’s emphasis for FY2025 is unmistakable:

1. Feasibility, performance, sustainability, and equity define competitiveness.

2. Strong applicants will present realistic budgets, demonstrate proven management systems, and show how their projects create lasting, inclusive community impact.

The FY2025 ICDBG NOFO preserves the program’s community-driven mission while modernizing its structure for transparency and accountability—helping Tribes not only prove need, but demonstrate readiness to deliver measurable results.

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At DK Tribal, we help Tribes and TDHEs navigate every stage of the ICDBG and IHBG Competitive application process—from grant writing and compliance to project implementation and monitoring.

To learn more about our services, visit dktribal.com/services or contact our team directly.

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