Capital Improvements for At-Risk/Receivership/Substandard/Troubled PHAs

The U.S. Department of Housing and Urban Development (HUD) has announced $11.5 million in grant funding through the Capital Improvements for At-Risk, Receivership, Substandard, and Troubled Public Housing Authorities (PHAs) program. This grant targets housing authorities that are struggling to maintain safe, livable conditions for residents by providing critical funding for building repairs, safety upgrades, and modernization of public housing units.

Posted on February 25, 2026, the program has a submission deadline of April 28, 2026. Individual awards range from $250,000 to $3,000,000, giving qualifying PHAs a meaningful opportunity to address deferred maintenance and infrastructure deficiencies. If your housing authority falls into one of the designated categories, this guide covers everything you need to know to apply.

What Is the Capital Improvements for Troubled PHAs Program?

This HUD grant program provides dedicated funding to Public Housing Authorities that have been designated as at-risk, in receivership, substandard, or troubled. These designations typically reflect persistent challenges with physical conditions, financial management, or operational performance as assessed through HUD's Public Housing Assessment System (PHAS).

The goal of the program is to help these struggling agencies make meaningful capital improvements that directly benefit residents. Rather than penalizing underperforming PHAs, this funding offers a path forward by addressing the root causes of physical deterioration in public housing stock.

For organizations unfamiliar with the federal grant landscape, our guide on how to apply for federal grants provides a helpful overview of the process.

Who Is Eligible?

Eligibility for this program is limited to Public Housing Authorities that meet specific HUD designations. To qualify, a PHA must currently be classified under one or more of the following categories:

• At-Risk PHAs - Housing authorities identified by HUD as at risk of falling into troubled or substandard status based on declining performance indicators
• Receivership PHAs - Agencies that have been placed under third-party management due to severe operational or financial failures
• Substandard PHAs - PHAs with physical inspection scores below HUD's acceptable threshold, indicating significant property condition issues
• Troubled PHAs - Housing authorities that have received an overall troubled designation under the PHAS scoring system

Applicants must be able to document their current designation status as part of the application. PHAs that do not fall into one of these categories are not eligible for this particular funding opportunity.

Funding Details

The program makes a total of $11,500,000 available for distribution. Key funding details include:

• Total Program Funding: $11,500,000
• Minimum Award: $250,000
• Maximum Award: $3,000,000
• Funding Agency: Department of Housing and Urban Development (HUD)

Award amounts will vary depending on the scope of proposed improvements, the size of the housing authority, and the severity of capital needs documented in the application. HUD may fund multiple projects across different PHAs nationwide.

Eligible Uses of Funding

Grant funds must be directed toward capital improvements that address physical deficiencies in public housing properties. Eligible activities generally include:

• Building Repairs: Roof replacement, structural repairs, plumbing and electrical system upgrades, and exterior envelope improvements
• Safety Upgrades: Fire suppression systems, emergency lighting, security enhancements, lead paint abatement, and asbestos removal
• Modernization Projects: Upgrading outdated units to meet current building codes, accessibility improvements under ADA requirements, and energy efficiency retrofits
• Site Improvements: Parking areas, walkways, drainage systems, and other site infrastructure that affects resident safety and quality of life

Proposed projects should clearly demonstrate how the improvements will address the specific deficiencies that contributed to the PHA's at-risk, substandard, or troubled designation.

Key Dates

• Posted: February 25, 2026
• Application Deadline: April 28, 2026

Given the competitive nature of federal grant programs, applicants should begin preparing their submissions well in advance of the deadline. Gathering documentation of capital needs, obtaining cost estimates, and coordinating internal approvals can take significant time.

How to Apply

Applications for this grant are submitted through Grants.gov, the federal government's centralized grant application portal. To submit an application, your organization must:

1. Register on SAM.gov: All applicants must have an active registration in the System for Award Management. If your PHA is not yet registered, see our step-by-step guide on how to complete SAM.gov registration.
2. Create a Grants.gov Account: Ensure your organization has an active Grants.gov account with an authorized organizational representative (AOR).
3. Review the Full NOFO: Download and carefully review the Notice of Funding Opportunity on Grants.gov for complete eligibility criteria, required documentation, and evaluation factors.
4. Prepare Required Documentation: This typically includes a project narrative describing planned improvements, a detailed budget, evidence of PHA designation status, and any supporting engineering or inspection reports.
5. Submit Before the Deadline: Applications must be received by April 28, 2026. Late submissions will not be accepted.

For a broader overview of where to search for opportunities like this one, our guide on finding federal grants walks through the major platforms and strategies.

Tips for a Strong Application

Competition for HUD capital improvement funding can be significant. To strengthen your application, consider these recommendations:

• Document the Need: Include recent physical inspection reports, PHAS scores, and photographs that clearly illustrate the condition of your properties
• Provide Detailed Cost Estimates: Use professional estimates or contractor bids to show that your budget is realistic and well-supported
• Connect Improvements to Outcomes: Explain how the proposed work will directly improve resident safety, raise inspection scores, and help move the PHA out of its troubled or at-risk designation
• Show Organizational Capacity: Demonstrate that your PHA has the staffing, procurement processes, and project management capabilities to execute the work within the grant period
• Address Sustainability: Describe how your PHA will maintain the improvements long-term and prevent a return to substandard conditions

How Avila Can Help

Preparing a competitive federal grant application requires careful attention to eligibility requirements, narrative structure, budget justification, and compliance documentation. Avila's AI-powered platform is designed to streamline every stage of this process, from identifying the right funding opportunities to drafting and refining your proposal.

Whether your PHA is applying for HUD capital improvement funding for the first time or looking to improve on a previous submission, Avila can help you organize your application materials, align your narrative with evaluation criteria, and submit a polished proposal before the deadline.

Ready to get started? Book a demo with our team to see how Avila can support your grant application process.