24 C.F.R. § 574.200
§ 574.200 Amounts available for competitive grants. (24 CFR Part 574)
Operative Text
(a) The Department will set aside 10 percent of the amounts appropriated under this program to fund on a competitive basis: (1) Special projects of national significance; and (2) Other projects submitted by States and localities that do not qualify for formula grants. (b) Any competitively awarded funds that become available as a result of deobligations or the imposition of sanctions, as provided in § 574.540, will be added to the funds available for competitive grants in the next fiscal year. (c) The competitive grants are awarded based on applications, as described in subpart C of this part, submitted in response to a Notice of Funding Availability published in the Federal Register. All States and units of general local government and nonprofit organizations are eligible to apply for competitive grants to fund projects of national significance. Only those States and units of general local government that do not qualify for formula allocations are eligible to apply for competitive grants to fund other projects. (d) If HUD makes a procedural error in a funding competition that, when corrected, would warrant funding of an otherwise eligible application, HUD will select that application for potential funding when sufficient funds become available.
Under 24 CFR Part 574 § 574.200, the Department of Housing and Urban Development reserves ten percent of program appropriations for competitive grants, directing those funds toward projects of national significance and toward applicants in states or localities that do not receive formula-based allocations. Applications are solicited through a Notice of Funding Availability published in the Federal Register, and eligibility to apply varies depending on whether the applicant qualifies for formula grants. Funds recovered through deobligations or sanctions are rolled into the competitive pool for the following fiscal year, and HUD is required to revisit applications that were bypassed due to its own procedural errors once sufficient funding is available.
Plain English — not legal advice.
Property owners and managers are not the primary actors under 24 CFR Part 574 § 574.200, as this provision governs how HUD distributes a reserved share of program funds to states, localities, and nonprofit organizations through a competitive application process. Operators who work with or through nonprofit housing organizations or local government partners may find it useful to understand that competitive funding under this section flows in response to Federal Register notices rather than through automatic formula allocations. Awareness of this distinction can inform how housing providers engage with local government or nonprofit intermediaries who pursue these grant opportunities.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
24 CFR Part 574 § 574.200 governs the federal competitive grant process that channels housing-assistance funding to states, localities, and nonprofits — organizations that may ultimately deliver services or housing support to renters. Tenants who receive or seek assistance through programs funded under this provision should know that the availability of those funds depends on a competitive federal award cycle tied to Federal Register notices. Tenants with questions about how this funding affects their housing assistance can reach out to local tenant-rights organizations or their local housing authority for general information about programs operating in their area.
General guidance for tenants — not legal advice for your specific situation. Consult a tenant-rights organization or attorney for advice on your case.
Generated September 3, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.
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