The FY24 Pathways to Removing Obstacles to Housing (PRO Housing) Grant, issued by the U.S. Department of Housing and Urban Development (HUD), aims to assist state and local governments, metropolitan planning organizations (MPOs), and multijurisdictional entities in removing barriers to affordable housing production and preservation. With approximately $100 million in funding, the grant reflects a federal effort to address housing shortages and rising costs by encouraging structural reforms, improving infrastructure, and mitigating development obstacles in urban and rural communities. Applications are due by October 22, 2024.

The purpose of this program is to address issues such as restrictive zoning laws, high land costs, insufficient infrastructure, and inefficient permitting processes, which prevent the development of affordable housing. These barriers contribute to significant housing costs, with nearly 40 million U.S. households spending over 30 percent of their income on housing. The program also aims to reduce racial disparities in housing access, as marginalized groups often experience higher levels of housing cost burdens. The grant supports policies that promote desegregation and expand affordable housing opportunities in well-resourced areas.

Eligible applicants include state, city, county, and township governments, as well as MPOs and multijurisdictional entities. HUD encourages partnerships between overlapping jurisdictions to submit joint applications. The program does not require a cost-sharing or matching contribution, but points will be awarded for leveraging additional funding sources. Awards will range between $1 million and $7 million, with approximately 30 grants expected to be issued. The performance period for the projects will extend until September 30, 2030.

Funding can be used for planning, policy development, infrastructure improvements, housing preservation, and other activities that address regulatory and procedural barriers to affordable housing. Examples include updating zoning laws, streamlining permitting processes, incentivizing mixed-income developments, and improving infrastructure to support new housing projects. Priority will be given to applicants demonstrating prior efforts to overcome local barriers, a commitment to increasing affordable housing production, and a focus on promoting racial and economic equity in housing.

Applicants are required to submit proposals through Grants.gov, detailing their plans, budgets, and timelines, along with certifications of public participation and outreach efforts. HUD will evaluate applications based on five criteria: demonstrated need, soundness of approach, capacity to implement the project, use of leveraged resources, and long-term impacts. Special attention will be given to proposals that address fair housing, promote racial equity, and prevent displacement.

Successful applicants will be notified after the review process and will work with HUD to finalize the terms of their grants. Projects must align with HUD's strategic goals, including increasing housing production, supporting underserved communities, and promoting sustainable development. Quarterly reporting through the Disaster Recovery Grant Reporting (DRGR) system will be required to ensure compliance and track progress toward stated goals.