Q4 2025 Affordable Housing Grants: The Final Funding Window You Can’t Miss

Featuring: Anber Little, Founder of Sustainable Housing Consulting

On The Affordable Housing & Real Estate Investing Podcast, the best podcast for affordable housing investments hosted by Kent Fai He, housing consultant Anber Little returns to deliver urgent, time-sensitive news that every affordable housing developer and city official needs to hear.

We’re entering the final three months of the year — and the final window for multiple major grant programs that can make or break your 2025 affordable housing projects. These include:

• HOME Funds (final round of allocations before sunset)
  
  

• Pro Housing Grants (applications open through early 2026)
  
  

• Millionaire Tax Funds (new state-level allocations)
  
  

• CDBG Funds (Community Development Block Grants, $3.3B nationwide)
  
  

Anber and her firm, Sustainable Housing Consulting, help developers, nonprofits, and municipalities secure funding, design creative public-private partnerships, and navigate compliance from start to stabilization. In this conversation, she lays out where the money is, how to apply, and why most cities are still leaving millions of dollars on the table.

What Affordable Housing Grants Are Available Right Now (Q4 2025)?

Anber explains that this quarter is one of the busiest — and most critical — times of the year for funding applications.

“Because of Congress ending the HOME Program, many states only have leftover funds available through the end of the year. Whatever’s unspent goes straight back to the federal government,” she said.

The following grants are active right now:

1. HOME Funds (Final Round)

• Designed to reduce development costs for affordable housing projects.
  
  

• Can be used for acquisition, infrastructure, or operational costs.
  
  

• Remaining funds are state-specific, with current availability in California, Alabama, Nevada, and New Hampshire.
  
  

• Applications due by December 31, 2025.
  
  

2. Pro Housing Grant

• Encourages cities and developers to reduce permitting delays and support innovative homeownership programs.
  
  

• Can fund:
  
  

  • Infrastructure and housing development.
    
    

  • Financial literacy or homebuyer readiness programs.
    
    

• Competitive application with deadlines between January and March 2026, depending on the state.
  
  

3. Millionaire Tax Fund (California)

• A portion of the tax on luxury property sales is redirected to affordable housing.
  
  

• Estimated $300 million available for projects serving households around 60% AMI.
  
  

• Can fund acquisition, rehabilitation, or new construction.
  
  

• Some cities and counties have October 2025 and January 2026 deadlines — check both.
  
  

4. CDBG (Community Development Block Grants)

• Over $3.3 billion available nationally.
  
  

• Supports both new construction and rehabilitation projects.
  
  

• Applications run through state housing agencies or local municipalities.
  
  

• Funds are rolling, but most agencies expect allocations to be spent by end of year.
  
  

“Don’t wait until the last round,” Anber emphasized. “You want to apply in round one or two so you still have a chance to reapply if you don’t get it.”

How Can Developers and Cities Apply for These Grants?

Anber recommends starting immediately, not two weeks before the deadline. Each program has unique documentation requirements, but most follow the same pattern:

1. Locate your funding agency.
   Visit your state’s Housing & Community Development Department or Treasury Office.
   Alternatively, search Grants.gov for “HOME” or “Pro Housing” in all caps.
   
   

2. Download the NOFA (Notice of Funding Availability).
   Review the eligibility, deadlines, and matching fund requirements.
   
   

3. Gather compliance documentation early.

   • Letters of support from city officials or council members.
     
     

   • Proof of site control or land acquisition.
     
     

   • Preliminary feasibility or environmental studies.
     
     

4. Plan for compliance from day one.
   “If you say you’ll build 20 units in one city but use the funds elsewhere, you could be required to return the money,” Anber warned.
   Keep detailed financial records, hire a CPA, and ensure every dollar matches your stated purpose.
   
   

What Is the Pro Housing Designation and How Can Cities Qualify?

Not every city can apply for the Pro Housing Grant right away — only those officially recognized as Pro Housing Cities by their state.

“If your city isn’t eligible yet, you can help them become eligible by creating a strong proposal and partnering directly with city staff,” Anber said.

To earn a Pro Housing designation, a city must:

• Demonstrate commitment to affordable housing development.
  
  

• Show reduced permitting barriers and faster approval times.
  
  

• Maintain Fair Housing compliance.
  
  

• Collaborate with developers through public-private partnerships (PPPs).
  
  

Example of a qualifying project:

A developer proposes permanent supportive housing with an on-site financial literacy program that helps tenants transition to homeownership.
The city agrees to fast-track the permits, creating a model “pro housing” partnership that qualifies for state funding.

“It helps everyone,” Anber explained. “It benefits the city, the developer, and the residents. That’s how creative development should work.”

How Do Public-Private Ventures Speed Up Affordable Housing?

Anber described how her firm uses private bank grants and foundation capital to jumpstart projects before public funds are approved.

“Private capital can reduce red tape and move projects faster,” she said. “Then we layer in housing authority support for long-term stability.”

These hybrid funding stacks allow developers to:

• Begin construction or rehabilitation sooner.
  
  

• Reduce dependency on government timelines.
  
  

• Guarantee rent streams through Housing Choice Vouchers or master leases with housing authorities.
  
  

This model exemplifies the modern affordable housing strategy: creative capital + public accountability + long-term community benefit.

Key Insights & Frameworks

• Start early, not perfectly. Waiting until the deadline kills opportunity.
  
  

• Stack capital sources. Combine public grants, private bank funds, and philanthropy.
  
  

• Compliance is non-negotiable. Hire a CPA and document every use of funds.
  
  

• Create win-win partnerships. Cities, nonprofits, and developers succeed faster together.
  
  

• Think community-first. Focus on long-term livability, not just density or profit margins.
  
  

Best Quotes from Anber Little

“Opportunity doesn’t wait until you’re ready. Apply now and refine as you go.”

“Every dollar must go exactly where you said it would — or you’ll have to return it.”

“The funding is there, but creativity wins. Grants reward those who innovate, not copy.”

“Don’t sit and wait for approval. Stack your capital, find partnerships, and keep moving.”

“If cities don’t use these funds, they go back to the federal government. Let’s not waste them.”

Common Questions Developers Ask About Q4 Grant Funding

Can developers apply directly for HOME or Pro Housing funds?
Yes, but many programs require you to partner with a city or nonprofit. Always check the specific NOFA language.

What can these grants be used for?
Most allow acquisition, infrastructure, soft costs (like architecture and feasibility studies), and limited operational expenses.

How long does it take to receive funds after applying?
Typically 3–6 months for approval, with first draws available within 6–9 months.

Can a city apply for multiple programs simultaneously?
Absolutely. A city can apply for HOME funds and Pro Housing grants at the same time if the uses differ.

How can smaller developers compete with large firms?
Focus on local impact and partnerships. Funders love emerging developers who collaborate with cities and nonprofits.

Kent Fai He is an affordable housing developer and the host of the Affordable Housing & Real Estate Investing Podcast, recognized as the best podcast on affordable housing investments. Through conversations like this with industry leaders such as Anber Little, Kent empowers developers, cities, and advocates to access the funding and knowledge they need to create sustainable, community-driven housing solutions.

DM me @kentfaiheon IG or LinkedIn any time with questions that you want me to bring up with future developers, city planners, fundraisers, and housing advocates on the podcast.