Opportunity Information: Apply for PDR 2600 DC 029O

The Automated Permitting Systems Demonstration NOFO (Funding Opportunity Number PDR 2600 DC 029O) is a discretionary funding opportunity from the U.S. Department of Housing and Urban Development (HUD) designed to help public-sector permitting offices modernize how they review and approve building code permits. The core idea is to fund real deployments of automated building code permitting systems inside actual government permitting environments, then work with HUD to evaluate how well these systems perform under day-to-day operating conditions. Rather than focusing only on pilot concepts or theoretical studies, the program is structured as a demonstration meant to produce practical, evidence-based lessons that other jurisdictions can use when deciding whether and how to adopt similar technology.

Awards will be made as cooperative agreements, which typically means recipients should expect substantial involvement from HUD during the project, especially around evaluation, data collection, and documenting findings. HUD is looking to learn what changes when automation is introduced into the permitting workflow, including measurable impacts on permitting processing timelines, internal workflow efficiency, and how staff roles and responsibilities shift when routine steps are automated or partially automated. The opportunity also emphasizes the applicant experience, meaning the program is interested not just in back-office operational gains but also in whether applicants (homeowners, builders, developers, design professionals) experience clearer requirements, fewer errors or resubmittals, faster turnaround times, or a more predictable process.

A major deliverable of the demonstration is empirical evidence that can guide broader adoption across state and local governments. HUD intends for funded jurisdictions to help generate credible, real-world information about operational performance, implementation and ongoing operating costs, governance and management needs (such as policies, oversight, accountability, data stewardship, and system administration), and potential cost savings. In practice, this kind of evidence can help other jurisdictions understand tradeoffs, set realistic expectations, and decide what level of automation makes sense for their code enforcement context. The NOFO sits at the intersection of housing and research and development, reflecting HUDs interest in technology-enabled improvements that can reduce friction in housing production and renovation by making permitting more efficient and transparent.

The maximum award amount is $1,500,000 per award, with an expectation of up to six total awards. The funding is associated with CFDA number 14.506. The application deadline (original closing date) is July 13, 2026, and the opportunity was created on May 29, 2026. Eligible applicants are limited to governmental entities: state governments, county governments, city or township governments, and federally recognized Native American tribal governments. Individuals, foreign entities, and sole proprietorships are explicitly ineligible, which signals that HUD intends these projects to be implemented by public jurisdictions that operate permitting functions and can sustain the system in an official capacity.

Overall, this NOFO is best understood as a competitive funding and evaluation partnership aimed at proving out automated permitting in real permitting offices, identifying what works and what does not, and producing actionable evidence about performance, staffing impacts, user experience, costs, and governance. The ultimate purpose is to inform and accelerate broader, responsible adoption of automated permitting solutions across the country by grounding future decisions in demonstrated results rather than assumptions.

  • The Department of Housing and Urban Development in the housing, science and technology and other research and development sector is offering a public funding opportunity titled "Automated Permitting Systems Demonstration NOFO" and is now available to receive applicants.
  • Interested and eligible applicants and submit their applications by referencing the CFDA number(s): 14.506.
  • This funding opportunity was created on 2026-05-29.
  • Applicants must submit their applications by 2026-07-13. (Agency may still review applications by suitable applicants for the remaining/unused allocated funding in 2026.)
  • Each selected applicant is eligible to receive up to $1,500,000.00 in funding.
  • The number of recipients for this funding is limited to 6 candidate(s).
  • Eligible applicants include: State governments, County governments, City or township governments, Native American tribal governments (Federally recognized).
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Frequently Asked Questions (FAQs)

What is the Automated Permitting Systems Demonstration NOFO?

The Automated Permitting Systems Demonstration NOFO is a discretionary funding opportunity from the U.S. Department of Housing and Urban Development (HUD). It is designed to help public-sector permitting offices modernize how they review and approve building code permits by funding real deployments of automated building code permitting systems in active government permitting environments.

What is the Funding Opportunity Number for this NOFO?

The Funding Opportunity Number is PDR 2600 DC 029O.

What is the main goal of this funding opportunity?

The main goal is to support real-world demonstrations of automated building code permitting systems and to generate practical, evidence-based lessons about how these systems perform under day-to-day operating conditions. HUD intends for the results to help other jurisdictions make informed decisions about adopting similar technology.

Is this funding meant for pilots or theoretical studies?

No. The NOFO is structured as a demonstration focused on real deployments inside actual permitting offices, rather than pilot concepts or purely theoretical research.

What type of award will HUD make under this NOFO?

Awards will be made as cooperative agreements.

What does it mean that awards are cooperative agreements?

Because the awards are cooperative agreements, recipients should expect substantial involvement from HUD during the project. The description emphasizes HUD involvement particularly around evaluation, data collection, and documenting findings from the demonstration.

What kinds of outcomes is HUD trying to measure through this demonstration?

HUD is looking to learn what changes when automation is introduced into the permitting workflow, including measurable impacts on permitting processing timelines, internal workflow efficiency, and how staff roles and responsibilities shift when routine steps are automated or partially automated.

Does the NOFO consider the applicant (end-user) experience?

Yes. The opportunity emphasizes the applicant experience as well as internal operational gains. HUD is interested in whether applicants such as homeowners, builders, developers, and design professionals experience clearer requirements, fewer errors or resubmittals, faster turnaround times, or a more predictable process.

What is a major deliverable expected from funded projects?

A major deliverable is empirical evidence that can guide broader adoption of automated permitting systems across state and local governments. The intent is to produce credible, real-world information other jurisdictions can use.

What kinds of evidence does HUD want jurisdictions to generate?

HUD intends funded jurisdictions to help generate evidence about operational performance, implementation and ongoing operating costs, governance and management needs (including policies, oversight, accountability, data stewardship, and system administration), and potential cost savings.

How does HUD expect other jurisdictions to use the results of these demonstrations?

HUD expects the results to help other jurisdictions understand tradeoffs, set realistic expectations, and decide what level of automation makes sense for their code enforcement context, based on demonstrated results rather than assumptions.

How does this NOFO relate to housing and technology?

The NOFO sits at the intersection of housing and research and development, reflecting HUD's interest in technology-enabled improvements that can reduce friction in housing production and renovation by making permitting more efficient and transparent.

What is the maximum award amount?

The maximum award amount is $1,500,000 per award.

How many awards does HUD expect to make?

The NOFO includes an expectation of up to six total awards.

What is the CFDA number associated with this opportunity?

The funding is associated with CFDA number 14.506.

When is the application deadline?

The application deadline (original closing date) is July 13, 2026.

When was this opportunity created?

The opportunity was created on May 29, 2026.

Who is eligible to apply?

Eligible applicants are limited to governmental entities: state governments, county governments, city or township governments, and federally recognized Native American tribal governments.

Are individuals allowed to apply?

No. Individuals are explicitly ineligible.

Are foreign entities allowed to apply?

No. Foreign entities are explicitly ineligible.

Are sole proprietorships allowed to apply?

No. Sole proprietorships are explicitly ineligible.

Why are eligibility requirements restricted to governmental entities?

The eligibility limits indicate HUD intends these projects to be implemented by public jurisdictions that operate permitting functions and can sustain the system in an official capacity.

What is the overall purpose of the NOFO?

Overall, the NOFO is a competitive funding and evaluation partnership aimed at proving out automated permitting in real permitting offices, identifying what works and what does not, and producing actionable evidence about performance, staffing impacts, user experience, costs, and governance, to inform and accelerate broader responsible adoption across the country.

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