HUD Announces $3 Million in Funding to Deploy Automated Permitting Systems to Increase Housing Construction Speed

Monday, June 1, 2026/Categories: News Board

The U.S. Department of Housing and Urban Development (HUD), through its Office of Policy Development and Research (PD&R), has announced a new funding opportunity offering up to $3 million for jurisdictions that will deploy automated building code permitting systems and partner with HUD to evaluate their applicability and effectiveness within real-world operating conditions. 

Applications are due July 13, 2026, at 11:59pm. Please visit the funding opportunities page on HUD User to access important links, FAQs, and upcoming webinars. 

Funding Opportunity Details 
Automated Permitting Systems Demonstration NOFO (PDR-2600-DC-029O) 
Through this demonstration, HUD seeks to accelerate digital adoption in willing jurisdictions, gather operational data on performance and implementation challenges, and develop practical guidance for other permitting offices considering similar investments. The resulting findings are intended to inform future state and local policy, technical assistance, and permitting modernization efforts nationwide. Additionally, jurisdictions will track core metrics for their administrative permitting process, including permit timelines, revision cycles, and review outcomes, before and after implementation of an automated permitting system. The demonstration will quantify changes in permit processing time, staff workload, applicant experience, and costs (in dollars and percentages) resulting from the use of automated permitting, and identify the data, governance, and operational conditions required for effective use of these technologies. 

How to Apply 
Applications are due by July 13, 2026. Eligible applicants are limited to state, county, city, and tribal governments. Full details are available at Grants.gov. 
For additional information, visit the funding opportunities pages on HUD.gov and HUD User.