The Automated Permitting Systems Demonstration NOFO, issued by the U.S. Department of Housing and Urban Development (HUD), supports jurisdictions deploying automated building code permitting systems and partner with HUD to evaluate their applicability and effectiveness within real-world operating conditions. This demonstration will test the real-world deployment of an automated permitting platform within a government permitting environment to evaluate its effects on processing timelines, workflow efficiency, staff roles, and applicant experience.

Overview

The Automated Permitting Systems Demonstration aims to significantly increase the efficiency and speed of the permitting process by offering grant awards to eligible applicants proposing to adopt AI-enabled permitting and plan review systems. The demonstration will generate empirical evidence on operational performance, costs, governance needs, and potential cost savings to inform broader adoption by state and local jurisdictions. This research is authorized by Sections 501 and 502 of the Housing and Urban Development Act of 1970 (12 U.S.C. §1701z-1 and §1701z-2), with funding provided by the Full-Year Continuing Appropriations and Extensions Act, 2025 (Public Law 119-4, approved March 15, 2025).

Funding and Benefits

Type of Funding Instrument: Cooperative Agreement (CA)

Available Funds: Approximately $3,000,000 is available through this NOFO. Additional funds may become available for award.

Estimated Number of Awards: 6 awards from available funding

Award Ceiling: $1,500,000

Award Floor: $300,000

Length of Performance Period: 36-month project period and budget period. The minimum period of performance is 12 months, and the maximum is 36 months. Applicants should select a period of performance that aligns with the proposed project, considering activities that typically cause delays such as data acquisition or collection.

Eligibility

Eligible applicants include the following entity types:

• State governments
• County governments
• City or township governments
• Native American tribal governments (Federally recognized)

Individuals, foreign entities, and sole proprietorship organizations are not eligible to compete for, or receive, awards made under this announcement. Faith-based organizations may apply like any other organization. Applicants must meet the current General Statutory and Regulatory Eligibility Requirements as a threshold requirement for all HUD funding.

Application Process

Applicants must have an active and up-to-date account with SAM.gov at the time of application and throughout the life of any award. A valid unique entity identifier (UEI) is required to apply for funding. Registration in SAM.gov can take several weeks, so applicants are encouraged to begin promptly. An active Grants.gov registration, which requires a Login.gov registration, is also necessary. Applications are due by 11:59:59 PM Eastern Time on July 13, 2026.

Deadline and Timeline

Posted Date: May 29, 2026

Deadline: July 13, 2026, at 11:59:59 PM Eastern Time

Contact Information

Agency: Department of Housing and Urban Development, Policy Development and Research

Email: researchpartnerships@hud.gov

Phone: 202-402-2440

Opportunity Number: PDR-2600-DC-029O

CFDA/ALN: 14.506