Image
The Housing Affordability Challenge — launched by Wells Fargo and managed by Enterprise — is designed to help propel the next generation of affordable housing solutions. The 2026 competition has now advanced to Round 2, with 39 semifinalists emerging from a pool of 871 applications nationwide.
Recordings of recent information webinars are available to provide an overview of the challenge and application process:
Below are answers to commonly asked questions about the challenge. To send us a question, email us at [email protected].
Application Process
Q: When was the application available and when did it close?
A: Round 1 opened on April 1 and closed on May 15, 2026. The competition received 871 applications across three focus areas: design and construction, housing finance, and service delivery and programs. Following a rigorous review process, 39 semifinalists were selected to advance to Round 2.
Q: Is the application period still open?
A: No. Round 1 was the only open application period in the 2026 Housing Affordability Breakthrough Challenge. Applications closed on May 15, 2026. Applications are no longer being accepted.
Q: What stage of the competition is underway now?
A: The challenge is currently in Round 2. Thirty-nine semifinalists have been invited to participate in this next phase of the competition. Round 3 finalists will be announced in November 2026, and winners will be announced in winter 2027.
Q: How many rounds are there, and how does the application process work?
A: The Breakthrough Challenge consists of three competitive rounds:
- Round 1: Open application (closed)
- Round 2: By invitation only (39 semifinalists)
- Round 3: Finalists present expanded plans and implementation strategies to a panel of judges
Eligibility and Applicant Requirements
Q: Who was eligible to apply?
A: Eligible applicants included nonprofits with 501(c)(3) status, mission‑oriented for‑profit entities, and Tribal entities (TDHEs and Tribal Housing Authorities). Government agencies and housing authorities could not serve as lead applicants unless applying through an eligible 501(c)(3) affiliate. Applicants had to propose an innovation aligned with the Breakthrough Challenge’s goals and eligibility criteria described in the application materials.
Q: Were for-profit entities eligible to apply?
A: Yes. Mission-oriented for-profit entities were eligible. This included entities whose business aims to generate income while also working to advance a clearly defined social or public-benefit goal. The business earns revenue to support its work, and its mission is a core part of what it does rather than a secondary focus.
Q: Were there requirements for the size or age of the 501(c)(3)?
A: No. Nonprofits of all sizes and ages were eligible to apply.
Q: Could cities, states, or local jurisdictions apply?
A: Government agencies could not serve as lead applicants and needed to identify a nonprofit with 501(c)(3) status to serve as the lead applicant.
Q: Were applicants from Puerto Rico and the U.S. Virgin Islands eligible?
A: No. Applicants from Puerto Rico and the U.S. Virgin Islands were not eligible.
Q: Were previous Breakthrough Challenge winners eligible to apply?
A: No. Previous winners of the Breakthrough Challenge were not eligible. However, organizations that were finalists (but not awardees) in prior cycles were eligible.
Q: Were applications from all states eligible?
A: Yes. Applications were accepted from all 50 states and Washington, D.C. However, proposals operating in designated priority states were eligible for additional points as part of the scoring rubric.
Q: What were the priority states, and how did they affect scoring?
A: Applications from organizations based in — or designing solutions for — the priority states listed below received bonus points. Applicants outside priority states remained fully eligible and competitive based on overall proposal strength.
Alaska, Arizona, Arkansas, California, Colorado, Florida, Georgia, Idaho, Illinois, Iowa, Maryland, Massachusetts, Minnesota, Montana, Nevada, New Jersey, New Mexico, New York, North Carolina, North Dakota, Pennsylvania, South Carolina, South Dakota, Tennessee, Texas, Utah, Virginia, Washington, and Washington, D.C.
Q: Has this challenge been offered before?
A: Yes. This is the third cycle of the Housing Affordability Breakthrough Challenge launched by Wells Fargo and managed by Enterprise since 2020.
Eligible Innovations and Focus Areas
Q: What types of housing innovations were eligible?
A: Eligible innovations could address rental housing, homeownership, workforce housing, or permanent supportive housing, as well as transitional housing and homeownership preservation. Innovations could focus on new construction, rehabilitation, financing models, service delivery, or systems‑level solutions.
Q: Did applicants have to choose a single focus area?
A: Yes. Applicants needed to select one primary focus area that best aligned with their innovation. The application allowed applicants to note overlap with other areas, but there was no scoring advantage for addressing multiple focus areas.
Q: Will applicants compete across all focus areas or only within their selected focus area?
A: In Rounds 1 and 2, applicants are competing only within their selected focus area — Design and Construction, Finance, or Service Delivery and Programs. In Round 3, finalists from all focus areas will be evaluated together, and winners will be chosen from the combined pool of finalists.
Q: What does “innovation” mean in this challenge?
A: The Breakthrough Challenge seeks innovations that demonstrate a proven concept and are ready to scale, rather than early‑stage ideas. Innovations may be new to a region, population, or system, even if similar approaches exist elsewhere, as long as applicants can demonstrate impact and a credible scaling plan.
Q: What level of proof of concept or impact is required?
A: Applicants must demonstrate that their innovation has shown measurable impact or outcomes, which may include pilot results, operational data, or evidence from prior implementation. Projects do not need to be fully completed but must go beyond pure ideation.
Q: Does an innovation need to be “shovel‑ready”?
A: No. Innovations do not need to be tied to a single shovel‑ready project and funding may not be used for individual real estate transactions or properties. The focus is on scalable models rather than one‑off developments.
Q: How are you defining scalability?
A: We are defining scalability in two ways:
- Scaling Out: Extending the model to new populations, locations, or sectors through replication and adaptation. Examples: franchising models, integrating innovation components into existing programs, and expanding networks or partnerships.
- Scaling Up: Embedding the innovation into broader institutional or systems-level structures. Examples: creating new tools, frameworks, or funding mechanisms; and building networks that enable sector-wide adoption and collective action.
Q: What does “ready to scale” mean?
A: “Ready to scale” means the innovation has: demonstrated effectiveness or outcomes; a clear plan for replication or expansion beyond one site or deal; and organizational and partner capacity to support growth.
Funding, Allowable Uses and Grant Management
Q: How much funding will be awarded?
A: Five organizations will each receive a $2 million grant, along with access to cohort‑based technical assistance.
Q: What can Breakthrough Challenge funds be used for?
A: Grant funds may be used for activities that support scaling an innovation, such as staffing, operations, systems development, partnerships, or program delivery. Funds may not be used for: individual real estate deals or property acquisitions, single‑project capital stacks, or lobbying activities. Specific budget guidance is provided in the application materials.
Q: Can funds support operating or staff costs?
A: Yes. Funding may support reasonable staff and operational costs directly tied to advancing and scaling the proposed innovation.
Q: Does the grant need to cover the full cost of the innovation?
A: No. Applicants may identify additional funding sources. The $2 million grant is intended to be catalytic.
Q: How will funds be disbursed?
A: Funds are not disbursed as a single lump sum. Disbursement schedules are developed jointly with each awardee and aligned with the grant period and reporting requirements.
Q: What is the grant period?
A: The grant period runs from 2027 through 2029, with funds required to be expended by the end of the period of performance.
Supporting Materials and Evaluation
Q: How are you defining affordability?
A: We understand that affordability varies based on multiple factors, including geography and market conditions. We’re looking for innovations that address the needs of low- to moderate-income households:
- Rental housing: Households earning 80% of area median income (AMI) or below
- Homeownership: Households earning up to 120% AMI
- Workforce housing: Up to 120% AMI for both rental and homeownership
Q: How are applications evaluated?
A: Applications are evaluated based on published criteria, including: innovation strength, demonstrated impact, readiness to scale, feasibility, and geographic alignment.
Q: Will Enterprise provide feedback to applicants that were not selected to advance to Round 2?
A: No. Due to the volume of applications received, Enterprise is not able to provide feedback to applicants.