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The Housing Affordability Challenge – launched by Wells Fargo and managed by Enterprise – invites innovators to help scale the next generation of affordable housing solutions.
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]. We’re here to help.
Application Process and Partnerships
Q: When will the application be available and when is it due?
A: The application is available as of April 1, 2026, via a link on the Breakthrough Challenge’s webpage. You can download a PDF preview of the application. The PDF includes a link to the required budget template. Completed applications must be submitted by May 15, 2026, 11:59 p.m. ET.
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
- Round 2: By invitation only (semi‑finalists)
- Round 3: Finalists present more detailed plans
All applicants must apply in Round 1 to be considered.
Q: Can organizations submit more than one application?
A: Yes, provided each application represents a distinct innovation and one lead applicant is designed per proposal.
Q: Can applicants apply with partners or collaborative models?
A: Yes. Partnerships are permitted, but one eligible organization must be named as the lead applicant.
Q: Can an organization be a partner on more than one application?
A: Yes, as long as each proposal is distinct and has a clearly designated lead applicant.
Eligibility and Applicant Requirements
Q: Who is eligible to apply?
A: Eligible applicants include nonprofits with 501(c)(3) status, mission‑oriented for‑profit entities, and Tribal entities (TDHEs and Tribal Housing Authorities). Government agencies and housing authorities may not serve as lead applicants unless applying through an eligible 501(c)(3) affiliate. Applicants must propose an innovation aligned with the Breakthrough Challenge’s goals and eligibility criteria described in the application materials.
Q: Are for-profit entities eligible to apply?
A: Yes. Mission-oriented for-profit entities are eligible. This entails 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: Are there requirements for the size or age of the 501(c)(3)?
A: No. The only requirement is a valid IRS determination letter confirming 501(c)(3) status. Nonprofits of all sizes and ages may apply.
Q: Can cities, states, or local jurisdictions apply?
A: Government agencies cannot serve as lead applicants and will need to identify a nonprofit with 501(c)(3) status that will serve as the lead applicant.
Q: Are applicants from Puerto Rico and the U.S. Virgin Islands eligible?
A: No. Applicants from Puerto Rico and the U.S. Virgin Islands are not eligible.
Q: Are previous Breakthrough Challenge winners eligible to apply?
A: No. Previous winners of the Breakthrough Challenge are not eligible to apply. However, organizations that were finalists (but not awardees) in prior cycles remain eligible.
Q: Are applications from all states eligible?
A: Yes. Applications are accepted from all 50 states and Washington, D.C. However, proposals operating in designated priority states are eligible for additional points as part of the scoring rubric.
Q: What are priority states, and how do they affect scoring?
A: Applications from organizations based in — or designing innovations for — the priority states listed below receive bonus points. Applicants outside priority states remain 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.
Eligible Innovations and Focus Areas
Q: What types of housing innovations are eligible?
A: Eligible innovations may address rental housing, homeownership, workforce housing, or permanent supportive housing, as well as transitional housing and homeownership preservation. Innovations may focus on new construction, rehabilitation, financing models, service delivery, or systems‑level solutions.
Q: Must an applicant choose only one focus area?
A: Yes. Applicants must select one primary focus area that best aligns with their innovation. The application allows applicants to note overlap with other areas, but there is 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 will compete 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.
Q: What types of innovations fall under the Service Delivery and Programs focus area?
A: This focus area seeks solutions featuring comprehensive, person-centered programs that use housing as a platform to support broader outcomes – such as stability, empowerment, education, or workforce development. Eligible programs must demonstrate measurable impact and a clear path to replication or scaling.
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: Are letters of support required?
A: Yes. Letters should demonstrate alignment, commitment, and credibility. Letters may come from partners, funders, or other stakeholders familiar with the innovation.
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 one‑on‑one feedback or eligibility reviews?
A: No. Enterprise does not provide one‑on‑one meetings or project‑level feedback during the application process. Applicants should rely on published materials, webinars, and the FAQs.