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Affordable Housing Loan Program
for New Construction and Substantial Rehabilitation of Affordable Housing
and Preservation and Rehabilitation of Existing Affordable Housing
Purpose: To provide gap financing for affordable rental and ownership housing development.
Application Status: Application period is closed.
2014 Notice of Funding Availability (NOFA) for Development of Affordable Rental and Ownership Housing
2014 Notice of Funding Availability (NOFA) for Preservation and Rehabilitation of Existing Affordable Housing
Maximum Funding Amount: 40% of total residential development costs (50% for homeownership projects), as approved by the City. For projects that preserve and rehabilitate existing affordable housing, maximum funding amount may go up to 100% of approved residential development costs.
Eligible Applicants: Non-profit and for-profit affordable housing developers, individuals, and general or limited partnerships. Applicants must demonstrate experience and capacity in developing and managing affordable rental or ownership housing. This experience is generally shown by the successful development of at least three similar projects.
Eligible Properties: New construction or rehabilitation (substantial or moderate, with or without acquisition) of rental or ownership property intended for occupancy by lower- income households. Development of emergency shelters for the homeless is not eligible.
For Rental Properties: At least 40% of total units must be reserved for households with incomes at or below 80% of the area’s median income as determined by HUD. These rents must not exceed 30% of 60% of the area’s median income.
At least 5% of total units must be reserved for households with incomes at or below 50% of the area’s median income. These rents must not exceed 30% of 30% of the area’s median income.
For Owner-Occupied Properties: Units must be priced with an average affordability level of 100% of area median income.
- Click here for the current rent and income limits.
- Click here for sale-price guidelines for affordable homeownership units.
Occupancy: City assisted units must be occupied by households that fit the income guidelines outlined above. Owner-occupied properties cannot be sublet.
Eligible uses for City financing: Acquisition, demolition, construction, rehabilitation, related soft costs, and other costs as approved by the City.
- Rent restrictions remain in place on the property for 55 years, whether or not the City loan has been prepaid.
- Homeownership units will remain permanently affordable.
- For-profit applicants must provide equity equal to at least 10% of total project costs.
- Funds are not disbursed without proof of financing commitments for total development cost.
- Compliance with local, state, and federal requirements relating to environmental, relocation, accessibility, living wage, contracting and lead-paint regulations.
Loan/Grant Payment Details
Interest Rate: 3.00% simple interest
Payments deferred except to the extent that they can be paid from excess cash flow from the project.
Construction loan for 48 months (four years)
Payments deferred until loan is due.
Upon sale of units, a portion of the subsidy converts to a grant to write down the price to an affordable level.
Buyers must agree to resale controls restricting sales prices to an affordable level, set by formula.
Prepayment Penalty: None
Security: Deed of Trust and Regulatory Agreement (Rental) or Deed of Trust and Affordability Agreement (Homeownership).
How to Apply
Deadline: Thursday, October 30, 2014, 4:00 PM
- Complete the application and all supporting exhibits.
- Submit completed application by due date.
- Staff will contact you to discuss the details of your proposal.
Application : See links at top of page.