Governor's Homeless Initiative

Links to program publications are shown following the program description.

Purpose

The Governor’s Homeless Initiative is an interagency effort aimed at reducing homeless. It includes the funding program described here, the creation of a State interagency coordinating council, and the purchase by CalHFA of $10 million in existing loans for supportive housing projects, freeing up funds for new loans.

The funding program component of the Governor’s Homeless Initiative assists with the development of permanent supportive housing for persons with severe mental illness who are chronically homeless. It is a joint project of the Department of Housing and Community Development (HCD), the California Housing Finance Agency (CalHFA), and the Department of Mental Health (DMH).

Assistance Type

Deferred payment permanent loans under HCD’s Multifamily Housing Program (MHP); construction, bridge and permanent loans from CalHFA; and limited grant funds for rental assistance from DMH.

Terms

Loan term: 55 years for the permanent MHP loans. Up to three years for the CalHFA bridge loan, and up to 30 years for CalHFA permanent loans.

Interest (MHP loan): 3 percent simple interest on unpaid principal balance. 0.42 percent payments are due annually, with the balance of principal and interest due and payable upon completion of loan term.

Eligible Activities

New construction, rehabilitation, or acquisition and rehabilitation of permanent rental housing, and the conversion of nonresidential structures to rental housing. Projects are not eligible if construction has commenced as of the application date. Projects must have commitments of Mental Health Services Act funds for supportive services, and typically require rent subsidies as well. Projects may use 9% federal low income housing tax credits.

Eligible Applicants

Local public entities, for-profit and nonprofit corporations, limited equity housing cooperatives, individuals, Indian reservations and rancherias, and limited partnerships in which an eligible applicant or an affiliate of an applicant is a general partner. Applicants or their principals must have successfully developed at least one affordable housing project.

Application Process

Applications are invited through the issuance of Notices of Funding Availability (NOFAs). They will be reviewed jointly by the three state agency partners.

Contact

For general information and MHP-specific questions: MHP Program Staff (916) 323-3178.

For information on construction, bridge and permanent financing from CalHFA: Carol Goodman (916) 322-0385.

For information specifically on the Mental Health Service Act: Mike Oprendek (916) 653-3693.

Program Publications