California Sees Infusion of $443 Million in Federal Funds for Housing and Community Development in Fall 2023

October 30, 2023
Model homes in empty field.

Funding will help support housing, infrastructure and services in rural and tribal communities.

Sacramento, CA —  

The State of California and Biden Administration are excited to announce a fall 2023 infusion of $443 million in federal housing funding that will have a historically wide reach throughout California, particularly in small and rural communities.

The four U.S. Department of Housing and Urban Development (HUD) funded programs for which California Department of Housing and Community Development (HCD) will issue Notices of Funding Availability (NOFA) in October and November will provide grants and loans that support everything from affordable rental housing, to rental assistance and support services, to home-ownership assistance, to property rehabilitation and infrastructure improvements – reaching historically under resourced communities in every corner of the state.

“This needed infusion of funds from the Biden Administration will support communities throughout the state, especially in our rural areas,” said Governor Gavin Newsom. “Many of these smaller communities are the backbone of our critical agriculture economy, however, despite their importance, they often go underserved. This investment will help close the gap and bring more housing to all parts of California.”

“This historic push to align funding program timelines provides smaller jurisdictions – particularly geographically isolated communities with limited staff resources – with a unique opportunity to access federal dollars to meet the critical needs of their residents,” said HCD Director Gustavo Velasquez. “Our thanks to the Biden Administration and our partners at HUD for helping us ensure equity in our housing funding reach. My team stands ready to provide robust support to help communities in need be successful in applying for these opportunities.”

“California is a national leader ensuring good places to live are within reach of working families. With over $400 million in funding from four key HUD programs, California will make meaningful investments in affordable housing and community services. Without a doubt, this will include small and rural areas where it will have a transformative impact,” said HUD’s Principal Deputy Assistant Secretary of Community Planning and Development Marion McFadden. “This funding will serve communities and people on the front lines of some of the big challenges we’re facing today, from housing affordability to increasing threats from natural disasters.”

Just last week, HCD issued a $172 million NOFA and hosted several webinars for the National Housing Trust Fund (NHTF), which funds new construction of permanent affordable housing for extremely low-income residents – those earning up to 30% of the Annual Median Income. Ten percent of this NOFA is targeted for eligible Tribal applicants.

Today, HCD issued an additional $89 million HOME-American Rescue Plan (HOME-ARP) Rental Housing Program NOFA to help cities, counties, affordable housing developers, and Tribes acquire, build, or rehabilitate affordable rental housing for low-income residents experiencing or at risk of homelessness.

In the weeks ahead, HCD anticipates the release of two additional federal NOFAs. The first of these is a $120 million HOME Investments Partnership Program (HOME) NOFA that provides grants and low-interest loans to benefit low-income renters, homebuyers, and homeowners. Most assistance is in the form of loans made by city and county recipients to project developers, to be repaid to local HOME accounts for reuse. Eligible activities include acquiring, building, or rehabilitating homes; downpayment assistance; and tenant-based rental assistance. More than half of HOME funds will go to rural communities, including California’s agricultural heartland. Twenty percent of HOME funds are targeted for Tribal Entities.

HCD will also issue a $30 million NOFA for the HOME-ARP Housing Plus Support Program (HPSP). Eligible applicants include Tribal Entities and nonprofit Supportive Service Providers that specialize in connecting families to permanent housing. Funds will be used to get individuals and families into permanent housing, provide onsite housing case management and services to retain the housing, and to improve residents’ education, employment, and health status.

Finally, $13 million in Emergency Solutions Grants (ESG) from a recently closed NOFA are expected to be awarded this fall. These funds will help local governments and nonprofits rapidly re-house individuals and families living on the street and provide them with shelter and essential services.

The fall total of $443 million includes a $19 million NOFA issued in late September for the Community Development Block Grant (CDBG) program, which provides grants to small and rural non-entitlement districts, non-federally recognized Tribes, and Colonias – which are historically challenged by a lack of infrastructure. CDBG seeks to stabilize and uplift communities through investments in locally determined priorities like community centers, childcare centers, economic development programs, sewer and utility upgrades, parks, and rehabilitation projects.

Visit the homepage for each program at HCD.CA.GOV for additional details on eligibility, deadlines, in-person workshops, webinars, and application materials.


Contact Details:

Pablo Espinoza
Deputy Director of Communications
HCD Press Office