Finance the conversion of vacant or underutilized commercial and industrial structures into residential units, residential infill, and the development of high-density housing adjacent to existing or planned mass transit facilities.
Program Overview
Assistance Type and Terms
Deferred payment development loans at three (3) percent interest for projects occupied by and affordable to households with incomes not over 30 percent of 60 percent of area median income. Affordability term was 55 years. Multifamily Housing Program (MHP) terms and conditions governed.
Maximum loan amount per unit was determined by a formula that took into account a base loan amount of $20,000 per unit, plus an additional amount per restricted unit required to reduce rents from 30 percent of 60 percent of area median income to the actual maximum restricted rent for the unit.
Eligible Activities
Adaptive reuse of vacant or underused commercial and industrial space into housing where at least 20 to 40 percent of the units were affordable; residential infill; development of high-density housing near mass transit stations; planning for infill housing, adaptive reuse, and other forms of downtown housing development; seismic and structural feasibility studies related to adaptive reuse. Notices of Funding Availability (NOFAs) indicated the permitted type of financing (construction or permanent) and any special conditions (e.g., subsidy for market rate units). Eligible costs included property acquisition, selected refinancing, lease payments, construction, rehabilitation, off-sites, on-sites, architecture, engineering, legal and other soft costs, selected support facilities, developer fee, rent-up costs, carrying costs, permits and fees, reserves, closing costs, environmental work, relocation, and other costs approved by HCD.
Eligible Applicants
Local public entities, for-profit and nonprofit corporations, limited liability companies, limited equity housing cooperatives, Indian reservations and rancherias, and limited partnerships in which an eligible applicant or an affiliate of the applicant was a general partner.