Low-interest, long-term deferred-payment loans for new construction, rehabilitation, and preservation of permanent and transitional rental housing for lower-income households.
Notice of Funding Availability
Program Overview
Senate Bill 3 (Chapter 365, Statues 2017) authorized the Veterans and Affordable Housing Bond Act of 2018 (Proposition 1). This measure was adopted by voters on November 6, 2018. It authorizes the issuance of bonds in the amount of $1.5 billion for the Multifamily Housing Program (MHP).
Rental Housing Development:
- New construction; rehabilitation; conversion of nonresidential structures to rental housing
Project Types:
- Large family; special needs; senior; supportive housing; at high risk
*Projects are not eligible if construction has commenced as of the application date.
Sponsors or their principals must have successfully developed at least one affordable housing project:
- Individual; joint venture; partnership; limited partnership; trust; corporation; limited liability company; local public entity; duly constituted governing body of an Indian reservation or Rancheria, or other legal entity
- Organized on a for-profit, including limited profit, or nonprofit basis
*A sponsor is an applicant.
Deferred payment loans. Loans have a 55-year term. Three (3) percent simple interest on unpaid principal balance, except under certain conditions. For the first 30 years of the loan term, payments in the amount of 0.42 percent are due annually. The annual payment for the next 25 years will be set by HCD in year 30, at the minimum necessary to cover HCD monitoring costs. With the balance of unpaid principal and interest due and payable upon completion of loan term.
*MHP funds will be provided for post-construction permanent financing only.