The California Housing Accelerator Fund
Funding available under this program is derived from the Coronavirus State Fiscal Recovery Fund (CSFRF), established by the federal American Rescue Plan Act of 2021 (ARPA) (Public Law 117-2). In the Budget Act of 2021, the State of California allocated ARPA funds to this Program.
Funding from the California Housing Accelerator will make approximately $1.6 billion available to shovel-ready projects that, despite having received one or more awards from other HCD programs, are unable to move forward due to funding gaps that resulted from their inability to access low-income housing tax credits or tax-exempt bond allocations.
California Housing Accelerator Key Threshold Requirements:
- Existing HCD Commitment — A project must have received an award letter on or after January 1, 2018 from a multifamily housing program administered by the Department that has not expired, terminated or been disencumbered. California Housing Accelerator-specific terms and conditions will be incorporated into the existing HCD commitment’s loan documents.
- 4% project — The application under which the project was awarded HCD funding must have reflected tax-exempt bonds and 4% tax credits as development sources. At the time of application to the California Housing Accelerator Program, no allocation of bonds or tax credits have been obtained or returned.
- Project Readiness — At the time of application, all Applicants must demonstrate readiness to commence construction within 180 days of award.
- Use of Funds — California Housing Accelerator funds shall be used only for expenses that would be categorized as eligible project costs by the federal low-income housing tax credit program.
- Type of Assistance — California Housing Accelerator assistance will be in the form of forgivable loans, with terms of zero percent interest for 20 years, with no residual receipts or periodic payment during the life of the loan.
- Developer Fee Limits — Total developer fee for each project shall not exceed $2,200,000. In addition, the developer fee paid from development funding sources shall not exceed the per-unit limit calculated in accordance with UMR 8312(a).