To provide low-interest loans to developers of affordable rental housing that contain units for homeless youth (HY).
Loans have a 55-year term at three percent annual simple interest. For the first 30 years, annual payments of 0.42 percent of the outstanding principal balance are required. The annual payment for the next 25 years will be set by HCD in year 30, at the minimum amount necessary to cover HCD monitoring costs. Unpaid principal and interest will be due at the end of the loan term.
Eligible costs include project development capital costs, including facilities for child care, after-school care, and social services integrally linked to the restricted housing units. Capital costs may include real property acquisition, refinancing to retain affordable rents, necessary on-site and off-site improvements, reasonable fees and consulting costs, and capitalized reserves.
Funds may be used for permanent multifamily rental and transitional housing projects involving new construction, rehabilitation, acquisition and rehabilitation, or conversion of nonresidential structures. Projects must contain five or more HY units with associated supportive services. Target population and eligible household requirements apply at initial occupancy only. HY are either emancipated minors, or those who are at least 18 years old, homeless or at risk of homelessness, no longer eligible for foster care on the basis of age, or who have run away from home.
Applications are invited through the issuance of Notices of Funding Availability (NOFAs).