Affordable
Housing New Construction and
Substantial Rehabilitation Loan Program
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Purpose
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To
provide gap financing for affordable rental and ownership
housing development. |
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Status
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Funding
rounds are usually announced in August of each
year. Check here for current info. |
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Maximum
Amount
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40%
of total residential development costs (50% for
homeownership projects), as approved
by the City.
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Minimum
Amount
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$1,000 per assisted unit (10 unit minimum)
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REQUIREMENTS
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Eligible
Applicants |
Non-profit
and for-profit affordable housing developers, individuals,
and general or limited partnerships. Applicants
must demonstrate experience and capacity in the development
and management of affordable rental or ownership housing,
generally shown by the successful development of at least
three similar projects. |
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Location
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Citywide.
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Eligible
Properties |
New
construction and substantial or moderate rehabilitation
(with or without acquisition) of rental or ownership property
intended for occupancy by lower income households.
Development of emergency shelters for the homeless is
not eligible.
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Income
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Rental:
At least 40% of total units must be reserved for
households
with incomes at or below 80% of the area median income
as determined by HUD, with rents not to exceed 30%
of 60% of area median income..
At
least 10% of total units must be reserved
for households
with incomes at or below 50%
area median income*, with rents not to exceed
30% of 35% of area median income.
Owner:
Units must be priced with an average affordability level
of 100% of area median income.
Click
here for the current rent
and income limits.
Click here for the guidelines for sales prices for
affordable homeownership units.
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Occupancy
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City
or Agency-assisted units must be occupied by households
that fit the income guidelines. Owner-occupied properties
cannot be sublet. |
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Eligible
Uses |
Eligible
uses for City financing include acquisition, demolition,
construction, rehabilitation, related soft costs, and
other costs as approved by the City. For mixed-income
or mixed-use projects, assistance is limited to 40% of
the total costs of the affordable housing portion of the
project. |
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Other
Requirements |
Rent
restrictions remain in place on the property for 55 years,
regardless of prepayment of the City loan.
Homeownership
units will remain permanently affordable.
For-profit
applicants must provide equity equal to at least 10%
of total project costs.
Funds
are not disbursed without proof of financing commitments
for total development cost.
Substantial
other requirements apply, including compliance with
local, state, and/or federal environmental, relocation,
accessibility, living wage, and lead-paint regulations.
Details are available in the most recent Notice Of Funds
Available, available for download below.
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LOAN / GRANT DETAILS
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Interest
Rate
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3.00%
simple interest
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Payments/ Term
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Rental
Projects:
Ownership
Projects:
-
Construction
loan for 48 months (4 years)
-
3%
simple interest
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Payments
deferred until loan is due.
-
Upon
sale of units, a portion of the subsidy converts
to a grant to write down the price to an affordable
level.
-
Buyers
must agree to resale controls restricting sales
prices to an affordable level, set by formula.
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Prepayment
Penalty
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None
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Security
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Deed
of Trust and Regulatory Agreement (Rental) or Deed of
Trust and Affordability Agreement (Homeownership).
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HOW TO APPLY
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Status |
Open
- applications are due no later than 4:00 p.m. on October
27, 2007. |
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Deadline |
not
applicable |
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Process |
- Complete
the application and all supporting exhibits.
- Submit
completed application (2 copies) by due date.
- Staff
will contact you to discuss the details of your proposal.
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Application |
Not
currently available. |
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MORE INFORMATION
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Details |
Download
most recent Notice
Of Funds Available |
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Projects
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Completed
Projects
Projects Under Development
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Contact |
Marge
Gladman
Manager
Housing Development
Unit
City of Oakland
Community and Economic Development Agency |
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*Area
Median Income limits are revised annually. Click here for current limits.
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