State, Local and Private Resources
Department of Housing and Urban Development (HUD)
Historically, HUD directly supported the development of housing
that served many different types of households. Currently, HUD does
not provide financing for family developments, but makes a limited
amount of funding available for housing that serves seniors and
people with disabilities. Some funds for the development of family
housing are distributed through local public agencies.
Income Housing Tax Credits (LIHTC)
developers of affordable housing have turned to the LIHTC program
for financing. Sponsors can compete to obtain allocations of federal
and state low-income tax credits. Using tax credits, sponsors can
partner with corporate investors who provide equity to the development
in exchange for the tax benefits generated by the housing. Although
using tax credit financing is complicated and adds administrative
costs, it fills a substantial portion of the funding gap with no
impact on the tenants' rents. With the reductions in financing from
HUD, tax credits are very valuable. Tax credit equity typically
covers 40% -50% of project costs.
of Affordable/Workforce Housing Resources
Housing Financing--;Bank of
America offers a large volume of traditional and special loan products,
along with affordable housing expertise to make the most impact
in communities it serves. For-profit and nonprofit developers and
organizations, public housing agencies, first time homebuyers are
eligible for various products. 90% loan to value ratio.
Housing Program--;Federal Home
Loan Bank of San Francisco provides grants or subsidized interest
rate loans for purchase, construction of owner-occupied housing
by or for very low-, low-, and moderate-income households and/or
to finance the purchase or construction of rental housing. $18 million
available through member banks annually in competitive process.
Counties, for-profits, nonprofits, public housing agencies are eligible.
The amount of grant or interest rate subsidy depends on the amount
of assistance required to make the project feasible. (415)616-2542.
Loan Program--;New York-based
secondary mortgage market institution provides bridge loans for
construction of new rental housing to provide flow of funding between
project closing and equity pay-ins by tax credit investors. To be
used with tax credit projects. Nonprofits are eligible. (212)455-9882
Equity Fund--;Tax Credit Syndicate
works primarily with nonprofit developers of affordable (new rental)
housing, providing equity investment through purchase of tax credits.
$50 million fund. $800,000 to $15 million minimum/maximum investment.
Bridge Loan Program-- California
Housing Finance Authority (CHFA) offers a 2nd loan program
designed to provide tax-exempt funds necessary to meet the 50% Basis
Test required for 4% Tax Credits in the construction of low income
single-family home loans requiring as little as 3% down at below-market
interest rates (or layered with deferred payment silent second mortgages)
to first-time low- and moderate- income buyers. CHFA Approved Lenders
access program on behalf of eligible borrowers. Available annual
funding $1 billion. (916)322-5123
Self-Help Builder Assistance Program-- Development loans to mutual self-help nonprofits
for single family construction. Offers an opportunity for families
and individuals with limited down payment resources to obtain homeownership.
The borrower's labor represents the down payment. Permanent mortgage
loans at 5% interest for single family homes built by owner-builders.
$2,000,000 for development loans, continuous funding for loans to
buyers. Below market interest rate. (916)322-5123
Program-- Grants to local public
agencies and nonprofit developers to assist individual households
through deferred-payment loans. Direct, forgivable loans to assist
development projects involving multiple ownership units, including
single-family subdivisions. Cities, counties, nonprofits are eligible.
Community Reinvestment Corp (CCRC)--;Private lender provides permanent financing for
new construction of low-income housing through a revolving blind
loan pool of $211 million. Loan rates are tied to T-bills of similar
fixed terms. Forward commitments available up to 24 months. For-profit
and nonprofit developers are eligible. (498)467-8805
Housing Development Program--;Working with partners, CalPERS is investing $450
million in construction and equity investment in single family home
developments of 60 – 250 “entry level” homes.
For-profit builders are eligible. $3 – 30 million minimum/maximum
award amount. (916)326-3630.
Development Block Grant Allocation--;Enterprise Fund Component--;California
reserves block grant funds for cities and counties, which in turn
make loans to businesses or fund public infrastructure improvements.
Competitive grants to $250,000. Counties and cities with population
less than 50,000 are eligible. (916)327-3713
Development Block Grant – Economic Development Allocation--;Over
the Counter Component--;California
HCD provides matching grants to cities and counties for infrastructure
required to assist business that creates or retains jobs for low-income
persons. Typically grants are used to construct sewer, water and
street improvements. Average grant amount $300,000. Counties and
cities less than 50,000 population. (916)327-3713
Development Block Grant--;Planning/Technical Assistance--;California
HCD provides matching grants averaging $30,000 for planning and
feasibility studies for projects benefiting low-income persons.
100% Loan Program (CHAP)--;California
Housing Finance Agency (CHFA) provides 100% of the financing needs
for eligible first-time homebuyers by providing a below market interest
rate first mortgage combined with a 3% “silent second”
to purchase newly constructed or existing housing. (916)322-5123.
Development Finance Dept--;Private lender offers construction loans and long-term
loans for low- and moderate-income housing developments. $1 billion
per year, interest rate fluctuates. (925)947-2474
Reinvest Act Loan Program--;Wells Fargo Bank provides construction financing
and predevelopment/interim financing for for-profits, nonprofits,
cooperative corporations and owner-occupants of housing. &160
million fund. (415)396-3832
Lending--;SAMCO, a private
lender, provides long-term loans, technical assistance and equity
investment in new rental housing, transitional housing and other
activities. $300,000 - $10 million minimum/maximum loan grant amount.
Maximum loan usually 80% LTV. Interest tied to the 10 T-bill. Cities
with more and less than 50,000 population, counties, nonprofits,
for-profits, public housing agencies are eligible.
Inc. (Ecumenical Association for Housing)--;Developer, property manager of quality affordable
housing units (new rental. For-profits, nonprofits, cities and counties
eligible to apply. (415)258-1800
Mortgage Investments, Inc.-- Provides reasonably-priced, long-term
mortgages, streamlined processing and 90% loan to value to for-profit
and non-profit community organizations. EMI provides first-mortgage
financing across the nation as a Fannie Mae delegated lender. They
have teamed with the Ford Foundation and Fannie Mae to create a
$150 million first mortgage financing program for affordable multifamily
rental housing. Criteria: 10% of units must be under market rate,
15 units minimum. For-profits and nonprofits eligible. (410)964-0552
Housing Demonstration Program--;California HCD program offers construction loans
and long-term loans for new rental affordable housing and services
which may include on-site child care, job training and development.
Below market (3%) interest rates.
Mae’s 2003 Low- and Moderate-Income Limits--;Borrowers in
California may earn up to 140% of the area median income ($75,320
in 2002; HUD 2003 limits have not yet been announced).
Mae’s 2003 Mortgage Loan Limits (California):
3/2--15- to 30-year, fixed-rate mortgage loans that allow
38 percent of the borrower's gross monthly income to be targeted
for housing costs and other debts, such as credit cards or student
loans, and allow up to 33 percent of the borrower's gross monthly
income to be used for housing costs (principal, interest, taxes,
and insurance). Fannie 3/2 requires a 5 percent down payment,
but only 3 percent of it must come directly from the borrower's
own funds. The remaining 2 percent can come from a relative; federal,
state, or local government agency; employer; or nonprofit.
97--Fannie 97 requires a 3 percent down payment from the borrower's
own funds; borrower only needs to have one month's mortgage payment
in cash savings, or reserves, after closing.
nationwide, neighborhood-based mortgage option designed to increase
homeownership and revitalization in areas designated as underserved
by HUD, in low- to moderate-income or minority census tracts,
or in central
cities. The FannieNeighbors option adds underwriting flexibility
to Fannie Mae's Community Home Buyer's Program. SM mortgage product
by removing the income limit if a property is located in one of
these areas. (Former Fort Ord zip codes make them eligible in
this program because they are designated as under-served by HUD).
Home Buyer’s Program--Fannie Mae's Community Home Buyer's
Program offers underwriting flexibilities that include a 5 percent
down payment and no cash reserves at closing. This mortgage can
be combined with the FannieNeighbors ® mortgage option, which
provides an exception to the maximum income limit for eligible
properties in specially designated areas.
for People with Disabilities--;HomeChoice--;Down payment as low
as $500; greater flexibility in qualifying and underwriting standards;
acceptance of non-traditional credit histories.
Community 97 is a low down payment mortgage with flexible credit
guidelines. The core features, which can be customized, include
a minimum contribution of 1 percent or $500, whichever is less
(from the borrower's own funds), no monthly reserves, and a higher
single qualifying ratio. Community 97 may be used with the Energy
Efficient Mortgage option.
Community 100 is a zero down payment mortgage, designed for borrowers
with good credit. The core features, which can be customized,
include flexibility for the 3 percent contribution to come from
a range of acceptable sources and a higher single qualifying ratio.
Community 100 Plus TM
Community 100 Plus is a more aggressive zero down payment mortgage
with flexible credit guidelines for borrowers with limited cash
resources. The core features, which can be customized, include
a minimum contribution of 1 percent or $500, whichever is less
(from the borrower's own funds), no monthly reserves, and a higher
single qualifying ratio. Community 100 Plus may be used with the
Energy Efficient Mortgage option.
Community 2-Family TM
Community 2-Family provides a flexible, affordable mortgage option
to owner-occupants of 2-unit homes. This mortgage allows for a
down payment contribution of just 3 percent from the borrower's
own funds and offers a higher single qualifying ratio.
Community 3- to 4-Family TM
Community 3- to 4-Family provides a flexible, affordable mortgage
to owner-occupants of 3- to 4-unit homes. This option allows for
a down payment contribution of as little as 5 percent from the
borrower's own funds and offers a higher single qualifying ratio.
Community Solutions is a suite of flexible mortgage options for
low- and moderate-income borrowers. Community Solutions is for
borrowers who are full-time teachers, police officers, firefighters,
and healthcare workers whose employers offer an
Employee Assisted Housing program.
Efficient Mortgages (EEM, Fannie Mae)--;Allows borrowers to
qualify for a larger mortgage as a result of energy savings.
Commute Mortgage (Fannie Mae)--;May be available for development
near public transit.
Mac Affordable Gold Program--;Mortgage insurance for high loan to value loans
at a lower premium. Provides 3% downpayment mortgages with down
payment source flexibility for new for-sale housing. (800)424-5401
Home Loan Bank San Francisco Affordable Housing Program
Bank awarded $50 million in Affordable Housing Program grants
in 2002 to create housing for over 7,700 households in Arizona,
California, Nevada, Florida, and Illinois.
1990, the Bank's Affordable Housing Program (AHP) has awarded
$279 million in subsidies to create over 55,000 units of housing
for households earning up to 80% of the area median income.
year, the Bank sets aside approximately 10% of its net income
to fund the AHP.
AHP emphasizes creative partnerships between financial institutions
and community-based housing developers or government housing
agencies, strategies that empower very low- and low-income households,
and effective use of the subsidies to create long-term affordable
housing opportunities for those most in need of assistance.
members work with local community groups, nonprofit and for-profit
housing developers, public housing agencies and other entities
to create housing that meets compelling local needs. Funds may
be used to create affordable rental housing or homeownership
subsidies are used to fill a gap in available financing or reduce
the interest rate on project or homeowner financing, provide
down payment or closing cost assistance, or cover the cost of
homebuyer pre- or post-purchase counseling.
Bank conducts AHP competitions twice a year. To assist applicants,
the Bank sponsors a series of workshops in February and August
Project Loans--;Bank of America program provides funding for
refinance/rehab/construction of low- and moderate-income multifamily
projects using HUD-insured programs 223(a)(7), 223(f), 221 (d)(4)
and 232. 6.5% for tax-exempt financing; 8% for taxable financing
(subject to market conditions). For- profits and nonprofits are
eligible. $500,000 to $2 million minimum/maximum. $70 million
loan fund. (415)622-5093
Investment Partnerships Program (HOME)--;HUD/HCD program assists cities, counties and
nonprofit community housing development organizations (CHDOs)
to create and retain affordable housing. Grants to eligible cities
and counties, loans to certified CHDOs. New for sale, rental and
self help housing. Grants, construction loans, predevelopment/interim
finance, long-term loans, loan guarantees, down payment assistance.
$1000 - $1 million minimum/maximum. Total fund varies $43-45 million
per year. (916)327-3713
providing affordable residential long term loans for low and moderate
income households. $538 million fund. (626)535-3229
Heinz Neighborhood Development Program (within HUD)-- Provides grants to non-profit
community development organizations to leverage funds from local
sources to implement neighborhood development projects, including
development of new housing $4.75 million fund, $75,000 maximum
Housing Tax Credit Program (LIHTC)--
offering a federal and State income tax credit based on
the cost of acquiring, rehabilitating or constructing low-income housing. Federally-subsidized units
receive a lower tax credit rate than non-federally subsidized
units. California portion $39 million
annually. Cities, counties, nonprofits, for-profits, public housing
agencies are eligible. (916)654-6340
Income Housing Fund--Designed to increase access to capital for financing
housing at affordable rates and terms. Construction/rehab loans,
long-term loans, predevelopment/interim finance, and technical
assistance. New for-sale, new rental and self-help housing. $12
million fund. Cities, counties, nonprofits, public housing agencies
Mortgage Banking Pools-- Increases access to capital for low-income
households. Provides bridge loans for tax credit purposes. Also
offers construction loans, predevelopment financing. Current maximum
loan $1.8 million. New for-sale, self-help and rental housing.
$60 million fund. Nonprofits, for-profits and cooperatives are
fund and technical assistance to build or rehab housing. Loans
to $400,000 at 5.5% interest. City cooperatives and nonprofits
Loan Fund--;Makes loans to
nonprofit housing developers for projects in which conventional
financing is not available or not affordable and promotes innovative
and effective financing arrangements. New rental and new for-sale
housing. Technical assistance, predevelopment/interim finance,
construction, long-term loans. Interest rates 5-7%. Fund also
sells loans on secondary market, allowing larger loan sizes of
$250,000 to $8 million. (303)830-3386
Affordable Financing Program--;Originates
construction and bridge loans to finance qualified multifamily
projects and subdivisions that serve households earning 80% or
less of AMI.
Construction Loan Program--;CFHA Program provides 3% interest only predevelopment
loans for projects with five or more units of new construction
new rental housing to non-profit sponsors. Loan proceeds may be
used to pay for direct costs such as architectural or engineering
costs, permits and related fees, land purchase or land holding
costs, bonding fees and costs associated with debt financing.
$250,000 maximum. (310)342-1250
Loan Program-- Rural Community Assistance Corporation offers
Counties, nonprofits, cooperative corporations and cities under
50,000 population loans at below market rates to finance a multitude
of activities related to general housing and community facility
projects, including new for-sale and new rental housing, infrastructure
development, public works, communities facilities, self-help housing.
Construction loans, predevelopment finance, technical assistance.
$50,000 - $750,000. (916)447-9832
Development Agency provides grants to assist communities in funding
public works, infrastructure and facilities that contribute to
the creation or retention of private sector jobs. $160 million
annually. $100,000 to several million minimum/maximum. Cities,
counties, nonprofits, public housing agencies. (510)637-2988
Loan Fund-- Low-Income Housing Fund--LIHF's goal is to increase access to capital
for low-income communities, primarily by providing financing for
low-income housing and non-residential facilities. Also mini-perms,
refinancing loans, lines of credit and working capital loans.
New for sale and rental housing, community facilities, self help
housing. 5% for loan amounts of $1 million and above, lower than
$1 million 4.75%. $5 million maximum. Counties, nonprofits, cooperative
corporations, public housing agencies eligible. (510)893-3811
Construction Financing –Bank of America Community Development Bank
program originates construction loans to finance qualified self-help
projects that serve individuals earning 80% or less of AMI. Funds
new for-sale housing and self-help housing. Nonprofits only. Loan
to value ratio 85%
Affordable Mortgage Program--;CHFA program provides bond-financed fixed-rate
mortgages for 30-40 years to developers of new rental housing
that has at least 20% of units affordable to households making
no more than 50% of county median income. Approx. $64 million
available annually. For-profit, nonprofit developers and public
housing agencies are eligible. (310) 342-1250
Affordable Mortgage Program (Insured)--;CHFA program provides taxable bond
financed mortgages for new rental housing of which 20% is occupied
by and affordable to very low-income households. Used with FHA
insurance, the program can finance affordable rental housing under
nonprofit developers and public housing agencies are eligible.
Loan to value ratio of 80%; cash equity requirement.
With Vision provide affordable housing to low-income residents
through the U.S., including construction loans, grants and down
payment assistance. Activities funded include new rental housing,
community facilities, public works, planning and feasibility studies.
Tribes, public housing agencies, owner-occupants of housing, nonprofits
and first time homebuyers are eligible for various funds.
Fargo Affordable Housing Investments
Equity Fund (CEF) --; Since 1990, Wells Fargo has committed
$90 million to the California Equity Fund. The CEF provides
equity investment capital to nonprofit-sponsored low-income housing
developments, primarily rental housing, throughout California.
Wells Fargo and other corporate participants in the fund provide
these equity investments as limited partners in exchange for state
and federal low-income tax credits. The CEF works with neighborhood
Community Development Corporations to acquire, construct and manage
affordable housing. CEF provides technical assistance, loans,
and grants through these programs.
1998 to 2001, Wells Fargo's investments helped CEF build 34 affordable
housing developments that total 1,853 living units in California.
Trust Fund of Santa Clara County --; In 2001, Wells Fargo
invested $500,000 in the Housing Trust Fund of Santa
Clara County. This investment will take the form of an Equity
Equivalent (EQ2) Investment.
Vernal Fund --; Neighborhood Housing Services Silicon Valley
(NHSSV) --; In 2001, Wells Fargo invested $500,000
in the Vernal Fund. NHSSV was established in 1995 with the mission
of supporting home ownership in the City of San Jose. NHSSV
established the Vernal Fund in 2001 to make purchase money second
trust deed loans to qualified borrowers in the City of San Jose.
Villa Del Mar Apartments--In 2001, Wells Fargo invested
$500,000 to help finance the construction of a 47-unit
multifamily housing complex for low- to moderate-income families
in the city of Fresno. Sacramento Neighborhood Housing Services
(NHS) Family Fund--In 1996, Wells Fargo invested $150,000
in the Sacramento NHS Family Fund.
invested $4.9 million to help finance the construction
of a 185-unit multifamily housing complex for low- to moderate-income
families in the city of Fair Oaks.
Housing Corp. provides lower-interest construction financing (half
point above prime) for affordable or mixed-income rental housing
or affordable home ownership through a consortium of World Saving,
CalPers, Wells Fargo and the Bank of America. Must be joint development
with BRIDGE. Typical project size 50-100 units. For-profit, nonprofit,
public housing agencies, Counties, cities with less than and more
than 50,000 population. (415)989-1111
programs for developing housing for special groups include: Sec.
202 Supportive Housing for the Elderly, Sec 811 Supportive Housing
for the Disabled, Special Needs Affordable Housing Lending Program.
of Private Funding for Housing Nonprofits--California
with focus on children, families, housing, economically disadvantaged
in community-based nonprofit organizations
for building, capital campaigns, land acquisition, matching
funds, seed money
awards amount unknown. Annual giving $9.3 million.
up to $25,000 with focus on aging, children, community development,
housing, disabled, youth on the Monterey Peninsula.
capital campaigns, general or operating support, matching funds,
seed money, technical assistance
W. Parsons Foundation
up to $100,000 with focus on community development, housing,
youth, economically disadvantaged, aging, technology.
capital campaigns, general or operating support, program development,
up to $50,000 with focus on children, community development,
environment, housing, neighborhood development, youth.
or renovation, equipment
up to $50,000 for nonprofits working to increase the supply
of affordable housing
Social Investment Corporation (ESIC) is a subsidiary of The Enterprise
Foundation who works with partners to finance, develop and acquire
affordable housing in the U.S.
developers in the U.S. of for-sale housing for low-income first
long-term mortgage financing on a forward commitment basis to
developers of affordable multifamily housing, minimizing charges.
Their portfolio includes over $90 million for 45 developments
totaling over 3,800 units.
has raised over $3.7 billion in equity through the LIHTC program
for investment in over 70,000 affordable homes nationwide.
Enterprise Foundation and Fannie Mae are currently partnering
in a five-year project to provide $1.5 billion for low- and
moderate-income affordable housing development.
Homes, Inc. (EHI)
subsidiary of The Enterprise Foundation, EHI uses innovative
design, construction management and financing techniques to
create affordable homes and monthly mortgages for low- and moderate-income
subsidies and low-cost first mortgages to reduce the purchase
price and monthly payment burden.
of America Affordable Housing Programs