Policy & Practices: Goals | 2007/2008 Legislative Activity | Prop 1C Tracking | AB 389 Tracking

Brownfields | Infill | TOD

Last Updated February 5, 2009

In November 2006, the California voters approved Proposition 1C, the Housing and Emergency Trust Fund Act of 2006 (SB 1689, Perata), which authorized the issuance of bonds in the amount of $2.85 billion. Proceeds from the sale of the bonds will fund existing affordable and support housing programs, including the Multifamily Housing Program, the Emergency Housing Assistance Program, the Farmworker Housing Grant Program, and the Downpayment Assistance Program. In addition, Proposition 1C establishes funds totaling $1.15 billion to promote three types of housing projects that have never before received public support in such a targeted way: 1) infill development 2) transit-oriented development (TOD), and 3) brownfield development. $850 million is authorized by Prop 1C to be spent on the infill and brownfield programs, to be administered by the Department of Housing and Community Development (HCD) and the California Pollution Control Financing Authority (CPCFA) respectively, and an additional $300 million is authorized for the TOD program, to be administered by HCD. The vision behind all three programs is that they will provide direct assistance to mixed-income, mixed-use developments with the greatest potential for catalyzing community growth and revitalization across the state.

HCD intends to distribute the $285 million ($15 million is being held for HCD overhead expenses) in TOD funds over a three year period. Follow-up legislation was enacted in August of 2007 (SB 86) to provide additional guidance on the administration of the other two programs. SB 86 and subsequent emergency legislation resulted in appropriation and subsequent awarding of funds for the three programs during the 2007/2008 fiscal year at the following level:

  • TOD Program: $145 million
  • Infill Program: $340 million
  • Brownfield Program: $60 million

The legislature appropriated funds for the 2008/2009 fiscal year at the following level:

  • TOD Program: $95 million
  • Infill Program: $197 million

Brownfield Program

A. Funds Available
Participants in the new CALReUSE cleanup program will be eligible for up to $5 million in grants and loans combined, per infill residential/mixed-use project, with a minimum award of $50,000.

B. Cleanup Program Outline

  1. Eligible Applicants : Any public or private sector developer
  2. Eligible Costs:
    • Cleanup, mitigation, & remediation
    • Mid-project assessment
    • Technical assistance
    • Governmental oversight
    • Environmental insurance (up to 20% of award)
    • Capitalization of operation & maintenance funds
  3. Threshold Criteria - Grants:
    • At least 15% affordable units and meet Mullin densities
    • OR devote a substantial number of units to supportive housing
    • All other projects eligible for loans at 6-month LIBOR interest rate
  4. Ranking Criteria:
      • Readiness
      • Located in Economically Distressed Community
      • Percentage & depth of affordability
      • Green building methods
      • No O&M

CLICK HERE to download a more detailed outline of threshold and ranking criteria.

C. Current Status

  1. CCLR is currently working with the state in a strategic partnership capacity for this new funding program, and recently completed the first round of funding in November 2008. Additional funding is anticipated to become available by mid-2009. Applications for the second round of funding are not yet available. However, if you are considering applying in the second round, please contact Louisa Smythe at 415.398.1080 or louisa.smythe@cclr.org so that we may keep you up to date. You may also request from Louisa a copy of the last funding round's application form to provide some direction as you begin to pull your application materials together.

D. Projected Timeline

  1. Notice of Funding and applications will be available by early spring, 2009
  2. Award announcements will follow by early summer, 2009

E. More Information

  1. CLICK HERE to download the complete CALReUSE program regulations. The Remediation Program regulations begin on page 25 with Subarticle 2, Section 8102.
  2. CLICK HERE to download detailed outline of programmatic threshold and ranking criteria.
  3. CPCFA website: http://www.treasurer.ca.gov/cpcfa/calreuse.asp
  4. CLICK HERE for more info on the current Cal ReUSE forgivable loan program for brownfield site assessment and characterization, technical assistance, and remedial action planning.


Infill Development Program


A. Funds Available
HCD has aportioned the $197 million in the following fashion:

  • Approximately $98.5 million to Qualifying Infill Areas and to Large Multi-Phased Qualifying Infill Projects (over 200 units)
  • Approximately $98.5 million to Qualifying Infill Projects that do not qualify as Large Multi-Phased.

Maximum assistance is $50 million over the life of the program to any one project or area. The current NOFA establishes per-project grant fund ranges as follows:

  • $500K ($250K for rural areas) - $20 million per Qualifying Infill Project
  • $2 million ($1 million for rural areas) - $30 million per Qualifying Infill Area or Large Multi-Phased Qualifying Infill Project

B. Program Outline

  1. Eligible Applicants:
    • For-profit and non-profit developers (for Qualifying Infill Projects only).
    • Cities and counties.
    • Public housing authorities.
    • Redevelopment Agencies.
    • Business Improvement Districts (as co-applicant only).
  2. Eligible Costs:
    • Project-specific creation, development, or rehabilitation of parks or open space.
    • Water, sewer, utilities, or other infrastructure related to the infill development.
    • Roads, parking structures, and transit linkages.
    • Support for alternative transit modes, including walking, bicycling, and ride sharing.
    • Traffic mitigation.
    • Demolition and site preparation (including remediation).
    • Sidewalks and streetscapes.
    • Storm drains, detention basins, culverts, and similar drainage features.
  3. Threshold Criteria:
    • Eligible projects are residential or mixed-use residential projects within an urbanized area on a previously developed site.
    • The project site must be designated for residential or mixed-use residential development in a general plan, redevelopment plan, capital improvement plan, regional blueprint, or regional transportation plan.
    • The project must be in a city or county that has an HCD-approved housing element.
    • The project or area served by the grant must include 15 percent of units that will be affordable at specified affordability levels.
    • The project must be developed at a density that is equal to or greater than the Mullin densities described in housing element law, namely 30 units per acre for jurisdictions in metropolitan counties, 20 units per acre in "suburban" jurisdictions, 15 units per acre in cities in non-metropolitan counties, and 10 units per acre in unincorporated areas in non-metropolitan counties.
  4. Ranking Criteria:
    • Project readiness:
      - Environmental review
      - Land use entitlements
      - Funding
      - Local support
    • The extent to which the project exceeds the Mullin density thresholds.
    • Affordability.
    • The extent to which the project includes elements designed to achieve reductions in vehicle trips, emissions, or miles traveled based on the following criteria:
      - Proximity to public transit
      - Accessibility to alternative transit modes (walking, biking, or ride share)
      - Consistency with a regional growth blueprint that fosters efficient land use
      - Availability of pedestrian-friendly project features

C. Current Status

  1. The first round of awards were finalized and approved by HCD's Local Assistance Loan and Grant Committee at their June, 2008 meeting.
  2. CLICK HERE to download the Committee's June meeting agenda listing all Infill and TOD awardees.
  3. NOFA and guidelines for the second round of funding were published early February, 2009.
  4. Applications for Round Two are not yet available, but applications for the first round may be downloaded from the HCD website by clicking here.

D. Projected Timeline

  1. Applications are due Wednesday, April 1, 2009. Application materials will be posted shortly on the HCD website (See below).

E. More Information
HCD’s website: http://www.hcd.ca.gov/fa/iig/


TOD Program

A. Funds Available
HCD guidelines set a maximum combined award of $17 million per eligible residential or mixed-use TOD project for both infrastructure and direct construction assistance:

  • Grants to municipalities for infrastructure supportive of eligible TOD projects
  • Loans to developers for the development of rental units at eligible TOD projects
  • Grants to municipalities for loans to first-time homebuyers through BEGIN program for for-sale units at eligible TOD projects

B. Program Outline

  1. Eligible Applicants :
    • Infrastructure grants: municipalities and public transit agencies
    • Rental housing developments: developers
    • Homeownership housing developments: developers with the locality
  2. Eligible Costs - Infrastructure Projects: Capital improvements either required by the city/transit agency/special district, OR that improve pedestrian/bicycle access to a transit station:
    • Property acquisition
    • Construction work
    • Engineering design/supervision
    • Environmental studies/remediation/mitigation
    • Relocation costs
    • Replacement parking required by public agency
    • NOT eligible: local agency project admin & planning
  3. Eligible Costs - Housing Projects:
    • Costs for housing development, pursuant to MHP regulations
    • Land acquisition (redevelopment agencies only)
  4. Threshold Criteria - Housing Projects:
    • Minimum 50 units
    • Located in one of 27 defined urbanized areas
    • Located within 1/4 mile of qualifying transit station
    • Located within 1/2 mile of transit station along walkable route
    • At least 15% affordable units
    • Meet minimum density thresholds
    • Construction has not commenced
    • Site control
  5. Ranking Criteria:
      • Ridership
      • Local coordination
      • Affordability
      • Transit-supportive land uses
      • Walkable corridors
      • Parking
      • Readiness of housing
      • Leverage
      • Developer past performance
      • Community support
      • Project size
      • Adopted economic development plan
      • Economic stimulus funding / local support

C. Current Status

  1. The first round of awards were finalized and approved by HCD's Local Assistance Loan and Grant Committee at their June, 2008 meeting.
  2. CLICK HERE to download the Committee's June meeting agenda listing all Infill and TOD awardees.
  3. NOFA and guidelines for the second round of funding were published early February, 2009.
  4. Applications for Round Two are not yet available, but applications for the first round may be downloaded from the HCD website by clicking here.

D. Projected Timeline

  1. Applications are due Thursday, April 2, 2009. Application materials will be posted shortly on the HCD website (See below).

E. More Information
HCD’s website: http://www.hcd.ca.gov/fa/tod/