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, and an additional $300 million is authorized for the TOD program, to be administered by the Department of Housing and Community Development (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 in equal portions of $95 million per year over three years. Follow-up legislation was enacted in August of 2007 (SB 86) to provide additional guidance on the administration of the other two programs and to appropriate a specific amount of funds to each of the other two programs for the fiscal year starting July 1, 2007:
Infill Program: $240 million
Brownfield Program: $60 million
All three programs are currently going through an administrative process to set guidelines for funding awards prior to releasing notification of funding. We anticipate that all three funds will be seeking requests for proposals by the end of the first quarter in 2008.
CLICK HERE to download a Microsoft Powerpoint presentation outlining all three funding programs.
Infill Development Program
A. Funds Available HCD has aportioned the current year's $240 million in the following fashion:
Approximately $190 million to Qualifying Infill Areas and to Large Multi-Phased Qualifying Infill Projects (over 200 units)
Approximately $50 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 07/08 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
Eligible Applicants:
For-profit and non-profit developers.
Cities and counties.
Redevelopment Agencies
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.
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.
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
Final guidelines and NOFA published February 28, 2008
Application forms available on HCD website
D. Projected Timeline
Applications due no later than 5:00 PM on Friday, April 4, 2008
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
Loands 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
Eligible Applicants :
Infrastructure grants: municipalities and public transit agencies
Rental housing developments: developers
Homeownership housing developments: developers with the locality
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
Eligible Costs - Housing Projects:
Costs for housing development, pursuant to MHP regulations
Land acquisition (redevelopment agencies only)
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
Ranking Criteria:
Ridership
Local coordination
Affordability
Transit-supported uses
Walkable corridors
Parking
C. Current Status
Final guidelines published December 6, 2007
NOFA published December 11, 2007
Application forms now available on HCD website
Application workshops conducted week of January 28, 2008
D. Projected Timeline
Applications due no later than 5:00 PM on Friday, March 7, 2008
A. Funds Available Under the final regulations, the maximum award under the existing Cal ReUSE assessment program will be increased from $125,000 to $300,000, with infill residential or mixed use projects eligible for a higher funding cap of $500,000.
Participants in the new Cal ReUSE 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
Eligible Applicants : Any public or private sector developer
Eligible Costs:
Cleanup, mitigation, & remediation
Mid-project assessment
Technical assistance
Governmental oversight
Environmental insurance (up to 20% of award)
Capitalization of operation & maintenance funds
Threshold Criteria - Grants:
At least 15% affordable units
Meet Mullin densities
All other projects eligible for loans at 6-month LIBOR interest rate
Ranking Criteria:
Readiness
Located in Economically Distressed Community
Located in priority development area for city or regional COG
Percentage & depth of affordability
Green building methods
No O&M
C. Current Status
Draft regulations issued November 15th
Final regulations issued December 14th and approved by the CPCFA Board December 18th
D. Projected Timeline
Final regulations to be in effect by end of February, 2008
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.
