The Housing Department provides "gap financing" in the form of low-interest loans or conditional grants to experienced developers of affordable housing projects in order to meet the tremendous need for affordable housing in the City of San José. All loans are underwritten to the guidelines established in the Department's Project Development Program Policy and Procedures Manual. As consideration for such financing, the City requires the recording of an affordability covenant that ensures the project typically remains affordable to lower-income tenants for 55-99 years.
Affordable Housing Investment Plan
The City Council's Community and Economic Development Committee approved the Department's Affordable Housing Investment Plan on May 22, 2017. The Plan will be heard by the full City Council in June 2017.
NOFA Funding Update
On July 21, 2016, the Housing Department issued a $40 million Notice of Funding Availability with a focus on new permanent supportive housing for homeless households. The NOFA was a joint release with the County's Office of Supportive Housing and the Housing Authority of the County of Santa Clara (HACSC). Also available through the NOFA was up to 603 PBVs from HACSC, and services commitments and up to $8 million in capital funds from the County. A summary of the combined NOFA is available for your reference. Two developments in San José were identified as eligible for award. Villas on the Park was approved by the City Council on January 31, 2017. Quetzal Gardens is expected to go to City Council in June 2017 for a funding commitment. The NOFA is no longer active and there are no other funds available at this time.