Affordable Housing Financing

Multifamily Revenue Bonds

All bonds for multifamily projects must be issued in accordance with the City's Multifamily Bond Issuance Policy. It is the City's strong preference to be the issuer for all multifamily revenue bonds issued for projects located within the City of San Jose. As issuer, the City is responsible for ensuring that the location and composition of proposed projects meet the goals and objectives of the City. The Housing Department also ensures that the bond amount requested is appropriate for the construction of the development.

The City also ensures that projects funded with City-issued bonds meet their City and CDLAC requirements for providing affordable housing. All questions pertaining to bond monitoring or transactions involving the payoff of City-issued bonds, refinancing, or the resyndication of bonds/tax credits on affordable housing developments should be directed to the contact listed at the bottom of this page.

Tax-Credit Financing

The City of San Jose is responsible for reviewing all tax credit funding applications for projects located within the City of San Jose. The City is authorized to assess a $1,000 fee to offset the cost of providing this review. Information on the Local Reviewing Agency role and current forms can be found at the California Tax Credit Allocation Committee website.

All questions pertaining to local reviews for TCAC applications, logistics of new bond issuances, or other new tax credit and/or bond transactions should be directed to the contact listed at the bottom of this page.

loans

The Housing Department provides "gap financing" in the form of low-interest loans or conditional grants to developers of affordable housing in order to meet the tremendous need for affordable housing in San José.

All loans are underwritten based on guidelines established in the Department's Project Development Program Policy and Procedures Manual. In consideration for such financing, the City requires the recording of an affordability covenant (i.e., deed restriction) that ensures the property remains affordable to lower-income tenants for 55-99 years.

Refinancing or selling deed-restricted property

All owners and developers requesting City discretionary approvals regarding multifamily projects with existing City financing and/or restrictions are required to submit the Multifamily Housing Application.

The City encourages developers to submit the fully completed Application as early as possible, so that the transaction may be prioritized. For example, if you are applying to CTCAC or CDLAC with assumptions about City Loan terms or Bond Issuance, we strongly recommend submitting this application to the City at a minimum [6 months] before your proposed transaction.

Additional Forms and Templates

For information regarding the sale of properties with City-based affordability restrictions, or refinancing such loans, contact HousingTransactions@sanjoseca.gov.

For all other questions, please contact Shelsy Bass at shelsy.bass@sanjoseca.gov.

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