2021 Local Housing Trust Fund Program Notice of Funding Availability

Purpose: The principal goal of this program is to provide matching grants to Local Housing Trust Funds so that they can fund affordable housing. A. Eligible Applicants An applicant must be: 1. A city, county, or city and county that has created, funded, and operated an existing Local Housing Trust Fund or that has created and funded a new Local Housing Trust Fund in compliance with Guidelines Sections 102(a)(1), 102(a)(2), and 102(a)(3). A Local Housing Trust Fund or Regional Housing Trust Fund that was created, funded, and operated by a combination of two or more cities or counties must agree in its application to utilize program funds only for Eligible Projects located in cities or counties that at the time of application have met the requirements outlined in Guidelines Section 102(a)(4). 2. An existing or new Local Housing Trust Fund that is a charitable nonprofit organization as defined by Section 501(c)(3) of the Internal Revenue Code and which complies with Guidelines Section 102(b)(1), 102(b)(2) and 102(b)(3). 3. A Native American Tribe or Tribes that has created, funded, and operated an existing Local Housing Trust Fund, or that has created and funded a new Local Housing Trust Fund in compliance with Guidelines Section 102(c)(1), 102(c)(2), and 102(c)(3). B. Eligible Activities Pursuant to Guidelines Section 105, the LHTF funds shall be allocated in compliance with all of the following: 1. To provide construction loans and/or permanent financing loans at simple interest rates of no higher than three percent per annum, for payment of predevelopment costs, acquisition, construction, or rehabilitation. 2. Administrative expenses may not exceed five percent of Program Funds and Matching Funds. 3. A minimum of 30 percent of Program Funds and Matching Funds, after deducting administrative expense, shall be expended on assistance to Extremely Low-Income Households. To comply with this requirement, dwelling units or shelter beds must be Affordable to and restricted for Extremely Low-Income Households with household income of no more than 30 percent of Area Median Income (AMI). 4. No more than 20 percent of the Program Funds and Matching Funds, after deducting administrative expense, shall be expended on assistance to Moderate-Income Households. To comply with this requirement, dwelling units must be Affordable to and restricted for Moderate-Income Households with household income of no more than 120 percent of AMI. 5. The remaining Program Funds and Matching Funds shall be expended on assistance to Lower Income Households. To comply with this requirement, dwelling units must be Affordable to and restricted for Lower Income Households with household income of no more than 80 percent AMI.

• PSCHousing, Community and Economic Development

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  lhtf@hcd.ca.gov