This project provides funding to preserve current naturally occurring affordable housing (NOAH) in areas at risk of rent escalation to higher market rents, including the Purple Line Corridor and other County transit corridors. The Fund will be used to provide capital to support acquisitions and preservation to ensure continued affordability of currently naturally occurring affordable housing. Price pressures in housing, particularly housing near transit corridors, have increased and will likely continue to increase due to housing demand.

The dedication of funding will increase the capacity of the County to assist affordable housing developers in acquisition of naturally occurring affordable housing. By focusing on the NOAH property market, this project will complement the County's existing funds for affordable housing.

The County has over 25,000 unrestricted housing units affordable to households earning under 65% of area median income; however, the 2000 Planning Department Preservation Study identified the risk of losing between 7,000 to 11,000 affordable housing units due to expected rent increases. As an example, the Purple Line Corridor Coalition analysis identified 6,500 affordable housing units within one mile of a Purple Line station where rents are expected to increase due to transit proximity. The dedication of County resources in the NOAH fund will support a focused effort to preserve these at-risk properties and will provide much needed additional capital to preserve and create affordable housing units.

Resale or control period restrictions to ensure long-term affordability should be a part of projects funded with these monies.

FY22 supplemental in Current Revenue: General for the amount of $40,000,000.
FY23 supplemental in Loan Repayment Proceeds for the amount of $30,200,000.
The project is expected to be closed out contingent upon the passage of changes in the Right of First Refusal (ROFR) Law. In FY24, $7.020 million in loan repayments were transferred to the Nonprofit Preservation Fund. In FY25 a shift of $10 million in loan repayments will be made to the Nonprofit Preservation Fund. Any additional loan repayment proceeds will be transferred to other CIP Housing projects. To avoid duplication, this project will eventually be closed.

Housing Opportunities Commission, non-profit housing providers, and private sector developers.