anchor Description
This project provides funding to preserve existing affordable housing in developments at risk of rent escalation to higher market rents. The fund is expected to reach million in with the goal of up to million in the revolving fund. The Nonprofit Preservation Fund (NPF) CIP will be used to provide capital lending to nonprofit entities to support acquisitions and preservation to ensure continued affordability of the County's existing affordable housing stock. To qualify for capital lending, entities must be a with experience in affordable housing development or be the local housing authority. Loans will be for specific properties, which must: • have been constructed at least years ago; • have other necessary capital identified for the acquisition, unless this requirement is conditionally waived for days; • restrict rental increases on the affordable units to no more than the Voluntary Rent Guidelines (VRG) issued by the Department of Housing & Community Affairs (DHCA); • agree to a minimum affordability restriction; and • achieve at least percent of units at percent of Area Median Income (AMI) or below and percent of units at MPDU level or below within three years of acquisition.Lending applications will be considered on a rolling basis and are subject to available funds. HOC shall conduct underwriting for each loan and will connect applicants to potential investors for individual projects. DHCA will administer the Fund and will review and approve or reject loan recommendations. County priorities will be taken into consideration during the review of applications.While HOC is eligible for loans from the Fund, HOC cannot be awarded more than percent of the fund at any given time. Loans will include an origination fee of percent, except for HOC projects, which would not include an origination fee. The maximum loan term is for seven years, which may be extended to a total of ten years in certain instances.
anchorEstimated Schedule
All funding to be spent in
anchorCost Change
Cost change is due to the addition of million funded with an initial transfer of million per Council Resolution Executive transfers and shifts of loan repayments from the Preservation of Naturally Occurring Affordable Housing Fund and the Affordable Housing Acquisition and Preservation projects totaling million. money to shift to due to delay in getting program started.
anchor Justification
The County has over unrestricted housing units affordable to households earning under percent of area median income; however, the Planning Department Preservation Study identified the risk of losing between to affordable housing units due to expected rent increases.The Nonprofit Preservation Fund will support efforts by the County's nonprofit development partners to preserve these at-risk properties and will provide much needed additional capital to preserve and create affordable housing units.
anchorOther
Resale or control period restrictions will be included to ensure long-term affordability for activities funded with this project.
anchorFiscal Note
The Council may direct up to million in loan repayments associated with the Preservation of Naturally Occurring Affordable Housing Fund project that is received in to this CIP project. supplemental in Current Revenue: General for the amount of transfers of million in loan repayments from the Preservation of Naturally Occurring Affordable Housing Fund and million of loan repayments in from the Affordable Housing Acquisition and Preservation projects. shift of million from the Preservation of Naturally Occurring Affordable Housing Fund million) and the Affordable Housing Acquisition and Preservation million) projects.
anchorCoordination
Department of Housing and Community Affairs, Housing Opportunities Commission, and nonprofit housing providers and developers.