The City of Fresno (City) is soliciting applications from housing development organizations to construct new affordable housing or complete substantial rehabilitation to existing housing. The selected developer(s) will be required to perform all aspects of development (i.e.: property acquisition, entitlement, environmental clearance, financing, and construction). As an incentive, the City is proposing to provide funding through various federal and/or state programs. Sources may include up to $4,190,721.77 in HOME Investment Partnerships (HOME) funding and program income, up to $2,190,210.56 in Community Housing Development Organization (CHDO) funding, and up to $2,700,000 in Permanent Local Housing Allocation (PLHA) funding ($1,000,000 for single-family development and $1,700,000 for multi-family development). Funding shall be used as gap financing for the development of affordable housing units within the project that carry a 55-year affordability covenant for multi-family housing and a 30-year affordability covenant for single-family housing. Funding will be provided as a low interest loan payable from the property’s residual receipts or as hard debt for a multi-family housing project, and interim construction financing that converts to permanent second mortgage assistance to a homebuyer for a single-family housing project. Upon selection of a proposed project(s), the City and developer will enter into a funding agreement(s) for a proposed project that is subject to City Council approval.
