Affordable housing projects could be on the uptick in California as the state's Housing Finance Agency announced a new program on Wednesday aimed at making it easier for developers to establish less expensive housing options.
CalHFA, a self-supported state agency that does not rely on taxpayer dollars, was created in 1975 with the goal of helping more Californians find a place to call home. The agency’s new program helps affordable housing developers access tax-exempt and taxable bond funds to aid in the preservation and development of affordable housing projects throughout California.
“This is a powerful additional tool for CalHFA in fulfilling its mission of providing safe and decent affordable housing in California,” said Justin Cooper, partner and chair of the Housing Group of Orrick, Herrington & Sutcliffe LLP.
CalHFA's Multifamily Division has invested more than $3 billion for the construction and preservation of more than 44,000 affordable rental housing units to assist very low and low income Californians.
The Conduit Issuer Program is competitively priced with other statewide conduit programs. It is available to for-profit and non-profit developers and provides simplified, efficient processes and compliance monitoring. Non-profit developers will receive additional discounts of the already competitive issuance fees for loans totaling $20 million or more.
Tax-exempt bond funds can be used to finance acquisition, rehabilitation and development of existing affordable multifamily properties, or to construct new, affordable multifamily developments.
For more information on multifamily loan finance programs and the full complement of CalHFA programs, visit www.calhfa.ca.gov or call toll free 877.9.CalHFA (877.922.5432).