Acquisition, preservation, rehabilitation or new construction of affordable rental housing, permanent supportive housing and affordable owner-occupied housing are eligible activities. Projects that include deeply affordable units will be prioritized.
Projects must demonstrate and satisfy the following feasibility requirements in their application:
Whether the proposed project meets the applicable American Rescue Plan Act (ARPA) and/or HUD funding requirements, regulations and guidance.
e.g. ARPA funding will require that a minimum of 10% of a building’s total units are affordable to residents making 30% AMI and the units must remain affordable for at least 30 years.
Whether the proposed housing is needed in the intended market based upon population, job growth and very low housing vacancy rates. This includes the need for supportive housing units.
Whether the costs of developing the housing are reasonable and/or justifiable.
Whether the applicant has demonstrated cost effectiveness for all stages and aspects of the development without compromising overall development quality.
Whether the housing is economically viable.
For permanent supportive housing, whether the service model, staffing and secured funding are adequate to address the needs of the population to be served.
Financial and organizational capacity
In addition to demonstrating financial readiness, projects must demonstrate and satisfy the following capacity requirements:
The applicant’s related housing experience
Whether the applicant has successfully completed similar projects or is partnering with other organizations that have successfully completed similar projects.
Whether the applicant has strong current and expected ongoing capacity to complete the proposed housing, as well as other proposals being developed by the organization.
Whether the applicant has the capacity to maintain the rental housing long-term.
Responses must demonstrate the following:
That the costs are allowable under one or more of the funding source requirements.
That project costs are reasonable.
Other sources of project financing commitment, including amounts and terms, and in what amounts.
To the extent required, that the county’s ARPA and/or HUD funds are not substituted for non-Federal financial support.
That the project is financially feasible.
To the extent practicable, that the return on the owner’s equity investment will not be unreasonably high.
To the extent practicable, that county ARPA and/or HUD funds are disbursed on a pro rate basis with other finances provided to the project.