Prop 123 - General Recap

This update includes additional details on the Affordable Housing Finance Fund (AHFF)

Generally, Prop 123 (a 2022 ballot initiative) will be divided into two “Funds”

• 60% Affordable Housing Financing Fund (owned by OEDIT but managed by CHFA)

• 40% Affordable Housing Support Fund (owned by DOH, managed by DLG)

Estimated at $150M for 2023-24 and $300M for 2024-25

• Visit the Prop 123 Website for ongoing updates

• Visit this DOLA Googledoc for step-by step opt-in instructions

If you or any community that are working in would like help opting in or calculating the baseline, don’t hesitate to reach out to us.

Process

• July 1, 2023, start date - AHFF programs taking applications immediately

• Local government “opt-in” required

  • Define a baseline number of affordable units by 11/1/23

  • File a commitment w/ the DOH specifying how to increase that number by 3% annually, totaling 9% in 3 years

• City and County must apply separately, and the jurisdiction that a property is in indicates which entity must have opted-in

• Housing Authorities may apply without municipal opt-in (need to confirm this)

Application

Narrative must highlight alignment with three core priorities:

1. “Mixed income” (though note that the support for “missing-middle” is limited due to the AMI restrictions),

2. “High density” and

3. “Environmental sustainability”

Prop 123 - General Qualification

• Certain programs open only to public entities and nonprofits, others for private

• 70% of the units must be at 60% AMI with the rest at market

  • Unfortunately, they did not scale the AMIs for mountain communities

  • However, there is a process in place for “Rural Resort Communities” to appeal to the DOH for more flexible AMI limits

The focus of this memo is to share all known information on the following AHFF (OEDIT/CHFA) programs:

1. Land Banking Program

2. Concessionary Debt Program (CDP)- (Including Financing for Low and Middle Income Rental Development, Gap Financing, Predevelopment Financing and Modular Financing)

3. Affordable Housing Equity Fund (AHEF)

Summary, underwriting, affordability, and application details can be found within the memo.

Read the Full Report Here