This week the Los Angeles County Community Development Commission (CDC) – which functions as the County’s Housing Authority – will release a Notice of Funding Availability (NOFA) for over $30 million in both HOME Affordable Rental and "City of Industry Funds". Housing developers are encouraged to submit proposals and apply for these funds.
The NOFA allocates $12 million for special needs rental housing and $12 million for affordable multi-family rental and senior rental developments through the City of Industry Funds program. The NOFA also allocates $6.5 million through the HOME Affordable Rental program. Special needs populations include individuals who are developmentally disabled, mentally ill, domestic violence victims, emancipated foster youth, HIV/AIDS afflicted, transition age youth, frequent users of emergency facilities, and homeless families. A separate and open-year-round Request for Proposal (RFP) for the development of affordable for-sale housing is also currently available.
The NOFA is part of the CDC’s ongoing efforts to increase the supply of affordable housing and thereby build better lives and better neighborhoods for County residents. The City of Industry Funds program originates from "tax increment revenue" generated from that city’s redevelopment areas and which can be used within a 15-mile radius of the City of Industry. Revitalization leads to an increase in property tax revenue because land within the redevelopment areas incrementally increase in assessed value from a base-year assessed value. The incremental increase in assessed value produces an incremental increase in property tax revenue (tax increment revenue), a portion of which is allocated for the City of Industry Funds.
An agreement to distribute the revenue outside the City of Industry was reached because the overwhelmingly industrial city is home to few residents, which made increasing the affordable housing stock within its boundaries less beneficial than expanding the target area for affordable housing projects out to 15 miles.
HOME Affordable Rental funds are provided to the CDC from the U.S. Department of Housing and Urban Development. Funds are made available within the unincorporated areas and 47 participating cities within Los Angeles County.
For the first time, the CDC is combining both the City of Industry Funds and the HOME Affordable Rental funds into a single NOFA in an effort to simplify the funding application process and increase the supply of affordable housing. Additionally, the application process has been lengthened in an effort to allow developers ample time to secure and leverage various funding sources.
Carlos Jackson, Executive Director of the County CDC, said, "I am confident that this new combined NOFA will create a more streamlined application process for affordable housing developers and ultimately lead to the creation of additional affordable housing units throughout the County."
The NOFA was posted on the County CDC’s Web site www.lacdc.org
starting on Tuesday, January 2nd. A Proposers’ Conference will be held on January 17th at the CDC. There will be a 9:00 a.m. conference for developers interested in special needs development and a 2:00 p.m. conference to discuss general affordable housing development. Additionally, there will be a Questions and Answers Session that will be held on January 25th at 2:00 p.m. at the CDC. The CDC will begin accepting applications on February 2, 2007 and all applications must be received by June 30, 2007. Funding will be allocated on a first-come, first-served basis, subject to funding availability and eligibility criteria. For more information, please visit www.lacdc.org or call the CDC at (323) 890-7235.
Go on-line at www.ladcss.org
for previous press releases and information concerning this project.