How does one finance affordable housing?


Due to the high demand for housing in CA, and the resulting high housing construction costs, it would be impossible to develop affordable housing without financial assistance from the government. Below is a list of key government agencies that provide incentives to apartment developers to develop quality housing communities and charge rents, affordable to the low-income families that live there.

CTCAC

The California Tax Credit Allocation Committee is the state agencies that allocates the federal and state low-income housing tax credits. Tax credits are used to attract equity investors who use the credits and loses from the affordable housing community to reduce their tax liability.

CDLAC

The California Debt Limit Allocation Committee is the state agencies that allocates CA's tax exempt bond capacity. Tax exempt bonds help affordable housing communities borrow money at lower rates because the lenders don't have to pay taxes on the interest they earn.

Cal HFA

The California Housing Finance Agency is the state agencies that provides direct loans to affordable housing communities and administers programs like the Veterans Housing and Homeless Prevention (VHHP) and the Mental Health Services Act (MHSA).

HCD

The California Department of Housing and Community Development is the state agency that administers various bond funded programs like the Multi-family Housing Program (MHP) and the Affordable Housing and Sustainable Communities (AHSC aka Cap & Trade).

HUD

The U.S. Department of Housing and Urban Development is the federal agency that works to create strong, sustainable, inclusive communities and quality affordable homes for all. It does so in various ways: vouchers, credit enhancement, HOME funds, etc.

USDA RD

The U.S. Department of Agriculture - Rural Development is the federal agency that promotes rural development through over fifty financial assistance programs, assisting families, businesses, developers, nonprofits, and lenders with grants, direct loans, credit enhancement, etc.