Brief: Agencies may make funding available to support affordable housing projects. Also, lower cost loans and deed restrictions mandating housing unit types or costs can be authorized by a redevelopment agency in order to stimulate development or create particular types of residential construction.
Description: Under the authority of a redevelopment agency, the Redevelopment Corporation or other agency may make loans to developers with below market rates with soft repayment terms. Agencies can further set affordable housing terms onto the loan, but usually only for 60% of area income or below.
New Development Loans/Notice of Funding Availability, San Jose, CA
Financed by bonds, HOME Investment Partnership funds from the U.S. Department of Housing and Urban Development, and redevelopment tax increment funds, the agency makes loans available as funding becomes available, so that developers with affordable project proposals may more easily construct new multifamily rental developments in San Jose.
For more information visit: http://www.sjhousing.org/program/newdev.html
Los Angeles Redevelopment Agency, Los Angeles, CA
Center City Redevelopment Corporation, San Diego, CA
“Under California Redevelopment Law, local redevelopment agencies are required to set aside 20 percent of revenues from tax increment districts for a separate low- and moderate-income housing fund to address the state’s need for affordable homes. These revenues have made redevelopment agencies one of the biggest sources of funding for affordable homes in California. In the 2004-2005 ?scal year, for example, California redevelopment agencies deposited more than $1.2 billion into low- and moderate-income housing funds and helped some 20,493 households secure affordable homes.” – Working Families