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Salinas staff: $8 million multifamily NOFA drew five proposals; awards expected to council in November
Summary
City staff told the Housing and Land Use Committee that the 2025–26 multifamily Notice of Funding Availability offered approximately $8 million and drew five proposals. Staff will present award recommendations in October to the committee and to the City Council in November, with loan agreements expected by December 2025.
City of Salinas planning staff told the Housing and Land Use Committee on Sept. 30 that the city’s 2025–26 multifamily Notice of Funding Availability (NOFA) offered approximately $8,000,000 to support affordable housing development and that the city received five proposals.
Vincent Montgomery, planning manager with the Housing and Community Development Department, said the NOFA — released June 24, 2025 — is funded from the city’s local housing trust fund, the HOME Investment Partnerships Program, and a city-designated HOME set-aside. The NOFA included a streamlined application and a virtual workshop to support applicants.
“We received five proposals,” Montgomery told the committee, adding that four proposals were for new construction and one was for rehabilitation. He said the proposals target households earning between 60 and 80 percent of area median income and include proposed amenities such as community rooms, gardens and computer labs. Montgomery said one proposal included permanent supportive housing and another targeted farmworker housing.
Staff described an interdepartmental review process that included one-on-one meetings with applicants to assess readiness, financial capacity and alignment with city goals. Montgomery said staff are exploring additional gap financing sources to maximize impacts.
Key timeline details provided by staff: the NOFA and application materials were published on June 24, 2025; a virtual workshop was held on July 9; the application period closed on July 30 at 5 p.m.; staff’s interdepartmental review has run from July 30 through Sept. 30; and funding recommendations will be presented to the committee in October and to City Council for consideration on Nov. 18, 2025. Montgomery said staff anticipates executing funding agreements by December 2025 if council approves awards.
Montgomery reported unit-count ranges for proposals but the transcript records two slightly different figures: one place states projects “ranging from 40 to 88 units,” while a later slide was described as “unit counts range from 36 to 88.” The committee’s staff review will finalize unit counts as part of application scoring.
Public commenter Marisol Gonzales urged careful contract review before awards are finalized, warning that “what looks nice on paper…in practice” may expose residents to additional fees.
Why it matters: The NOFA directs about $8 million of local and federal housing funds. Awards will influence which affordable projects move forward in Salinas and which populations — including farmworkers and people needing supportive housing — may receive targeted housing resources.
What’s next: Staff will return with award recommendations in October and seek City Council approval in November; loan agreements and regulatory covenants would follow to formalize affordability requirements if council approves funding.
