CalHFA board approves final loan commitments for four 2025 Mixed Income Program developments

The California Housing Finance Agency board on March 17 approved final loan commitments for four developments awarded under the 2025 Mixed Income Program, clearing financing that staff said will move the projects into construction.

Board action covered projects in Ventura, San Francisco, Los Angeles and Marin County. Katherine McFadden, director of Multifamily Programs, presented staff recommendations and explained requested policy exceptions — including acceptance of local regulatory agreements in senior recording positions, the use of the California Utility Allowance Calculator (CUAC) and surplus cash splits above 50 percent to meet tax‑credit investor terms.

Why it matters: The approvals unlock permanent CalHFA financing for projects the agency says will deliver more than 600 income‑restricted units across the state, including deeply affordable set‑asides at 30 percent of area median income (AMI) and projects that use adaptive reuse and mass timber construction to lower per‑unit costs.

Details and votes at a glance: Victoria Flats (Ventura): CalHFA requested a $20.1 million first‑lien permanent loan and a $4.0 million MIP subsidy for a 104‑unit, four‑story large‑family development with an average affordability of 58.35% AMI and projected rents 11%–69% below market. Staff noted a private 99‑year ground lease and a financing stack that includes tax‑exempt/taxable/recycled bonds and tax credit equity. After board questions about the inclusionary contribution and developer fee structure, Director Stephen Russell moved approval; Director Maria Cabildo seconded. The roll call was unanimous in favor and the board approved Resolution 26‑09.

960 Howard Street (San Francisco): Staff requested a $38.53 million CalHFA first‑lien permanent loan and a $1.0 million MIP subsidy for a 202‑unit mixed‑use project that combines adaptive reuse of an existing podium with 12 stories of mass timber housing above. The project’s per‑unit development cost was reported at about $501,454; staff cited environmental mitigation and use of San Francisco’s Housing Sustainability District for streamlined entitlements. After developer representatives described prior mass timber experience and a carbon analysis, the board heard public comment from South of Market resident Kelly Flynn urging denial because of alleged geographic overconcentration of high‑need housing and a pending civil‑rights complaint with HCD. Director Maria Cabildo moved approval and Director Tyrone Williams seconded. Director Gustavo Velasquez recorded an abstention; the rest of the roll call voted yes. Resolution 26‑10 carried.

Sherman Apartments (Los Angeles): The board approved a $29.8 million CalHFA first‑lien permanent loan and a $4.0 million MIP subsidy for a 244‑unit senior housing community (221 one‑bedroom and 20 two‑bedroom units) with average affordability of 48.17% AMI and projected rents 21%–63% below market. Developers said efficiency of unit types and construction typology helped keep per‑unit costs near $419,000. The board approved the motion unanimously as Resolution 26‑11.

Marinwood Plaza (San Rafael): Staff requested approval of a $28.76 million CalHFA first‑lien permanent loan and a $4.0 million MIP subsidy for a 125‑unit large‑family development with an average affordability of 57.58% AMI. The site requires a vapor intrusion mitigation system and county oversight of remediation; staff recommended underwriting exceptions to meet investor requirements. The board approved the motion on a unanimous roll call as Resolution 26‑12.

What the staff said: McFadden told the board that the projects have obtained bond and tax‑credit awards and are approaching CDLAC/TCAC closing deadlines; staff recommended approvals subject to standard CalHFA conditions and noted that several of the items required limited policy exceptions to secure investor commitments and repay deferred developer fees within 15 years.

Board concerns and follow‑up: Directors asked about construction contract status, adaptive reuse and mass timber performance, carbon analyses and inclusionary calculations. Developers and CalHFA staff answered that construction contracts were in negotiation on some projects, prior mass timber projects were close to budget and city regulatory agreements explain the senior recording positions. Directors requested publicly available performance data on prior innovative projects; staff said they would assemble outcomes and lessons for future strategic planning.

Next steps: Staff will return with final loan documents and condition clearances ahead of each project’s CDLAC/TCAC and construction closings; the board’s approvals permit staff to move forward toward those closings.