HDFC lays out timeline for single consolidated application and unified compliance monitoring

HDFC staff presented recommendations for a consolidated, single‑application process and aligned compliance monitoring intended to streamline state multifamily housing finance and reduce post‑award friction.

Katherine McFadden, director of multifamily programs at CalHFA, described the consolidated application as ‘‘one application, one award’’ that would coordinate subsidy, bonds and tax credits through unified HDFC guidelines and a single portal. She listed programs intended to be included in the consolidation effort — MHP, Joe Serna Farmworker Housing Grant, IIG, veterans housing and homeless prevention, TOD housing, Housing for a Healthy California, CalHFA mixed‑income subsidy components, AHC, PLHA Competitive, HOME, National Housing Trust Fund and CDBG‑DR — and stressed that coordinated awards aim to move projects from award to readiness milestones without sequential delays.

McFadden said the governor’s budget proposal would set aside 50% of the annual state private activity bond cap for HDFC projects receiving subsidy, creating a dedicated pathway while preserving the remaining 50% for non‑HDFC projects. The implementation timeline staff presented included initial draft guidelines in July, a coordinated review framework by September, a pilot portal in November, and adoption of final guidelines and the 2027 timeline in December. Staff anticipate issuing a 2027 NOFA in January with application rounds and awards beginning in August 2027.

Megan Kirkeby, chief deputy director at HCD, summarized progress on aligned compliance monitoring since January 2025, including efforts toward single lead property inspections, unified forms for reserve draws and ownership changes, and the February launch of the California Housing Management System to improve transparency. She said portal development will expand to support post‑award compliance, construction monitoring and lifecycle project tracking, with an aim to centralize compliance monitoring for HDFC projects in 2028.

Committee members pressed staff on how AB‑519 (single application recommendations) and AB‑2006 (compliance alignment) map to the proposed HDFC guidelines. Staff responded that the HDFC guidelines will operationalize AB‑519 working‑group recommendations while recognizing statutory and regulatory differences across funding sources, and that AB‑2006 work and the portal will ease post‑award reporting and monitoring over time.

Developers and stakeholders urged inclusions and technical assistance. Joey Shields of LINC Housing Corporation commended the one‑stop approach but requested that REAP 2.0 and non‑competitive PLHA formula funds be considered eligible to pair with HDFC bond allocations to expand viable projects and regional equity. Staff emphasized iterative stakeholder engagement, two rounds of draft guidelines with public comment, and technical assistance and consulting support to onboard sponsors and reduce change‑management friction.

Staff characterized the timeline as ambitious but achievable with continued interagency coordination and stakeholder input; committee members identified underwriting and closing process improvements, construction lending, data‑driven targeting of extremely low‑income and homelessness priorities, and cost‑reduction innovations (including prefabrication) as near‑term priorities for future agendas.

Staff will return with draft guidelines and portal materials for public review and with further recommendations on program eligibility and technical assistance.