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CRA approves small-scale affordable rental pilot to expand housing options; RFQ for financial partners authorized
Summary
The CRA approved a pilot program to support small-scale rental development (up to 10 units) with two funding tracks (legacy owners: up to $100,000/unit for up to two units; non-legacy: up to $75,000/unit capped at $550,000) and authorized publishing an RFQ to procure financial-institution partners to administer underwriting and compliance.
The Community Redevelopment Agency approved a policy framework for an Affordable Housing Small-Scale Rental Development Pilot Program and authorized staff to publish a request for qualifications (RFQ) to select financial institutions to help underwrite, structure and service loans and compliance for the program.
Staff said the program seeks to fill a gap for small developers and property owners who need flexible financing for projects that create long-term affordable rental units. The program contains two funding tracks: a legacy track for property owners with a documented 15-year connection to the property (who may qualify for up to $100,000 per unit for up to two units with an AMI cap of 120% for legacy applicants), and a non-legacy track that provides up to $75,000 per unit up to a $550,000 cap. Staff emphasized the program focuses on households at or below 80% AMI for affordability requirements, though legacy funding has additional eligibility criteria.
The board discussed program design and oversight; members said they will watch market interest and the response from financial institutions closely to ensure funds are deployable and not locked in projects that cannot move forward. Staff noted the program had been budgeted in FY25 and will be brought back with procurement results and bank partners to finalize guidelines and compliance mechanisms.
The CRA voted to approve the policy framework and to publish the RFQ; staff will return with recommended financial partners and final program guidelines for board approval.
