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Committee approves changes to Affordable Housing Trust Fund and NOAH program to broaden financing tools
Summary
CPED staff briefed the committee on modest but significant program changes July 22: allowing local affordable housing aid (LAHA) to capitalize operating deficit reserves for eligible nonprofit projects and adjusting NOAH loan underwriting (single $35,000/unit loan, higher debt coverage and vacancy assumptions, and increased borrower contribution). The committee approved the updates.
The Housing & Zoning Committee on July 22 approved staff‑recommended updates to the Affordable Housing Trust Fund and the city’s NOAH preservation fund that change eligible uses and underwriting terms aimed at improving feasibility for preservation and nonprofit projects.
Carrie Goldberg, Residential Finance at CPED, said the Affordable Housing Trust Fund would be updated so that local affordable housing aid (LAHA) can be used — within the state statute — to capitalize operating‑deficit reserves for eligible nonprofit applicants, without increasing the maximum per‑unit award. She said the change is intended to help nonprofits stabilize projects during construction and lease‑up.
David Mokunza described proposed changes to the NOAH (naturally occurring affordable housing) program that standardize a single loan amount of $35,000 per restricted unit, increase year‑one debt‑coverage requirements to 1.2, assume a 7% vacancy (up from 5%), and require at least 5% borrower contribution (3% developer equity plus 2% personal guarantee). Staff said the adjustments are designed to improve project resilience and extend access to a broader pool of acquisition buyers, including emerging and BIPOC developers.
Goldberg said award caps remain tied to development costs and that projects with coordinated entry restricted units receive bonus scoring. The committee moved both items and voted to approve them.
