Affordable Housing Development Program

The document titled “Affordable Housing Development Program Policies & Procedures” serves as a comprehensive guide for the development and management of affordable housing projects funded by the Alameda County Housing and Community Development (HCD) Department. Updated in October 2016, it outlines the policies, financial requirements, and regulatory frameworks necessary for stakeholders involved in affordable housing initiatives. This program is crucial for addressing the pressing need for affordable housing in Alameda County, particularly for low- to moderate-income families.

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Overview of the Affordable Housing Development Program

The Affordable Housing Development Program aims to enhance the availability of affordable housing units through a structured approach that involves various funding sources such as the Federal HOME Investment Partnerships (HOME) Program, the Federal Housing Opportunities for People with HIV/AIDS (HOPWA) Program, and the Federal Community Development Block Grant (CDBG) Program. The document provides essential information about the annual Request for Proposals (RFP) process, which is critical for distributing funding to eligible projects.

Key Objectives

1. Increase Housing Supply: The program seeks to significantly increase the number of affordable housing units.
2. Ensure Quality: It emphasizes maintaining high standards in construction and sustainability.
3. Facilitate Access to Financing: The program aims to improve financing options for developers and potential homeowners.

Financial Plan and Underwriting Requirements

The financial structure of the Affordable Housing Development Program is detailed in this section, which outlines loan terms, underwriting criteria, and budgetary requirements.

Loan Terms

• Interest Rate: The standard loan interest rate is set at 3%, amortized over 59 years.
• Affordability Period: Projects are required to maintain affordability for a minimum of 59 years, with specific terms outlined for HOME and HOPWA projects.
• Residual Receipts Provision: Developers can opt for a residual receipts repayment structure, allowing them to retain a portion of the residual income generated by the property.

Budgeting

The document emphasizes the importance of a comprehensive budgeting process that includes:

• Sources and Uses Budget: A detailed account of all funding sources and expenditures.
• Operating Budget & Cash Flow: Guidelines for managing ongoing operational costs and ensuring financial viability.

Local Policies

The document outlines several local policies that developers must adhere to when applying for funding:

1. Developer Standards: Developers must demonstrate their capacity to manage projects effectively.
2. Market Study Requirements: A thorough market analysis is necessary to justify the need for the proposed project.
3. Green Building Practices: Projects are encouraged to adopt sustainable building practices in line with environmental regulations.

Community Impact and Outreach

Developers are required to provide evidence of community needs and outreach efforts. This includes:

• Demonstrating how projects will positively impact local communities.
• Engaging with community members during the planning stages to ensure their needs are met.

Federal Requirements

Compliance with federal regulations is critical for all projects funded under this program. The document outlines various federal requirements, including:

• Environmental Review: Projects must undergo environmental assessments to identify potential impacts.
• Fair Housing Compliance: Adherence to fair housing laws is mandatory, ensuring equal access to housing opportunities.
• Davis-Bacon Wage Requirements: Contractors must comply with federal wage standards during construction.

Contracting with the County

This section details the procedures for contracting with Alameda County, including:

1. Insurance Requirements: Developers must maintain adequate insurance coverage throughout the project lifecycle.
2. Disbursement of Funds: Clear guidelines are provided on how funds will be disbursed during different project phases.
3. Documentation Requirements: A comprehensive list of required documentation at various stages of project development is included.

Appendices

The document concludes with several appendices that provide additional resources and templates relevant to affordable housing development. These include guidelines for market analysis, applicable housing authority contacts, and standard contract templates.

Conclusion

The “Affordable Housing Development Program Policies & Procedures” document serves as an essential resource for stakeholders involved in affordable housing development in Alameda County. By outlining clear policies, financial requirements, and regulatory frameworks, it aims to facilitate the successful implementation of affordable housing projects that meet community needs. This structured approach not only enhances the availability of affordable units but also ensures that these developments are sustainable and beneficial to local communities. As urbanization continues to challenge housing affordability, programs like this play a vital role in addressing these critical issues effectively.

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