HOME Affordable Rental Production Program
HOME Investment Partnership Program 2021 RFA - NOW OPEN!
Orange County’s Office of Community Development announces its FY-2021 Request for Applications (RFA) for the Development of Affordable Rental Housing and Homeownership Projects under the HOME Investment Partnerships Program. Applications are due no later than 4:00 pm on Friday, June 12, 2020. See the complete RFA at the link below for details:
The purpose of the Program is to assist the development of affordable rental housing in Orange County, at least a portion of which is to be occupied by individuals and families earning no more than 60% Department of Housing and Urban Development. The Program will provide loans to for-profit and not-for-profit builders under the Federal HOME Investment Partnerships Program (the HOME Program) established pursuant to the National Affordable Housing Act.
Request For Proposals are issued periodically and projects will be selected for the Program by OCD after a review of all information submitted by applicants and a rating and ranking of all proposals pursuant to the Project Selection Criteria specified herein.
Setting Rent Prices
Each HOME-assisted affordable rental housing project consisting of 5 or more rental dwelling units must have at least 20% of the HOME assisted units occupied by families whose annual incomes do not exceed 50% of the area median family income. In conformance with the above occupancy requirements, rents of HOME assisted units are set at 30% of 65% of median income and 30% of 50% of median income, however, the HOME rents can never be more than the HUD fair market rent (FMR).
Time Requirements for Assisted Units
Mixed income project may contain units that are not HOME - assisted and such units are not subject HOME rental restrictions. However, if some units in a project are HOME assisted, each building in the project must contain HOME assisted units. HOME assisted units must remain affordable, pursuant to deed restrictions, for a minimum of 20 years in the case of new construction projects, and, in the case of rehabilitation, 5 to 30 years.
Please note that the above are minimum periods of affordability, which may change on a project-by-project basis. The HOME Program rents include the local HUD-approved utility allowances. If tenants pay utilities, these must be subtracted from the HOME rents to determine the actual amounts that may be charged to tenants.
New Construction & Rehabilitation Projects
New construction and rehabilitation projects are eligible under the Program. Rehabilitation of projects that are substantially occupied are discouraged, unless such units are in imminent danger of becoming uninhabitable. In such cases, the relocation and displacement plan must meet HUD’s requirements, pursuant to the federal Housing Relocation Act.