Affordable Housing Fund
The Affordable Housing Fund is Palo Alto's local housing trust fund established by City Council to provide financial assistance for the development of affordable housing supporting very low, low and moderate-income households that live or work in Palo Alto.
Affordable Housing Funds: 2024 Notice of Funding Availability (NOFA)
Providing housing for all income levels is a focus for all Bay Area cities, including Palo Alto. Palo Alto has long been a leader in the production of affordable housing and currently has the second highest inventory of affordable housing for incorporated jurisdictions within Santa Clara County (as a percentage of total housing stock). Since 2017, Palo Alto has contributed or pledged over $52 million towards affordable housing, including advancing affordable housing projects such as Mitchell Park Place, Wilton Court, Buena Vista Mobile Home Park, and Homekey Palo Alto.
To further the City's work on housing, Palo Alto City Council adopted Housing for Social and Economic Balance as a 2023 and 2024 Council priority, and endorsed the State certified Housing Element to help guide future housing production and housing-related programs and policies. The City continues to make progress on this important priority through a variety of methods.
Building on these priorities and policies, the City of Palo Alto is pleased to announce the release of a Notice of Funding Availability (NOFA) for Affordable Housing projects. Approximately $5 million in local and state-awarded funds is available to support a range of affordable housing developments. This funding opportunity is designed to help developers and property owners bridge the financing gap for projects that meet the City's housing affordability goals.
The NOFA is open to qualified developers and property owners proposing eligible affordable housing projects, such as new construction, rehabilitation, preservation, or conversion of affordable housing units. Priority will be given to projects that serve extremely low, very low, and low-income households. While rental and owner units may be assisted, in practice all units assisted so far have been rental units and almost all have been affordable to very low or low-income households.
To date, the housing projects assisted by the City have been developed, owned and managed by local non-profit housing organizations. Many housing types have been developed serving different housing needs. Examples include senior apartments, single-room-occupancy units, family apartments, units for persons with disabilities, studio units and large family units.
To apply, download the full NOFA document below, which contains detailed information on project eligibility, application requirements, and evaluation criteria.
Important Dates
- Pre-Application and Informational Meeting: Wednesday, October 9, 2024, Recording available here.
- Application Deadline: Monday, October 28, 2024, at 5 p.m.
City Response to Questions
The City has received questions regarding the 2024 Notice of Funding Availability (NOFA), and wants to ensure that all interested parties have access to the responses:
1. Will the City consider extending the NOFA deadline to provide additional time for applicants to submit responses?
The City will not be extending the NOFA deadline. Applicants are encouraged to submit their proposals by the deadline stated in the NOFA to ensure a fair and consistent process for all. We appreciate the interest and participation in this funding opportunity.
2. Can the City waive the requirement for submitting an appraisal for rehabilitation projects that already have existing affordability covenants?
The City encourages all applicants to submit as complete an application as possible, including the required documentation outlined in the NOFA. However, as noted in the NOFA, the City reserves the right to request additional information after submission or to waive any irregularities in submittal requirements. All applicants are welcome to apply, and the City is committed to reviewing each submission holistically where appropriate.
3. How much of the available funding is tied to HCD Local Housing Trust Fund (LHTF) requirements, and what are those requirements?
Approximately $3.5 million of the available funding is restricted to uses permitted under the HCD Local Housing Trust Fund (LHTF) guidelines. These funds must be allocated to the development of new affordable multifamily residential rental housing projects that meet LHTF program criteria. Specifically, up to 70% of the total award must be used to create housing units for residents with incomes at or below 60% of the area median income (AMI), and at least 30% of the total award must target housing units for residents with incomes at or below 30% AMI.
Download the NOFA Documents Below
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