Local Housing Trust Fund (LHTF) Program Grant

On May 23, 2022, City Council approved a Resolution(PDF, 255KB) authorizing the Planning and Development Services Department to apply for a $3.4 million 2022 HCD Local Housing Trust Fund (LHTF) program grant. City Council also designated $3.4 million(PDF, 661KB) in local matching funds from the Affordable Housing Fund. Palo Alto was awarded the $3.4 million LHTF program grant on October 11, 2022.  

Of the $6.8 million for LHTF-qualifying affordable housing projects, $3 million was allocated and $3.8 million in LHTF funds remain available.

Palo Alto will direct these LHTF funds toward permanent financing loans for new affordable multi-family residential rental housing projects. To qualify for these funds, these new affordable housing projects must:

  • Use a maximum of 70% of City and LHTF funds toward affordability levels at or below 60% of area median income (AMI),
  • Use a minimum of 30% of City and LHTF funds toward affordability levels at or below 30% AMI, and
  • Establish income and rent restrictions for no less than 55 years.

Affordable Housing Projects Pre-Approved for LHTF Program Grant Funds

City Council pre-approved the following new affordable multi-family residential rental housing projects for LHTF funding:

  • 525 E. Charleston (Eden Housing) ($3 million total - $1.5 million from the 2022 LHTF Program grant award and $1.5 million from the City's LHTF local matching funds)

The City anticipates designating additional affordable housing projects as LHTF-qualifying projects and approving these projects to receive the remaining $3.8 million in LHTF funds.

Want to Learn More?

Contact the Long Range Planning Division for more information on the LHTF grant program, the process for pre-approval for the remaining LHTF funding, and future LHTF funding.

Contact Us: 

Long Range Planning Division
PlanDiv.Info@CityofPaloAlto.org
(650) 329-2442

Back to top