The Housing Department provides "gap financing" in the form of low-interest loans or conditional grants to experienced developers of affordable housing projects in order to meet the tremendous need for affordable housing in the City of San José. All loans are underwritten to the guidelines established in the Department's Multifamily Underwriting Guidelines. In addition, a two-page summary has been created that provides condensed information about the guidelines. As consideration for such financing, the City requires the recording of an affordability covenant that ensures the project typically remains affordable to lower-income tenants for 55-99 years.
Affordable Housing Investment Plan
The City Council's Community and Economic Development Committee approved the Department's Affordable Housing Investment Plan on May 22, 2017. The Plan will be heard by the full City Council in June 2017.
NOFA Funding Update - Gap financing for new construction of affordable housing: