Funding Information
Periodically the Office of Housing publishes funding availability through Notice of Funding Availability (NOFA) and Requests for Proposals (RFP) for affordable homeownership development. The information below describes how the announcements are made and the amount per unit that may be available.
How are resources for developing resale-restricted homes made available?
Resources may come in the form of either funding or a combination of land and funding. OH typically publishes one or two Notices of Funding Available (NOFAs) each year for organizations to submit applications for funding as outlined in the notice. When land is available as well as funding, OH typically publishes a Request for Proposals (RFP). Both NOFAs and RFPs are similar to grant applications, except that the resources must be used to develop resale-restricted homes in accordance with the specific stipulations in the NOFA or RFP as well as the Housing Funding Policies.
NOFA and RFP responses are usually due eight weeks after the NOFA or RFP is released, so it is advisable to begin preparing prior to release.
How much funding is available per unit, and at what point in the development process can developers access funding awarded by OH?
The maximum amount of funds available per unit is stipulated in OH’s Housing Funding Policies. Currently, the maximum funding amounts are $100,000 for one or two-bedroom homes and $130,000 for homes with three or more bedrooms. These amounts may be adjusted in 2024 when updated Housing Funding Policies are released. However, other sources of public or private funding, including a construction loan or a significant cash contribution from the developer, will be needed to cover project costs.
Projects selected for funding through a NOFA or RFP process may begin drawing funds when their loans close, - typically not prior to building permit issuance - which can take months or even a year or more after funds are awarded. Developers need other funding sources or their own funds to pay for predevelopment costs incurred prior to closing, such as land acquisition and carrying costs, hiring an architect and permitting fees.
How do community members or potential developers know when resources are made available?
The publication of NOFAs and RFPs is announced in the Daily Journal of Commerce, published on OH’s website, and announced in our electronic newsletter. We also attempt to announce upcoming NOFAs and RFPs at the Housing Development Consortium’s monthly Affordable Homeownership Affinity Group meetings. Attending these meetings can be a good way to learn from established developers of affordable homes and learn more about the homeownership development field more broadly. Contact the Housing Development Consortium to become a member and be added to the meeting invitation.