Community Development Block Grant – Disaster Recovery Multifamily Housing Program (DR-MHP) Round One

The CDBG-DR MHP Round One NOFA provides low-interest loans to eligible entities seeking to develop new construction of affordable multifamily rental housing in the counties of Butte, Fresno, Los Angeles, Napa, Santa Cruz, Shasta, Siskiyou, Solano, and Sonoma to aid in their recovery from the fire disasters that occurred in California in 2020, and in the cities of Malibu, Agoura Hills and Calabasas for their recovery from the 2018 Woolsey Fire. HCD will be the direct lender of these loans. At the time of application for DR-MHP funds, the proposed Project must have demonstrate site control in accordance with UMR §8303 and must not have closed on construction financing or started construction. The project proposal must have been made privy to the local legislative body, or tribal governing body prior to application, and include a letter indicating their approval at the time of application. The proposed Project must tie back to the disaster by increasing the supply of affordable housing units. It must have a minimum of five total units, including Scattered Site Projects, and have a minimum of five Affordable Units or 51 percent of units must be Affordable Units, whichever is greater. CDBG-DR funds are limited to low to moderate income housing units. Proposed Projects may have mixed-income units, but CDBG-DR funds must only be applied to the Affordable Units for occupation by Low- to Moderate- Income Households. At least 10 percent of DR-MHP-assisted Units must be for households not exceeding 30% of the Area Median Income. Eligible Project costs incurred by Sponsors include:• Property acquisition costs;• Architectural, appraisal, engineering, environmental, legal and other consulting costs, and fees, which are directly related to the planning and execution of the Project and which are incurred through third-party contracts;• Escrow, title insurance, recording and other related costs;• Building permits, and state and local fees;• Local development impact fees;• Developer fees, as set forth in the UMR;• Mobilization, site prep, and clean up;• Residential Construction costs; and• Onsite improvements related to the Project. Please see the Policies and Procedures and NOFA documents on HCD's DR-MHP website for a full list of threshold requirements, eligible uses, and ineligible uses.